Rules counsel warns SB 1075 may conflict with federal foreign‑investment law; committee recommends it

The rules committee recommended Senate Bill 1075 as constitutional and in proper form, but the committee’s rules attorney advised members that the measure could conflict with federal authority over foreign affairs and foreign investment.

Tim Fleming told members the bill would penalize conveyance of interests in real property to hostile foreign governments or their agents unless the transfer is approved by a newly created state commission. Fleming said that the federal government has primary authority over foreign affairs and pointed to the Federal Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) as an example of federal law that regulates conveyances to foreign-controlled entities on national-security grounds. He warned that authorizing the state to make its own national-security assessments could create a federal preemption problem.

Fleming recommended members consider the possible conflict with federal doctrine and offered to prepare conforming language. After no further questions, the committee took a roll call and, by a 5–3 vote, recommended SB 1075 as constitutional and in proper form.

The vote as recorded listed Representative Carbone, Speaker Montenegro, Representative Willoughby, Vice Chairman McCarter and Chairman Hendricks as voting Aye; Representatives Contreras, De Los Santos and Mathis were recorded as Nay. Fleming said he could provide additional drafting assistance if members wished to reduce the risk of federal preemption.