Introduced Version
HOUSE BILL No. 1177
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 1-1; IC 21-49-1-2; IC 32-22.
Synopsis: Limitations on interests of foreign countries. Prohibits the
state, a state agency, and a political subdivision from entering into a
contract with a prohibited person for the provision of goods or services.
Amends the amount of a gift received from a foreign source that must
be reported by a postsecondary educational institution. Prohibits certain
individuals and business entities from purchasing real property located
within Indiana. Permits the attorney general to investigate and issue
subpoenas upon receipt of information that leads the attorney general
to believe a violation of the critical infrastructure or foreign ownership
of real property statutes has occurred. Permits the attorney general to
bring an action on behalf of the state or a political subdivision for a
violation of the critical infrastructure and foreign ownership of real
property statutes.
Effective: July 1, 2024.
Haggard, Bartels, Lindauer
January 9, 2024, read first time and referred to Committee on Judiciary.
2024 IN 1177—LS 6910/DI 137 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1177
A BILL FOR AN ACT to amend the Indiana Code concerning
property.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 1-1-16-9, AS ADDED BY P.L.118-2023,
2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 9. (a) After June 30, 2023, a qualified entity may
4 not enter into an agreement relating to critical infrastructure with a
5 company if:
6 (1) under the agreement, the company would be able to directly
7 or remotely access or control critical infrastructure or a
8 cybersecurity system of a critical infrastructure; and
9 (2) the company is:
10 (A) owned by, or the majority of stock or other ownership
11 interest of the company is held or controlled by:
12 (i) individuals who are citizens of China, Iran, North Korea,
13 Russia, or a country designated as a threat to critical
14 infrastructure by the governor under section 8(b) of this
15 chapter; or
16 (ii) a company or other entity, including a governmental
17 entity, that is owned or controlled by citizens of, or is
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1 directly controlled by the government of, China, Iran, North
2 Korea, Russia, or a country designated as a threat to critical
3 infrastructure by the governor under section 8(b) of this
4 chapter; or
5 (B) headquartered in China, Iran, North Korea, Russia, or a
6 country designated as a threat to critical infrastructure by the
7 governor under section 8(b) of this chapter.
8 (b) The prohibition set forth in subsection (a) applies regardless of
9 whether:
10 (1) the securities of the company, or of the company's parent
11 company, are publicly traded; or
12 (2) the company or the company's parent company is listed as a
13 company of a country designated as a threat by the governor
14 under section 8(b) of this chapter or a Chinese, Iranian, North
15 Korean, or Russian company on a public stock exchange;
16 as applicable.
17 (c) Upon receipt of information that leads the attorney general
18 to believe that a violation of this section may exist, the attorney
19 general may investigate the alleged violation and issue subpoenas
20 requiring the:
21 (1) appearance of witnesses;
22 (2) production of relevant records; and
23 (3) giving of relevant testimony.
24 (d) The attorney general may bring an action on behalf of the
25 state or a political subdivision for one (1) or more of the following,
26 together with the costs and expenses of the suit, including
27 reasonable attorney's fees and expert fees, in connection with a
28 violation of this section:
29 (1) Appropriate injunctive or other equitable relief, including
30 disgorgement of any gains derived from the violation.
31 (2) A civil penalty, as prescribed in subsection (e).
32 (3) Injuries or damages sustained directly or indirectly by the
33 state or political subdivision as a result of the violation.
34 (e) In an action brought under subsection (d), the attorney
35 general may recover a civil penalty of not more than one hundred
36 thousand dollars ($100,000) per violation of this section.
37 SECTION 2. IC 1-1-17 IS ADDED TO THE INDIANA CODE AS
38 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
39 1, 2024]:
40 Chapter 17. Prohibition on Contracts With Certain Foreign
41 Owned Companies and Foreign Individuals
42 Sec. 1. As used in this chapter, "business entity" means:
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1 (1) a corporation, professional corporation, nonprofit
2 corporation, limited liability company, partnership, or limited
3 partnership; or
4 (2) the equivalent of any entity described in subdivision (1).
