HB 2961: To amend the law concerning ownership and possession of real property - West Virginia

hb2961 hfa ridenour 3-31 _1 adopted.htm → hb2961 sfat stuart _2 4-10 adopted.htm · 6 edits

MODERATE

The bill amendment changed from a minor text correction to a major substantive revision that completely rewrites the bill's title and scope. The original version focused on a specific procedural amendment about state naming, while the new version establishes comprehensive restrictions on foreign ownership of real property in West Virginia, particularly targeting China and designated hostile foreign entities.

Scope change

Bill scope expanded from a minor amendment to establish a new article in the Code of West Virginia prohibiting foreign adversaries from owning real property or mineral interests in the state.

SCOPE

Bill scope changed from a minor text amendment to establish comprehensive restrictions on foreign ownership of real property and mineral interests in West Virginia.

ELIGIBILITY

New provisions prohibit the People's Republic of China and its non-resident citizens from acquiring, owning, or transferring real estate or mineral interests in West Virginia.

Foreign governments, entities, and individuals identified by a majority vote of state officials as hostile to US or West Virginia interests are prohibited from owning real estate or mineral interests in the state.

TIMELINE

Requires foreign entities owning real estate on the effective date to divest within six months, and requires prohibited businesses that acquire property in violation to divest within six months.

ENFORCEMENT

Establishes judicial sale process to force sale of illegally owned real estate and requires notice of judicial sale.

DEFINITION

Creates new article designating sections 37-3A-1 through 37-3A-5 with provisions for good faith protections and tie-breaking vote authority for the Governor.

hb2961 hfa funkhouser 4-1 _2 adopted.htm → hb2961 hfa ridenour 3-31 _1 adopted.htm · 3 edits

MINOR

The bill sponsor changed from Delegate Funkhouser to Delegate Ridenour, and the amendment language was modified to replace references to 'noncitizen of the United States' and 'lawful' with 'resident alien or citizen' and 'West Virginia' respectively. This change broadens the bill's applicability to include all residents regardless of citizenship status, rather than limiting protections to specific immigration categories.

Scope change

The bill now applies to all residents of West Virginia, including non-citizen residents, rather than being limited to specific immigration statuses.

ELIGIBILITY

Replaced 'noncitizen of the United States' with 'resident alien or citizen' to include all residents regardless of citizenship status

Removed the word 'lawful' from eligibility requirements, further expanding coverage to all residents

Changed reference from 'United States' to 'West Virginia' to establish state-specific applicability

hb2961 s jud am _1 4-9 adopted.htm → hb2961 hfa funkhouser 4-1 _2 adopted.htm · 4 edits

MODERATE

The bill was amended to remove restrictions on real estate ownership by noncitizens, changing it from targeting only 'noncitizen of the United States' to allowing both 'resident alien or citizen' to own property. The amendment also removed the word 'lawful' from a definition and added 'or citizen' to clarify that citizens are included in the protected category.

Scope change

The bill's scope was significantly narrowed by removing restrictions on foreign ownership of real estate, effectively eliminating the original intent to prevent foreign adversaries from owning property in West Virginia.

ELIGIBILITY

Removed the entire article prohibiting foreign adversaries from owning real estate in West Virginia, which previously restricted 'noncitizen of the United States' from acquiring property.

DEFINITION

Changed the definition from 'noncitizen of the United States' to 'resident alien or citizen', expanding who can legally own real estate.

Removed the word 'lawful' from a definition on page 2, section 2, line 19, which may have affected how certain legal statuses were interpreted.

Added 'or citizen' after 'alien' on page 2, section 2, line 20, clarifying that both aliens and citizens are covered under the relevant provisions.

Committee Substitute → hb2961 s jud am _1 4-9 adopted.htm · 4 edits

MODERATE

The bill was amended to broaden the definition of prohibited foreign parties to include all of China (including Hong Kong and Macao) while explicitly excluding Taiwan, and to expand the enforcement mechanism by adding a provision that remits proceeds to the prohibited party if there are no liens. The amendment also changed the decision-making body for identifying hostile foreign entities from a consultation process involving multiple state officials to a majority vote among seven specific state officials, with the Governor having tie-breaking authority.

Scope change

The scope of prohibited foreign parties was expanded to include all Chinese territories except Taiwan, and the enforcement process for distributing sale proceeds was modified to return funds to the prohibited party when no liens exist.

