Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0597.01 Sarah Lozano x3858
HOUSE BILL 24-1029
House Committees Senate Committees
State, Civic, Military, & Veterans Affairs
A BILL FOR AN ACT
C
ONCERNING PROHIBITING THE OW NERSHIP OF CERTAIN PROPERTY101
INTERESTS BY COVERED FOREIGN PERSONS THAT ARE NOT102
LOCATED IN THE UNITED STATES.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill prohibits, on or after January 1, 2025, a nonresident
foreign citizen, foreign entity, or foreign government of the People's
Republic of China, the Russian Federation, or any country determined by
the United States secretary of state to be a state sponsor of terrorism
(covered foreign person) from acquiring a controlling ownership share in
agricultural land, mineral rights, or water rights (property interest) in the
HOUSE SPONSORSHIP
Bradley,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. state (prohibition). A covered foreign person who acquires a controlling
ownership share in a property interest in the state prior to January 1, 2025,
may continue to own the property interest but may not acquire a
controlling ownership share in any additional property interests in the
state.
No later than March 1, 2025, or 60 days after acquiring any
ownership in a property interest in the state, whichever is later, a covered
foreign person must register with the Colorado secretary of state
(registration requirement), who is authorized to promulgate rules to
implement the registration requirement.
If the attorney general has reason to believe that a covered foreign
person has violated the prohibition or has not complied with the
registration requirement, the attorney general must commence a civil
action against the covered foreign person in a district court. If a district
court finds that the covered foreign person has violated the prohibition,
the district court must issue a judgment reverting the property interest to
the state. If the district court finds that the covered person has not
complied with the registration requirement, the district court must impose
a penalty of no more than $2,000 for each violation.
The prohibition does not apply to a refugee who is a covered
foreign person and acquires a controlling ownership share in real property
used for the purposes of agriculture with prior approval of the acquisition
by the Colorado secretary of state.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 38-30-174 as2
follows:3
38-30-174. Prohibition on certain foreign ownership of4
agricultural or natural resource property interests - registration -5
enforcement - exemption - rules - definitions. (1) Definitions. A
S USED6
IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :7
(a) "A
CQUIRE" OR "ACQUISITION" MEANS TO OBTAIN A PROPERTY8
INTEREST BY PURCHASE, GIFT, TRANSFER, ASSIGNMENT, OPTION, BEQUEST,9
DEVISE, OR ANY OTHER METHOD.10
