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Colorado House Bill HB1029

Colorado 2024 Regular Session

Colorado House Bill HB1029 Compare Versions

Only one version of the bill is available at this time.
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11 Second Regular Session
22 Seventy-fourth General Assembly
33 STATE OF COLORADO
44 INTRODUCED
55
66
77 LLS NO. 24-0597.01 Sarah Lozano x3858
88 HOUSE BILL 24-1029
99 House Committees Senate Committees
1010 State, Civic, Military, & Veterans Affairs
1111 A BILL FOR AN ACT
1212 C
1313 ONCERNING PROHIBITING THE OW NERSHIP OF CERTAIN PROPERTY101
1414 INTERESTS BY COVERED FOREIGN PERSONS THAT ARE NOT102
1515 LOCATED IN THE UNITED STATES.103
1616 Bill Summary
1717 (Note: This summary applies to this bill as introduced and does
1818 not reflect any amendments that may be subsequently adopted. If this bill
1919 passes third reading in the house of introduction, a bill summary that
2020 applies to the reengrossed version of this bill will be available at
2121 http://leg.colorado.gov
2222 .)
2323 The bill prohibits, on or after January 1, 2025, a nonresident
2424 foreign citizen, foreign entity, or foreign government of the People's
2525 Republic of China, the Russian Federation, or any country determined by
2626 the United States secretary of state to be a state sponsor of terrorism
2727 (covered foreign person) from acquiring a controlling ownership share in
2828 agricultural land, mineral rights, or water rights (property interest) in the
2929 HOUSE SPONSORSHIP
3030 Bradley,
3131 SENATE SPONSORSHIP
3232 (None),
3333 Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
3434 Capital letters or bold & italic numbers indicate new material to be added to existing law.
3535 Dashes through the words or numbers indicate deletions from existing law. state (prohibition). A covered foreign person who acquires a controlling
3636 ownership share in a property interest in the state prior to January 1, 2025,
3737 may continue to own the property interest but may not acquire a
3838 controlling ownership share in any additional property interests in the
3939 state.
4040 No later than March 1, 2025, or 60 days after acquiring any
4141 ownership in a property interest in the state, whichever is later, a covered
4242 foreign person must register with the Colorado secretary of state
4343 (registration requirement), who is authorized to promulgate rules to
4444 implement the registration requirement.
4545 If the attorney general has reason to believe that a covered foreign
4646 person has violated the prohibition or has not complied with the
4747 registration requirement, the attorney general must commence a civil
4848 action against the covered foreign person in a district court. If a district
4949 court finds that the covered foreign person has violated the prohibition,
5050 the district court must issue a judgment reverting the property interest to
5151 the state. If the district court finds that the covered person has not
5252 complied with the registration requirement, the district court must impose
5353 a penalty of no more than $2,000 for each violation.
5454 The prohibition does not apply to a refugee who is a covered
5555 foreign person and acquires a controlling ownership share in real property
5656 used for the purposes of agriculture with prior approval of the acquisition
5757 by the Colorado secretary of state.
5858 Be it enacted by the General Assembly of the State of Colorado:1
