Indiana 2024 Regular Session

Indiana House Bill HB1183 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	EH1183.2
	2	+	Reprinted
	3	+	March 5, 2024
	4	+	ENGROSSED
	5	+	HOUSE BILL No. 1183
	6	+	_____
	7	+	DIGEST OF HB 1183 (Updated March 4, 2024 4:04 pm - DI 137)
	8	+	Citations Affected: IC 1-1; IC 32-22; IC 34-30.
	9	+	Synopsis: Foreign ownership of land. Provides that, beginning July 1,
	10	+	2024, a prohibited person may not purchase, lease, or acquire a parcel
	11	+	of real property that is located within a 10 mile radius of a military
	12	+	installation. Provides that, beginning July 1, 2024, a prohibited person
	13	+	may not acquire or lease agricultural land or a mineral right or water or
	14	+	riparian right on agricultural land located in Indiana. Provides certain
	15	+	enforcement powers to the attorney general for a transfer of land in
	16	+	violation of the law.
	17	+	Effective: July 1, 2024.
	18	+	Culp, Aylesworth, Jeter, Pryor
	19	+	(SENATE SPONSORS — LEISING, GOODE, DORIOT, KOCH, GLICK,
	20	+	TOMES, RANDOLPH LONNIE M)
	21	+	January 9, 2024, read first time and referred to Committee on Agriculture and Rural
	22	+	Development.
	23	+	January 29, 2024, amended, reported — Do Pass.
	24	+	January 31, 2024, read second time, amended, ordered engrossed.
	25	+	February 1, 2024, engrossed. Read third time, passed. Yeas 96, nays 0.
	26	+	SENATE ACTION
	27	+	February 12, 2024, read first time and referred to Committee on Agriculture.
	28	+	February 27, 2024, amended, reported favorably — Do Pass.
	29	+	March 4, 2024, read second time, amended, ordered engrossed.
	30	+	EH 1183—LS 6624/DI 137 Reprinted
	31	+	March 5, 2024
1	32		Second Regular Session of the 123rd General Assembly (2024)
2	33		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	34		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	35		additions will appear in this style type, and deletions will appear in this style type.
5	36		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	37		provision adopted), the text of the new provision will appear in this style type. Also, the
7	38		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	39		a new provision to the Indiana Code or the Indiana Constitution.
9	40		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	41		between statutes enacted by the 2023 Regular Session of the General Assembly.
11		-	HOUSE ENROLLED ACT No. 1183
12		-	AN ACT to amend the Indiana Code concerning property.
	42	+	ENGROSSED
	43	+	HOUSE BILL No. 1183
	44	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	45	+	property.
13	46		Be it enacted by the General Assembly of the State of Indiana:
14		-	SECTION 1. IC 1-1-16-10.2 IS ADDED TO THE INDIANA CODE
15		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
16		-	1, 2024]: Sec. 10.2. (a) This section does not apply to:
17		-	(1) a lease for residential property (as defined in
18		-	IC 6-1.1-20.6-4) or a dwelling unit (as defined in
19		-	IC 32-31-5-3);
20		-	(2) the purchase, lease, or acquisition of real property by an
21		-	individual who holds dual citizenship with the United States
22		-	and China, Iran, North Korea, Russia, or a country
23		-	designated as a threat to critical infrastructure by the
24		-	governor under section 8(b) of this chapter; or
25		-	(3) the purchase, lease, or acquisition of real property by an
26		-	individual who is a lawful permanent resident of the United
27		-	States.
28		-	(b) After June 30, 2024, a prohibited person may not purchase,
29		-	lease, or acquire a parcel of real property that is:
30		-	(1) located in Indiana; and
31		-	(2) located within a ten (10) mile radius of a military
32		-	installation.
33		-	(c) A purchase, lease, or acquisition of a parcel of real property
34		-	in violation of subsection (b) is subject to divestiture pursuant to
35		-	section 11 of this chapter.
36		-	HEA 1183 — CC 1 2
37		-	(d) No title to real property shall be invalid or subject to
38		-	divestiture by reason of the violation of this section by any former
39		-	owner or other individual or entity holding or owning a former
40		-	interest in the real property.
