Arkansas 2025 Regular Session

Arkansas House Bill HB1680 Compare Versions

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11 Stricken language would be deleted from and underlined language would be added to present law.
2-Act 811 of the Regular Session
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5-State of Arkansas As Engrossed: H3/31/25 1
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3+State of Arkansas 1
64 95th General Assembly A Bill 2
75 Regular Session, 2025 HOUSE BILL 1680 3
86 4
97 By: Representatives Vaught, Achor, Andrews, Barker, Beaty Jr., Beck, Bentley, S. Berry, Breaux, 5
108 Brooks, K. Brown, M. Brown, N. Burkes, R. Burkes, Joey Carr, John Carr, Cavenaugh, Childress, C. 6
119 Cooper, Cozart, Crawford, Eaton, Evans, Furman, Gazaway, Gramlich, Hall, Hawk, Hollowell, L. 7
1210 Johnson, Long, Lundstrum, Lynch, Maddox, McAlindon, McClure, M. McElroy, McGrew, B. McKenzie, 8
1311 McNair, Milligan, J. Moore, Nazarenko, Painter, Pearce, Perry, Pilkington, Puryear, Ray, R. Scott 9
1412 Richardson, Richmond, Rose, Rye, Schulz, M. Shepherd, Steimel, Torres, Tosh, Underwood, Unger, 10
1513 Walker, Wing, Wooten 11
16-By: Senator B. Johnson 12
14+ 12
1715 13
1816 For An Act To Be Entitled 14
1917 AN ACT TO AMEND THE LAW CONCERNING OWNERSHIP OF REAL 15
2018 PROPERTY AND AGRICULTURAL LAND; TO PROHIBIT A 16
2119 FOREIGN-PARTY-CONTROLLED BUSINESS FROM LEASING AN 17
2220 INTEREST IN LAND; TO DEFINE "CRITICAL INFRASTRUCTURE" 18
2321 AS USED IN RELATION TO FOREIGN OWNERSHIP OF LAND; TO 19
2422 PROHIBIT A PROHIBITED FOREIGN PARTY FROM HOLDING AN 20
2523 INTEREST IN REAL PROPERTY OR AGRICULTURAL LAND IN 21
2624 CERTAIN CIRCUMSTANCES; AND FOR OTHER PURPOSES. 22
2725 23
2826 24
2927 Subtitle 25
3028 TO PREVENT A FOREIGN -PARTY-CONTROLLED 26
3129 BUSINESS FROM LEASING LAND; AND TO 27
3230 PROHIBIT A PROHIBITED FOREIGN PARTY FROM 28
3331 HOLDING AN INTEREST IN REAL PROPERTY OR 29
3432 AGRICULTURAL LAND IN CERTAIN 30
3533 CIRCUMSTANCES. 31
3634 32
3735 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 33
3836 34
3937 SECTION 1. Arkansas Code § 18 -11-110(a)—(c), prohibitions on land 35
40-ownership by a prohibited foreign -party-controlled business, are amended to 36 As Engrossed: H3/31/25 HB1680
38+ownership by a prohibited foreign -party-controlled business, are amended to 36 HB1680
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4541 read as follows: 1
4642 (a) As used in this section: 2
4743 (1) “Controlling interest” means an ownership interest of fifty 3
4844 percent (50%) or more, in the aggregate; 4
4945 (2)(A) "Critical infrastructure" means physical or virtual 5
5046 systems and assets that: 6
5147 (i) If incapacitated or destroyed would have a 7
5248 debilitating impact on security, national economic security, public health or 8
5349 safety, or any combination of security, national economic security, or public 9
5450 health and safety; and 10
5551 (ii) Are publicly or privately owned. 11
5652 (B) "Critical infrastructure" includes without limitation: 12
5753 (i) A military installation or facility; 13
5854 (ii) An emergency service; 14
5955 (iii) A power generation or transmission location; 15
6056 (iv) A utility; 16
6157 (v) A bridge; 17
6258 (vi) A tunnel; 18
6359 (vii) A railway; 19
6460 (viii) A dam; 20
6561 (ix) A cybersecurity or classified information 21
6662 storage system; and 22
6763 (x) A communication or information technology node 23
6864 or facility; 24
6965 (3) “Prohibited foreign party” means the same as in § 18 -11-802; 25
7066 and 26
7167 (3)(4) “Prohibited foreign-party-controlled business” means a 27
7268 corporation, company, association, firm, partnership, society, joint -stock 28
7369 company, trust, estate, or other legal entity whose controlling interest is 29
7470 owned by a prohibited foreign party. 30
7571 (b)(1) A prohibited foreign -party-controlled business shall not 31
7672 acquire by grant, purchase, lease, devise, descent, or otherwise any interest 32
7773 in public or private land in this state. 33
7874 (2) A party may not hold or retain public or private land as an 34
