The Senate Committee on State Affairs met to take up SB 372 (Huffman), SB 728 (Huffman), SB 147 (Kolkhorst), and SB 711 (Perry). A video archive of the hearing can be found here.

This report is intended to give you an overview and highlight the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

CSSB 372 (Huffman) Relating to creating a criminal offense for the unauthorized disclosure of non-public judicial opinions and judicial work product.

  • Huffman – Came from leak of Supreme Court Dobbs decision; in 2022 TJC adopted resolution to ask legislature to make distributing draft opinions a criminal offense
  • Bill requires those with access other than justice or judge to maintain confidentiality, establishes carinal offense
  • CS removes potential concern with prosecutors or defense attorneys filing info with court under seal

 

CSSB 372 voted out to Local & Uncontested (7-0)

 

CSSB 728 (Huffman) Relating to the reporting of mental health and intellectual disability information with respect to certain children for purposes of a federal firearm background check.

  • Huffman – Requires clerks to report to DPS about juveniles age 16+ found unfit to proceed, found not responsible, receiving court-ordered mental health services, or admitted to a residential care facility due to intellectual disability or mental illness in a delinquency proceeding

 

Lauren Gambill, Pediatrician Texas Medical Association, Texas Pediatric Society

  • In TX, have Dr.’s on both sides of gun debate, but united in desire to end gun deaths
  • Heart of bill ensures FBI & NICS are appropriately notified

 

CSSB 728 voted out to Local & Uncontested (7-0)

 

CSSB 147 (Kolkhorst) Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.

  • Kolkhorst – Constituents had concerns of land being bought, e.g. 100k acres in Val Verde County
  • SB 2116 last session prohibited China, Iran, North Korea, Russia from connecting into Texas critical infrastructure
  • Heard of plant in Austin County that is now owned by Chinese entity, other reports from ranchers & farmers
  • All four named countries infringe on property rights, Americans are not allowed to buy land in these countries & can only buy residences in specific regions in Russia
  • Texas is at the top of chart for Chinese agricultural and holdings by state; China has been increasing acquisitions of agriculture holdings abroad, focus of farmland is shifting from production to business acquisition per FDA
  • Texas is not the only state doing this, 23 others have enacted or are pursuing measures
  • CS applies to all land, incl. mineral, timber, etc.
  • CS also makes clear it does not apply to citizens, lawful residents, or dual citizens; exempts residence homestead
  • Under CS majority control is 50% or more of voting control, specifies AG has authority to investigate and bring divestment proceedings
  • Polling results show citizens understand; not doing this for Gov. DeSantis, Florida has its own problems; Gov. Younkin rejected plant due to Ford choosing Chinese company to partner on batteries; made aware of former Chinese military official buying 140k acres near Laughlin, etc.
  • Chair Creighton – You’ve shared CS with stakeholders, you weren’t required to
    • Kolkhorst – Yes, met with business owners, etc., took input & added homestead exemption
    • Canada has now put moratorium on home purchases for non-citizens or residents because of impact of foreign purchases on housing market
    • Also heard requests to add BlackRock to the bill
    • Bill has purpose much the same as SB 2116
  • Bettencourt – AG investigation that can lead to receivership? Needs to be some vehicle to investigate, but question is if it is before or after purchase
    • Kolkhorst – Mechanism is retrospective, can work on making it prospective; especially important when it comes to minerals
    • Wanted to make it clear that TX is not interested in selling valuable resource rights
  • Bettencourt – Listed countries do not share values, property rights are paramount; very important to look at mechanisms to preserve this
    • Kolkhorst – Want to be exporting products, not be in a situation where other countries are owning the land and sending resources out of country
    • Anyone would be concerned if Russian Oligarch bought 140k acres next to a military base
  • Bettencourt – Have a bill coming on that as well
  • Zaffirini – would Americans in those 4 countries be treated the same way as citizens of those 4 countries under this bill?
    • Kolkhorst – Americans cannot buy land in those countries aside from specific situation in Russia
  • Zaffirini – Reciprocity is important
    • Kolkhorst – Some countries have reciprocity agreements that disallow land sales if the other country does
    • Only Russia allows you to buy a house with permission in a certain region
  • Zaffirini – We can look into that a little further?
    • Kolkhorst – Yes
    • SB 147 does not stop anyone from leasing land
  • Zaffirini – 80 witnesses registered, you also mentioned some feedback you received; addressed in the CS?
    • Kolkhorst – Yes, have taken feedback and received positive response
  • Zaffirini – Do those who registered for the bill have access to the CS?
    • Kolkhorst – Not sure it is uploaded yet
    • Chair Creighton – No way to officially post until it is adopted by the committee
    • Kolkhorst – Put out info on media about what is in the CS
  • Zaffirini – Can you share those poll results?
    • Kolkhorst – Cannot, signed an agreement because it is not our poll; TX understand & are very supportive
  • Middleton – Seems like intent is to address hostile foreign nations gaining interest in real property in TX; Congressional hearings had evidence that CCP is manipulating investments; bill does not impact asylum seekers, right?
    • Kolkhorst – Correct
  • Middleton – No reason for hostile foreign nation to secure rights on part of those fleeing; not discouraging asylum, discouraging countries with bad intent from owning real property; would like to hear from those who don’t believe China, Russia, Iran, & North Korea mean harm
    • Kolkhorst – Other bills being proposed across the US
    • Congress in 2022 considered measures to have USDA take action to prohibit ownership of agricultural land from these four countries
    • Highlights importance of safeguarding rare earth materials in Texas
    • National security bill, not a racist bill
  • LaMantia – Asylum seekers would be barred from buying property during waiting period?
    • Kolkhorst – Not really, they could buy property and homestead it
  • LaMantia – Would bar them from owning a restaurant?
    • Kolkhorst – For that period of time, have a vetting process in place
    • Does not prohibit someone from leasing property to start a business
  • LaMantia – Why not limit the bill to the areas of agriculture, minerals, and timber?
    • Kolkhorst – Didn’t limit due to national security interest
  • LaMantia – Any effect on countries wanting to open a consulate offices?
    • Kolkhorst – Don’t think so, Houston consulate office was closed because of a spying operation