41		-	SECTION 2. IC 32-22-3-0.5, AS ADDED BY P.L.156-2022,
42		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
43		-	JULY 1, 2024]: Sec. 0.5. (a) Except as provided in section 4.5 of this
44		-	chapter, the prohibition on ownership of agricultural land established
45		-	by this chapter does not apply to the following:
46		-	(1) Agricultural land that is used for research or experimental
47		-	purposes, including testing, developing, or producing seeds or
48		-	plants for sale or resale to farmers as seed stock.
49		-	(2) The acquisition by a foreign business entity of agricultural
50		-	land or an interest in agricultural land that is located within
51		-	Indiana:
52		-	(A) that is used for crop farming and that is not more than
53		-	three hundred twenty (320) acres; or
54		-	(B) that is used for timber production and that is not more than
55		-	ten (10) acres.
56		-	(3) As used in this subdivision, "confined feeding operation" has
57		-	the meaning set forth in IC 13-11-2-40. The acquisition by a
58		-	foreign business entity of a confined feeding operation or
59		-	agricultural land on which to construct a confined feeding
60		-	operation.
61		-	(4) Agricultural land used for raising or producing eggs or
62		-	poultry, including hatcheries and other ancillary activities.
63		-	(b) This chapter does not affect the ability of a foreign business
64		-	entity to hold or acquire by grant, purchase, devise, descent, or
65		-	otherwise agricultural land in such acreage as may be necessary to its
66		-	business operations for purposes other than crop farming or timber
67		-	production.
68		-	SECTION 3. IC 32-22-3-1, AS ADDED BY P.L.156-2022,
69		-	SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
70		-	JULY 1, 2024]: Sec. 1. As used in this chapter, "agricultural land"
71		-	means land for use in crop farming or timber production or as pasture
72		-	land.
73		-	SECTION 4. IC 32-22-3-3.5 IS ADDED TO THE INDIANA CODE
	47	+	1 SECTION 1. IC 1-1-16-10, AS ADDED BY P.L.118-2023,
	48	+	2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	49	+	3 JULY 1, 2024]: Sec. 10. (a) After June 30, 2023, a prohibited person
	50	+	4 may not purchase, lease, or acquire a parcel of real property that is:
	51	+	5 (1) located in Indiana; and
	52	+	6 (2) directly adjacent to a military installation.
	53	+	7 (b) After June 30, 2024, a prohibited person may not purchase,
	54	+	8 lease, or acquire a parcel of real property that is:
	55	+	9 (1) located in Indiana; and
	56	+	10 (2) located within a ten (10) mile radius of a military
	57	+	11 installation.
	58	+	12 (b) (c) A purchase, lease, or acquisition of a parcel of real property
	59	+	13 in violation of subsection (a) or (b) is subject to divestiture pursuant to
	60	+	14 section 11 of this chapter.
	61	+	15 (c) (d) No title to real property shall be invalid or subject to
	62	+	16 divestiture by reason of the violation of this section by any former
	63	+	17 owner or other individual or entity holding or owning a former interest
	64	+	EH 1183—LS 6624/DI 137 2
	65	+	1 in the real property.
	66	+	2 SECTION 2. IC 32-22-3-0.5, AS ADDED BY P.L.156-2022,
	67	+	3 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	68	+	4 JULY 1, 2024]: Sec. 0.5. (a) Except as provided in section 4.5 of this
	69	+	5 chapter, the prohibition on ownership of agricultural land established
	70	+	6 by this chapter does not apply to the following:
	71	+	7 (1) Agricultural land that is used for research or experimental
	72	+	8 purposes, including testing, developing, or producing seeds or
	73	+	9 plants for sale or resale to farmers as seed stock.
	74	+	10 (2) The acquisition by a foreign business entity of agricultural
	75	+	11 land or an interest in agricultural land that is located within
	76	+	12 Indiana:
	77	+	13 (A) that is used for crop farming and that is not more than
	78	+	14 three hundred twenty (320) acres; or
	79	+	15 (B) that is used for timber production and that is not more than
	80	+	16 ten (10) acres.