(b) "A
GRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST "11
OR "PROPERTY INTEREST" MEANS A PROPERTY INTEREST OR ANY PORTION12
HB24-1029-2- OF A PROPERTY INTEREST IN ANY:1
(I) R
EAL PROPERTY USED FOR THE PURPOSES OF AGRICULTURE ;2
(II) R
IGHT TO MINE MINERALS OR EXTRACT OIL AND GAS ; OR3
(III) W
ATER RIGHT.4
(c) "A
GRICULTURE" HAS THE MEANING SET FORTH IN SECTION5
35-1-102
(1).6
(d) (I) "C
ONTROLLING OWNERSHIP SHARE " MEANS AN OWNERSHIP7
SHARE OF MORE THAN FIFTY PERCENT .8
(II) "C
ONTROLLING OWNERSHIP SHARE " INCLUDES A COMBINED9
OWNERSHIP SHARE OF MORE THAN ONE COVERED FOREIGN PERSON FROM10
THE SAME COVERED FOREIGN COUNTRY THAT AMOUNTS TO AN OWNERSHIP11
SHARE OF MORE THAN FIFTY PERCENT .12
(e) "C
OVERED FOREIGN COUNTRY" MEANS THE PEOPLE'S REPUBLIC13
OF CHINA, THE RUSSIAN FEDERATION, OR ANY COUNTRY THAT IS ON THE14
LIST OF STATE SPONSORS OF TERRORISM.15
(f) "C
OVERED FOREIGN ENTITY" MEANS ANY ENTITY:16
(I) F
ORMED UNDER THE LAWS OF A COVERED FOREIGN COUNTRY ;17
OR18
(II) W
ITH A CONTROLLING OWNERSHIP SHARE OWNED BY :19
(A) O
NE OR MORE COVERED NONRESIDENT FOREIGN PERSONS ; OR20
(B) O
NE OR MORE ENTITIES FORMED UNDER THE LAWS OF A21
COVERED FOREIGN COUNTRY .22
(g) "C
OVERED FOREIGN GOVERNMENT " MEANS A GOVERNMENT OF23
A COVERED FOREIGN COUNTRY .24
(h) "C
OVERED FOREIGN PERSON" MEANS A:25
(I) C
OVERED NONRESIDENT FOREIGN PERSON ;26
(II) C
OVERED FOREIGN ENTITY; OR27
HB24-1029
-3- (III) COVERED FOREIGN GOVERNMENT .1
(i) "C
OVERED NONRESIDENT FOREIGN PERSON " MEANS ANY2
PERSON WHO IS:3
(I) A
CITIZEN OF A COVERED FOREIGN COUNTRY ; AND4
(II) N
OT DOMICILED IN THE UNITED STATES.5
(j) "L
IST OF STATE SPONSORS OF TERRORISM" MEANS THE LIST OF6
COUNTRIES THAT HAVE BEEN DETERMINED BY THE UNITED STATES7
SECRETARY OF STATE TO BE STATE SPONSORS OF TERRORISM PURSUANT TO8
THE "JOHN S. MCCAIN NATIONAL DEFENSE AUTHORIZATION ACT FOR9
F
ISCAL YEAR 2019", 50 U.S.C. SEC. 4813 (c); THE "ARMS EXPORT10
C
ONTROL ACT", 22 U.S.C. SEC. 2780; AND THE "FOREIGN ASSISTANCE11
A
CT OF 1961", U.S.C. SEC. 2371.12
(k) "W
ATER RIGHT" HAS THE MEANING SET FORTH IN SECTION13
37-92-103
(12).14
(2) Prohibition. (a) E
XCEPT AS DESCRIBED IN SUBSECTION (2)(b)15
OF THIS SECTION, ON OR AFTER JANUARY 1, 2025, A COVERED FOREIGN16
PERSON SHALL NOT ACQUIRE A CONTROLLING OWNERSHIP SHARE IN AN17
AGRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST IN THE18
STATE.19
(b) (I) A
COVERED FOREIGN PERSON THAT ACQUIRES A20
CONTROLLING OWNERSHIP SHARE IN AN AGRICULTURAL OR NATURAL21
RESOURCE PROPERTY INTEREST IN THE STATE PRIOR TO JANUARY 1, 2025,22
MAY CONTINUE TO OWN THE PROPERTY INTEREST BUT SHALL NOT ACQUIRE23
A CONTROLLING OWNERSHIP SHARE IN ANY ADDITIONAL PROPERTY24
INTERESTS IN THE STATE ON OR AFTER JANUARY 1, 2025.25
(II) T
HE PROHIBITION DESCRIBED IN SUBSECTION (2)(a) OF THIS26
SECTION DOES NOT APPLY TO THE FOLLOWING :27
HB24-1029
-4- (A) AN AGRICULTURAL OR NATURAL RESOURCE PROPERTY1
