Indiana 2024 Regular Session

Indiana House Bill HB1177 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1177
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 1-1; IC 21-49-1-2; IC 32-22.
7	7	Synopsis: Limitations on interests of foreign countries. Prohibits the
8	8	state, a state agency, and a political subdivision from entering into a
9	9	contract with a prohibited person for the provision of goods or services.
10	10	Amends the amount of a gift received from a foreign source that must
11	11	be reported by a postsecondary educational institution. Prohibits certain
12	12	individuals and business entities from purchasing real property located
13	13	within Indiana. Permits the attorney general to investigate and issue
14	14	subpoenas upon receipt of information that leads the attorney general
15	15	to believe a violation of the critical infrastructure or foreign ownership
16	16	of real property statutes has occurred. Permits the attorney general to
17	17	bring an action on behalf of the state or a political subdivision for a
18	18	violation of the critical infrastructure and foreign ownership of real
19	19	property statutes.
20	20	Effective: July 1, 2024.
21	21	Haggard, Bartels, Lindauer
22	22	January 9, 2024, read first time and referred to Committee on Judiciary.
23	23	2024 IN 1177—LS 6910/DI 137 Introduced
24	24	Second Regular Session of the 123rd General Assembly (2024)
25	25	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
26	26	Constitution) is being amended, the text of the existing provision will appear in this style type,
27	27	additions will appear in this style type, and deletions will appear in this style type.
28	28	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
29	29	provision adopted), the text of the new provision will appear in this style type. Also, the
30	30	word NEW will appear in that style type in the introductory clause of each SECTION that adds
31	31	a new provision to the Indiana Code or the Indiana Constitution.
32	32	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
33	33	between statutes enacted by the 2023 Regular Session of the General Assembly.
34	34	HOUSE BILL No. 1177
35	35	A BILL FOR AN ACT to amend the Indiana Code concerning
36	36	property.
37	37	Be it enacted by the General Assembly of the State of Indiana:
38	38	1 SECTION 1. IC 1-1-16-9, AS ADDED BY P.L.118-2023,
39	39	2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40	40	3 JULY 1, 2024]: Sec. 9. (a) After June 30, 2023, a qualified entity may
41	41	4 not enter into an agreement relating to critical infrastructure with a
42	42	5 company if:
43	43	6 (1) under the agreement, the company would be able to directly
44	44	7 or remotely access or control critical infrastructure or a
45	45	8 cybersecurity system of a critical infrastructure; and
46	46	9 (2) the company is:
47	47	10 (A) owned by, or the majority of stock or other ownership
48	48	11 interest of the company is held or controlled by:
49	49	12 (i) individuals who are citizens of China, Iran, North Korea,
50	50	13 Russia, or a country designated as a threat to critical
51	51	14 infrastructure by the governor under section 8(b) of this
52	52	15 chapter; or
53	53	16 (ii) a company or other entity, including a governmental
54	54	17 entity, that is owned or controlled by citizens of, or is
55	55	2024 IN 1177—LS 6910/DI 137 2
56	56	1 directly controlled by the government of, China, Iran, North
57	57	2 Korea, Russia, or a country designated as a threat to critical
58	58	3 infrastructure by the governor under section 8(b) of this
59	59	4 chapter; or
60	60	5 (B) headquartered in China, Iran, North Korea, Russia, or a
61	61	6 country designated as a threat to critical infrastructure by the
62	62	7 governor under section 8(b) of this chapter.
63	63	8 (b) The prohibition set forth in subsection (a) applies regardless of
64	64	9 whether:
65	65	10 (1) the securities of the company, or of the company's parent
66	66	11 company, are publicly traded; or
67	67	12 (2) the company or the company's parent company is listed as a
68	68	13 company of a country designated as a threat by the governor
69	69	14 under section 8(b) of this chapter or a Chinese, Iranian, North
70	70	15 Korean, or Russian company on a public stock exchange;
71	71	16 as applicable.
