6 | 4 | | 95th General Assembly A Bill 2 |
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7 | 5 | | Regular Session, 2025 HOUSE BILL 1680 3 |
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8 | 6 | | 4 |
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9 | 7 | | By: Representatives Vaught, Achor, Andrews, Barker, Beaty Jr., Beck, Bentley, S. Berry, Breaux, 5 |
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10 | 8 | | Brooks, K. Brown, M. Brown, N. Burkes, R. Burkes, Joey Carr, John Carr, Cavenaugh, Childress, C. 6 |
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11 | 9 | | Cooper, Cozart, Crawford, Eaton, Evans, Furman, Gazaway, Gramlich, Hall, Hawk, Hollowell, L. 7 |
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12 | 10 | | Johnson, Long, Lundstrum, Lynch, Maddox, McAlindon, McClure, M. McElroy, McGrew, B. McKenzie, 8 |
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13 | 11 | | McNair, Milligan, J. Moore, Nazarenko, Painter, Pearce, Perry, Pilkington, Puryear, Ray, R. Scott 9 |
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14 | 12 | | Richardson, Richmond, Rose, Rye, Schulz, M. Shepherd, Steimel, Torres, Tosh, Underwood, Unger, 10 |
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15 | 13 | | Walker, Wing, Wooten 11 |
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17 | 15 | | 13 |
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18 | 16 | | For An Act To Be Entitled 14 |
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19 | 17 | | AN ACT TO AMEND THE LAW CONCERNING OWNERSHIP OF REAL 15 |
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20 | 18 | | PROPERTY AND AGRICULTURAL LAND; TO PROHIBIT A 16 |
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21 | 19 | | FOREIGN-PARTY-CONTROLLED BUSINESS FROM LEASING AN 17 |
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22 | 20 | | INTEREST IN LAND; TO DEFINE "CRITICAL INFRASTRUCTURE" 18 |
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23 | 21 | | AS USED IN RELATION TO FOREIGN OWNERSHIP OF LAND; TO 19 |
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24 | 22 | | PROHIBIT A PROHIBITED FOREIGN PARTY FROM HOLDING AN 20 |
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25 | 23 | | INTEREST IN REAL PROPERTY OR AGRICULTURAL LAND IN 21 |
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26 | 24 | | CERTAIN CIRCUMSTANCES; AND FOR OTHER PURPOSES. 22 |
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27 | 25 | | 23 |
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28 | 26 | | 24 |
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29 | 27 | | Subtitle 25 |
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30 | 28 | | TO PREVENT A FOREIGN -PARTY-CONTROLLED 26 |
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31 | 29 | | BUSINESS FROM LEASING LAND; AND TO 27 |
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32 | 30 | | PROHIBIT A PROHIBITED FOREIGN PARTY FROM 28 |
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33 | 31 | | HOLDING AN INTEREST IN REAL PROPERTY OR 29 |
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34 | 32 | | AGRICULTURAL LAND IN CERTAIN 30 |
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35 | 33 | | CIRCUMSTANCES. 31 |
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36 | 34 | | 32 |
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37 | 35 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 33 |
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38 | 36 | | 34 |
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39 | 37 | | SECTION 1. Arkansas Code § 18 -11-110(a)—(c), prohibitions on land 35 |
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45 | 41 | | read as follows: 1 |
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46 | 42 | | (a) As used in this section: 2 |
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47 | 43 | | (1) “Controlling interest” means an ownership interest of fifty 3 |
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48 | 44 | | percent (50%) or more, in the aggregate; 4 |
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49 | 45 | | (2)(A) "Critical infrastructure" means physical or virtual 5 |
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50 | 46 | | systems and assets that: 6 |
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51 | 47 | | (i) If incapacitated or destroyed would have a 7 |
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52 | 48 | | debilitating impact on security, national economic security, public health or 8 |
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53 | 49 | | safety, or any combination of security, national economic security, or public 9 |
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54 | 50 | | health and safety; and 10 |
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55 | 51 | | (ii) Are publicly or privately owned. 11 |
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56 | 52 | | (B) "Critical infrastructure" includes without limitation: 12 |
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57 | 53 | | (i) A military installation or facility; 13 |
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58 | 54 | | (ii) An emergency service; 14 |
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59 | 55 | | (iii) A power generation or transmission location; 15 |
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60 | 56 | | (iv) A utility; 16 |
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61 | 57 | | (v) A bridge; 17 |
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62 | 58 | | (vi) A tunnel; 18 |
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63 | 59 | | (vii) A railway; 19 |
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64 | 60 | | (viii) A dam; 20 |
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65 | 61 | | (ix) A cybersecurity or classified information 21 |
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66 | 62 | | storage system; and 22 |
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67 | 63 | | (x) A communication or information technology node 23 |
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68 | 64 | | or facility; 24 |
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69 | 65 | | (3) “Prohibited foreign party” means the same as in § 18 -11-802; 25 |
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70 | 66 | | and 26 |
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71 | 67 | | (3)(4) “Prohibited foreign-party-controlled business” means a 27 |