INTEREST ACQUIRED BY DEVISE OR DESCENT ;2
(B) A
N AGRICULTURAL OR NATURAL RESOURCE PROPERTY3
INTEREST ACQUIRED BY ANY PROCEDURE FOR THE ENFORCEMENT OF A4
LIEN OR ENCUMBRANCE ON THE PROPERTY INTEREST , WHETHER CREATED5
BY MORTGAGE OR OTHERWISE ; OR6
(C) A
LIEN OR ENCUMBRANCE ON AN AGRICULTURAL OR NATURAL7
RESOURCE PROPERTY INTEREST TAKEN AS A SECURITY INTEREST .8
(III) I
F A COVERED FOREIGN PERSON ACQUIRES A CONTROLLING9
OWNERSHIP SHARE IN AN AGRICULTURAL OR NATURAL RESOURCE10
PROPERTY INTEREST IN THE STATE AS DESCRIBED IN SUBSECTION11
(2)(b)(II)(A)
OR (2)(b)(II)(B) OF THIS SECTION ON OR AFTER JANUARY 1,12
2025,
THE COVERED FOREIGN PERSON SHALL SELL OR OTHERWISE DISPOSE13
OF THE PROPERTY INTEREST, SO THAT THE COVERED FOREIGN PERSON IS NO14
LONGER A CONTROLLING OWNER OF THE PROPERTY INTEREST , NO LATER15
THAN TWO YEARS AFTER ACQUIRING THE PROPERTY INTEREST .16
(IV) I
F A PERSON ACQUIRES A CONTROLLING OWNERSHIP SHARE IN17
AN AGRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST IN THE18
STATE ON OR AFTER JANUARY 1, 2025, AND LATER BECOMES A COVERED19
FOREIGN PERSON, THE COVERED FOREIGN PERSON SHALL SELL OR20
OTHERWISE DISPOSE OF THE PROPERTY INTEREST , SO THAT THE COVERED21
FOREIGN PERSON IS NO LONGER A CONTROLLING OWNER OF THE PROPERTY22
INTEREST, NO LATER THAN TWO YEARS AFTER THE COVERED FOREIGN23
PERSON'S CHANGE IN STATUS. IF A PERSON BECOMES A COVERED FOREIGN24
PERSON ON OR AFTER JANUARY 1, 2025, BECAUSE THE UNITED STATES25
SECRETARY OF STATE HAS ADDED A NEW COUNTRY TO THE LIST OF STATE26
SPONSORS OF TERRORISM, THE COVERED FOREIGN PERSON 'S CHANGE IN27
HB24-1029
-5- STATUS OCCURS ON THE EFFECTIVE DATE OF THE UNITED STATES1
SECRETARY OF STATE'S ADDITION OF THE COUNTRY TO THE LIST.2
(3) Registration - rules. (a) N
O LATER THAN MARCH 1, 2025, OR3
SIXTY DAYS AFTER ACQUIRING ANY OWNERSHIP IN AN AGRICULTURAL OR4
NATURAL RESOURCE PROPERTY INTEREST IN THE STATE , WHICHEVER IS5
LATER, A COVERED FOREIGN PERSON THAT OWNS AN OWNERSHIP SHARE IN6
AN AGRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST SHALL7
REGISTER WITH THE SECRETARY OF STATE. THE REGISTRATION MUST BE IN8
THE FORM AND MANNER PRESCRIBED BY THE SECRETARY OF STATE .9
(b) T
HE SECRETARY OF STATE MAY PROMULGATE RULES AS10
NECESSARY FOR THE IMPLEMENTATION OF SUBSECTION (3)(a) OF THIS11
SECTION.12
(4) Enforcement. (a) I
F THE ATTORNEY GENERAL HAS REASON TO13
BELIEVE THAT A VIOLATION OF SUBSECTION (2) OR (3)(a) OF THIS SECTION14
HAS OCCURRED, THE ATTORNEY GENERAL SHALL COMMENCE A CIVIL15
ACTION AGAINST THE COVERED FOREIGN PERSON IN THE DISTRICT COURT16
WHERE:17
(I) A
NY PORTION OF THE APPLICABLE AGRICULTURAL OR NATURAL18
RESOURCE PROPERTY INTEREST IS LOCATED ; OR19
(II) T
HE COMPLAINANT, IF ANY, RESIDES.20
(b) (I) I
F A DISTRICT COURT FINDS THAT THE APPLICABLE21
AGRICULTURAL OR NATURAL RESOURCE PROPERTY INTEREST WAS22