72	72	17 (c) Upon receipt of information that leads the attorney general
73	73	18 to believe that a violation of this section may exist, the attorney
74	74	19 general may investigate the alleged violation and issue subpoenas
75	75	20 requiring the:
76	76	21 (1) appearance of witnesses;
77	77	22 (2) production of relevant records; and
78	78	23 (3) giving of relevant testimony.
79	79	24 (d) The attorney general may bring an action on behalf of the
80	80	25 state or a political subdivision for one (1) or more of the following,
81	81	26 together with the costs and expenses of the suit, including
82	82	27 reasonable attorney's fees and expert fees, in connection with a
83	83	28 violation of this section:
84	84	29 (1) Appropriate injunctive or other equitable relief, including
85	85	30 disgorgement of any gains derived from the violation.
86	86	31 (2) A civil penalty, as prescribed in subsection (e).
87	87	32 (3) Injuries or damages sustained directly or indirectly by the
88	88	33 state or political subdivision as a result of the violation.
89	89	34 (e) In an action brought under subsection (d), the attorney
90	90	35 general may recover a civil penalty of not more than one hundred
91	91	36 thousand dollars ($100,000) per violation of this section.
92	92	37 SECTION 2. IC 1-1-17 IS ADDED TO THE INDIANA CODE AS
93	93	38 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
94	94	39 1, 2024]:
95	95	40 Chapter 17. Prohibition on Contracts With Certain Foreign
96	96	41 Owned Companies and Foreign Individuals
97	97	42 Sec. 1. As used in this chapter, "business entity" means:
98	98	2024 IN 1177—LS 6910/DI 137 3
99	99	1 (1) a corporation, professional corporation, nonprofit
100	100	2 corporation, limited liability company, partnership, or limited
101	101	3 partnership; or
102	102	4 (2) the equivalent of any entity described in subdivision (1).
103	103	5 Sec. 2. As used in this chapter, "controlling person" includes the
104	104	6 following:
105	105	7 (1) A beneficial owner (as defined in IC 23-1-20-3.5) of five
106	106	8 percent (5%) or more of the shares of a business entity.
107	107	9 (2) An officer, director, or other individual who possesses
108	108	10 inside information about a business entity because of the
109	109	11 officer, director, or other individual's relationship with the
110	110	12 business entity.
111	111	13 (3) A person, individually or as a member of a group, who has
112	112	14 the ability to directly or indirectly affect a business entity's
113	113	15 management or policies.
114	114	16 Sec. 3. As used in this chapter, "foreign adversary" includes the
115	115	17 following:
116	116	18 (1) China.
117	117	19 (2) Iran.
118	118	20 (3) North Korea.
119	119	21 (4) Russia.
120	120	22 (5) A foreign government listed in 15 CFR 7.4.
121	121	23 (6) A country designated as a threat to critical infrastructure
122	122	24 by the governor under IC 1-1-16-8.
123	123	25 Sec. 4. (a) As used in this chapter, "prohibited person" includes
124	124	26 the following:
125	125	27 (1) An individual who is a citizen or resident of a foreign
126	126	28 adversary.
127	127	29 (2) A business entity organized under the laws of a foreign
128	128	30 adversary.
129	129	31 (3) A business entity headquartered in a foreign adversary.
130	130	32 (4) A business entity with a controlling person who is either of
131	131	33 the following:
132	132	34 (A) An individual who is a citizen or resident of a foreign
133	133	35 adversary.
134	134	36 (B) A business entity or other entity, including a
135	135	37 governmental entity, that is owned or controlled by citizens
136	136	38 or residents of, or is directly controlled by the government
137	137	39 of, a foreign adversary.
138	138	40 (b) The term includes an agent, trustee, or fiduciary of a
139	139	41 prohibited person.
