House File 211 - Introduced HOUSE FILE 211 BY BEST A BILL FOR An Act prohibiting the government of, and persons and entities 1 from, the Peoples Republic of China from acquiring real 2 property located in the state. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1901YH (2) 90 ko/ns
H.F. 211 Section 1. Section 9I.2, Code 2023, is amended to read as 1 follows: 2 9I.2 Alien rights Real property nonresident aliens and 3 foreign governments . 4 1. A nonresident alien, foreign business , or foreign 5 government may acquire , by grant, purchase, devise , or descent , 6 real property, except agricultural land or any interest in 7 agricultural land in this state, and may own, hold, devise , or 8 alienate the real property, and shall incur the same duties and 9 liabilities in relation thereto as a citizen and resident of 10 the United States. 11 2. Notwithstanding subsection 1, on or after July 1, 2023, 12 the government of the Peoples Republic of China, or the 13 government of a province, region, municipality, or autonomous 14 region of the Peoples Republic of China, shall not acquire by 15 grant, purchase, devise, or descent any real property located 16 in this state. 17 3. Notwithstanding subsection 1, on or after July 1, 2023, 18 a corporation incorporated under the laws of the government of 19 the Peoples Republic of China, or a business entity whether 20 or not incorporated, in which a majority interest is owned 21 directly or indirectly by nonresident aliens from the Peoples 22 Republic of China, or from a province, region, municipality, 23 or autonomous region of the Peoples Republic of China, shall 24 not acquire by grant, purchase, devise, or descent any real 25 property located in this state. Legal entities, including 26 but not limited to trusts, holding companies, multiple 27 corporations, and other business arrangements, shall not affect 28 the determination of ownership or control of the foreign 29 business. 30 Sec. 2. Section 9I.5, Code 2023, is amended to read as 31 follows: 32 9I.5 Land acquired by devise or descent. 33 1. A nonresident alien, foreign business , or foreign 34 government, or an agent, trustee , or fiduciary thereof, which 35 -1- LSB 1901YH (2) 90 ko/ns 1/ 5
H.F. 211 acquires agricultural land or an interest in agricultural 1 land, by devise or descent after January 1, 1980, shall divest 2 itself of all right, title , and interest in the land within two 3 years from the date of acquiring the land or interest. This 4 section shall not require divestment of agricultural land or an 5 interest in agricultural land, acquired by devise or descent 6 from a nonresident alien, if such land or an interest in such 7 land was acquired by any nonresident alien prior to July 1, 8 1979. 9 2. The government of the Peoples Republic of China, or the 10 government of a province, region, municipality, or autonomous 11 region of the Peoples Republic of China, which acquires real 12 property or an interest in real property, by devise or descent 13 on or after July 1, 2023, shall divest itself of all right, 14 title, and interest in the land within two years from the date 15 of acquiring the land or interest. 16 3. A corporation incorporated under the laws of the 17 government of the Peoples Republic of China, or a business 18 entity whether or not incorporated, in which a majority 19 interest is owned directly or indirectly by nonresident aliens 20 from the Peoples Republic of China, or from a province, 21 region, municipality, or autonomous region of the Peoples 22 Republic of China, which acquires real property or an interest 23 in real property, by devise or descent on or after July 1, 24 2023, shall divest itself of all right, title, and interest in 25 the land within two years from the date of acquiring the land 26 or interest. 27 Sec. 3. Section 9I.6, Code 2023, is amended to read as 28 follows: 29 9I.6 Change of status divestment. 30 1. A person or business which purchases or otherwise 31 acquires agricultural land in this state except by devise or 32 descent, after January 1, 1980, and whose status changes so 33 that it becomes a foreign business or nonresident alien subject 34 to this chapter , shall divest itself of all right, title , and 35 -2- LSB 1901YH (2) 90 ko/ns 2/ 5
