Stricken language would be deleted from and underlined language would be added to present law. *ZRC075* 03/04/2025 4:05:51 PM ZRC075 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 HOUSE BILL 1680 3 4 By: Representatives Vaught, Achor, Andrews, Barker, Beaty Jr., Beck, Bentley, S. Berry, Breaux, 5 Brooks, K. Brown, M. Brown, N. Burkes, R. Burkes, Joey Carr, John Carr, Cavenaugh, Childress, C. 6 Cooper, Cozart, Crawford, Eaton, Evans, Furman, Gazaway, Gramlich, Hall, Hawk, Hollowell, L. 7 Johnson, Long, Lundstrum, Lynch, Maddox, McAlindon, McClure, M. McElroy, McGrew, B. McKenzie, 8 McNair, Milligan, J. Moore, Nazarenko, Painter, Pearce, Perry, Pilkington, Puryear, Ray, R. Scott 9 Richardson, Richmond, Rose, Rye, Schulz, M. Shepherd, Steimel, Torres, Tosh, Underwood, Unger, 10 Walker, Wing, Wooten 11 12 13 For An Act To Be Entitled 14 AN ACT TO AMEND THE LAW CONCERNING OWNERSHIP OF REAL 15 PROPERTY AND AGRICULTURAL LAND; TO PROHIBIT A 16 FOREIGN-PARTY-CONTROLLED BUSINESS FROM LEASING AN 17 INTEREST IN LAND; TO DEFINE "CRITICAL INFRASTRUCTURE" 18 AS USED IN RELATION TO FOREIGN OWNERSHIP OF LAND; TO 19 PROHIBIT A PROHIBITED FOREIGN PARTY FROM HOLDING AN 20 INTEREST IN REAL PROPERTY OR AGRICULTURAL LAND IN 21 CERTAIN CIRCUMSTANCES; AND FOR OTHER PURPOSES. 22 23 24 Subtitle 25 TO PREVENT A FOREIGN -PARTY-CONTROLLED 26 BUSINESS FROM LEASING LAND; AND TO 27 PROHIBIT A PROHIBITED FOREIGN PARTY FROM 28 HOLDING AN INTEREST IN REAL PROPERTY OR 29 AGRICULTURAL LAND IN CERTAIN 30 CIRCUMSTANCES. 31 32 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 33 34 SECTION 1. Arkansas Code § 18 -11-110(a)—(c), prohibitions on land 35 ownership by a prohibited foreign -party-controlled business, are amended to 36 HB1680 2 03/04/2025 4:05:51 PM ZRC075 read as follows: 1 (a) As used in this section: 2 (1) “Controlling interest” means an ownership interest of fifty 3 percent (50%) or more, in the aggregate; 4 (2)(A) "Critical infrastructure" means physical or virtual 5 systems and assets that: 6 (i) If incapacitated or destroyed would have a 7 debilitating impact on security, national economic security, public health or 8 safety, or any combination of security, national economic security, or public 9 health and safety; and 10 (ii) Are publicly or privately owned. 11 (B) "Critical infrastructure" includes without limitation: 12 (i) A military installation or facility; 13 (ii) An emergency service; 14 (iii) A power generation or transmission location; 15 (iv) A utility; 16 (v) A bridge; 17 (vi) A tunnel; 18 (vii) A railway; 19 (viii) A dam; 20 (ix) A cybersecurity or classified information 21 storage system; and 22 (x) A communication or information technology node 23 or facility; 24 (3) “Prohibited foreign party” means the same as in § 18 -11-802; 25 and 26 (3)(4) “Prohibited foreign-party-controlled business” means a 27 corporation, company, association, firm, partnership, society, joint -stock 28 company, trust, estate, or other legal entity whose controlling interest is 29 owned by a prohibited foreign party. 30 (b)(1) A prohibited foreign -party-controlled business shall not 31 acquire by grant, purchase, lease, devise, descent, or otherwise any interest 32 in public or private land in this state. 33 (2) A party may not hold or retain public or private land as an 34 agent, trustee, or other fiduciary for a prohibited foreign -party-controlled 35 business in violation of this section. 36 HB1680 3 03/04/2025 4:05:51 PM ZRC075 (3) A prohibited foreign -party-controlled business shall not 1 lease any interest in land in this state. 2 (4) A prohibited foreign party shall not hold any interest in 3 agricultural land located within a ten -mile radius of critical 4 infrastructure. 5 (c)(1) A prohibited foreign -party-controlled business entity in 6 violation of this section shall have two (2) years one (1) year to divest of 7 the public or private land. 8 (2) If a prohibited foreign -party-controlled business entity 9 does not divest the public or private land as required by subdivision (c)(1) 10 of this section, the Attorney General shall commence an action in the circuit 11 court within the jurisdiction of the public or private land. 12 (3)(A) If the public or private land is held in violation of 13 this section, the circuit court shall order that the public or private land 14 be sold through judicial foreclosure. 