Analysis of SB103 & SB307

Both SB103 and SB307 Prohibits Real Estate Ownership based on Nation of Origin.

  • SB103 prohibits the ownership of property by individuals based on nation of origin – it is overbroad, and would cause significant negative impact to real estate transactions and trade.
  • SB307 relies on the ATA report but misinterprets it.
    • The Annual Threat Assessment ATA report does not label any country as a national security risk, nor does it recommend banning property purchases. And the report has not been updated since 2023.
    • The report’s assessment could change, making any law inconsistent and unreliable over time.

Harm to Texas Economy & Business Climate

  • Prohibiting property ownership would negatively impact real estate transactions and market, both commercial and residential.
  • These bills impact Texas’ major trading partner(s), with tens of billions in trade annually. (For example: mainland China is Texas’ 3 rd largest trading partner; with Texas exporting $26.467 billion to same in 2024.)
  • Restricting property purchases could discourage investment into the state, leading to losses of business opportunities, and business relocation to other states. It could also adversely impact the jobs market.
  • Texas should remain open for business, rather than imposing unnecessary restrictions.
  • The bills discriminate based on national origin, violating federal and state laws such as:
    • 14th Amendment (Equal Protection Clause)
    • Texas Constitution, Article 1, Section 3a (Prohibits discrimination based on national origin)
    • Fair Housing Act (Prohibits discrimination in housing)
    • WTO Agreements (Potential violation of international trade laws)

Unfair Association Between Individuals and Governments

  • The bills would punish individuals for the actions of their home country’s government, which is unjust and unrelated to national security.
  • This is comparable to historical injustices like Japanese internment during WWII.

Unclear Definitions and Practical Challenges

  • Situations like inheritance, foreclosure, or collateral property ownership by foreign nationals remain unresolved.
  • The proposed “forced sale” mechanism for violations could result in financial losses and legal disputes.

Broad Discriminatory Implications

  • Targeting specific countries indirectly affects all Asian Americans, fostering discrimination and xenophobia.
  • Compliance with the requirements of these bills/laws lead to delays and uncertainties, further increasing costs and time of transactions unnecessarily.
  • The bills equate immigrants as potential foreign threats, creating social and legal issues.

Lessons from History

  • Texas had alien land laws back in in the 19-20 th century that restricted land ownership, but was abolished by the state legislature in 1965, “… on the grounds that they imposed ‘unreasonable and discriminatory restrictions’ on alien ownership and militated against efforts by the state to entice foreign investment and stimulate economic development and industrial growth.” We should learn from our own history.

Facts about Real Property

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Facts about Higher Education

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Facts about Company

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