7975 agent, trustee, or other fiduciary for a prohibited foreign -party-controlled 35
80-business in violation of this section. 36 As Engrossed: H3/31/25 HB1680
76+business in violation of this section. 36 HB1680
8177
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8579 (3) A prohibited foreign -party-controlled business shall not 1
8680 lease any interest in land in this state. 2
8781 (4) A prohibited foreign party shall not hold any interest in 3
8882 agricultural land located within a ten -mile radius of critical 4
8983 infrastructure. 5
9084 (c)(1) A prohibited foreign -party-controlled business entity in 6
9185 violation of this section shall have two (2) years one (1) year to divest of 7
9286 the public or private land. 8
9387 (2) If a prohibited foreign -party-controlled business entity 9
9488 does not divest the public or private land as required by subdivision (c)(1) 10
9589 of this section, the Attorney General shall commence an action in the circuit 11
9690 court within the jurisdiction of the public or private land. 12
9791 (3)(A) If the public or private land is held in violation of 13
9892 this section, the circuit court shall order that the public or private land 14
9993 be sold through judicial foreclosure. 15
10094 (B) Proceeds of the sale shall be first disbursed to lien 16
10195 holders, if any, in the order of priority, except for liens which under the 17
10296 terms of the sale are to remain on the public or private land. 18
10397 (4) The Attorney General shall promptly record a copy of the 19
10498 following in the local land records: 20
10599 (A) Upon commencement, notice of the pendency of an action 21
106100 brought under subdivision (c)(2) of this section; and 22
107101 (B) The order for the sale of the public or private land 23
108102 under subdivision (c)(3)(A) of this section. 24
109103 25
110104 SECTION 2. Arkansas Code § 18 -11-802 is amended to read as follows: 26
111105 18-11-802. Definitions. 27
112106 As used in this subchapter: 28
113107 (1)(A) “Agricultural land” means any Arkansas land which that is 29
114108 outside the corporate limits of a municipality and is : 30
115109 (i) Used for forestry production, including without 31
116110 limitation land exceeding ten (10) acres in which ten percent (10%) of the 32
117111 land is stocked by trees of any size, including land that formerly had trees 33
118112 of any size covering the land that will be naturally or artificially 34
119113 regenerated; or 35
120- (ii) Currently used for, or, if currently idle, land 36 As Engrossed: H3/31/25 HB1680
114+ (ii) Currently used for, or, if currently idle, land 36 HB1680
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125117 last used within the past five (5) years, for farming, ranching, or timber 1
126118 production, except land not exceeding ten (10) acres in the aggregate, if the 2
127119 annual gross receipts from the sale of the farm, ranch, or timber products 3
128120 produced on the land do not exceed one thousand dollars ($1,000), including 4
129121 without limitation land used for activities described in the Standard 5
130122 Industrial Classification Manual (1987), Division A, exclusive of industry 6
131123 numbers 0711-0783, 0851, and 0912 -0919 which cover animal trapping, game 7
132124 management, hunting carried on as a business enterprise, trapping carried on 8
133125 as a business enterprise, and wildlife management. 9
134126 (B) “Agricultural land” does not include oil, gas, and all 10
135127 other minerals, including coal, lignite, brine, and all minerals known and 11
136128 recognized as commercial minerals underlying the land; 12
137129 (2)(A) "Critical infrastructure" means physical or virtual 13
138130 systems and assets that: 14
139131 (i) If incapacitated or destroyed would have a 15
140132 debilitating impact on security, national economic security, public health or 16
141133 safety, or any combination of security, national economic security, or public 17
142134 health and safety; and 18
143135 (ii) Are publicly or privately owned. 19
144136 (B) "Critical infrastructure" includes without limitation: 20
