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SPONSOR SUBSTITUTE FOR SENATE BILL NO. 139
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR HUGHES
Introduced: 4/2/25
Referred: Resources, Judiciary
A BILL
FOR AN ACT ENTITLED
"An Act relating to who may own or hold certain land; relating to certain agreements 1
having to do with critical infrastructure; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 34 is amended by adding a new chapter to read: 4
Chapter 87. Holding of Land by Nonresident Persons. 5
Sec. 34.87.010. Persons prohibited from acquiring or leasing land within 6
100 miles of a military installation in the state. (a) Except as provided in (c) of this 7
section, a person or entity listed in AS 34.87.040(a) may not purchase, lease, or 8
otherwise acquire land in the state that is within 100 miles of a military installation. 9
(b) Land purchased, leased, or otherwise acquired in violation of (a) of this 10
section is subject to forfeiture by the attorney general as authorized under 11
AS 34.87.020. However, title to land may not be invalidated and land may not be 12
forfeited under this section because a prior owner or holder of the land violated this 13
section. 14 34-LS0419\I
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(c) This section does not apply to 1
(1) a lease of residential property or a dwelling unit; 2
(2) the purchase, lease, or acquisition of land by a person who is a 3
United States citizen and a citizen of a country designated by the United States 4
Secretary of Commerce as a foreign adversary under 15 C.F.R. 791.4. 5
(d) In this section, 6
(1) "dwelling unit" has the meaning given in AS 34.03.360; 7
(2) "military installation" means a base, camp, post, station, yard, 8
center, homeport facility for a ship, armory, or other installation under the jurisdiction 9
of the United States Department of Defense, the United States Coast Guard, the 10
Alaska National Guard, the Alaska Naval Militia, or the Alaska State Defense Force. 11
Sec. 34.87.020. Investigation and enforcement of violations of 12
AS 34.87.010. (a) If the attorney general receives evidence of a probable violation of 13
AS 34.87.010, the attorney general shall investigate the alleged violation. 14
(b) The attorney general shall bring an action for forfeiture of an interest in 15
land held in violation of AS 34.87.010 in the judicial district in which the land is 16
located. The attorney general shall record in the recording district in which the land is 17
located a certificate containing the caption and case number of the action and a 18
description of the land. If the court finds that an interest in land in the state is acquired, 19
owned, or held in violation of AS 34.87.010, the court may enter a judgment of 20
forfeiture vesting title to the land in the state, subject to any outstanding liens. The 21
attorney general shall record a certified copy of the court's judgment under this 22
subsection in the recording district in which the land is located. The following apply to 23
a forfeiture proceeding following the court's entering of a judgment of forfeiture under 24
this section: 25
(1) the attorney general shall, if warranted, request the court to appoint 26
a receiver to take over and manage the land before its sale; 27
(2) the attorney general, with the assistance of the Department of 28
Natural Resources, shall sell the land under AS 38.05; 29
(3) when the land is sold, the attorney general shall disburse the 30
proceeds of the sale to lienholders, in an order of priority determined by the 31 34-LS0419\I
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lienholders, except for liens that, under the terms of the judgment of forfeiture, are to 1
remain on the property; 2
(4) a lienholder may bid the lienholder's credit, in an amount that is not 3
more than the amount owed to the lienholder on the date of the sale, as determined by 4
the court in the judgment of forfeiture for the property; and 5
(5) no portion of the proceeds may be distributed to the person from 6
whom the land was forfeited, and all proceeds shall be deposited in the general fund. 7
(c) A person may not be held civilly or criminally liable for failing to 8
determine or inquire whether another person is prohibited from acquiring or leasing 9
land under AS 34.87.010. 10
(d) A forfeiture under this section does not void, invalidate, or otherwise 11
extinguish any bona fide mortgage, lien, or other interest granted by, through, or under 12
the person from whom the land was forfeit. 13
Sec. 34.87.030. Right of nonresident alien to acquire, hold, and convey 14
land. (a) Except as provided in AS 34.87.010 and 34.87.040, a person who is a 15
nonresident alien, whether the person resides in the United States or a foreign country, 16
may 17
(1) acquire real estate by purchase, devise, or descent; 18
(2) hold and enjoy real estate; and 19
(3) convey, devise, transmit, mortgage, or otherwise encumber real 20
estate in the same manner and with the same effect as citizens of the United States. 21