15 (B) Proceeds of the sale shall be first disbursed to lien 16 holders, if any, in the order of priority, except for liens which under the 17 terms of the sale are to remain on the public or private land. 18 (4) The Attorney General shall promptly record a copy of the 19 following in the local land records: 20 (A) Upon commencement, notice of the pendency of an action 21 brought under subdivision (c)(2) of this section; and 22 (B) The order for the sale of the public or private land 23 under subdivision (c)(3)(A) of this section. 24 25 SECTION 2. Arkansas Code § 18 -11-802 is amended to read as follows: 26 18-11-802. Definitions. 27 As used in this subchapter: 28 (1)(A) “Agricultural land” means any Arkansas land which that is 29 outside the corporate limits of a municipality and is : 30 (i) Used for forestry production, including without 31 limitation land exceeding ten (10) acres in which ten percent (10%) of the 32 land is stocked by trees of any size, including land that formerly had trees 33 of any size covering the land that will be naturally or artificially 34 regenerated; or 35 (ii) Currently used for, or, if currently idle, land 36 HB1680 4 03/04/2025 4:05:51 PM ZRC075 last used within the past five (5) years, for farming, ranching, or timber 1 production, except land not exceeding ten (10) acres in the aggregate, if the 2 annual gross receipts from the sale of the farm, ranch, or timber products 3 produced on the land do not exceed one thousand dollars ($1,000), including 4 without limitation land used for activities described in the Standard 5 Industrial Classification Manual (1987), Division A, exclusive of industry 6 numbers 0711-0783, 0851, and 0912 -0919 which cover animal trapping, game 7 management, hunting carried on as a business enterprise, trapping carried on 8 as a business enterprise, and wildlife management. 9 (B) “Agricultural land” does not include oil, gas, and all 10 other minerals, including coal, lignite, brine, and all minerals known and 11 recognized as commercial minerals underlying the land; 12 (2)(A) "Critical infrastructure" means physical or virtual 13 systems and assets that: 14 (i) If incapacitated or destroyed would have a 15 debilitating impact on security, national economic security, public health or 16 safety, or any combination of security, national economic security, or public 17 health and safety; and 18 (ii) Are publicly or privately owned. 19 (B) "Critical infrastructure" includes without limitation: 20 (i) A military installation or facility; 21 (ii) An emergency service; 22 (iii) A power generation or transmission location; 23 (iv) A utility; 24 (v) A bridge; 25 (vi) A tunnel; 26 (vii) A railway; 27 (viii) A dam; 28 (ix) A cybersecurity or classified information 29 storage system; and 30 (x) A communication or information technology node 31 or facility; 32 (3) “Foreign government” means the same as provided by § 2 -3-33 102; 34 (3)(4) “Interest in agricultural land” means all direct interest 35 acquired, transferred, or held in agricultural land, including without 36 HB1680 5 03/04/2025 4:05:51 PM ZRC075 limitation a lease of agricultural land : 1 (A) For a term of one (1) year or longer; or 2 (B) Renewable by option for terms which, if the options 3 were all exercised, would total one (1) year ; 4 (4)(5) “Party” means the same as provided by § 2 -3-102; 5 (5)(6) “Prohibited foreign party” means: 6 (A) A citizen or resident of a country subject to 7 International Traffic in Arms Regulations, 22 C.F.R. § 126.1; 8 (B) A foreign government formed within a country subject 9 to International Traffic in Arms Regulations, 22 C.F.R. § 126.1; 10 (C) A party or entity other than an individual or a 11 government, that is created or organized under the laws of a foreign 12 government within a country subject to International Traffic in Arms 13 Regulations, 22 C.F.R. § 126.1; 14 (D) Any party or entity other than an individual or a 15 government: 16 (i) That is created or organized under the laws of 17 any state; and 18 (ii) In which a significant interest or substantial 19 control is directly or indirectly held or is capable of being exercised by: 20 (a) An individual referred to in subdivision 21 (5)(A) (6)(A) of this section; 22 (b) A foreign government referred to in 23 subdivision (5)(B) (6)(B) of this section; 24 (c) A party or entity referred to in 25 subdivision (5)(C) (6)(C) of this section; or 26 (d) A combination of the individuals, parties, 27 entities, or governments referred to in this subdivision (5)(D)(ii) 28 (6)(D)(ii); 29 (E) An Entity of Particular Concern designated by the 30 United States Department of State; or 31 (F) An agent, trustee, or other fiduciary of a person or 32 entity enumerated in subdivisions (5)(A)-(E) (6)(A)-(E) of this section; 33 (6)(7) “Residence” means a person's principal dwelling place 34 where the person intends to remain permanently for an indefinite period of 35 time; 36 HB1680 6 03/04/2025 4:05:51 PM ZRC075 (7)(8) “Resident alien” means a person who: 1 (A) Is not a citizen of the United States; and 2 (B) Is a resident of a: 3 (i) State of the United States; 4 (ii) Territory of the United States; 5 (iii) Trusteeship of the United States; or 6 (iv) Protectorate of the United States; and 7 (8)(9) “Significant interest” or “substantial control” means: 8 (A) An interest of thirty -three percent (33%) or more held 9 by: 10 (i) A party referred to in subdivision (5)(D) (6)(D) 11 of this section; 12 (ii) An individual referred to in subdivision (5)(A) 13 (6)(A) of this section; 14 (iii) A party referred to in subdivision (5)(C) 15 (6)(C) of this section; or 16 (iv) A single government referred to in subdivision 17 (5)(B) (6)(B) of this section; or 18 (v) A party acting in concert with one (1) or more 19 prohibited foreign parties; 20 (B) An interest of thirty -three percent (33%) or more held 21 whenever the parties, individuals, or governments referred to in subdivision 22 (5) (6) of this section are acting in concert with respect to the interest 23 even though no single individual, party, or government holds an interest of 24 thirty-three percent (33%) or more; or 25 (C) An interest of fifty percent (50%) or more, in the 26 aggregate, held by parties, individuals, or governments referred to in 27 subdivision (5) (6) of this section even though the individuals, parties, or 28 foreign governments may not be acting in concert. 29 30 SECTION 3. Arkansas Code § 18 -11-803 is amended to read as follows: 31 18-11-803. Limitations on owning agricultural land — Violation. 32 (a)(1) Except as provided in § 18 -11-804, a prohibited foreign party 33 shall not acquire by grant, purchase, lease, devise, descent, or otherwise 34 any interest in agricultural land in this state regardless of whether the 35 prohibited foreign party intends to use the agricultural land for nonfarming 36 HB1680 7 03/04/2025 4:05:51 PM ZRC075 purposes. 1 (2) A party may not hold agricultural land as an agent, trustee, 2 or other fiduciary for a prohibited foreign party in violation of this 3 subchapter. 4 (3) A prohibited foreign party shall not hold any interest in 5 agricultural land located within a ten -mile radius of critical 6 infrastructure. 7 (b) A prohibited foreign party that acquires agricultural land in 8 violation of this subchapter remains in violation as long as the prohibited 9 foreign party holds an interest in the agricultural land. 10 11 SECTION 4. Arkansas Code § 18 -11-804(b)(1), concerning an interest in 12 agricultural land owned by a prohibited foreign party, is amended to read as 13 follows: 14 (b)(1) If a prohibited foreign party is no longer a resident alien 15 under subsection (a) of this section, he or she shall have two (2) years one 16 (1) year to divest of the agricultural land. 17 18 SECTION 5. Arkansas Code § 18 -11-804(e), concerning an interest in 19 agricultural land owned by a prohibited foreign party, is amended to read as 20 follows: 21 (e) A prohibited foreign party or other party acting in concert with a 22 prohibited foreign party as an agent, trustee, or other fiduciary owning 23 agricultural land subsequent to the passage of this subchapter and not listed 24 under one (1) of the exceptions set out in subsections (a) and (b) of this 25 section shall upon conviction be guilty of a felony punishable by not more 26 than two (2) years' imprisonment in the custody of the Division of Correction 27 or a fine of fifteen thousand dollars ($15,000), or both. 28 29 30 31 32 33 34 35 36