145137 (i) A military installation or facility; 21
146138 (ii) An emergency service; 22
147139 (iii) A power generation or transmission location; 23
148140 (iv) A utility; 24
149141 (v) A bridge; 25
150142 (vi) A tunnel; 26
151143 (vii) A railway; 27
152144 (viii) A dam; 28
153145 (ix) A cybersecurity or classified information 29
154146 storage system; and 30
155147 (x) A communication or information technology node 31
156148 or facility; 32
157149 (3) “Foreign government” means the same as provided by § 2 -3-33
158150 102; 34
159151 (3)(4) “Interest in agricultural land” means all direct interest 35
160-acquired, transferred, or held in agricultural land, including without 36 As Engrossed: H3/31/25 HB1680
152+acquired, transferred, or held in agricultural land, including without 36 HB1680
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165155 limitation a lease of agricultural land : 1
166156 (A) For a term of one (1) year or longer; or 2
167157 (B) Renewable by option for terms which, if the options 3
168158 were all exercised, would total one (1) year ; 4
169159 (4)(5) “Party” means the same as provided by § 2 -3-102; 5
170160 (5)(6) “Prohibited foreign party” means: 6
171161 (A) A citizen or resident of a country subject to 7
172-International Traffic in Arms Regulations, 22 C.F.R. § 126.1 , unless the 8
173-person is also a citizen of the United States ; 9
174- (B) A foreign government formed within a country subject 10
175-to International Traffic in Arms Regulations, 22 C.F.R. § 126.1; 11
176- (C) A party or entity other than an individual or a 12
177-government, that is created or organized under the laws of a foreign 13
178-government within a country subject to International Traffic in Arms 14
179-Regulations, 22 C.F.R. § 126.1; 15
180- (D) Any party or entity other than an individual or a 16
181-government: 17
182- (i) That is created or organized under the laws of 18
183-any state; and 19
184- (ii) In which a significant interest or substantial 20
185-control is directly or indirectly held or is capable of being exercised by: 21
186- (a) An individual referred to in subdivision 22
187-(5)(A) (6)(A) of this section; 23
188- (b) A foreign government referred to in 24
189-subdivision (5)(B) (6)(B) of this section; 25
190- (c) A party or entity referred to in 26
191-subdivision (5)(C) (6)(C) of this section; or 27
192- (d) A combination of the individuals, parties, 28
193-entities, or governments referred to in this subdivision (5)(D)(ii) 29
194-(6)(D)(ii); 30
195- (E) An Entity of Particular Concern designated by the 31
196-United States Department of State; or 32
197- (F) An agent, trustee, or other fiduciary of a person or 33
198-entity enumerated in subdivisions (5)(A)-(E) (6)(A)-(E) of this section; 34
199- (6)(7) “Residence” means a person's principal dwelling place 35
200-where the person intends to remain permanently for an indefinite period of 36 As Engrossed: H3/31/25 HB1680
162+International Traffic in Arms Regulations, 22 C.F.R. § 126.1; 8
163+ (B) A foreign government formed within a country subject 9
164+to International Traffic in Arms Regulations, 22 C.F.R. § 126.1; 10
165+ (C) A party or entity other than an individual or a 11
166+government, that is created or organized under the laws of a foreign 12
167+government within a country subject to International Traffic in Arms 13
168+Regulations, 22 C.F.R. § 126.1; 14
169+ (D) Any party or entity other than an individual or a 15
170+government: 16
171+ (i) That is created or organized under the laws of 17
172+any state; and 18
173+ (ii) In which a significant interest or substantial 19
174+control is directly or indirectly held or is capable of being exercised by: 20
175+ (a) An individual referred to in subdivision 21
176+(5)(A) (6)(A) of this section; 22
177+ (b) A foreign government referred to in 23
178+subdivision (5)(B) (6)(B) of this section; 24
179+ (c) A party or entity referred to in 25
180+subdivision (5)(C) (6)(C) of this section; or 26
181+ (d) A combination of the individuals, parties, 27
182+entities, or governments referred to in this subdivision (5)(D)(ii) 28
183+(6)(D)(ii); 29