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72 | 68 | | corporation, company, association, firm, partnership, society, joint -stock 28 |
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73 | 69 | | company, trust, estate, or other legal entity whose controlling interest is 29 |
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74 | 70 | | owned by a prohibited foreign party. 30 |
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75 | 71 | | (b)(1) A prohibited foreign -party-controlled business shall not 31 |
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76 | 72 | | acquire by grant, purchase, lease, devise, descent, or otherwise any interest 32 |
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77 | 73 | | in public or private land in this state. 33 |
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78 | 74 | | (2) A party may not hold or retain public or private land as an 34 |
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79 | 75 | | agent, trustee, or other fiduciary for a prohibited foreign -party-controlled 35 |
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85 | 79 | | (3) A prohibited foreign -party-controlled business shall not 1 |
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86 | 80 | | lease any interest in land in this state. 2 |
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87 | 81 | | (4) A prohibited foreign party shall not hold any interest in 3 |
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88 | 82 | | agricultural land located within a ten -mile radius of critical 4 |
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89 | 83 | | infrastructure. 5 |
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90 | 84 | | (c)(1) A prohibited foreign -party-controlled business entity in 6 |
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91 | 85 | | violation of this section shall have two (2) years one (1) year to divest of 7 |
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92 | 86 | | the public or private land. 8 |
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93 | 87 | | (2) If a prohibited foreign -party-controlled business entity 9 |
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94 | 88 | | does not divest the public or private land as required by subdivision (c)(1) 10 |
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95 | 89 | | of this section, the Attorney General shall commence an action in the circuit 11 |
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96 | 90 | | court within the jurisdiction of the public or private land. 12 |
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97 | 91 | | (3)(A) If the public or private land is held in violation of 13 |
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98 | 92 | | this section, the circuit court shall order that the public or private land 14 |
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99 | 93 | | be sold through judicial foreclosure. 15 |
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100 | 94 | | (B) Proceeds of the sale shall be first disbursed to lien 16 |
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101 | 95 | | holders, if any, in the order of priority, except for liens which under the 17 |
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102 | 96 | | terms of the sale are to remain on the public or private land. 18 |
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103 | 97 | | (4) The Attorney General shall promptly record a copy of the 19 |
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104 | 98 | | following in the local land records: 20 |
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105 | 99 | | (A) Upon commencement, notice of the pendency of an action 21 |
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106 | 100 | | brought under subdivision (c)(2) of this section; and 22 |
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107 | 101 | | (B) The order for the sale of the public or private land 23 |
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108 | 102 | | under subdivision (c)(3)(A) of this section. 24 |
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109 | 103 | | 25 |
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110 | 104 | | SECTION 2. Arkansas Code § 18 -11-802 is amended to read as follows: 26 |
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111 | 105 | | 18-11-802. Definitions. 27 |
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112 | 106 | | As used in this subchapter: 28 |
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113 | 107 | | (1)(A) “Agricultural land” means any Arkansas land which that is 29 |
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114 | 108 | | outside the corporate limits of a municipality and is : 30 |
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115 | 109 | | (i) Used for forestry production, including without 31 |
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116 | 110 | | limitation land exceeding ten (10) acres in which ten percent (10%) of the 32 |
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117 | 111 | | land is stocked by trees of any size, including land that formerly had trees 33 |
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118 | 112 | | of any size covering the land that will be naturally or artificially 34 |
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119 | 113 | | regenerated; or 35 |
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125 | 117 | | last used within the past five (5) years, for farming, ranching, or timber 1 |
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126 | 118 | | production, except land not exceeding ten (10) acres in the aggregate, if the 2 |
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127 | 119 | | annual gross receipts from the sale of the farm, ranch, or timber products 3 |
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128 | 120 | | produced on the land do not exceed one thousand dollars ($1,000), including 4 |
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129 | 121 | | without limitation land used for activities described in the Standard 5 |
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130 | 122 | | Industrial Classification Manual (1987), Division A, exclusive of industry 6 |
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131 | 123 | | numbers 0711-0783, 0851, and 0912 -0919 which cover animal trapping, game 7 |
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132 | 124 | | management, hunting carried on as a business enterprise, trapping carried on 8 |
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133 | 125 | | as a business enterprise, and wildlife management. 9 |
