The Texas House has passed a bill allowing the governor to restrict property sales to residents, governments, and entities from countries they deem a threat. This authority was granted through an amendment to Senate Bill 17, which initially limited such restrictions to countries designated as national security threats by the U.S. national director of intelligence (currently China, Iran, North Korea, and Russia).

State Representative Nate Schatzline, a Republican from Fort Worth, sponsored the amendment, arguing it would enable quicker responses to potential threats to Texas. He stated this would allow the governor to act without waiting for federal designation.

Democrats opposed the amendment, with Representative Gene Wu, chair of the House Democratic Caucus, calling it a “dangerous” overreach granting “unfettered power” to the governor without oversight.

Schatzline’s amendment also permits the governor to include “transnational criminal organizations” on the list, citing the Venezuelan gang Tren de Aragua as an example.

Representative Cole Hefner, the Republican from Mt. Pleasant who presented SB 17 in the House, described the bill as a measure to protect Texas land and resources from adversarial nations and oppressive regimes.

Democrats voiced concerns that the bill could lead to discrimination against Asian Americans.

The bill will return to the Senate for approval of the House amendments before potentially being sent to the governor. Key House amendments include limiting a property lease exemption to one year or less (down from the Senate’s proposed 100 years, which Rep. Mitch Little called a “loophole”) and exempting lawful permanent residents.

Several Democratic amendments, including exemptions for visa holders like students, researchers, performers, and athletes, and a proposal for more detailed complaint and investigation procedures, failed.

SB 17 is Senator Lois Kolkhorst, a Republican from Brenham’s second attempt at such legislation, with a similar bill failing in the House in 2023. She described the bill as crucial for protecting Texas’ assets from “hostile nations” and a matter of “national security.”

The passage of the bill was aided by the election of more conservative House members. If enacted, it would take effect on September 1 and apply only to purchases or acquisitions after that date.

The bill mandates the attorney general’s office to establish an investigation process, with violations potentially leading to court orders for property divestment and referral for criminal charges.

While detailed tracking of foreign-owned Texas property is limited (except for agricultural land), a constitutional law professor noted that it is likely a small percentage. The Texas Republican Party, however, considers even 1% too much.

Representative Angie Chen Button, a Chinese American and supporter of the bill, stated it aims to protect “freedom, liberty and national security.”

Some Asian Texans, represented by groups like Asian Texans for Justice, worry the bill could foster animosity and racial profiling, despite its focus on permanent residence rather than national origin. Representative Wu also expressed concern about the broader impact on Asian communities in Texas due to a lack of public distinction between nationalities.

Asian Texans for Justice emphasized that individuals should not be held responsible for their government’s actions. The bill has motivated greater civic engagement within the Asian Texan community.

Wu anticipates the bill could negatively impact the Republican Party in future elections by alienating Asian American voters.