SB 17 was proposed earlier this year and signed into law on 20 June by Governor Greg Abbott, who called it the “toughest ban in America” to keep away foreign “adversaries”.
It prohibits certain individuals and organisations of countries designated as national security threats from acquiring property in Texas – including homes, commercial space and agricultural land. It also restricts the length of time for which they can rent property to less than one year.
China is the first country named in the legislation, which accuses Beijing of using “coercive, subversive, and malignant influence activities to weaken the United States” in its bid to surpass the US economically, militarily and politically.
Those who violate the law could face fines of more than $250,000 (£193,000) or jail terms.
US citizens and green card holders are exempt, and valid visa-holders will still be allowed to own one primary residence. But opponents say regardless of the carve-outs, the bill is discriminatory in nature, and anyone deemed to look Chinese could be subject to unfair scrutiny.
In July, the Chinese American Legal Defense Alliance (Calda), a non-profit organisation, filed a lawsuit on behalf of three visa-holders from China, arguing that the law was unconstitutional.
The judge later dismissed the case, siding with the state attorney general who said the plaintiffs – who are student-visa and work-visa holders living in Texas – would not be personally affected by the law.
It therefore appears that the three plaintiffs are spared for now. But, for the wider group of visa-holders from the four countries, the lack of clear interpretation of the legal clauses still stokes uncertainty. Calda says it has filed an appeal.