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134 | 126 | | (B) “Agricultural land” does not include oil, gas, and all 10 |
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135 | 127 | | other minerals, including coal, lignite, brine, and all minerals known and 11 |
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136 | 128 | | recognized as commercial minerals underlying the land; 12 |
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137 | 129 | | (2)(A) "Critical infrastructure" means physical or virtual 13 |
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138 | 130 | | systems and assets that: 14 |
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139 | 131 | | (i) If incapacitated or destroyed would have a 15 |
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140 | 132 | | debilitating impact on security, national economic security, public health or 16 |
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141 | 133 | | safety, or any combination of security, national economic security, or public 17 |
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142 | 134 | | health and safety; and 18 |
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143 | 135 | | (ii) Are publicly or privately owned. 19 |
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144 | 136 | | (B) "Critical infrastructure" includes without limitation: 20 |
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145 | 137 | | (i) A military installation or facility; 21 |
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146 | 138 | | (ii) An emergency service; 22 |
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147 | 139 | | (iii) A power generation or transmission location; 23 |
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148 | 140 | | (iv) A utility; 24 |
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149 | 141 | | (v) A bridge; 25 |
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150 | 142 | | (vi) A tunnel; 26 |
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151 | 143 | | (vii) A railway; 27 |
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152 | 144 | | (viii) A dam; 28 |
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153 | 145 | | (ix) A cybersecurity or classified information 29 |
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154 | 146 | | storage system; and 30 |
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155 | 147 | | (x) A communication or information technology node 31 |
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156 | 148 | | or facility; 32 |
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157 | 149 | | (3) “Foreign government” means the same as provided by § 2 -3-33 |
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158 | 150 | | 102; 34 |
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159 | 151 | | (3)(4) “Interest in agricultural land” means all direct interest 35 |
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172 | | - | International Traffic in Arms Regulations, 22 C.F.R. § 126.1 , unless the 8 |
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173 | | - | person is also a citizen of the United States ; 9 |
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174 | | - | (B) A foreign government formed within a country subject 10 |
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175 | | - | to International Traffic in Arms Regulations, 22 C.F.R. § 126.1; 11 |
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176 | | - | (C) A party or entity other than an individual or a 12 |
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177 | | - | government, that is created or organized under the laws of a foreign 13 |
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178 | | - | government within a country subject to International Traffic in Arms 14 |
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179 | | - | Regulations, 22 C.F.R. § 126.1; 15 |
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180 | | - | (D) Any party or entity other than an individual or a 16 |
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181 | | - | government: 17 |
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182 | | - | (i) That is created or organized under the laws of 18 |
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183 | | - | any state; and 19 |
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184 | | - | (ii) In which a significant interest or substantial 20 |
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185 | | - | control is directly or indirectly held or is capable of being exercised by: 21 |
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186 | | - | (a) An individual referred to in subdivision 22 |
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187 | | - | (5)(A) (6)(A) of this section; 23 |
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188 | | - | (b) A foreign government referred to in 24 |
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189 | | - | subdivision (5)(B) (6)(B) of this section; 25 |
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190 | | - | (c) A party or entity referred to in 26 |
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191 | | - | subdivision (5)(C) (6)(C) of this section; or 27 |
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192 | | - | (d) A combination of the individuals, parties, 28 |
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193 | | - | entities, or governments referred to in this subdivision (5)(D)(ii) 29 |
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194 | | - | (6)(D)(ii); 30 |
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195 | | - | (E) An Entity of Particular Concern designated by the 31 |
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196 | | - | United States Department of State; or 32 |
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197 | | - | (F) An agent, trustee, or other fiduciary of a person or 33 |
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198 | | - | entity enumerated in subdivisions (5)(A)-(E) (6)(A)-(E) of this section; 34 |
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199 | | - | (6)(7) “Residence” means a person's principal dwelling place 35 |
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200 | | - | where the person intends to remain permanently for an indefinite period of 36 As Engrossed: H3/31/25 HB1680 |
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| 162 | + | International Traffic in Arms Regulations, 22 C.F.R. § 126.1; 8 |