5959 SECTION 1. In Colorado Revised Statutes, add 38-30-174 as2
6060 follows:3
6161 38-30-174. Prohibition on certain foreign ownership of4
6262 agricultural or natural resource property interests - registration -5
6363 enforcement - exemption - rules - definitions. (1) Definitions. A
6464 S USED6
6565 IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :7
6666 (a) "A
6767 CQUIRE" OR "ACQUISITION" MEANS TO OBTAIN A PROPERTY8
6868 INTEREST BY PURCHASE, GIFT, TRANSFER, ASSIGNMENT, OPTION, BEQUEST,9
6969 DEVISE, OR ANY OTHER METHOD.10
7070 (b) "A
7171 GRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST "11
7272 OR "PROPERTY INTEREST" MEANS A PROPERTY INTEREST OR ANY PORTION12
7373 HB24-1029-2- OF A PROPERTY INTEREST IN ANY:1
7474 (I) R
7575 EAL PROPERTY USED FOR THE PURPOSES OF AGRICULTURE ;2
7676 (II) R
7777 IGHT TO MINE MINERALS OR EXTRACT OIL AND GAS ; OR3
7878 (III) W
7979 ATER RIGHT.4
8080 (c) "A
8181 GRICULTURE" HAS THE MEANING SET FORTH IN SECTION5
8282 35-1-102
8383 (1).6
8484 (d) (I) "C
8585 ONTROLLING OWNERSHIP SHARE " MEANS AN OWNERSHIP7
8686 SHARE OF MORE THAN FIFTY PERCENT .8
8787 (II) "C
8888 ONTROLLING OWNERSHIP SHARE " INCLUDES A COMBINED9
8989 OWNERSHIP SHARE OF MORE THAN ONE COVERED FOREIGN PERSON FROM10
9090 THE SAME COVERED FOREIGN COUNTRY THAT AMOUNTS TO AN OWNERSHIP11
9191 SHARE OF MORE THAN FIFTY PERCENT .12
9292 (e) "C
9393 OVERED FOREIGN COUNTRY" MEANS THE PEOPLE'S REPUBLIC13
9494 OF CHINA, THE RUSSIAN FEDERATION, OR ANY COUNTRY THAT IS ON THE14
9595 LIST OF STATE SPONSORS OF TERRORISM.15
9696 (f) "C
9797 OVERED FOREIGN ENTITY" MEANS ANY ENTITY:16
9898 (I) F
9999 ORMED UNDER THE LAWS OF A COVERED FOREIGN COUNTRY ;17
100100 OR18
101101 (II) W
102102 ITH A CONTROLLING OWNERSHIP SHARE OWNED BY :19
103103 (A) O
104104 NE OR MORE COVERED NONRESIDENT FOREIGN PERSONS ; OR20
105105 (B) O
106106 NE OR MORE ENTITIES FORMED UNDER THE LAWS OF A21
107107 COVERED FOREIGN COUNTRY .22
108108 (g) "C
109109 OVERED FOREIGN GOVERNMENT " MEANS A GOVERNMENT OF23
110110 A COVERED FOREIGN COUNTRY .24
111111 (h) "C
112112 OVERED FOREIGN PERSON" MEANS A:25
113113 (I) C
114114 OVERED NONRESIDENT FOREIGN PERSON ;26
115115 (II) C
116116 OVERED FOREIGN ENTITY; OR27
117117 HB24-1029
118118 -3- (III) COVERED FOREIGN GOVERNMENT .1
119119 (i) "C
120120 OVERED NONRESIDENT FOREIGN PERSON " MEANS ANY2
121121 PERSON WHO IS:3
122122 (I) A
123123 CITIZEN OF A COVERED FOREIGN COUNTRY ; AND4
124124 (II) N
125125 OT DOMICILED IN THE UNITED STATES.5
126126 (j) "L
127127 IST OF STATE SPONSORS OF TERRORISM" MEANS THE LIST OF6
128128 COUNTRIES THAT HAVE BEEN DETERMINED BY THE UNITED STATES7
129129 SECRETARY OF STATE TO BE STATE SPONSORS OF TERRORISM PURSUANT TO8
130130 THE "JOHN S. MCCAIN NATIONAL DEFENSE AUTHORIZATION ACT FOR9
131131 F
132132 ISCAL YEAR 2019", 50 U.S.C. SEC. 4813 (c); THE "ARMS EXPORT10
133133 C
134134 ONTROL ACT", 22 U.S.C. SEC. 2780; AND THE "FOREIGN ASSISTANCE11
135135 A
136136 CT OF 1961", U.S.C. SEC. 2371.12
137137 (k) "W
138138 ATER RIGHT" HAS THE MEANING SET FORTH IN SECTION13
139139 37-92-103
140140 (12).14
141141 (2) Prohibition. (a) E
142142 XCEPT AS DESCRIBED IN SUBSECTION (2)(b)15
143143 OF THIS SECTION, ON OR AFTER JANUARY 1, 2025, A COVERED FOREIGN16
144144 PERSON SHALL NOT ACQUIRE A CONTROLLING OWNERSHIP SHARE IN AN17
145145 AGRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST IN THE18
146146 STATE.19
147147 (b) (I) A
148148 COVERED FOREIGN PERSON THAT ACQUIRES A20
149149 CONTROLLING OWNERSHIP SHARE IN AN AGRICULTURAL OR NATURAL21
