Stricken language would be deleted from and underlined language would be added to present law.
Act 636 of the Regular Session
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State of Arkansas As Engrossed: S3/15/23 H3/30/23 1
94th General Assembly A Bill 2
Regular Session, 2023 SENATE BILL 383 3
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By: Senators B. Johnson, J. Boyd, J. Bryant, Crowell, B. Davis, J. Dotson, J. English, Flippo, Gilmore, K. 5
Hammer, Hester, Hill, M. McKee, J. Payton, C. Penzo, J. Petty, Rice, Stone, G. Stubblefield, D. Sullivan 6
By: Representatives Vaught, Cavenaugh, Beaty Jr., Andrews, Puryear 7
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For An Act To Be Entitled 9
AN ACT TO AMEND THE LAW CONCERNING OWNER SHIP AND 10
POSSESSION OF REAL P ROPERTY; AND FOR OTH ER PURPOSES. 11
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Subtitle 14
TO AMEND THE LAW CONCERNING OWNERSHIP AND 15
POSSESSION OF REAL PR OPERTY. 16
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
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SECTION 1. Arkansas Code § 18 -11-101(a), concerning the capacity of 21
aliens to take and transfer lands, is amended to read as follows: 22
(a) All Except as provided in § 18-11-110 and § 18-11-701 et seq., 23
all aliens shall be capable of taking, by deed or will, lands and tenements 24
in fee simple, or other less estate, and of holding, aliening, and devising 25
them. 26
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SECTION 2. Arkansas Code Title 18, Chapter 11, Subchapter 1, is 28
amended to add an additional section to read as follows: 29
18-11-110. Land ownership by prohibited foreign -party-controlled 30
business prohibited — Definitions. 31
(a) As used in this section: 32
(1) "Controlling interest" means an ownership interest of fifty 33
percent (50%) or more, in the aggregate; 34
(2) "Prohibited foreign -party-controlled business" means a 35
corporation, company, association, firm, partnership, society, joint -stock 36 As Engrossed: S3/15/23 H3/30/23 SB383
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company, trust, estate or other legal entity whose controlling interest is 1
owned by a prohibited foreign party; and 2
(3) "Prohibited foreign party" means the same as in § 18 -11-702. 3
(b)(1) A prohibited foreign -party-controlled business shall not 4
acquire by grant, purchase, devise, descent, or otherwise any interest in 5
public or private land in this state. 6
(2) A party may not hold public or private land as an agent, 7
trustee, or other fiduciary for a prohibited foreign -party-controlled 8
business in violation of this section. 9
(c)(1) A prohibited foreign -party-controlled business entity in 10
violation of this section shall have two (2) years to divest of the public or 11
private land. 12
(2) If a prohibited foreign -party-controlled business entity 13
does not divest the public or private land as required by subdivision (c)(1) 14
of this section, the Attorney General shall commence an action in the circuit 15
court within the jurisdiction of the public or private land. 16
(3)(A) If the public or private land is held in violation of 17
this section, the circuit court shall order that the public or private land 18
be sold through judicial foreclosure. 19
(B) Proceeds of the sale shall be disbursed to lien 20
holders, in the order of priority, except for liens which under the terms of 21
the sale are to remain on the public or private land. 22
(4) The Attorney General shall promptly record a copy of the 23
following in the local land records: 24
(A) Upon commencement, notice of the pendency of an action 25
brought under subdivision (c)(2) of this section; and 26
(B) The order for the sale of the public or pri vate land 27
under subdivision (c)(3)(A) of this section. 28
(d) A prohibited foreign -party-controlled business entity shall upon 29
conviction be guilty of a felony punishable by not more than two (2) years 30
imprisonment in the custody of the Division of Correcti on or a fifteen 31
thousand dollar ($15,000) fine, or both. 32
(e) It is an affirmative defense to prosecution under this section 33
that a prohibited foreign -party-controlled business entity is a resident 34
alien of the State of Arkansas. 35
(f) Title to public or private land is not invalid or subject to 36 As Engrossed: S3/15/23 H3/30/23 SB383
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divestiture due to a violation of this section by: 1
(1) Any former owner; or 2
(2) Other person holding or owning a former interest in the 3
public or private land. 4
(g) No person not subject to this section shall be required to 5
determine or inquire into whether another person is or may be subject to this 6
section. 7
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SECTION 3. Arkansas Code Title 18, Chapter 11, is amended to add an 9
additional subchapter to read as follows: 10
Subchapter 7 — Foreign Ownership of Agricultural Land 11
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18-11-701. Purpose. 13
Under § 2-4-101, "It is the declared policy of the state to conserve, 14
protect, and encourage the development and improvement of its agricultural 15
and forest lands and other facilities for the production of food, fiber, and 16
other agricultural and silvicultural products". 17
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18-11-702. Definitions. 19