H.F. 211 interest in the land within two years from the date that its 1 status changed. 2 2. A person or business which purchases or otherwise 3 acquires real property in this state except by devise or 4 descent, on or after July 1, 2023, and whose status changes so 5 that the person or business is affiliated in any way with the 6 government of the Peoples Republic of China, or the government 7 of a province, region, municipality, or autonomous region of 8 the Peoples Republic of China, shall divest itself of all 9 right, title, and interest in the land within two years from 10 the date that the status of the person or the business changed. 11 3. A person or business which purchases or otherwise 12 acquires real property in this state except by devise or 13 descent, on or after July 1, 2023, and whose status changes so 14 that the person or business is affiliated in any way with a 15 corporation incorporated under the laws of the government of 16 the Peoples Republic of China, or a business entity whether 17 or not incorporated, in which a majority interest is owned 18 directly or indirectly by nonresident aliens from the Peoples 19 Republic of China, or from a province, region, municipality, 20 or autonomous region of the Peoples Republic of China shall 21 divest itself of all right, title, and interest in the land 22 within two years from the date that the status of the person or 23 the business changed. 24 Sec. 4. Section 9I.10, Code 2023, is amended to read as 25 follows: 26 9I.10 Enforcement. 27 1. a. If the secretary of state finds that a nonresident 28 alien, foreign business, foreign government, or an agent, 29 trustee, or other fiduciary thereof, has acquired or holds 30 title to or interest in agricultural land in this state in 31 violation of this chapter or has failed to timely register as 32 required under section 9I.7 or has failed to timely report as 33 required under section 9I.8 , the secretary shall report the 34 violation to the attorney general. 35 -3- LSB 1901YH (2) 90 ko/ns 3/ 5
H.F. 211 b. If a county recorder finds that the government of the 1 Peoples Republic of China, or the government of a province, 2 region, municipality, or autonomous region of the Peoples 3 Republic of China, has acquired or holds title to or interest 4 in real property located in this state in violation of this 5 chapter, the county recorder shall report the violation to the 6 attorney general. 7 c. If a county recorder finds that a corporation 8 incorporated under the laws of the government of the Peoples 9 Republic of China, or a business entity whether or not 10 incorporated, in which a majority interest is owned directly or 11 indirectly by nonresident aliens from the Peoples Republic of 12 China or a province, region, municipality, or autonomous region 13 of the Peoples Republic of China, has acquired or holds title 14 to or interest in real property in this state in violation of 15 this chapter, the county recorder shall report the violation 16 to the attorney general. 17 2. a. Upon receipt of the a report from the secretary of 18 state or a county recorder under subsection 1 , the attorney 19 general shall initiate an action in the district court of any 20 county in which the land is located. 21 3. b. The attorney general shall file a notice of the 22 pendency of the action with the recorder of deeds of each 23 county in which any of the land is located. If the court 24 finds that the land in question has been acquired or held in 25 violation of this chapter or the required registration has not 26 been timely filed, it shall enter an order so declaring and 27 shall file a copy of the order with the recorder of deeds of 28 each county in which any portion of the land is located. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanations substance by the members of the general assembly. 32 This bill prohibits the government of the Peoples Republic 33 of China (China), or the government of a province, region, 34 municipality, or autonomous region of China (related regions) 35 -4- LSB 1901YH (2) 90 ko/ns 4/ 5
H.F. 211 from acquiring real property located in this state by grant, 1 purchase, devise, or descent on or after July 1, 2023. 2 The bill also prohibits a corporation incorporated under 3 the laws of the government of China, or a business entity 4 whether or not incorporated, in which a majority interest is 5 owned directly or indirectly by nonresident aliens from China 6 or related regions, from acquiring real property in this state 7 by grant, purchase, devise, or descent on or after July 1, 8 2023. The bill provides that legal entities, including but not 9 limited to trusts, holding companies, multiple corporations, 10 and other business arrangements, do not affect the 11 determination of ownership or control of the foreign business. 12 The bill requires a county recorder to report a violation 13 of the bill to the attorney general. Upon receipt of a report 14 from a county recorder, the attorney general shall initiate an 15 action in the district court of any county in which the land is 16 located. If the court finds that the land in question has been 17 acquired in violation of the bill, the court shall declare the 18 land escheated to the state pursuant to Code section 9I.11. 19 The bill makes conforming changes to Code section 9I.5 (land 20 acquired by devise or descent) and Code section 9I.6 (change of 21 status divestment). 22 -5- LSB 1901YH (2) 90 ko/ns 5/ 5