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Committee hears bill to bar certain foreign parties — including some China‑linked entities — from owning West Virginia real estate

2952864 · April 9, 2025
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Summary

A Senate committee heard House Bill 2691, a measure that would bar designated foreign parties — explicitly including certain categories linked to the People’s Republic of China and other entities the state designates as hostile — from owning West Virginia real estate and would compel divestment within six months.

House Bill 2691, as presented in a strike‑and‑insert form, would prohibit certain foreign parties from holding or transferring real property and mineral rights in West Virginia. Counsel told the committee the bill specifically names citizens or residents of the People’s Republic of China, the government of the People’s Republic of China and entities organized under foreign law that are significantly owned or controlled by such actors. The package would also allow the governor, the West Virginia Secretary of Homeland Security, the Secretary of State and the Attorney General to identify additional foreign governments or entities as prohibited if they determine the parties are hostile to the interests of the United States or West Virginia.

Under the bill, a prohibited foreign party that owns an interest in real estate as of the bill’s effective date would have six months to divest. If a prohibited party fails to divest, the Attorney General would be required to file civil action in the circuit court where the real estate is located; the circuit court could order a judicial sale of the property by a process to be overseen by that court, and proceeds would be distributed to lienholders by priority. Counsel said the strike‑and‑insert cleans up prior language that had required consultation among state officers and clarified that any of the named state officials may make the determination that places a party on the prohibited list.

Delegate Ridenour, the bill’s sponsor in the House, told the committee he does not intend the measure to apply to Taiwan and said the bill was structured to allow West Virginia officials to make determinations about which foreign governments or entities are hostile to state interests. Committee members asked clarifying questions about definitions, what constitutes substantial control or cooperation, how the prohibited list would be set, and whether the bill would apply to joint ventures or indirect ownership. Counsel and the sponsor clarified that the bill targets ownership of real property — not business transactions — and that a finding could extend to entities organized in other countries if significant interest or control is held, directly or indirectly, by a prohibited party.

Senators also asked about the sale process if the Attorney General seeks divestiture and about safeguards to avoid misuse of the identification authority; the sponsor said the intent was to identify sovereign adversaries or entities acting on behalf of hostile governments rather than single companies, and committee members discussed adding clarifying language (for example, to explicitly exclude Taiwan, which a senator suggested be reinserted). No committee vote on the bill was recorded during the hearing.