184+ (E) An Entity of Particular Concern designated by the 30
185+United States Department of State; or 31
186+ (F) An agent, trustee, or other fiduciary of a person or 32
187+entity enumerated in subdivisions (5)(A)-(E) (6)(A)-(E) of this section; 33
188+ (6)(7) “Residence” means a person's principal dwelling place 34
189+where the person intends to remain permanently for an indefinite period of 35
190+time; 36 HB1680
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193+ (7)(8) “Resident alien” means a person who: 1
194+ (A) Is not a citizen of the United States; and 2
195+ (B) Is a resident of a: 3
196+ (i) State of the United States; 4
197+ (ii) Territory of the United States; 5
198+ (iii) Trusteeship of the United States; or 6
199+ (iv) Protectorate of the United States; and 7
200+ (8)(9) “Significant interest” or “substantial control” means: 8
201+ (A) An interest of thirty -three percent (33%) or more held 9
202+by: 10
203+ (i) A party referred to in subdivision (5)(D) (6)(D) 11
204+of this section; 12
205+ (ii) An individual referred to in subdivision (5)(A) 13
206+(6)(A) of this section; 14
207+ (iii) A party referred to in subdivision (5)(C) 15
208+(6)(C) of this section; or 16
209+ (iv) A single government referred to in subdivision 17
210+(5)(B) (6)(B) of this section; or 18
211+ (v) A party acting in concert with one (1) or more 19
212+prohibited foreign parties; 20
213+ (B) An interest of thirty -three percent (33%) or more held 21
214+whenever the parties, individuals, or governments referred to in subdivision 22
215+(5) (6) of this section are acting in concert with respect to the interest 23
216+even though no single individual, party, or government holds an interest of 24
217+thirty-three percent (33%) or more; or 25
218+ (C) An interest of fifty percent (50%) or more, in the 26
219+aggregate, held by parties, individuals, or governments referred to in 27
220+subdivision (5) (6) of this section even though the individuals, parties, or 28
221+foreign governments may not be acting in concert. 29
222+ 30
223+ SECTION 3. Arkansas Code § 18 -11-803 is amended to read as follows: 31
224+ 18-11-803. Limitations on owning agricultural land — Violation. 32
225+ (a)(1) Except as provided in § 18 -11-804, a prohibited foreign party 33
226+shall not acquire by grant, purchase, lease, devise, descent, or otherwise 34
227+any interest in agricultural land in this state regardless of whether the 35
228+prohibited foreign party intends to use the agricultural land for nonfarming 36 HB1680
203229
204-
205-time; 1
206- (7)(8) “Resident alien” means a person who: 2
207- (A) Is not a citizen of the United States; and 3
208- (B) Is a resident of a: 4
209- (i) State of the United States; 5
210- (ii) Territory of the United States; 6
211- (iii) Trusteeship of the United States; or 7
212- (iv) Protectorate of the United States; and 8
213- (8)(9) “Significant interest” or “substantial control” means: 9
214- (A) An interest of thirty -three percent (33%) or more held 10
215-by: 11
216- (i) A party referred to in subdivision (5)(D) (6)(D) 12
217-of this section; 13
218- (ii) An individual referred to in subdivision (5)(A) 14
219-(6)(A) of this section; 15
220- (iii) A party referred to in subdivision (5)(C) 16
221-(6)(C) of this section; or 17
222- (iv) A single government referred to in subdivision 18
223-(5)(B) (6)(B) of this section; or 19
224- (v) A party acting in concert with one (1) or more 20
225-prohibited foreign parties; 21
226- (B) An interest of thirty -three percent (33%) or more held 22
227-whenever the parties, individuals, or governments referred to in subdivision 23
228-(5) (6) of this section are acting in concert with respect to the interest 24
229-even though no single individual, party, or government holds an interest of 25
230-thirty-three percent (33%) or more; or 26
231- (C) An interest of fifty percent (50%) or more, in the 27
232-aggregate, held by parties, individuals, or governments referred to in 28
233-subdivision (5) (6) of this section even though the individuals, parties, or 29
234-foreign governments may not be acting in concert. 30