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| 163 | + | (B) A foreign government formed within a country subject 9 |
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| 164 | + | to International Traffic in Arms Regulations, 22 C.F.R. § 126.1; 10 |
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| 165 | + | (C) A party or entity other than an individual or a 11 |
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| 166 | + | government, that is created or organized under the laws of a foreign 12 |
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| 167 | + | government within a country subject to International Traffic in Arms 13 |
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| 168 | + | Regulations, 22 C.F.R. § 126.1; 14 |
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| 169 | + | (D) Any party or entity other than an individual or a 15 |
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| 170 | + | government: 16 |
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| 171 | + | (i) That is created or organized under the laws of 17 |
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| 172 | + | any state; and 18 |
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| 173 | + | (ii) In which a significant interest or substantial 19 |
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| 174 | + | control is directly or indirectly held or is capable of being exercised by: 20 |
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| 175 | + | (a) An individual referred to in subdivision 21 |
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| 176 | + | (5)(A) (6)(A) of this section; 22 |
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| 177 | + | (b) A foreign government referred to in 23 |
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| 178 | + | subdivision (5)(B) (6)(B) of this section; 24 |
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| 179 | + | (c) A party or entity referred to in 25 |
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| 180 | + | subdivision (5)(C) (6)(C) of this section; or 26 |
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| 181 | + | (d) A combination of the individuals, parties, 27 |
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| 182 | + | entities, or governments referred to in this subdivision (5)(D)(ii) 28 |
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| 183 | + | (6)(D)(ii); 29 |
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| 184 | + | (E) An Entity of Particular Concern designated by the 30 |
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| 185 | + | United States Department of State; or 31 |
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| 186 | + | (F) An agent, trustee, or other fiduciary of a person or 32 |
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| 187 | + | entity enumerated in subdivisions (5)(A)-(E) (6)(A)-(E) of this section; 33 |
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| 188 | + | (6)(7) “Residence” means a person's principal dwelling place 34 |
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| 189 | + | where the person intends to remain permanently for an indefinite period of 35 |
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| 190 | + | time; 36 HB1680 |
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202 | | - | 6 03-31-2025 11:46:42 ZRC075 |
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| 192 | + | 6 03/04/2025 4:05:51 PM ZRC075 |
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| 193 | + | (7)(8) “Resident alien” means a person who: 1 |
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| 194 | + | (A) Is not a citizen of the United States; and 2 |
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| 195 | + | (B) Is a resident of a: 3 |
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| 196 | + | (i) State of the United States; 4 |
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| 197 | + | (ii) Territory of the United States; 5 |
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| 198 | + | (iii) Trusteeship of the United States; or 6 |
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| 199 | + | (iv) Protectorate of the United States; and 7 |
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| 200 | + | (8)(9) “Significant interest” or “substantial control” means: 8 |
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| 201 | + | (A) An interest of thirty -three percent (33%) or more held 9 |
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| 202 | + | by: 10 |
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| 203 | + | (i) A party referred to in subdivision (5)(D) (6)(D) 11 |
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| 204 | + | of this section; 12 |
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| 205 | + | (ii) An individual referred to in subdivision (5)(A) 13 |
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| 206 | + | (6)(A) of this section; 14 |
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| 207 | + | (iii) A party referred to in subdivision (5)(C) 15 |
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| 208 | + | (6)(C) of this section; or 16 |
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| 209 | + | (iv) A single government referred to in subdivision 17 |
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| 210 | + | (5)(B) (6)(B) of this section; or 18 |
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| 211 | + | (v) A party acting in concert with one (1) or more 19 |
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| 212 | + | prohibited foreign parties; 20 |
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| 213 | + | (B) An interest of thirty -three percent (33%) or more held 21 |
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| 214 | + | whenever the parties, individuals, or governments referred to in subdivision 22 |
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| 215 | + | (5) (6) of this section are acting in concert with respect to the interest 23 |
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| 216 | + | even though no single individual, party, or government holds an interest of 24 |
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| 217 | + | thirty-three percent (33%) or more; or 25 |
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| 218 | + | (C) An interest of fifty percent (50%) or more, in the 26 |
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| 219 | + | aggregate, held by parties, individuals, or governments referred to in 27 |