	81	+	17 (3) As used in this subdivision, "confined feeding operation" has
	82	+	18 the meaning set forth in IC 13-11-2-40. The acquisition by a
	83	+	19 foreign business entity of a confined feeding operation or
	84	+	20 agricultural land on which to construct a confined feeding
	85	+	21 operation.
	86	+	22 (4) Agricultural land used for raising or producing eggs or
	87	+	23 poultry, including hatcheries and other ancillary activities.
	88	+	24 (b) This chapter does not affect the ability of a foreign business
	89	+	25 entity to hold or acquire by grant, purchase, devise, descent, or
	90	+	26 otherwise agricultural land in such acreage as may be necessary to its
	91	+	27 business operations for purposes other than crop farming or timber
	92	+	28 production.
	93	+	29 SECTION 3. IC 32-22-3-1, AS ADDED BY P.L.156-2022,
	94	+	30 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	95	+	31 JULY 1, 2024]: Sec. 1. As used in this chapter, "agricultural land"
	96	+	32 means land for use in crop farming or timber production or as pasture
	97	+	33 land.
	98	+	34 SECTION 4. IC 32-22-3-3.5 IS ADDED TO THE INDIANA CODE
	99	+	35 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	100	+	36 1, 2024]: Sec. 3.5. As used in this chapter, "prohibited person"
	101	+	37 includes:
	102	+	38 (1) an individual who is a citizen of a foreign adversary (as
	103	+	39 defined in 15 CFR 7.4); or
	104	+	40 (2) a business entity that is:
	105	+	41 (A) wholly owned by, or the majority of stock or other
	106	+	42 ownership interest of the business entity is held or
	107	+	EH 1183—LS 6624/DI 137 3
	108	+	1 controlled by:
	109	+	2 (i) individuals who are citizens of a foreign adversary (as
	110	+	3 defined in 15 CFR 7.4); or
	111	+	4 (ii) a business entity or another entity, including a
	112	+	5 governmental entity, that is owned or controlled by
	113	+	6 citizens of, or is directly controlled by the government of,
	114	+	7 a foreign adversary (as defined in 15 CFR 7.4); or
	115	+	8 (B) headquartered in a foreign adversary (as defined in 15
	116	+	9 CFR 7.4).
	117	+	10 The term, as used in subdivisions (1) and (2)(A)(i), does not include
	118	+	11 an individual who holds dual citizenship with a foreign adversary
	119	+	12 (as defined in 15 CFR 7.4) and the United States or an individual
	120	+	13 who is a lawful permanent resident of the United States.
	121	+	14 SECTION 5. IC 32-22-3-4.5 IS ADDED TO THE INDIANA CODE
	122	+	15 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	123	+	16 1, 2024]: Sec. 4.5. (a) This section does not apply to agricultural
	124	+	17 land on which there has been no agricultural activity in the last five
	125	+	18 (5) years, unless the agricultural land is recognized by the United
	126	+	19 States Department of Agriculture's Farm Service Agency as
	127	+	20 farmland.
	128	+	21 (b) After June 30, 2024, a prohibited person may not do any of
	129	+	22 the following:
	130	+	23 (1) Acquire by grant, purchase, devise, descent, or otherwise
	131	+	24 any agricultural land located in Indiana.
	132	+	25 (2) Enter into a lease agreement as a lessee for any
	133	+	26 agricultural land located in Indiana. This subdivision does not
	134	+	27 apply to the renewal of a lease for agricultural land that is in
	135	+	28 place prior to July 1, 2024, if the acreage and description of
	136	+	29 the agricultural land subject to the lease does not change.
	137	+	30 (3) Acquire by grant, purchase, devise, descent, or otherwise
	138	+	31 any mineral right or water or riparian right on any
	139	+	32 agricultural land located in Indiana.
	140	+	33 (4) Enter into a lease agreement as a lessee for any mineral
	141	+	34 right or water or riparian right on any agricultural land
	142	+	35 located in Indiana.