230+ 7 03/04/2025 4:05:51 PM ZRC075
231+purposes. 1
232+ (2) A party may not hold agricultural land as an agent, trustee, 2
233+or other fiduciary for a prohibited foreign party in violation of this 3
234+subchapter. 4
235+ (3) A prohibited foreign party shall not hold any interest in 5
236+agricultural land located within a ten -mile radius of critical 6
237+infrastructure. 7
238+ (b) A prohibited foreign party that acquires agricultural land in 8
239+violation of this subchapter remains in violation as long as the prohibited 9
240+foreign party holds an interest in the agricultural land. 10
241+ 11
242+ SECTION 4. Arkansas Code § 18 -11-804(b)(1), concerning an interest in 12
243+agricultural land owned by a prohibited foreign party, is amended to read as 13
244+follows: 14
245+ (b)(1) If a prohibited foreign party is no longer a resident alien 15
246+under subsection (a) of this section, he or she shall have two (2) years one 16
247+(1) year to divest of the agricultural land. 17
248+ 18
249+ SECTION 5. Arkansas Code § 18 -11-804(e), concerning an interest in 19
250+agricultural land owned by a prohibited foreign party, is amended to read as 20
251+follows: 21
252+ (e) A prohibited foreign party or other party acting in concert with a 22
253+prohibited foreign party as an agent, trustee, or other fiduciary owning 23
254+agricultural land subsequent to the passage of this subchapter and not listed 24
255+under one (1) of the exceptions set out in subsections (a) and (b) of this 25
256+section shall upon conviction be guilty of a felony punishable by not more 26
257+than two (2) years' imprisonment in the custody of the Division of Correction 27
258+or a fine of fifteen thousand dollars ($15,000), or both. 28
259+ 29
260+ 30
235261 31
236- SECTION 3. Arkansas Code § 18 -11-803 is amended to read as follows: 32
237- 18-11-803. Limitations on owning agricultural land — Violation. 33
238- (a)(1) Except as provided in § 18 -11-804, a prohibited foreign party 34
239-shall not acquire by grant, purchase, lease, devise, descent, or otherwise 35
240-any interest in agricultural land in this state regardless of whether the 36 As Engrossed: H3/31/25 HB1680
241-
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243-
244-
245-prohibited foreign party intends to use the agricultural land for nonfarming 1
246-purposes. 2
247- (2) A party may not hold agricultural land as an agent, trustee, 3
248-or other fiduciary for a prohibited foreign party in violation of this 4
249-subchapter. 5
250- (3) A prohibited foreign party shall not hold any interest in 6
251-agricultural land located within a ten -mile radius of critical 7
252-infrastructure. 8
253- (b) A prohibited foreign party that acquires agricultural land in 9
254-violation of this subchapter remains in violation as long as the prohibited 10
255-foreign party holds an interest in the agricultural land. 11
256- 12
257- SECTION 4. Arkansas Code § 18 -11-804(b)(1), concerning an interest in 13
258-agricultural land owned by a prohibited foreign party, is amended to read as 14
259-follows: 15
260- (b)(1) If a prohibited foreign party is no longer a resident alien 16
261-under subsection (a) of this section, he or she shall have two (2) years one 17
262-(1) year to divest of the agricultural land. 18
263- 19
264- SECTION 5. Arkansas Code § 18 -11-804(e), concerning an interest in 20
265-agricultural land owned by a prohibited foreign party, is amended to read as 21
266-follows: 22
267- (e) A prohibited foreign party or other party acting in concert with a 23
268-prohibited foreign party as an agent, trustee, or other fiduciary owning 24
269-agricultural land subsequent to the passage of this subchapter and not listed 25
270-under one (1) of the exceptions set out in subsections (a) and (b) of this 26
271-section shall upon conviction be guilty of a felony punishable by not more 27
272-than two (2) years' imprisonment in the custody of the Division of Correction 28
273-or a fine of fifteen thousand dollars ($15,000), or both. 29
274- 30
275-/s/Vaught 31
276262 32
277263 33
278-APPROVED: 4/17/25 34
264+ 34
279265 35
280266 36