As used in this subchapter: 20
(1)(A) "Agricultural land" means any Arkansas land which is 21
outside the corporate limits of a municipality and is: 22
(i) Used for forestry production, including without 23
limitation land exceeding ten (10) acres in which ten percent (10%) of the 24
land is stocked by trees of any size, including land that formerly had trees 25
of any size covering the land that will be naturally or artifici ally 26
regenerated; or 27
(ii) Currently used for, or, if currently idle, land 28
last used within the past five (5) years, for farming, ranching, or timber 29
production, except land not exceeding ten (10) acres in the aggregate, if the 30
annual gross receipts fr om the sale of the farm, ranch, or timber products 31
produced on the land do not exceed one thousand dollars ($1,000), including 32
without limitation land used for activities described in the Standard 33
Industrial Classification Manual (1987), Division A, exclus ive of industry 34
numbers 0711-0783, 0851, and 0912 -0919 which cover animal trapping, game 35
management, hunting carried on as a business enterprise, trapping carried on 36 As Engrossed: S3/15/23 H3/30/23 SB383
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as a business enterprise, and wildlife management. 1
(B) "Agricultural land" does not i nclude oil, gas, and all 2
other minerals, including coal, lignite, brine, and all minerals known and 3
recognized as commercial minerals underlying the land; 4
(2) "Foreign government" means the same as provided by § 2 -3-5
102; 6
(3) "Interest in agricultura l land" means all direct interest 7
acquired, transferred, or held in agricultural land, including without 8
limitation a lease of agricultural land: 9
(A) For a term of one (1) year or longer; or 10
(B) Renewable by option for terms which, if the options 11
were all exercised, would total one (1) year; 12
(4) "Party" means the same as provided by § 2 -3-102; 13
(5) "Prohibited foreign party" means: 14
(A) A citizen or resident of a country subject to 15
International Traffic in Arms Regulations, 22 C.F.R. § 126. 1; 16
(B) A foreign government formed within a country subject 17
to International Traffic in Arms Regulations, 22 C.F.R. § 126.1; 18
(C) A party other than an individual or a government, that 19
is created or organized under the laws of a foreign government w ithin a 20
country subject to International Traffic in Arms Regulations, 22 C.F.R. § 21
126.1; or 22
(D) Any party other than an individual or a government: 23
(i) That is created or organized under the laws of 24
any state; and 25
(ii) In which a significant interest or substantial 26
control is directly or indirectly held or is capable of being exercised by: 27
(a) An individual referred to in subdivision 28
(5)(A) of this section; 29
(b) A foreign government referred to in 30
subdivision (5)(B) of this section; 31
(c) A party referred to in subdivision (5)(C) 32
of this section; or 33
(d) A combination of the individuals, parties, 34
or governments referred to in this subdivision (5)(D)(ii) of this section; 35
(E) An Entity of Particular Concern design ated by the 36 As Engrossed: S3/15/23 H3/30/23 SB383
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United States Department of State; or 1
(F) An agent, trustee, or other fiduciary of a person or 2
entity enumerated in subdivisions (5)(A) -(E) of this section; 3
(6) "Residence" means a person's principal dwelling place where 4
the person intends to remain permanently for an indefinite period of time; 5
(7) "Resident alien" means a person who: 6
(A) Is not a citizen of the United States; and 7
(B) Is a resident of a: 8
(i) State of the United States; 9
(ii) Territory of the United S tates; 10
(iii) Trusteeship of the United States; or 11
(iv) Protectorate of the United States; and 12
(8) "Significant interest" or "substantial control" means : 13
(A) An interest of thirty -three percent (33%) or more held 14
by: 15
(i) A party referred to in subdivision (5)(D) of 16
this section; 17
(ii) An individual referred to in subdivision (5)(A) 18
of this section; 19
(iii) A party referred to in subdivision (5)(C) of 20
this section; or 21
(iv) A single government referred to in subdivision 22
(5)(B) of this section; 23
(B) An interest of thirty -three percent (33%) or more held 24
whenever the parties, individuals, or governments referred to in subdivision 25
(5)(A) of this section are acting in concert with respect to the interest 26
even though no single individual, party, or government holds an interest of 27
thirty-three percent (33%) or more; or 28
(C) An interest of fifty percent (50%) or more, in the 29
aggregate, held by parties, individuals, or governments referred to in 30
subdivision (5)(A) of this s ection even though the individuals, parties, or 31
foreign governments may not be acting in concert. 32
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18-11-703. Limitations on owning agricultural land — Violation. 34
(a)(1) Except as provided in § 18 -11-704, a prohibited foreign party 35
shall not acquire by grant, purchase, devise, descent, or otherwise any 36 As Engrossed: S3/15/23 H3/30/23 SB383
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interest in agricultural land in this state regardless of whether the 1
prohibited foreign party intends to use the agricultural land for nonfarming 2