(b) The title of any real estate inherited, mortgaged, conveyed, or devised is 22
not affected by the alienage of a person from or through whom the title is claimed or 23
derived. 24
Sec. 34.87.040. Limitations on the ownership of agricultural land. (a) 25
Except as provided in (c) and (d) of this section, the following persons may not, 26
directly or indirectly, acquire or lease an interest prohibited under (b) of this section in 27
agricultural land in the state: 28
(1) a person who is a citizen of a country designated as a foreign 29
adversary by the United States Secretary of Commerce under 15 C.F.R. 791.4; or 30
(2) a foreign business entity that is 31 34-LS0419\I
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(A) wholly owned by, or the majority of stock or other 1
ownership interest of the foreign business entity is held or controlled by, 2
(i) persons who are citizens of a country designated as a 3
foreign adversary by the United States Secretary of Commerce under 4
15 C.F.R. 791.4; 5
(ii) a business entity or other entity, including a 6
governmental entity, that is owned or controlled by citizens of, or is 7
directly controlled by the government of, a person or country 8
designated as a foreign adversary by the United States Secretary of 9
Commerce under 15 C.F.R. 791.4; or 10
(B) headquartered in a country that the United States Secretary 11
of Commerce has designated as a foreign adversary under 15 C.F.R. 791.4. 12
(b) Except as provided in (c) and (d) of this section, a person listed under (a) 13
of this section may not 14
(1) acquire by grant, purchase, devise, descent, or otherwise acquire 15
(A) an interest in agricultural land located in the state; or 16
(B) mineral, water, or riparian rights on or in agricultural land 17
located in the state; 18
(2) lease 19
(A) agricultural land located in the state; or 20
(B) mineral, water, or riparian rights on or in any agricultural 21
land located in the state. 22
(c) This section does not apply to a person who is a United States citizen and a 23
citizen of a country designated by the United States Secretary of Commerce as a 24
foreign adversary under 15 C.F.R. 791.4. 25
(d) Notwithstanding the limitations of this section, a person listed under (a) of 26
this section may continue leasing, or renew a lease of, agricultural land, if the person 27
leased the land before July 1, 2025, and the acreage and land subject to the lease does 28
not change. 29
(e) A person may not be held civilly or criminally liable for failing to 30
determine or inquire whether another person is subject to this section. 31 34-LS0419\I
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(f) A purchase, acquisition, or lease of agricultural land in violation of this 1
section is subject to forfeiture by the attorney general as authorized under 2
AS 34.87.050. 3
Sec. 34.87.050. Investigation and enforcement of violations of 4
AS 34.87.040. (a) If the attorney general receives evidence of a probable violation of 5
AS 34.87.040, the attorney general shall investigate the alleged violation and may 6
issue subpoenas to require the attendance of witnesses or the production of documents 7
or other physical evidence, administer oaths, and conduct hearings to aid an 8
investigation or inquiry. Service of an order or subpoena must be made in the same 9
manner as a summons in a civil action in the superior court. 10
(b) The attorney general shall bring an action for forfeiture of an interest in 11
agricultural land held in violation of AS 34.87.040 in the judicial district in which the 12
agricultural land is located. The attorney general shall record in the recording district 13
in which the agricultural land is located a certificate containing the caption and case 14
number of the action and a description of the agricultural land. If the court finds that 15
an interest in agricultural land in the state is acquired, owned, or held in violation of 16
AS 34.87.040, the court may enter a judgment of forfeiture vesting title to the 17
agricultural land in the state, subject to any outstanding liens. The attorney general 18
shall record a certified copy of the court's judgment under this subsection in the 19
recording district in which the agricultural land is located. The following apply to a 20
forfeiture proceeding following the court's entering of a judgment of forfeiture under 21
this section: 22
(1) the attorney general shall, if warranted, request the court to appoint 23
a receiver to take over and manage the agricultural land before its sale; 24
(2) the attorney general, with the assistance of the Department of 25
Natural Resources, shall sell the land under AS 38.05; 26
(3) when the agricultural land is sold, the attorney general shall 27
disburse the proceeds of the sale to lienholders, in the order of priority determined by 28
the lienholders, except for liens that, under the terms of the judgment of forfeiture, are 29
to remain on the property; 30