	143	+	36 (c) A person who is not a prohibited person is not civilly or
	144	+	37 criminally liable for failing to determine or inquire if a person is a
	145	+	38 prohibited person under this section.
	146	+	39 (d) A purchase, acquisition, or lease of agricultural land in
	147	+	40 violation of this section is subject to divestiture pursuant to section
	148	+	41 6.5 of this chapter.
	149	+	42 (e) No title to agricultural land shall be invalid or subject to
	150	+	EH 1183—LS 6624/DI 137 4
	151	+	1 divestiture by reason of a violation of this section by any former
	152	+	2 owner or other individual or entity holding or owning a former
	153	+	3 interest in the agricultural land.
	154	+	4 SECTION 6. IC 32-22-3-6.5 IS ADDED TO THE INDIANA CODE
	155	+	5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	156	+	6 1, 2024]: Sec. 6.5. (a) Upon receipt of information that leads the
	157	+	7 attorney general to believe an acquisition or lease of agricultural
	158	+	8 land violates section 4.5 of this chapter, the attorney general shall
	159	+	9 investigate the alleged violation and may issue subpoenas requiring
	160	+	10 the:
	161	+	11 (1) appearance of witnesses;
	162	+	12 (2) production of relevant records; and
	163	+	13 (3) giving of relevant testimony.
	164	+	14 (b) The attorney general shall enforce a violation of section 4.5
	165	+	15 of this chapter by commencing a receivership proceeding under
	166	+	16 IC 32-30-5-1 and selling the agricultural land through the
	167	+	17 receivership. The following apply to a receivership proceeding
	168	+	18 under this section:
	169	+	19 (1) Proceeds of the sale shall be paid as follows:
	170	+	20 (A) The costs of the receivership and sale.
	171	+	21 (B) To lienholders, in their order of priority, except for
	172	+	22 liens which under the terms of the sale are to remain on the
	173	+	23 property.
	174	+	24 (C) No proceeds shall be distributed from the receivership
	175	+	25 sale to the prohibited person. Any excess proceeds are
	176	+	26 forfeited and shall be transferred to the state general fund
	177	+	27 by the receiver.
	178	+	28 (2) At the receivership sale, lienholders shall be able to have
	179	+	29 a credit bid in an amount that is not more than the amount
	180	+	30 owed to the lienholder on the date of the sale, as established in
	181	+	31 the court order for the sale of the property.
	182	+	32 (3) Upon commencement of an action under this section, the
	183	+	33 attorney general shall promptly file a notice of lis pendens
	184	+	34 with the clerk of court. Upon the entry of an order for the sale
	185	+	35 of the property under this section, the attorney general shall
	186	+	36 promptly record a copy of the order in the office of the
	187	+	37 recorder of the county where the property is located.
	188	+	38 (c) The responsibility for determining whether an individual or
	189	+	39 other entity is subject to section 4.5 of this chapter rests solely with
	190	+	40 the prohibited person and the attorney general and no other
	191	+	41 individual or entity. An individual or other entity who is not a
	192	+	42 prohibited person shall bear no civil or criminal liability for failing
	193	+	EH 1183—LS 6624/DI 137 5
	194	+	1 to determine or make inquiry of whether an individual or other
	195	+	2 entity is a prohibited person.
	196	+	3 (d) Divestiture of a prohibited person's title under this section
	197	+	4 shall not be a basis to void, invalidate, or otherwise extinguish any
	198	+	5 bona fide mortgage, lien, or other interest granted by, through, or
	199	+	6 under the prohibited person.
	200	+	7 SECTION 7. IC 34-30-2.1-525.4 IS ADDED TO THE INDIANA
	201	+	8 CODE AS A NEW SECTION TO READ AS FOLLOWS
	202	+	9 [EFFECTIVE JULY 1, 2024]: Sec. 525.4. IC 32-22-3-4.5(c)
	203	+	10 (Concerning agricultural land purchased or leased by a prohibited
	204	+	11 person).