5 Sec. 2. As used in this chapter, "controlling person" includes the
6 following:
7 (1) A beneficial owner (as defined in IC 23-1-20-3.5) of five
8 percent (5%) or more of the shares of a business entity.
9 (2) An officer, director, or other individual who possesses
10 inside information about a business entity because of the
11 officer, director, or other individual's relationship with the
12 business entity.
13 (3) A person, individually or as a member of a group, who has
14 the ability to directly or indirectly affect a business entity's
15 management or policies.
16 Sec. 3. As used in this chapter, "foreign adversary" includes the
17 following:
18 (1) China.
19 (2) Iran.
20 (3) North Korea.
21 (4) Russia.
22 (5) A foreign government listed in 15 CFR 7.4.
23 (6) A country designated as a threat to critical infrastructure
24 by the governor under IC 1-1-16-8.
25 Sec. 4. (a) As used in this chapter, "prohibited person" includes
26 the following:
27 (1) An individual who is a citizen or resident of a foreign
28 adversary.
29 (2) A business entity organized under the laws of a foreign
30 adversary.
31 (3) A business entity headquartered in a foreign adversary.
32 (4) A business entity with a controlling person who is either of
33 the following:
34 (A) An individual who is a citizen or resident of a foreign
35 adversary.
36 (B) A business entity or other entity, including a
37 governmental entity, that is owned or controlled by citizens
38 or residents of, or is directly controlled by the government
39 of, a foreign adversary.
40 (b) The term includes an agent, trustee, or fiduciary of a
41 prohibited person.
42 Sec. 5. After June 30, 2024, the following may not enter into a
2024 IN 1177—LS 6910/DI 137 4
1 contract with a prohibited person for the provision of goods or
2 services:
3 (1) The state.
4 (2) A state agency (as defined in IC 1-1-15-3).
5 (3) A political subdivision (as defined in IC 36-1-2-13).
6 Sec. 6. After June 30, 2024, every contract to which the state, a
7 state agency, or a political subdivision is a party must contain a
8 provision requiring the contractor to confirm under penalties of
9 perjury that the contractor is not a prohibited person. A breach of
10 this provision may be regarded as a material breach of the
11 contract.
12 Sec. 7. Upon receipt of information that leads the attorney
13 general to believe that a violation of this chapter may exist, the
14 attorney general may investigate the alleged violation and issue
15 subpoenas requiring the:
16 (1) appearance of witnesses;
17 (2) production of relevant records; and
18 (3) giving of relevant testimony.
19 Sec. 8. The attorney general may bring an action on behalf of
20 the state or a political subdivision for one (1) or more of the
21 following, together with the costs and expenses of the suit,
22 including reasonable attorney's fees and expert fees, in connection
23 with a violation of this chapter:
24 (1) Appropriate injunctive or other equitable relief, including
25 disgorgement of any gains derived from the violation.
26 (2) A civil penalty of not more than one hundred thousand
27 dollars ($100,000) per violation of this chapter.
28 (3) Injuries or damages sustained directly or indirectly by the
29 state or political subdivision as a result of the violation.
30 SECTION 3. IC 21-49-1-2, AS ADDED BY P.L.156-2022,
31 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2024]: Sec. 2. Whenever any institution is owned or
33 controlled by a foreign source or receives a gift from or enters into a
34 contract (including any restricted or conditional gift or contract) with
35 a foreign source the value of which meets the reporting threshold set
36 forth in 20 U.S.C. 1011f, is at least fifty thousand dollars ($50,000),
37 the institution shall submit a disclosure report to the Indiana
38 commissioner for higher education.
39 SECTION 4. IC 32-22-2-5 IS AMENDED TO READ AS
40 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) Except as
41 provided in IC 32-22-5-5 and IC 32-22-5-6, natural persons who are
42 aliens, whether they reside in the United States or any foreign country,
2024 IN 1177—LS 6910/DI 137 5
1 subject to section 7 of this chapter, may:
2 (1) acquire real estate by purchase, devise, or descent;
3 (2) hold and enjoy real estate; and
4 (3) convey, devise, transmit, mortgage, or otherwise encumber
5 real estate;
6 in the same manner and with the same effect as citizens of Indiana or
7 the United States.