ACQUIRED IN VIOLATION OF SUBSECTION (2)(a) OF THIS SECTION, THE23
PROPERTY INTEREST, IN ITS ENTIRETY, REVERTS TO THE STATE UPON THE24
EFFECTIVE DATE OF THE DISTRICT COURT 'S FINDING, AND THE DISTRICT25
COURT SHALL:26
(A) I
SSUE A JUDGMENT STATING THAT THE PROPERTY INTEREST IS27
HB24-1029
-6- REVERTED TO THE STATE; AND1
(B) P
ROMPTLY SEND A COPY OF THE JUDGMENT TO THE STATE2
TREASURER.3
(II) T
HE STATE TREASURER SHALL SELL ANY PROPERTY INTEREST4
REVERTED TO THE STATE PURSUANT TO THIS SUBSECTION (4)(b) IN5
ACCORDANCE WITH SECTION 38-13-701.6
(III) (A) T
HE STATE TREASURER SHALL , WHERE PERMITTED BY7
APPLICABLE LAW, PAY THE PROCEEDS OF THE SALE DESCRIBED IN8
SUBSECTION (4)(b)(II) OF THIS SECTION TO THE COVERED FOREIGN PERSON9
DIVESTED OF THE PROPERTY INTEREST AFTER , FIRST, DEDUCTING ANY10
REASONABLE COSTS INCURRED BY THE STATE TO LITIGATE THE CIVIL11
ACTION AND CONDUCT THE SALE AND , SECOND, DEDUCTING THE COSTS12
INCURRED BY THE STATE TO PAY ANY UNPAID LIENS OR ENCUMBRANCES13
ASSOCIATED WITH THE PROPERTY INTEREST .14
(B) T
HE STATE TREASURER SHALL TRANSMIT ANY REMAINING15
PROCEEDS OF THE SALE TO THE COUNTY TREASURER OF THE COUNTY16
WHERE THE APPLICABLE PROPERTY INTEREST IS LOCATED . IF THE17
PROPERTY INTEREST IS LOCATED IN MORE THAN ONE COUNTY , THE STATE18
TREASURER SHALL TRANSMIT THE REMAINING PROCEEDS TO THE19
APPLICABLE COUNTY TREASURERS IN PROPORTION TO THE PORTION OF THE20
PROPERTY INTEREST LOCATED IN EACH COUNTY .21
(c) (I) I
F A DISTRICT COURT FINDS THAT A COVERED FOREIGN22
PERSON FAILED TO REGISTER WITH THE SECRETARY OF STATE IN23
ACCORDANCE WITH SUBSECTION (3)(a) OF THIS SECTION, THE DISTRICT24
COURT SHALL IMPOSE A PENALTY OF NO MORE THAN TWO THOUSAND25
DOLLARS FOR EACH VIOLATION.26
(II) T
HE DISTRICT COURT SHALL TRANSMIT ALL PENALTIES27
HB24-1029
-7- COLLECTED UNDER THIS SECTION TO THE STATE TREASURER , WHO SHALL1
CREDIT THE MONEY TO THE GENERAL FUND .2
(5) Exemption for refugees for real property used for3
agriculture. N
OTWITHSTANDING SUBSECTION (2) OF THIS SECTION, A4
REFUGEE WHO IS A COVERED FOREIGN PERSON MAY ACQUIRE A5
CONTROLLING OWNERSHIP SHARE IN REAL PROPERTY USED FOR THE6
PURPOSES OF AGRICULTURE WITH PRIOR APPROVAL OF THE ACQUISITION7
BY THE SECRETARY OF STATE.8
SECTION 2. Act subject to petition - effective date. This act9
takes effect at 12:01 a.m. on the day following the expiration of the10
ninety-day period after final adjournment of the general assembly; except11
that, if a referendum petition is filed pursuant to section 1 (3) of article V12
of the state constitution against this act or an item, section, or part of this13
act within such period, then the act, item, section, or part will not take14
effect unless approved by the people at the general election to be held in15
November 2024 and, in such case, will take effect on the date of the16
official declaration of the vote thereon by the governor.17
HB24-1029
-8-