 

SB 711 (Perry) Relating to the purchase of or other acquisition of title to real property by prohibited foreign actors.

  • Perry – SB 711 addresses foreign ownership by hostile foreign actors
  • Long history of governments trampling individual rights, highlights essential services bills, vaccine mandates, Waters of the United States, etc.
  • CCP ownership is a concern, not sure sellers were aware in the 140k acre deal
  • SB 711 requires designated countries to provide written to seller that they are a designated country; designated countries are those that pose a risk to the national security of the United States as assessed by Annual Threat Assessment
  • CS changes name of prohibited foreign actor to designated country to align with federal regulation; establishes criminal offense for false statements
  • Should not restrict inalienable right to transfer wealth, gives ability to seller to deny transaction
  • LaMantia – Bill allows immediate revocation of promise to sell, any time specification?
    • Once you get notice, have 10 days to pull promise due to 10 days for notice

 

Spotlight on Public Testimony

139 witnesses registered to testify on SB 147 and SB 711. Below is a spotlight on witness testimony

 

Bob Fu, Self – For SB 147

  • SB 147 has nothing to do with race or nationality
  • Shares experience of coming to the US as a refugee, CCP is imprisoning Christians, committing genocide against Uighurs
  • CCP has become the #1 threat to US way of life, cannot allow CCP to own property in the US

 

Christopher Holton, Center for Security Policy – For SB 147

  • Russia, China, North Korea, and Iran are listed as adversaries under federal law, have taken action to damage US interests
  • Land acquisition is part of China’s warfare strategy, threatens food security; national security depends on ability to protect land and military installations
  • Not a Chinese citizen exclusion bill, is a CCP exclusion bill

 

Ben Shi, Self – For SB 147

  • Don’t see how SB 147 will negatively impact himself or family, will be able to live more peacefully in the US; planning to purchase and build home in TX

 

Shian Hsu, Self – Against SB 147

  • First came to Texas in 2002, resided in Texas since then; SB 147 is against the 14th amendment, Constitution prohibits discrimination against protected classes, incl. race
  • Similar to previous Chinese exclusion act
  • Perry – Notes that Senate passed bill last session to prohibit close location to strategic military assets

 

Cooper Little, Independent Cattlemen’s Association of Texas – For SB 147

  • Necessary bill to protect US agricultural industry; food & energy are two of the primary tools used in foreign relations, allowing foreign purchases erodes this
  • Private property rights should be kept in mind, but not at expense of security interests