(4) a lienholder may bid the lienholder's credit, in an amount that is not 31 34-LS0419\I
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more than the amount owed to the lienholder on the date of the sale, as determined by 1
the court in the judgment of forfeiture for the property; and 2
(5) no portion of the proceeds may be distributed to the person from 3
whom the agricultural land was forfeited, and all proceeds shall be deposited in the 4
general fund. 5
(c) A person may not be held civilly or criminally liable for failing to 6
determine or inquire whether another person is prohibited from acquiring or leasing 7
land under AS 34.87.040. 8
(d) Title to agricultural land may not be invalidated and agricultural land may 9
not be forfeited under this section because a prior owner or holder of the agricultural 10
land violated AS 34.87.040. 11
(e) A forfeiture under this section does not void, invalidate, or otherwise 12
extinguish any bona fide mortgage, lien, or other interest granted by, through, or under 13
the person from whom the land was forfeit. 14
Sec. 34.87.090. Definitions. In this chapter, 15
(1) "agricultural land" means land used for crop farming, timber 16
production, or pasture; 17
(2) "crop farming" means the cultivation of land for the production of 18
plants or plant products that can be grown and harvested exclusively for profit or 19
subsistence; 20
(3) "foreign business entity" includes 21
(A) a corporation, professional corporation, nonprofit 22
corporation, limited liability company, partnership, limited partnership that is 23
organized under the laws of another country, or similar entity; and 24
(B) an agent, trustee, or fiduciary of the entity. 25
* Sec. 2. AS 45 is amended by adding a new chapter to read: 26
Chapter 46. Critical Infrastructure Agreements. 27
Sec. 45.46.010. Restrictions on critical infrastructure agreements with 28
certain companies. (a) A person, state agency, or political subdivision of the state 29
may not enter into an agreement relating to a critical infrastructure facility in the state 30
with a company if 31 34-LS0419\I
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(1) the company would be able to directly or remotely access or 1
control the facility or a cybersecurity system related to the facility under the 2
agreement; and 3
(2) the company is 4
(A) owned by, or the majority of stock or other ownership 5
interest of the company is held or controlled by, 6
(i) persons who are citizens of a country designated by 7
the United States Secretary of Commerce as a foreign adversary under 8
15 C.F.R. 791.4; or 9
(ii) a company or other entity, including a governmental 10
entity, that is owned or controlled by citizens of, or is directly 11
controlled by the government of, a country designated by the United 12
States Secretary of Commerce as a foreign adversary under 15 C.F.R. 13
791.4; or 14
(B) headquartered in a country designated by the United States 15
Secretary of Commerce as a foreign adversary under 15 C.F.R. 791.4. 16
(b) This section applies to a company regardless of whether 17
(1) the company's securities, or the securities of its parent company, 18
are publicly traded; or 19
(2) the company or the company's parent company is listed on a public 20
stock exchange as a company headquartered in a country designated by the United 21
States Secretary of Commerce as a foreign adversary under 15 C.F.R. 791.4. 22
(c) In this section, 23
(1) "company" means a person, other than an individual, organized for 24
business or profit-making purposes; 25
(2) "critical infrastructure facility" 26
(A) includes 27
(i) a facility used for manufacturing, mineral 28
exploration, steel making, refining, hazardous waste, transmission and 29
storage of electricity, water treatment, communications, transportation, 30
or the storage or transport of oil, gas, or other minerals; 31 34-LS0419\I
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(ii) a dam or reservoir regulated by the Department of 1
Natural Resources, port, railway, railroad switching yard, or trucking 2
terminal; 3
(iii) a facility used by the industry or a utility; 4
(iv) a facility whose owner or operator is required to 5
submit a risk management plan under 42 U.S.C. 7412(r) (Chemical 6
Safety Information, Site Security and Fuels Regulatory Relief Act) or 7
that is regulated under United States Department of Homeland Security 8
Chemical Facility Anti-Terrorism Standards; and 9
(v) a military installation; 10
(B) does not include 11
(i) land, an easement, or a right-of-way that is not 12
completely enclosed, posted, and maintained by an electric or natural 13
gas utility; or 14
(ii) a railroad track that is not part of a railroad 15
switching yard; 16
(3) "cybersecurity system" means a system designed to protect a 17
computer, computer network, computer system, or other technology infrastructure 18
against unauthorized use or access; 19
(4) "military installation" has the meaning given in AS 34.87.010(d). 20
* Sec. 3. This Act takes effect July 1, 2025. 21