Senate committee amends and advances bill restricting certain foreign ownership of West Virginia real estate

The Senate committee advanced House Bill 2961 on a voice vote after adopting several amendments that changed who can designate a foreign government entity or individual as hostile and how proceeds from forced sales of covered property would be distributed.

The bill concerns foreign ownership of real estate and mineral interests; committee counsel summarized the measure as applying explicitly to the People's Republic of China and entities “working with the People's Republic of China.”

Committee debate centered on three changes that were added as amendments. First, the committee adopted language clarifying that “People's Republic of China” includes mainland provinces and the Hong Kong and Macau special administrative regions but “does not include Taiwan.” Second, the panel replaced a drafting that would have allowed a single official to declare an entity hostile with a decision by a majority of specified state officials: the governor, treasurer, attorney general, agriculture commissioner and auditor, in consultation with the Secretary of Homeland Security; in the event of a tie, the governor’s vote would serve as the tie-breaker. Third, the sponsor and other members clarified subsection D on distribution of proceeds from the sale of prohibited foreign-owned property so that sale proceeds are “first distributed to lienholders according to priority,” and any remainder would be returned to the prohibited foreign party when no liens exist.

Sponsor Delegate Bill Reitenour, who described his background in military intelligence while answering questions, said the proposed multi-member review “gives a more holistic look from the state government perspective” and that the Secretary of Homeland Security and the attorney general would be well placed to identify foreign adversaries.

Committee counsel and multiple senators discussed and adjusted membership and tie-breaking language during floor amendment debate. At one point members considered placing the Board of Public Works or the adjutant general in the decision process; the committee ultimately chose the governor as tie-breaker after members said the office is the most accountable to voters.

After adopting the amendments as described by counsel, the vice chair moved that the bill, as amended, be reported to the full Senate with the recommendation that it pass. The motion was adopted on a voice vote; the chair announced, “In the opinion of the chair, the ayes have it. I declare the motion adopted. The bill will be reported.”

The committee’s changes leave the bill applying to specified foreign entities and establish a state-level, multi-member identification process along with prioritized lienholder distributions of sale proceeds.

Votes at a glance: the committee adopted the Taiwan-definition amendment, the majority-identification/tie-breaker amendment (governor as tie-breaker), the proceeds-distribution amendment, and then voted to report the bill to the full Senate with recommendation that it pass. The committee recorded the adoption by voice votes; no roll-call tally was recorded in the transcript.

What’s next: House Bill 2961 will be reported to the full Senate as amended and proceed through the Senate calendar for consideration and potential floor action.