HB68INTRODUCED
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HB68
9R8WPMM-1
By Representatives Stadthagen, Butler, Brown, Lipscomb
RFD: Urban and Rural Development
First Read: 04-Feb-25
PFD: 04-Dec-24
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6 9R8WPMM-1 07/18/2024 SLU (L)bm 2024-2085
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PFD: 04-Dec-24
SYNOPSIS:
Under existing law that prohibits a foreign
principal from acquiring certain interests in certain
agricultural and forest property or other real property
in the state, the term "foreign principal" is defined
as a government, government official, political party,
or member of a political party of certain specified
countries, or any country or government identified on
any sanctions list of the U.S. Department of the
Treasury's Office of Foreign Assets Control.
This bill would expand the definition of
"foreign principal" to include an individual or company
identified on any sanctions list of the United State
Department of the Treasury's Office of Foreign Assets
Control.
This bill would specify that the terms
"agricultural and forest property" and "real property"
mean agricultural and forest property and real property
in the state.
This bill would expand the existing law that
prohibits a foreign principal from acquiring certain
ownership interests in agricultural and forest property
and real property to also prohibit a foreign principal
from acquiring a leasehold interest in any of these
properties in the state.
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properties in the state.
A BILL
TO BE ENTITLED
AN ACT
Relating to real property; to amend Section 35-1-1.1,
Code of Alabama 1975, to prohibit certain individuals,
companies, countries, governments, or related entities from
acquiring certain interests in real property in the state.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 35-1-1.1, Code of Alabama 1975, is
amended to read as follows:
"§35-1-1.1
(a) This section shall be known and may be cited as the
Alabama Property Protection Act.
(b) For purposes of this section, the following words
have the following meanings:
(1) AGRICULTURAL AND FOREST PROPERTY. All real property
in the state used for raising, harvesting, and selling crops
or for the feeding, breeding, management, raising, sale of, or
the production of livestock, or for the growing and sale of
timber and forest products.
(2) CRITICAL INFRASTRUCTURE FACILITY. Any of the
following:
a. A chemical manufacturing facility.
b. A refinery.
c. A plant or facility producing electric energy no
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c. A plant or facility producing electric energy no
matter how generated or produced.
d. A water treatment facility or wastewater treatment
plant.
e. A liquid natural gas terminal.
f. A telecommunications central switching office.
g. A gas processing plant, including any plant used in
the processing, treatment, or fractionation of natural gas.
h. A seaport facility as defined in Section 40-13-1.
i. Aerospace or spaceport infrastructure.
j. An airport as defined in Section 23-1-411.
(3) FOREIGN COUNTRY OF CONCERN. China, Iran, North
Korea, and Russia. This term shall not include Taiwan.
(4) FOREIGN PRINCIPAL. Any of the following:
a. The government or any official of the government of
a foreign country of concern.
b. A political party or member of a political party or
any subdivision of a political party in a foreign country of
concern.
c. A country or ,government, individual, or company
identified on any sanctions list of the United StateStates
Department of the Treasury's Office of Foreign Assets Control.
(5) MILITARY INSTALLATION. A base, camp, post, station,
yard, or center that is under the jurisdiction of the
Department of Defense or its affiliates, encompassing at least
10 contiguous acres.
(6) REAL PROPERTY. Land, buildings, fixtures, and all
other improvements to land in the state.
(c) Notwithstanding any other law, no foreign principal
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(c) Notwithstanding any other law, no foreign principal
shall acquire title to, or acquire a controlling interest in,
or a leasehold interest in, any of the following:
(1) Agricultural and forest property.
(2) Real property on or within 10 miles of any military
installation or critical infrastructure facility.
(d)(1)SubsectionThe prohibition in subsection (c)
against purchasing or otherwise acquiring title to, or a
controlling interest in, property as set forth in the
subsection shall apply only to the purchase of or other
acquisition of title to real, or controlling interest in, the
property on or after August 1, 2023. The purchase of or other
acquisition of title to real property prior to August 1, 2023,
is governed by the law in effect immediately prior to August
1, 2023, and that law is continued in effect for that purpose.
(2) The prohibition in subsection (c) against acquiring
a leasehold interest in property as set forth in the
subsection, shall apply to any leasehold interest acquired on
or after August 1, 2025. The acquisition of a leasehold
interest in the property prior to August 1, 2025, is governed
by the law in effect immediately prior to August 1, 2025, and
that law is continued in effect for that purpose.
(e) No title insurer, title agent, real estate
licensee, or other settlement provider as defined by the Real
Estate Procedures Act, 12 U.S.C. § 2601 et seq., shall be
liable for any violation of subsection (c).
Section 2. This act shall become effective on August
1, 2025.
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