Restrictions on Foreign Acquisitions of Land Act
| Model Bill Info | |
|---|---|
| Bill Title | Restrictions on Foreign Acquisitions of Land Act |
| Date Introduced | July 28, 2023 |
| Type | Model Policy |
| Status | Draft |
| Task Forces | Federalism and International Relations; Energy, Environment and Agriculture |
| Keywords | Foreign relations |
Restrictions on Foreign Acquisitions of Land Act
Part 1. General Provisions
Definitions: As used here: (1) “Interest in land” means any right, title, lien, claim, interest, or estate with respect to land.
(2) (a) “Land” means all real property within the state.
(b) “Land” includes:
(i) agricultural land, as defined in the relevant statute; (ii) land owned or controlled by a political subdivision; (iii) land owned or controlled by a school district; (iv) non-federal land, as defined in the relevant statute; (v) private land; (vi) public land; (vii) state land, as defined in the relevant statute
(viii) waters of the state, as defined in the relevant statute ; and
(ix) subsurface land.
(c) “Land” does not include real property that is owned, controlled, or held in trust by the federal government.
(3) “Restricted foreign entity” means:
(a) a company that the United States Secretary of Defense is required to identify and report as a military company under Section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, Pub. L. No. 116-283; (b) an affiliate, subsidiary, or holding company of a company described in Subsection (3)(a); (c) a country with a commercial or defense industrial base of which a company described in Subsection (3)(a) or (b) is a part; (d) a state, province, region, prefecture, subdivision, or municipality of a country described in Subsection (3)(c); and (e) an agency, bureau, committee, or department of a country described in Subsection (3)(c).
The relevant statute is enacted to read:
Part 2. Interests in Land
Acquisition of land prohibited — Exceptions.
(1) Subject to Subsection (2) and the relevant section of the relevant statute, a restricted foreign entity may not acquire an interest in land in this state. (2) Subsection (1) does not apply to an interest in land that a restricted foreign entity acquired before a date determined by this legislative chamber:
(a) by purchase, grant, gift, donation, devise, or bequest; (b) as security for the repayment of a debt; or (c) as a party to a contract for the transfer or conveyance of an interest in land to the restricted foreign entity.
(3) A deed or other written instrument, other than in probate, purporting to convey an interest in land to a restricted foreign entity in violation of Subsection (1) is invalid.
The relevant statute is enacted to read: Alienate within five years — Escheat.
(1) A restricted foreign entity that acquires an interest in land by grant, gift, donation, devise, or bequest shall alienate the interest within five years after the date of acquisition. (2) If a restricted foreign entity fails to alienate an interest in land in accordance with Subsection (1), the interest escheats to the state.