140	140	42 Sec. 5. After June 30, 2024, the following may not enter into a
141	141	2024 IN 1177—LS 6910/DI 137 4
142	142	1 contract with a prohibited person for the provision of goods or
143	143	2 services:
144	144	3 (1) The state.
145	145	4 (2) A state agency (as defined in IC 1-1-15-3).
146	146	5 (3) A political subdivision (as defined in IC 36-1-2-13).
147	147	6 Sec. 6. After June 30, 2024, every contract to which the state, a
148	148	7 state agency, or a political subdivision is a party must contain a
149	149	8 provision requiring the contractor to confirm under penalties of
150	150	9 perjury that the contractor is not a prohibited person. A breach of
151	151	10 this provision may be regarded as a material breach of the
152	152	11 contract.
153	153	12 Sec. 7. Upon receipt of information that leads the attorney
154	154	13 general to believe that a violation of this chapter may exist, the
155	155	14 attorney general may investigate the alleged violation and issue
156	156	15 subpoenas requiring the:
157	157	16 (1) appearance of witnesses;
158	158	17 (2) production of relevant records; and
159	159	18 (3) giving of relevant testimony.
160	160	19 Sec. 8. The attorney general may bring an action on behalf of
161	161	20 the state or a political subdivision for one (1) or more of the
162	162	21 following, together with the costs and expenses of the suit,
163	163	22 including reasonable attorney's fees and expert fees, in connection
164	164	23 with a violation of this chapter:
165	165	24 (1) Appropriate injunctive or other equitable relief, including
166	166	25 disgorgement of any gains derived from the violation.
167	167	26 (2) A civil penalty of not more than one hundred thousand
168	168	27 dollars ($100,000) per violation of this chapter.
169	169	28 (3) Injuries or damages sustained directly or indirectly by the
170	170	29 state or political subdivision as a result of the violation.
171	171	30 SECTION 3. IC 21-49-1-2, AS ADDED BY P.L.156-2022,
172	172	31 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
173	173	32 JULY 1, 2024]: Sec. 2. Whenever any institution is owned or
174	174	33 controlled by a foreign source or receives a gift from or enters into a
175	175	34 contract (including any restricted or conditional gift or contract) with
176	176	35 a foreign source the value of which meets the reporting threshold set
177	177	36 forth in 20 U.S.C. 1011f, is at least fifty thousand dollars ($50,000),
178	178	37 the institution shall submit a disclosure report to the Indiana
179	179	38 commissioner for higher education.
180	180	39 SECTION 4. IC 32-22-2-5 IS AMENDED TO READ AS
181	181	40 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) Except as
182	182	41 provided in IC 32-22-5-5 and IC 32-22-5-6, natural persons who are
183	183	42 aliens, whether they reside in the United States or any foreign country,
184	184	2024 IN 1177—LS 6910/DI 137 5
185	185	1 subject to section 7 of this chapter, may:
186	186	2 (1) acquire real estate by purchase, devise, or descent;
187	187	3 (2) hold and enjoy real estate; and
188	188	4 (3) convey, devise, transmit, mortgage, or otherwise encumber
189	189	5 real estate;
190	190	6 in the same manner and with the same effect as citizens of Indiana or
191	191	7 the United States.
192	192	8 (b) The title of any real estate inherited, mortgaged, conveyed, or
193	193	9 devised is not affected by the alienage of any person from or through
194	194	10 whom the title is claimed or derived.
195	195	11 SECTION 5. IC 32-22-3 IS REPEALED [EFFECTIVE JULY 1,
196	196	12 2024]. (Rights of a Foreign Business Entity to Hold and Convey
197	197	13 Agricultural Land).
198	198	14 SECTION 6. IC 32-22-5 IS ADDED TO THE INDIANA CODE AS
199	199	15 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
200	200	16 1, 2024]:
201	201	17 Chapter 5. Rights of Certain Foreign Individuals and Foreign
202	202	18 Business Entities to Purchase Real Property
203	203	19 Sec. 1. As used in this chapter, "business entity" means:
204	204	20 (1) a corporation, professional corporation, nonprofit
205	205	21 corporation, limited liability company, partnership, or limited
206	206	22 partnership; or
207	207	23 (2) the equivalent of any entity described in subdivision (1).