purposes. 3
(2) A party may not hold agricultural land as an agent, trustee, 4
or other fiduciary for a prohibited foreign party in violation of this 5
subchapter. 6
(b) A prohibited foreign party that acquires agricultural land in 7
violation of this subchapter remains in violation as long as the prohibited 8
foreign party holds an interest in the agricultural land. 9
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18-11-704. Interest in agricultural land owned by prohibited foreign 11
parties — Exceptions — Penalty. 12
(a) A prohibited foreign party who is a resident alien of the United 13
States shall have the right to acquire and hold agricultural land in the 14
state upon the same terms as a citizen of the United States during the 15
continuance of his or her residence in the State of Arkansas. 16
(b)(1) If a prohibited foreign party is no longer a resident alien 17
under subsection (a) of this section, he or she shall have two (2) years to 18
divest of the agricultural land. 19
(2) If the prohibited foreign party does not divest of the 20
agricultural land as required by subdivision (b)(1) of this section, the 21
Attorney General shall commence an action in circuit court within the 22
jurisdiction of the agricultural land. 23
(3) If the agricultural land is held in violation of this 24
section, the circuit court shall order that the agricultural land be sold 25
through judicial foreclosure. 26
(c)(1) When the Office of Agricultural Intelligence determines a 27
prohibited foreign party has acquired agricultural land in Arkansas in 28
violation of this subchapter, the office shall report the violation to the 29
Attorney General. 30
(2) Upon receiving notice under subdivision (c)(1) of this 31
section or upon receipt of information that leads the Attorney General to 32
believe that a violation of this subchapter may exist, the Attorney General 33
may issue subpoenas requiring the: 34
(A) Appearance of witnesses; 35
(B) Production of relevant records; and 36 As Engrossed: S3/15/23 H3/30/23 SB383
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(C) Giving of relevant testimony. 1
(3) If as a result of the investigation under subdivision (c)(2) 2
of this section the Attorney General concludes that a violation of this 3
subchapter has occurred, the Attorne y General shall commence an action in 4
circuit court within the jurisdiction of the agricultural land. 5
(4) If the agricultural land is held in violation of this 6
subchapter, the circuit court shall order that the agricultural land be sold 7
through judicial foreclosure. 8
(d)(1) The proceeds of the sale of agricultural land by judicial 9
foreclosure authorized under this section shall be disbursed to lien holders, 10
in the order of priority, except for liens which under the terms of the sale 11
are to remain on the agricultural land. 12
(2) The Attorney General shall promptly record a copy of the 13
following in the local land records: 14
(A) Upon commencement, notice of the pendency of an action 15
brought under subdivisions (b)(2) and (c)(2) of this section; and 16
(B) The order for the sale of the agricultural land under 17
subdivisions (b)(3) and (c)(3) of this section. 18
(e) A prohibited foreign party owning agricultural land subsequent to 19
the passage of this subchapter and not listed under one (1) of the exceptions 20
set out in subsections (a) and (b) of this section shall upon conviction be 21
guilty of a felony punishable by not more than two (2) years imprisonment in 22
the custody of the Division of Correction or a fifteen thousand dollar 23
($15,000) fine, or both. 24
(f) It is an affirmative defense to prosecution under this section 25
that a prohibited foreign party is a resident alien of the State of Arkansas. 26
(g) Title to agricultural land is not invalid or subject to 27
divestiture due to a violation of this subchapter by: 28
(1) Any former owner; or 29
(2) Other person holding or owning a former interest in the 30
agricultural land. 31
(h) No person not subject to this subchapter shall be required to 32
determine or inquire into whether another person is or may be subject to th is 33
subchapter. 34
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18-11-705. Office of Agricultural Intelligence – Creation – Duties. 36 As Engrossed: S3/15/23 H3/30/23 SB383
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(a) There is created within the Department of Agriculture the Office 1
of Agricultural Intelligence. 2
(b) The office is authorized and directed to: 3
(1) Collect and analyze information concerning the unlawful sale 4
or possession of agricultural land by prohibited foreign parties; and 5
(2) Administer and enforce the provisions of this subchapter, 6
including without limitation the reporting of a violation of this subchapt er 7
to the Attorney General under § 18 -11-704(c). 8
(c) The Secretary of the Department of Agriculture may designate 9
employees of the Department of Agriculture who meet the requirements of § 25 -10
38-203(a)(12) to perform the duties of the office under subsection (b) of 11
this section. 12
(d) The office shall operate under the direction of the Secretary of 13
the Department of Agriculture. 14
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/s/B. Johnson 19
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APPROVED: 4/11/23 22
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