	205	+	12 SECTION 8. IC 34-30-2.1-525.5 IS ADDED TO THE INDIANA
	206	+	13 CODE AS A NEW SECTION TO READ AS FOLLOWS
	207	+	14 [EFFECTIVE JULY 1, 2024]: Sec. 525.5. IC 32-22-3-6.5(c)
	208	+	15 (Concerning agricultural land held by a prohibited person).
	209	+	EH 1183—LS 6624/DI 137 6
	210	+	COMMITTEE REPORT
	211	+	Mr. Speaker: Your Committee on Agriculture and Rural
	212	+	Development, to which was referred House Bill 1183, has had the same
	213	+	under consideration and begs leave to report the same back to the
	214	+	House with the recommendation that said bill be amended as follows:
	215	+	Page 1, line 6, delete "years." and insert "years, unless the
	216	+	agricultural land is recognized by the United States Department of
	217	+	Agriculture's Farm Service Agency as farmland.".
	218	+	Page 2, delete lines 33 through 42, begin a new paragraph and
	219	+	insert:
	220	+	"SECTION 4. IC 32-22-3-1.7 IS ADDED TO THE INDIANA
	221	+	CODE AS A NEW SECTION TO READ AS FOLLOWS
	222	+	[EFFECTIVE JULY 1, 2024]: Sec. 1.7. As used in this chapter,
	223	+	"controlling person" includes the following:
	224	+	(1) A beneficial owner (as defined in IC 23-1-20-3.5) of five
	225	+	percent (5%) or more of the shares of a business entity.
	226	+	(2) An officer, director, or other individual who possesses
	227	+	inside information about a business entity because of the
	228	+	person's relationship with the business entity.
	229	+	(3) A person, individually or as a member of a group, who has
	230	+	the ability to directly or indirectly affect a business entity's
	231	+	management or policies.
	232	+	SECTION 5. IC 32-22-3-3.5 IS ADDED TO THE INDIANA CODE
74	233		AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
75	234		1, 2024]: Sec. 3.5. As used in this chapter, "prohibited person"
76		-	includes:
	235	+	includes the following:
	236	+	(1) An individual who is a citizen of a foreign adversary (as
	237	+	defined in 15 CFR 7.4).
	238	+	(2) A foreign business entity organized under the laws of a
	239	+	foreign adversary (as defined in 15 CFR 7.4).
	240	+	(3) A corporation, professional corporation, nonprofit
	241	+	corporation, limited liability company, partnership, or limited
	242	+	partnership with a controlling person who is either of the
	243	+	following:
	244	+	(A) An individual who is a citizen of a foreign adversary
	245	+	(as defined in 15 CFR 7.4).
	246	+	(B) A company or other entity, including a governmental
	247	+	entity, that is owned or controlled by citizens of, or is
	248	+	directly controlled by the government of, a foreign
	249	+	adversary (as defined in 15 CFR 7.4).".
	250	+	Page 3, delete lines 1 through 8.
	251	+	Page 3, line 13, delete "years." and insert "years, unless the
	252	+	EH 1183—LS 6624/DI 137 7
	253	+	agricultural land is recognized by the United States Department of
	254	+	Agriculture's Farm Service Agency as farmland.".
	255	+	Page 3, delete lines 26 through 35, begin a new paragraph and
	256	+	insert:
	257	+	"SECTION 6. IC 32-22-3-6.5 IS ADDED TO THE INDIANA
	258	+	CODE AS A NEW SECTION TO READ AS FOLLOWS
	259	+	[EFFECTIVE JULY 1, 2024]: Sec. 6.5. (a) Upon receipt of
	260	+	information that leads the attorney general to believe an
	261	+	acquisition or lease of agricultural land violates section 4.5 of this
	262	+	chapter, the attorney general shall investigate the alleged violation
	263	+	and may issue subpoenas requiring the:
	264	+	(1) appearance of witnesses;
	265	+	(2) production of relevant records; and
	266	+	(3) giving of relevant testimony.
	267	+	(b) If the attorney general finds that agricultural land or an
	268	+	interest in agricultural land was acquired in violation of section 4.5
	269	+	of this chapter, the attorney general shall commence an action in
	270	+	the circuit court where the agricultural land is located. Upon
	271	+	commencing an action under this subsection, the attorney general
	272	+	shall record a notice of the pendency of the action with the county
	273	+	recorder.
