Amid mounting scrutiny, Texas House Speaker Dade Phelan has announced the formation of a legislative committee to examine the potential ban on Chinese ownership of Texas land. This move follows his decision to reject similar proposals last year, raising questions about his motives and the timing of this initiative.
Phelan’s decision comes just three weeks before he faces a runoff election against challenger David Covey. In the March GOP primary, Phelan placed second to Covey, and the upcoming election has increased pressure on him to resonate with conservative voters who overwhelmingly support a ban on hostile foreign ownership of Texas land.
Last year, the Texas Senate passed legislation that would have prohibited citizens, companies, or governmental entities from countries deemed threats to U.S. national security from owning Texas agricultural land, mineral interests, and timber. The ban would specifically apply to China, Iran, North Korea, and Russia.
However, the Senate’s proposal met its demise in the House, as it never received a hearing from the committee chairman appointed by Phelan. This decision effectively blocked the proposed ban, causing dissatisfaction among many conservative voters.
The Republican Party’s March ballot showed that more than 95% of voters would support a ban on hostile foreign ownership of Texas land. The strong support for this policy highlights the significant public interest in safeguarding Texas resources from foreign ownership, especially by adversaries.
Phelan’s creation of the legislative study committee on the topic may be seen as an attempt to align himself with the views of his party’s base and to regain their support ahead of the runoff election. However, given his previous stance on the issue, some critics view this move with skepticism, questioning whether it is a genuine effort to address the matter or a political strategy to boost his chances in the upcoming election.
As the legislative committee embarks on its examination of the potential ban, the public will be watching closely to see whether its findings and recommendations align with the will of Texas voters and protect the state’s resources from foreign influence.
Outside of his political and board service, Phelan is engaged in real estate development. He works at his family’s fourth-generation commercial real estate development firm, managing and owning retail, industrial, and office properties in Texas and Arkansas.
In February of this year, the Republican Party of Texas had officially censured Representative Dade Phelan, invoking all available penalties as per its rules, for allegedly not adhering to Republican principles and priorities. Rule 44 of the Republican Party of Texas allows for the censure of elected officials who have breached the party’s principles and priorities three or more times within a biennium. Rep. Phelan’s censure outlines five instances, including issues related to the impeachment of Ken Paxton, Democrat Committee Chairs, border security, and educational freedom.
The original censure resolution was proposed by the Jasper County Republican Party with at least two-thirds support and required a three-fifths majority (39 votes) to pass the 64-member State Republican Executive Committee. The final vote was 55 in favor, 4 against, and 4 abstentions.
Those who voted against the censure are: Donnie Wisenbaker (SD1), Fernando Trevino (SD14), Morgan Graham (SD27), and Lynda Hogue (SD28).
Those who abstained from the vote are: Jim Pikl (SD8), Anne Gebhart (SD9), Dan Tully (SD9), and Steve Evans (SD28).
Representative Phelan is the fourth elected official in the history of the Republican Party of Texas to be censured under Rule 44.
In May 2023, a proposed bill that would have prohibited individuals from China and three other countries from owning property in Texas did not advance to the House floor. The bill aimed to ban citizens from China, Iran, North Korea, and Russia from owning agricultural and oil leases.
It cleared the Senate in April with the support of all Republican senators and one Democrat, and Governor Greg Abbott had expressed his intent to sign it into law. However, the bill did not progress in the House as Speaker Dade Phelan canceled a scheduled session, effectively ending dozens of proposed bills, including the property ownership measure.
Although there are a few long-shot strategies that lawmakers could employ to revive the bill, such as attaching it to another measure, these efforts are considered unlikely to succeed.
