Iowa Senate Bill SF2204

Iowa 2023-2024 Regular Session

• Introduced: 2/1/24
• Engrossed: 2/19/24
• Enrolled: 4/9/24
• Passed: 4/9/24

Caption

A bill for an act relating to interests in agricultural land acquired or held by foreign businesses, foreign governments, or nonresident aliens, or by agents, trustees, or fiduciaries thereof, by providing for registration and reporting requirements, providing for enforcement, and providing penalties. (Formerly SSB 3113.) Effective date: 07/01/2024.

Impact

The implementation of SF2204 would amend existing Iowa Code, requiring greater transparency regarding foreign investments in agricultural land. The annual summary of foreign landholdings that will be prepared by the Secretary of State is intended to keep both the Governor and the General Assembly informed about these investments. By increasing awareness of foreign ownership, supporters argue that it will help protect local economic interests and land resources from excessive foreign control, which has raised concerns in recent legislative discussions.

Summary

Senate File 2204 introduces significant changes to the state's regulations regarding the acquisition and ownership of agricultural land by foreign entities, including foreign businesses and governments, as well as nonresident aliens. The bill establishes clear registration and reporting requirements for these entities to ensure the state can monitor ownership and its potential impacts on the economy. Specifically, it mandates that any foreign party holding interests in agricultural land must register this ownership with the Secretary of State, detailing specific information about their business entities and the nature of the holdings.

Sentiment

Sentiments around SF2204 appear largely supportive among legislators and the general public who are concerned about foreign influence in local agricultural sectors. Proponents, including agricultural advocacy groups, are likely to view the bill as a necessary step towards safeguarding state resources. However, some critics may argue that the bill could inadvertently discourage foreign investment, which can bring capital and increase agricultural productivity. The balance between protecting state interests and encouraging economic growth through foreign investments continues to be a focal point of debate.

Contention

Key points of contention surrounding SF2204 include concerns about the practicality of the registration process, as well as the potential penalties associated with non-compliance. The bill stipulates civil penalties for failures to register or report, which some consider excessive and may lead to litigation. Additionally, there might be discussions on whether the information gathered would be adequately protected or used by state officials because of confidentiality clauses included in the legislation.