	274	+	(c) If the circuit court finds that agricultural land is held in
	275	+	violation of this chapter, the circuit court must order that the
	276	+	agricultural land be sold through judicial foreclosure. The
	277	+	proceeds of the sale of agricultural land through judicial
	278	+	foreclosure will be disbursed in the following order of priority:
	279	+	(1) First, to any lien holders, in order of priority.
	280	+	(2) Second, to the state, for the attorney general's costs and
	281	+	expenses of the action, including reasonable attorney's fees
	282	+	and expert fees.".
	283	+	Renumber all SECTIONS consecutively.
	284	+	and when so amended that said bill do pass.
	285	+	(Reference is to HB 1183 as introduced.)
	286	+	AYLESWORTH
	287	+	Committee Vote: yeas 11, nays 0.
	288	+	EH 1183—LS 6624/DI 137 8
	289	+	HOUSE MOTION
	290	+	Mr. Speaker: I move that House Bill 1183 be amended to read as
	291	+	follows:
	292	+	Page 2, between lines 2 and 3, begin a new paragraph and insert:
	293	+	"Sec. 6. A person who is not a prohibited person is not civilly or
	294	+	criminally liable:
	295	+	(1) for failing to determine or inquire if a person is a
	296	+	prohibited person under this chapter; or
	297	+	(2) if an affidavit submitted under section 5 of this chapter is
	298	+	fraudulent or incorrect.".
	299	+	Page 2, delete lines 35 through 42, begin a new paragraph and
	300	+	insert:
	301	+	"SECTION 4. IC 32-22-3-3.5 IS ADDED TO THE INDIANA
	302	+	CODE AS A NEW SECTION TO READ AS FOLLOWS
	303	+	[EFFECTIVE JULY 1, 2024]: Sec. 3.5. As used in this chapter,
	304	+	"prohibited person" includes:
77	305		(1) an individual who is a citizen of a foreign adversary (as
78	306		defined in 15 CFR 7.4); or
79		-	HEA 1183 — CC 1 3
80	307		(2) a business entity that is:
81	308		(A) wholly owned by, or the majority of stock or other
82	309		ownership interest of the business entity is held or
83	310		controlled by:
84	311		(i) individuals who are citizens of a foreign adversary (as
85	312		defined in 15 CFR 7.4); or
86	313		(ii) a business entity or another entity, including a
87	314		governmental entity, that is owned or controlled by
88	315		citizens of, or is directly controlled by the government of,
89	316		a foreign adversary (as defined in 15 CFR 7.4); or
90	317		(B) headquartered in a foreign adversary (as defined in 15
91		-	CFR 7.4).
92		-	The term, as used in subdivisions (1) and (2)(A)(i), does not include
93		-	an individual who holds dual citizenship with a foreign adversary
94		-	(as defined in 15 CFR 7.4) and the United States or an individual
95		-	who is a lawful permanent resident of the United States.
96		-	SECTION 5. IC 32-22-3-4.5 IS ADDED TO THE INDIANA CODE
97		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
98		-	1, 2024]: Sec. 4.5. (a) This section does not apply to agricultural
99		-	land on which there has been no agricultural activity in the last five
100		-	(5) years, unless the agricultural land is recognized by the United
101		-	States Department of Agriculture's Farm Service Agency as
102		-	farmland.
103		-	(b) After June 30, 2024, a prohibited person may not do any of
104		-	the following:
105		-	(1) Acquire by grant, purchase, devise, descent, or otherwise
106		-	any agricultural land located in Indiana.
107		-	(2) Enter into a lease agreement as a lessee for any
108		-	agricultural land located in Indiana. This subdivision does not
109		-	apply to the renewal of a lease for agricultural land that is in
110		-	place prior to July 1, 2024, if the acreage and description of
111		-	the agricultural land subject to the lease does not change.