208	208	24 Sec. 2. As used in this chapter, "controlling person" includes the
209	209	25 following:
210	210	26 (1) A beneficial owner (as defined in IC 23-1-20-3.5) of five
211	211	27 percent (5%) or more of the shares of a business entity.
212	212	28 (2) An officer, director, or other individual who possesses
213	213	29 inside information about a business entity because of the
214	214	30 officer, director, or other individual's relationship with the
215	215	31 business entity.
216	216	32 (3) A person, individually or as a member of a group, who has
217	217	33 the ability to directly or indirectly affect a business entity's
218	218	34 management or policies.
219	219	35 Sec. 3. As used in this chapter, "foreign adversary" includes the
220	220	36 following:
221	221	37 (1) China.
222	222	38 (2) Iran.
223	223	39 (3) North Korea.
224	224	40 (4) Russia.
225	225	41 (5) A foreign government listed in 15 CFR 7.4.
226	226	42 (6) A country designated as a threat to critical infrastructure
227	227	2024 IN 1177—LS 6910/DI 137 6
228	228	1 by the governor under IC 1-1-16-8.
229	229	2 Sec. 4. (a) As used in this chapter, "prohibited person" includes
230	230	3 the following:
231	231	4 (1) An individual who is a citizen or resident of a foreign
232	232	5 adversary.
233	233	6 (2) A business entity organized under the laws of a foreign
234	234	7 adversary.
235	235	8 (3) A business entity headquartered in a foreign adversary.
236	236	9 (4) A business entity with a controlling person who is either of
237	237	10 the following:
238	238	11 (A) An individual who is a citizen or resident of a foreign
239	239	12 adversary.
240	240	13 (B) A business entity or other entity, including a
241	241	14 governmental entity, that is owned or controlled by citizens
242	242	15 or residents of, or is directly controlled by the government
243	243	16 of, a foreign adversary.
244	244	17 (b) The term includes an agent, trustee, or fiduciary of a
245	245	18 prohibited person.
246	246	19 Sec. 5. (a) After June 30, 2024, a prohibited person may not
247	247	20 acquire by grant, purchase, devise, descent, or otherwise any real
248	248	21 property located in Indiana.
249	249	22 (b) After June 30, 2024, a prohibited person may not enter into
250	250	23 a lease for real property located in Indiana unless:
251	251	24 (1) the real property will be used only for residential
252	252	25 purposes; and
253	253	26 (2) the lease is for a term of not more than twelve (12) months.
254	254	27 Sec. 6. (a) Not later than June 30, 2026, a prohibited person
255	255	28 must divest ownership of any real property located in Indiana.
256	256	29 (b) If a prohibited person does not divest ownership of real
257	257	30 property located in Indiana as required under subsection (a), the
258	258	31 attorney general may commence an action in the circuit court
259	259	32 where the real property is located. Upon commencing an action
260	260	33 under this subsection, the attorney general must record a notice of
261	261	34 the pendency of the action with the county recorder.
262	262	35 (c) If the circuit court finds that the real property is held in
263	263	36 violation of this chapter, the circuit court must order that the real
264	264	37 property be sold through judicial foreclosure. The proceeds of the
265	265	38 sale of real property through judicial foreclosure will be disbursed
266	266	39 in the following order of priority:
267	267	40 (1) first, to any lien holders, in order of priority; and
268	268	41 (2) second, to the state, for the attorney general's costs and
269	269	42 expenses of the action, including reasonable attorney's fees
270	270	2024 IN 1177—LS 6910/DI 137 7
271	271	1 and expert fees.
272	272	2024 IN 1177—LS 6910/DI 137