DEFINITION

Definition of 'People's Republic of China' was updated to explicitly include Hong Kong and Macao Special Administrative Regions while excluding Taiwan.

The process for identifying hostile foreign parties was changed from a consultation process to require a majority vote among seven specific state officials (Governor, Treasurer, Agriculture Commissioner, Auditor, Attorney General, and Secretary of State) with the Governor having tie-breaking authority.

ENFORCEMENT

New provision added to §37-3A-4(d) and (e) stating that if there are no liens against the property, the full proceeds from the judicial sale shall be remitted to the prohibited foreign party.

ELIGIBILITY

The definition of 'Prohibited foreign party' was modified to clarify that a citizen or resident of China must not be a resident alien or citizen of the United States.

Enrolled Committee Substitute → Committee Substitute · 3 edits

MINOR

The bill text was converted from an Enrolled Committee Substitute version to a Committee Substitute version, which includes a website navigation header and footer that were not part of the original legislative text. The substantive policy content of the bill remains unchanged, including the prohibition on foreign adversaries owning real estate in West Virginia, the definitions of prohibited parties, and enforcement mechanisms.

TECHNICAL

Added website navigation header and footer text (e.g., 'HB 2961 Text', 'skip navigation', 'SENATE', 'HOUSE') that appears to be from the legislative website interface rather than the bill itself.

Removed the 'Enrolled' designation and the specific passage date of April 12, 2025, indicating this version is an earlier draft before final approval.

Changed the committee reporting date from 'April 12, 2025' to 'March 28, 2025' and removed the 'Enr CS' (Enrolled Committee Substitute) designation.

Engrossed Committee Substitute → Enrolled Committee Substitute · 6 edits · Apr 28, 2025

MODERATE

The bill was transitioned from a committee substitute version to the final enrolled version, incorporating substantive policy changes including expanded definitions of prohibited parties, new tie-breaking voting rules for designating hostile entities, and additional protections for good-faith purchasers. The final version also clarifies the distribution of sale proceeds and adds a specific provision that good-faith buyers are not required to investigate potential violations.

Scope change

The bill's scope was expanded to include additional state officials in the designation process for hostile entities, and the enforcement provisions were clarified to specify how sale proceeds are distributed between lienholders and the prohibited party.

DEFINITION

The definition of 'Prohibited foreign party' was modified to include a majority vote requirement among multiple state officials (Governor, Treasurer, Agriculture Commissioner, Auditor, Attorney General, and Secretary of State) for designating hostile entities, with the Governor having tie-breaking authority.

A new definition was added clarifying that 'People's Republic of China' includes Hong Kong and Macao but explicitly excludes Taiwan.

REQUIREMENT

A new subsection was added to §37-3A-5 establishing that good-faith purchasers are not required to investigate whether a property owner is subject to the bill's prohibitions.

A new subsection was added to §37-3A-4(f) requiring the Attorney General to file a notice of the pending action with the county clerk.

ENFORCEMENT

The enforcement section was modified to clarify that proceeds from judicial sales should first go to lienholders, then any remaining funds are remitted to the prohibited foreign party, rather than being held by the state.

TIMELINE

The effective date was changed from 90 days from passage to a specific date of July 10, 2025.

Introduced Version → Engrossed Committee Substitute · 5 edits · Apr 12, 2025

MODERATE

The bill was amended to clarify its focus on real estate ownership rather than all property types, streamline definitions of prohibited foreign parties, and add specific enforcement mechanisms including judicial sales and good-faith protections for current owners. The changes make the law more targeted toward preventing foreign adversaries from acquiring land and mineral rights in West Virginia while providing clearer procedures for handling existing violations.

Scope change

The bill's scope was narrowed from prohibiting ownership of all property types to specifically targeting real estate and mineral rights, making the restrictions more focused and enforceable.

SCOPE

Changed title and provisions from prohibiting ownership of 'real property' to specifically 'real estate' and mineral rights

DEFINITION

Simplified definitions of prohibited foreign parties, removing extensive lists of specific countries and organizations to focus on current and future designations

ENFORCEMENT

Added new sections detailing judicial sale procedures, attorney general enforcement actions, and specific timelines for divesting property

REQUIREMENT

Included good-faith protections that prevent title invalidation solely due to prior violations by previous owners

TIMELINE

Established a six-month timeline for divesting existing property interests held by prohibited parties on the effective date

To amend the law concerning ownership and possession of real property

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