112		-	(3) Acquire by grant, purchase, devise, descent, or otherwise
113		-	any mineral right or water or riparian right on any
114		-	agricultural land located in Indiana.
115		-	(4) Enter into a lease agreement as a lessee for any mineral
116		-	right or water or riparian right on any agricultural land
117		-	located in Indiana.
118		-	(c) A person who is not a prohibited person is not civilly or
	318	+	CFR 7.4).".
	319	+	Page 3, delete lines 1 through 22.
	320	+	Page 3, between lines 41 and 42, begin a new paragraph and insert:
	321	+	"(c) A person who is not a prohibited person is not civilly or
119	322		criminally liable for failing to determine or inquire if a person is a
120		-	prohibited person under this section.
121		-	(d) A purchase, acquisition, or lease of agricultural land in
122		-	HEA 1183 — CC 1 4
	323	+	prohibited person under this section."
	324	+	Renumber all SECTIONS consecutively.
	325	+	(Reference is to HB 1183 as printed January 29, 2024.)
	326	+	CULP
	327	+	EH 1183—LS 6624/DI 137 9
	328	+	COMMITTEE REPORT
	329	+	Madam President: The Senate Committee on Agriculture, to which
	330	+	was referred House Bill No. 1183, has had the same under
	331	+	consideration and begs leave to report the same back to the Senate with
	332	+	the recommendation that said bill be AMENDED as follows:
	333	+	Page 1, between the enacting clause and line 1, begin a new
	334	+	paragraph and insert:
	335	+	"SECTION 1. IC 1-1-16-10 IS REPEALED [EFFECTIVE JULY 1,
	336	+	2024]. Sec. 10. (a) After June 30, 2023, a prohibited person may not
	337	+	purchase, lease, or acquire a parcel of real property that is:
	338	+	(1) located in Indiana; and
	339	+	(2) directly adjacent to a military installation.
	340	+	(b) A purchase, lease, or acquisition of a parcel of real property in
	341	+	violation of subsection (a) is subject to divestiture pursuant to section
	342	+	11 of this chapter.
	343	+	(c) No title to real property shall be invalid or subject to divestiture
	344	+	by reason of the violation of this section by any former owner or other
	345	+	individual or entity holding or owning a former interest in the real
	346	+	property.
	347	+	SECTION 2. IC 1-1-16-11 IS REPEALED [EFFECTIVE JULY 1,
	348	+	2024]. Sec. 11. (a) The attorney general may investigate the purchase,
	349	+	lease, or acquisition of real property upon receipt of a complaint
	350	+	alleging a violation of section 10 of this chapter.
	351	+	(b) The attorney general shall enforce a violation of section 10 of
	352	+	this chapter by commencing a receivership proceeding under
	353	+	IC 32-30-5-1 and selling the property through the receivership. The
	354	+	following apply to a receivership proceeding under this section:
	355	+	(1) Proceeds of the sale shall be disbursed to lienholders, in their
	356	+	order of priority, except for liens which under the terms of the
	357	+	sale are to remain on the property.
	358	+	(2) At the receivership sale, lienholders shall be able to have a
	359	+	credit bid.
	360	+	(3) No proceeds shall be distributed from the receivership sale to
	361	+	the prohibited person. Any excess proceeds are forfeited and shall
	362	+	be transferred to the state general fund by the receiver.
	363	+	(4) Upon commencement of an action under this section, the
	364	+	attorney general shall promptly file a notice of lis pendens with
	365	+	the clerk of court. Upon the entry order for the sale of the property
	366	+	under this section, the attorney general shall promptly record a
	367	+	copy of the order in the office of the recorder of the county where
	368	+	the property is located.
	369	+	EH 1183—LS 6624/DI 137 10
	370	+	(c) The responsibility for determining whether an individual or other
	371	+	entity is subject to section 10 of this chapter rests solely with the
	372	+	prohibited person and the attorney general and no other individual or
	373	+	entity. An individual or other entity who is not a prohibited person shall
	374	+	bear no civil or criminal liability for failing to determine or make
	375	+	inquiry of whether an individual or other entity is a prohibited person.