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| 220 | + | subdivision (5) (6) of this section even though the individuals, parties, or 28 |
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| 221 | + | foreign governments may not be acting in concert. 29 |
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| 222 | + | 30 |
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| 223 | + | SECTION 3. Arkansas Code § 18 -11-803 is amended to read as follows: 31 |
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| 224 | + | 18-11-803. Limitations on owning agricultural land — Violation. 32 |
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| 225 | + | (a)(1) Except as provided in § 18 -11-804, a prohibited foreign party 33 |
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| 226 | + | shall not acquire by grant, purchase, lease, devise, descent, or otherwise 34 |
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| 227 | + | any interest in agricultural land in this state regardless of whether the 35 |
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| 228 | + | prohibited foreign party intends to use the agricultural land for nonfarming 36 HB1680 |
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204 | | - | |
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205 | | - | time; 1 |
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206 | | - | (7)(8) “Resident alien” means a person who: 2 |
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207 | | - | (A) Is not a citizen of the United States; and 3 |
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208 | | - | (B) Is a resident of a: 4 |
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209 | | - | (i) State of the United States; 5 |
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210 | | - | (ii) Territory of the United States; 6 |
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211 | | - | (iii) Trusteeship of the United States; or 7 |
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212 | | - | (iv) Protectorate of the United States; and 8 |
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213 | | - | (8)(9) “Significant interest” or “substantial control” means: 9 |
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214 | | - | (A) An interest of thirty -three percent (33%) or more held 10 |
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215 | | - | by: 11 |
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216 | | - | (i) A party referred to in subdivision (5)(D) (6)(D) 12 |
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217 | | - | of this section; 13 |
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218 | | - | (ii) An individual referred to in subdivision (5)(A) 14 |
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219 | | - | (6)(A) of this section; 15 |
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220 | | - | (iii) A party referred to in subdivision (5)(C) 16 |
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221 | | - | (6)(C) of this section; or 17 |
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222 | | - | (iv) A single government referred to in subdivision 18 |
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223 | | - | (5)(B) (6)(B) of this section; or 19 |
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224 | | - | (v) A party acting in concert with one (1) or more 20 |
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225 | | - | prohibited foreign parties; 21 |
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226 | | - | (B) An interest of thirty -three percent (33%) or more held 22 |
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227 | | - | whenever the parties, individuals, or governments referred to in subdivision 23 |
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228 | | - | (5) (6) of this section are acting in concert with respect to the interest 24 |
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229 | | - | even though no single individual, party, or government holds an interest of 25 |
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230 | | - | thirty-three percent (33%) or more; or 26 |
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231 | | - | (C) An interest of fifty percent (50%) or more, in the 27 |
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232 | | - | aggregate, held by parties, individuals, or governments referred to in 28 |
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233 | | - | subdivision (5) (6) of this section even though the individuals, parties, or 29 |
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234 | | - | foreign governments may not be acting in concert. 30 |
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| 230 | + | 7 03/04/2025 4:05:51 PM ZRC075 |
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| 231 | + | purposes. 1 |
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| 232 | + | (2) A party may not hold agricultural land as an agent, trustee, 2 |
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| 233 | + | or other fiduciary for a prohibited foreign party in violation of this 3 |
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| 234 | + | subchapter. 4 |
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| 235 | + | (3) A prohibited foreign party shall not hold any interest in 5 |
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| 236 | + | agricultural land located within a ten -mile radius of critical 6 |
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| 237 | + | infrastructure. 7 |
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| 238 | + | (b) A prohibited foreign party that acquires agricultural land in 8 |
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| 239 | + | violation of this subchapter remains in violation as long as the prohibited 9 |
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| 240 | + | foreign party holds an interest in the agricultural land. 10 |
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| 241 | + | 11 |
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| 242 | + | SECTION 4. Arkansas Code § 18 -11-804(b)(1), concerning an interest in 12 |
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| 243 | + | agricultural land owned by a prohibited foreign party, is amended to read as 13 |
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| 244 | + | follows: 14 |
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| 245 | + | (b)(1) If a prohibited foreign party is no longer a resident alien 15 |