150150 RESOURCE PROPERTY INTEREST IN THE STATE PRIOR TO JANUARY 1, 2025,22
151151 MAY CONTINUE TO OWN THE PROPERTY INTEREST BUT SHALL NOT ACQUIRE23
152152 A CONTROLLING OWNERSHIP SHARE IN ANY ADDITIONAL PROPERTY24
153153 INTERESTS IN THE STATE ON OR AFTER JANUARY 1, 2025.25
154154 (II) T
155155 HE PROHIBITION DESCRIBED IN SUBSECTION (2)(a) OF THIS26
156156 SECTION DOES NOT APPLY TO THE FOLLOWING :27
157157 HB24-1029
158158 -4- (A) AN AGRICULTURAL OR NATURAL RESOURCE PROPERTY1
159159 INTEREST ACQUIRED BY DEVISE OR DESCENT ;2
160160 (B) A
161161 N AGRICULTURAL OR NATURAL RESOURCE PROPERTY3
162162 INTEREST ACQUIRED BY ANY PROCEDURE FOR THE ENFORCEMENT OF A4
163163 LIEN OR ENCUMBRANCE ON THE PROPERTY INTEREST , WHETHER CREATED5
164164 BY MORTGAGE OR OTHERWISE ; OR6
165165 (C) A
166166 LIEN OR ENCUMBRANCE ON AN AGRICULTURAL OR NATURAL7
167167 RESOURCE PROPERTY INTEREST TAKEN AS A SECURITY INTEREST .8
168168 (III) I
169169 F A COVERED FOREIGN PERSON ACQUIRES A CONTROLLING9
170170 OWNERSHIP SHARE IN AN AGRICULTURAL OR NATURAL RESOURCE10
171171 PROPERTY INTEREST IN THE STATE AS DESCRIBED IN SUBSECTION11
172172 (2)(b)(II)(A)
173173 OR (2)(b)(II)(B) OF THIS SECTION ON OR AFTER JANUARY 1,12
174174 2025,
175175 THE COVERED FOREIGN PERSON SHALL SELL OR OTHERWISE DISPOSE13
176176 OF THE PROPERTY INTEREST, SO THAT THE COVERED FOREIGN PERSON IS NO14
177177 LONGER A CONTROLLING OWNER OF THE PROPERTY INTEREST , NO LATER15
178178 THAN TWO YEARS AFTER ACQUIRING THE PROPERTY INTEREST .16
179179 (IV) I
180180 F A PERSON ACQUIRES A CONTROLLING OWNERSHIP SHARE IN17
181181 AN AGRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST IN THE18
182182 STATE ON OR AFTER JANUARY 1, 2025, AND LATER BECOMES A COVERED19
183183 FOREIGN PERSON, THE COVERED FOREIGN PERSON SHALL SELL OR20
184184 OTHERWISE DISPOSE OF THE PROPERTY INTEREST , SO THAT THE COVERED21
185185 FOREIGN PERSON IS NO LONGER A CONTROLLING OWNER OF THE PROPERTY22
186186 INTEREST, NO LATER THAN TWO YEARS AFTER THE COVERED FOREIGN23
187187 PERSON'S CHANGE IN STATUS. IF A PERSON BECOMES A COVERED FOREIGN24
188188 PERSON ON OR AFTER JANUARY 1, 2025, BECAUSE THE UNITED STATES25
189189 SECRETARY OF STATE HAS ADDED A NEW COUNTRY TO THE LIST OF STATE26
190190 SPONSORS OF TERRORISM, THE COVERED FOREIGN PERSON 'S CHANGE IN27
191191 HB24-1029
192192 -5- STATUS OCCURS ON THE EFFECTIVE DATE OF THE UNITED STATES1
193193 SECRETARY OF STATE'S ADDITION OF THE COUNTRY TO THE LIST.2
194194 (3) Registration - rules. (a) N
195195 O LATER THAN MARCH 1, 2025, OR3
196196 SIXTY DAYS AFTER ACQUIRING ANY OWNERSHIP IN AN AGRICULTURAL OR4
197197 NATURAL RESOURCE PROPERTY INTEREST IN THE STATE , WHICHEVER IS5
198198 LATER, A COVERED FOREIGN PERSON THAT OWNS AN OWNERSHIP SHARE IN6
199199 AN AGRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST SHALL7
200200 REGISTER WITH THE SECRETARY OF STATE. THE REGISTRATION MUST BE IN8
201201 THE FORM AND MANNER PRESCRIBED BY THE SECRETARY OF STATE .9
202202 (b) T
203203 HE SECRETARY OF STATE MAY PROMULGATE RULES AS10
204204 NECESSARY FOR THE IMPLEMENTATION OF SUBSECTION (3)(a) OF THIS11
205205 SECTION.12
206206 (4) Enforcement. (a) I
207207 F THE ATTORNEY GENERAL HAS REASON TO13
208208 BELIEVE THAT A VIOLATION OF SUBSECTION (2) OR (3)(a) OF THIS SECTION14
209209 HAS OCCURRED, THE ATTORNEY GENERAL SHALL COMMENCE A CIVIL15
210210 ACTION AGAINST THE COVERED FOREIGN PERSON IN THE DISTRICT COURT16
211211 WHERE:17
212212 (I) A
213213 NY PORTION OF THE APPLICABLE AGRICULTURAL OR NATURAL18
214214 RESOURCE PROPERTY INTEREST IS LOCATED ; OR19