 

Charles Maley, South Texas Property Rights Association – For SB 147

  • Holding property is an inalienable right of US citizens, privilege extended to others; don’t want to dilute the rights
  • Would like to have leases incorporated into bill

 

Matt Coday, Oil & Gas Workers Association – For SB 147

  • Have learned what a threat the CCP is to the O&Gindustry and to the safety of the state
  • Know the committee substitute will alleviate concern of those who oppose

 

Hailong Jin, Dallas Fort Worth Chinese Alliance Against SB 147

  • Are historic policies that have discriminated against Chinese citizens; this bill is no different

 

Jamila English, ENGAGE Against SB 147

  • Denying the right of property ownership is wrong
  • Committee substitute is a good first start; is still a lot of work to be done

 

Zing Ganchen, Self Against SB 147

  • Bill unfairly targets Chinese citizens; passage of this bill would give official right to discriminate against the Asian community
  • Is unfair that there are only two minutes to speak on this bill; everyone’s voice needs to be heard
  • Peace and harmony is what will bring people to this state; this bill is not the way

 

Peter Lai, Self – Against SB 147

  • Discriminatory bill, eliminates basic rights; Chinese H1 holders can’t own property under bill, but Canadian & other citizens can

 

William White, Council on American Islamic Relations – Against SB 147

  • Understand the threat, but also understand Texas Constitution says equality under the law shall not be denied based on national origin

 

June Hsu, Self – Against SB 147

  • Able to succeed due to living in the US, SB 147 is unconstitutional & discriminatory

 

Steve Scurlock, Independent Bankers Association of TX – On SB 147

  • Not quite there but making progress on the bill & the issue
  • OFAC administers and enforces economic & trade sanctions, maintains a list of targeted countries, entities, and persons; banks are required to check new customers against this list, also charged with scanning existing customer base
  • Bettencourt – Public needs to be aware that this is happening

 

Susana Carranza, Self – Against SB 147 & SB 711

  • Unless you are 100% Native American, ancestors were immigrants
  • Committee was scheduled with very short notice, not enough time to schedule language interpreters which is particularly bad for hearing on this bill
  • People will see these bills as a greenlight for Asian discrimination

 

Steve Strife, Texas Land Title Association – Against SB 147 & On SB 711

  • Against SB 147 as originally drafted, looking at the CS; Sen. Kolkhorst’s office has been very helpful
  • Only comment on SB 711 is if there will be some sort of penalty for failure to provide notice

 

Dr. Helen Shih, United Chinese Americans – Against SB 147

  • Bills discriminate against individuals based on their origin; community is hurt by these bills
  • Implication of the reporting parts both bills are problematic as it relates to anti-Asian sentiments

 

Oliver Bhan, Self – Against SB 147

  • Feel these bills are a waste of tax dollars; are a number of federal agencies that scrutinize national security
  • Need to devote energy to other issues like electricity

 

Fang Fang, Self – Against SB 147

  • Former CEO Austin Chamber of Commerce
  • Bills go against values of free markets and individualism
  • These policies are not common elsewhere; sends the wrong message as China is an economic partner of this state

 

Shelly Stallings, Self – Against SB 147 & SB 711

  • Moved to TX to build family
  • Bill clearly violates equal protection provisions of the Constitution

 

Jerry Nakamura, Japanese American Citizens League – Against SB 147 & SB 711

  • Targets entire population and labels them as potentially spies or agents, unjust & xenophobic

 

Chris Russo, Texans for Strong Borders – For SB 147

  • Idea of strong borders includes protection of resources, should extend prohibitions generally, or at least to illegal immigrants, nations with cartels, etc.

 

Martha Wong, Self – Against SB 147

  • Former Rep. HD 134
  • Unintended consequences of the bill is discrimination against Asians; still have time to work on bill to fix issues with nation language

 

Scott Norman, Texas Association of Builders – Against SB 147

  • Appreciates Sen. Kolkhorst’s work with TAB and other on changes in the CS, bill has been improved
  • Unintended consequences for housing, people here on other visas that have right to be in the US and work, but would be prohibited from owning or investing in housing

 

CSSB 147 & SB 711 left pending