8 (b) The title of any real estate inherited, mortgaged, conveyed, or
9 devised is not affected by the alienage of any person from or through
10 whom the title is claimed or derived.
11 SECTION 5. IC 32-22-3 IS REPEALED [EFFECTIVE JULY 1,
12 2024]. (Rights of a Foreign Business Entity to Hold and Convey
13 Agricultural Land).
14 SECTION 6. IC 32-22-5 IS ADDED TO THE INDIANA CODE AS
15 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
16 1, 2024]:
17 Chapter 5. Rights of Certain Foreign Individuals and Foreign
18 Business Entities to Purchase Real Property
19 Sec. 1. As used in this chapter, "business entity" means:
20 (1) a corporation, professional corporation, nonprofit
21 corporation, limited liability company, partnership, or limited
22 partnership; or
23 (2) the equivalent of any entity described in subdivision (1).
24 Sec. 2. As used in this chapter, "controlling person" includes the
25 following:
26 (1) A beneficial owner (as defined in IC 23-1-20-3.5) of five
27 percent (5%) or more of the shares of a business entity.
28 (2) An officer, director, or other individual who possesses
29 inside information about a business entity because of the
30 officer, director, or other individual's relationship with the
31 business entity.
32 (3) A person, individually or as a member of a group, who has
33 the ability to directly or indirectly affect a business entity's
34 management or policies.
35 Sec. 3. As used in this chapter, "foreign adversary" includes the
36 following:
37 (1) China.
38 (2) Iran.
39 (3) North Korea.
40 (4) Russia.
41 (5) A foreign government listed in 15 CFR 7.4.
42 (6) A country designated as a threat to critical infrastructure
2024 IN 1177—LS 6910/DI 137 6
1 by the governor under IC 1-1-16-8.
2 Sec. 4. (a) As used in this chapter, "prohibited person" includes
3 the following:
4 (1) An individual who is a citizen or resident of a foreign
5 adversary.
6 (2) A business entity organized under the laws of a foreign
7 adversary.
8 (3) A business entity headquartered in a foreign adversary.
9 (4) A business entity with a controlling person who is either of
10 the following:
11 (A) An individual who is a citizen or resident of a foreign
12 adversary.
13 (B) A business entity or other entity, including a
14 governmental entity, that is owned or controlled by citizens
15 or residents of, or is directly controlled by the government
16 of, a foreign adversary.
17 (b) The term includes an agent, trustee, or fiduciary of a
18 prohibited person.
19 Sec. 5. (a) After June 30, 2024, a prohibited person may not
20 acquire by grant, purchase, devise, descent, or otherwise any real
21 property located in Indiana.
22 (b) After June 30, 2024, a prohibited person may not enter into
23 a lease for real property located in Indiana unless:
24 (1) the real property will be used only for residential
25 purposes; and
26 (2) the lease is for a term of not more than twelve (12) months.
27 Sec. 6. (a) Not later than June 30, 2026, a prohibited person
28 must divest ownership of any real property located in Indiana.
29 (b) If a prohibited person does not divest ownership of real
30 property located in Indiana as required under subsection (a), the
31 attorney general may commence an action in the circuit court
32 where the real property is located. Upon commencing an action
33 under this subsection, the attorney general must record a notice of
34 the pendency of the action with the county recorder.
35 (c) If the circuit court finds that the real property is held in
36 violation of this chapter, the circuit court must order that the real
37 property be sold through judicial foreclosure. The proceeds of the
38 sale of real property through judicial foreclosure will be disbursed
39 in the following order of priority:
40 (1) first, to any lien holders, in order of priority; and
41 (2) second, to the state, for the attorney general's costs and
42 expenses of the action, including reasonable attorney's fees
2024 IN 1177—LS 6910/DI 137 7
1 and expert fees.
2024 IN 1177—LS 6910/DI 137