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| 246 | + | under subsection (a) of this section, he or she shall have two (2) years one 16 |
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| 247 | + | (1) year to divest of the agricultural land. 17 |
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| 248 | + | 18 |
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| 249 | + | SECTION 5. Arkansas Code § 18 -11-804(e), concerning an interest in 19 |
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| 250 | + | agricultural land owned by a prohibited foreign party, is amended to read as 20 |
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| 251 | + | follows: 21 |
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| 252 | + | (e) A prohibited foreign party or other party acting in concert with a 22 |
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| 253 | + | prohibited foreign party as an agent, trustee, or other fiduciary owning 23 |
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| 254 | + | agricultural land subsequent to the passage of this subchapter and not listed 24 |
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| 255 | + | under one (1) of the exceptions set out in subsections (a) and (b) of this 25 |
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| 256 | + | section shall upon conviction be guilty of a felony punishable by not more 26 |
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| 257 | + | than two (2) years' imprisonment in the custody of the Division of Correction 27 |
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| 258 | + | or a fine of fifteen thousand dollars ($15,000), or both. 28 |
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| 259 | + | 29 |
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| 260 | + | 30 |
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236 | | - | SECTION 3. Arkansas Code § 18 -11-803 is amended to read as follows: 32 |
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237 | | - | 18-11-803. Limitations on owning agricultural land — Violation. 33 |
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238 | | - | (a)(1) Except as provided in § 18 -11-804, a prohibited foreign party 34 |
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239 | | - | shall not acquire by grant, purchase, lease, devise, descent, or otherwise 35 |
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240 | | - | any interest in agricultural land in this state regardless of whether the 36 As Engrossed: H3/31/25 HB1680 |
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241 | | - | |
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242 | | - | 7 03-31-2025 11:46:42 ZRC075 |
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243 | | - | |
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244 | | - | |
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245 | | - | prohibited foreign party intends to use the agricultural land for nonfarming 1 |
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246 | | - | purposes. 2 |
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247 | | - | (2) A party may not hold agricultural land as an agent, trustee, 3 |
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248 | | - | or other fiduciary for a prohibited foreign party in violation of this 4 |
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249 | | - | subchapter. 5 |
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250 | | - | (3) A prohibited foreign party shall not hold any interest in 6 |
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251 | | - | agricultural land located within a ten -mile radius of critical 7 |
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252 | | - | infrastructure. 8 |
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253 | | - | (b) A prohibited foreign party that acquires agricultural land in 9 |
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254 | | - | violation of this subchapter remains in violation as long as the prohibited 10 |
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255 | | - | foreign party holds an interest in the agricultural land. 11 |
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256 | | - | 12 |
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257 | | - | SECTION 4. Arkansas Code § 18 -11-804(b)(1), concerning an interest in 13 |
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258 | | - | agricultural land owned by a prohibited foreign party, is amended to read as 14 |
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259 | | - | follows: 15 |
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260 | | - | (b)(1) If a prohibited foreign party is no longer a resident alien 16 |
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261 | | - | under subsection (a) of this section, he or she shall have two (2) years one 17 |
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262 | | - | (1) year to divest of the agricultural land. 18 |
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263 | | - | 19 |
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264 | | - | SECTION 5. Arkansas Code § 18 -11-804(e), concerning an interest in 20 |
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265 | | - | agricultural land owned by a prohibited foreign party, is amended to read as 21 |
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266 | | - | follows: 22 |
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267 | | - | (e) A prohibited foreign party or other party acting in concert with a 23 |
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268 | | - | prohibited foreign party as an agent, trustee, or other fiduciary owning 24 |
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269 | | - | agricultural land subsequent to the passage of this subchapter and not listed 25 |
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270 | | - | under one (1) of the exceptions set out in subsections (a) and (b) of this 26 |
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271 | | - | section shall upon conviction be guilty of a felony punishable by not more 27 |
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272 | | - | than two (2) years' imprisonment in the custody of the Division of Correction 28 |
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273 | | - | or a fine of fifteen thousand dollars ($15,000), or both. 29 |
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274 | | - | 30 |
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275 | | - | /s/Vaught 31 |
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