215215 (II) T
216216 HE COMPLAINANT, IF ANY, RESIDES.20
217217 (b) (I) I
218218 F A DISTRICT COURT FINDS THAT THE APPLICABLE21
219219 AGRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST WAS22
220220 ACQUIRED IN VIOLATION OF SUBSECTION (2)(a) OF THIS SECTION, THE23
221221 PROPERTY INTEREST, IN ITS ENTIRETY, REVERTS TO THE STATE UPON THE24
222222 EFFECTIVE DATE OF THE DISTRICT COURT 'S FINDING, AND THE DISTRICT25
223223 COURT SHALL:26
224224 (A) I
225225 SSUE A JUDGMENT STATING THAT THE PROPERTY INTEREST IS27
226226 HB24-1029
227227 -6- REVERTED TO THE STATE; AND1
228228 (B) P
229229 ROMPTLY SEND A COPY OF THE JUDGMENT TO THE STATE2
230230 TREASURER.3
231231 (II) T
232232 HE STATE TREASURER SHALL SELL ANY PROPERTY INTEREST4
233233 REVERTED TO THE STATE PURSUANT TO THIS SUBSECTION (4)(b) IN5
234234 ACCORDANCE WITH SECTION 38-13-701.6
235235 (III) (A) T
236236 HE STATE TREASURER SHALL , WHERE PERMITTED BY7
237237 APPLICABLE LAW, PAY THE PROCEEDS OF THE SALE DESCRIBED IN8
238238 SUBSECTION (4)(b)(II) OF THIS SECTION TO THE COVERED FOREIGN PERSON9
239239 DIVESTED OF THE PROPERTY INTEREST AFTER , FIRST, DEDUCTING ANY10
240240 REASONABLE COSTS INCURRED BY THE STATE TO LITIGATE THE CIVIL11
241241 ACTION AND CONDUCT THE SALE AND , SECOND, DEDUCTING THE COSTS12
242242 INCURRED BY THE STATE TO PAY ANY UNPAID LIENS OR ENCUMBRANCES13
243243 ASSOCIATED WITH THE PROPERTY INTEREST .14
244244 (B) T
245245 HE STATE TREASURER SHALL TRANSMIT ANY REMAINING15
246246 PROCEEDS OF THE SALE TO THE COUNTY TREASURER OF THE COUNTY16
247247 WHERE THE APPLICABLE PROPERTY INTEREST IS LOCATED . IF THE17
248248 PROPERTY INTEREST IS LOCATED IN MORE THAN ONE COUNTY , THE STATE18
249249 TREASURER SHALL TRANSMIT THE REMAINING PROCEEDS TO THE19
250250 APPLICABLE COUNTY TREASURERS IN PROPORTION TO THE PORTION OF THE20
251251 PROPERTY INTEREST LOCATED IN EACH COUNTY .21
252252 (c) (I) I
253253 F A DISTRICT COURT FINDS THAT A COVERED FOREIGN22
254254 PERSON FAILED TO REGISTER WITH THE SECRETARY OF STATE IN23
255255 ACCORDANCE WITH SUBSECTION (3)(a) OF THIS SECTION, THE DISTRICT24
256256 COURT SHALL IMPOSE A PENALTY OF NO MORE THAN TWO THOUSAND25
257257 DOLLARS FOR EACH VIOLATION.26
258258 (II) T
259259 HE DISTRICT COURT SHALL TRANSMIT ALL PENALTIES27
260260 HB24-1029
261261 -7- COLLECTED UNDER THIS SECTION TO THE STATE TREASURER , WHO SHALL1
262262 CREDIT THE MONEY TO THE GENERAL FUND .2
263263 (5) Exemption for refugees for real property used for3
264264 agriculture. N
265265 OTWITHSTANDING SUBSECTION (2) OF THIS SECTION, A4
266266 REFUGEE WHO IS A COVERED FOREIGN PERSON MAY ACQUIRE A5
267267 CONTROLLING OWNERSHIP SHARE IN REAL PROPERTY USED FOR THE6
268268 PURPOSES OF AGRICULTURE WITH PRIOR APPROVAL OF THE ACQUISITION7
269269 BY THE SECRETARY OF STATE.8
270270 SECTION 2. Act subject to petition - effective date. This act9
271271 takes effect at 12:01 a.m. on the day following the expiration of the10
272272 ninety-day period after final adjournment of the general assembly; except11
273273 that, if a referendum petition is filed pursuant to section 1 (3) of article V12
274274 of the state constitution against this act or an item, section, or part of this13
275275 act within such period, then the act, item, section, or part will not take14
276276 effect unless approved by the people at the general election to be held in15
277277 November 2024 and, in such case, will take effect on the date of the16
278278 official declaration of the vote thereon by the governor.17
279279 HB24-1029
280280 -8-