Legislative effort gains momentum in wake of "EPIC City" revelations
A major political battle is unfolding in Texas over foreign land ownership as the state legislature moves to enact strict regulations against purchases by foreign entities. With concerns heightened by recent reports surrounding the controversial “EPIC City” project, the Texas House has taken up House Bill 17 (HB 17), a measure designed to criminalize unauthorized real estate transactions by individuals and entities linked to specific foreign nations.
HB 17, authored by Rep. Cole Hefner (R-Mt. Pleasant), aims to prohibit land ownership by individuals and businesses tied to China, Iran, North Korea, and Russia, along with any other country designated by the Texas governor. This initiative, Hefner argues, is essential to protect state sovereignty and national security.
“House Bill 17 is to prohibit hostile foreign actors, who intend to do us harm, from owning land in our great state,” Hefner stated during the hearing.
The bill was laid out before the House Homeland Security, Public Safety & Veterans' Affairs Committee, where a committee substitute was introduced, refining several aspects of the legislation. The new version mandates that restricted countries must appear on at least one of the three most recent U.S. Director of National Intelligence Annual Threat Assessment reports. Additionally, the governor will only have the power to add to this list, not remove countries identified at the federal level.
Stronger Safeguards and Legal Definitions
The updated bill offers several key clarifications:
Exemptions for Lawful Permanent Residents: The bill includes a carveout for individuals who hold lawful permanent resident (LPR) status in Texas, ensuring they can still acquire property.
Business Entity Exemptions: Companies owned solely by lawful permanent residents from non-prohibited nations are also exempt.
Geographic Restrictions: The legislation includes distance limitations, barring even exempt residents from purchasing land within 10 miles of critical infrastructure or the U.S. border.
Clearer Definitions: Legal terms such as "domicile," "real property," "critical infrastructure facility," and "agricultural land" have been more precisely defined in the committee substitute, aligning with existing Texas codes.
Enforcement and Legal Consequences
The Office of the Attorney General will oversee investigations and enforcement. The bill grants the Attorney General discovery powers during investigations and requires the Secretary of State to assist in gathering relevant records. If a violation is confirmed, the state will force divestiture of the property.
Individuals found to have knowingly or intentionally purchased property in violation of the law will face criminal penalties, including fines and possible jail time.
Hefner assured lawmakers that HB 17 has been carefully crafted to withstand constitutional challenges, emphasizing that the committee substitute includes due process protections for individuals accused of violating the legislation.
Public Debate: Security vs. Discrimination?
The hearing drew passionate testimony from both supporters and opponents. Critics voiced concerns that the bill could fuel discrimination, hurt economic development, and alienate immigrant communities. Some called it a disgrace that would foster fear and division.
On the other side, supporters argued that foreign land purchases pose serious national security risks, particularly when entities from adversarial nations acquire property near military bases, power plants, or agricultural hubs.
“We have to consider the long-term benefits of this bill,” one witness testified. “It’s crucial to safeguard our land from potential threats.”
Comparison with Senate Bill 17
HB 17 is not identical to its Senate counterpart, Senate Bill 17 (SB 17), which was introduced by Sen. Lois Kolkhorst (R-Brenham). While both bills target foreign land acquisitions, they differ in scope and specific provisions.
Hefner acknowledged these differences but emphasized that his team is coordinating with the Senate to refine the legislation.
“We are attempting to file the strongest bill possible to achieve the purpose that we're after here,” he stated. “We have to make a stronger piece of legislation.”
What’s Next?
The bill is still under committee review, and its final form remains uncertain. Lawmakers must reconcile differences between the House and Senate versions before it can move forward.
As Texas grapples with the balance between security, economic interests, and constitutional rights, the debate over foreign land ownership is unlikely to fade anytime soon.
At the close of the hearing, Hefner doubled down on his stance:
“This is a critical moment for our state,” he declared. “I’m committed to leading the fight to ensure Texas remains free, secure, and sovereign.”