	376	+	(d) Divestiture of a prohibited person's title under this section shall
	377	+	not be a basis to void, invalidate, or otherwise extinguish any bona fide
	378	+	mortgage, lien, or other interest granted by, through, or under the
	379	+	prohibited person.".
	380	+	Page 3, line 29, after "Indiana." insert "This subdivision does not
	381	+	apply to the renewal of a lease for agricultural land that is in place
	382	+	prior to July 1, 2024, if the acreage and description of the
	383	+	agricultural land subject to the lease does not change.".
	384	+	Page 3, between lines 38 and 39, begin a new paragraph and insert:
	385	+	"(d) A purchase, acquisition, or lease of agricultural land in
123	386		violation of this section is subject to divestiture pursuant to section
124	387		6.5 of this chapter.
125	388		(e) No title to agricultural land shall be invalid or subject to
126	389		divestiture by reason of a violation of this section by any former
127	390		owner or other individual or entity holding or owning a former
128		-	interest in the agricultural land.
129		-	SECTION 6. IC 32-22-3-6.5 IS ADDED TO THE INDIANA CODE
130		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
131		-	1, 2024]: Sec. 6.5. (a) Upon receipt of information that leads the
132		-	attorney general to believe an acquisition or lease of agricultural
133		-	land violates section 4.5 of this chapter, the attorney general shall
134		-	investigate the alleged violation and may issue subpoenas requiring
135		-	the:
136		-	(1) appearance of witnesses;
137		-	(2) production of relevant records; and
138		-	(3) giving of relevant testimony.
139		-	(b) The attorney general shall enforce a violation of section 4.5
	391	+	interest in the agricultural land.".
	392	+	Page 4, delete lines 7 through 22, begin a new paragraph and insert:
	393	+	"(b) The attorney general shall enforce a violation of section 4.5
140	394		of this chapter by commencing a receivership proceeding under
141	395		IC 32-30-5-1 and selling the agricultural land through the
142	396		receivership. The following apply to a receivership proceeding
143	397		under this section:
144	398		(1) Proceeds of the sale shall be paid as follows:
145	399		(A) The costs of the receivership and sale.
146	400		(B) To lienholders, in their order of priority, except for
147	401		liens which under the terms of the sale are to remain on the
148	402		property.
149		-	(C) No proceeds shall be distributed from the receivership
150		-	sale to the prohibited person. Any excess proceeds are
151		-	forfeited and shall be transferred to the state general fund
152		-	by the receiver.
	403	+	(C) Any penalty assessed against the prohibited person.
	404	+	(D) Any excess funds to the prohibited person.
	405	+	(2) At the receivership sale, lienholders shall be able to have
	406	+	a credit bid in an amount that is not more than the amount
	407	+	owed to the lienholder on the date of the sale, as established in
	408	+	the court order for the sale of the property.
	409	+	(3) Upon commencement of an action under this section, the
	410	+	attorney general shall promptly file a notice of lis pendens
	411	+	with the clerk of court. Upon the entry of an order for the sale
	412	+	EH 1183—LS 6624/DI 137 11
	413	+	of the property under this section, the attorney general shall
	414	+	promptly record a copy of the order in the office of the
	415	+	recorder of the county where the property is located.
	416	+	(4) The court may assess a penalty against the prohibited
	417	+	person for a violation of section 4.5 of this chapter in an
	418	+	amount not to exceed the greater of:
	419	+	(A) one hundred thousand dollars ($100,000); or
	420	+	(B) five thousand dollars ($5,000) per acre of agricultural
	421	+	land subject to the receivership proceeding.
	422	+	A penalty assessed under this subdivision must be transferred
	423	+	to the state general fund.
	424	+	(c) The responsibility for determining whether an individual or
	425	+	other entity is subject to section 4.5 of this chapter rests solely with
	426	+	the prohibited person and the attorney general and no other
	427	+	individual or entity. An individual or other entity who is not a
	428	+	prohibited person shall bear no civil or criminal liability for failing
	429	+	to determine or make inquiry of whether an individual or other
	430	+	entity is a prohibited person.
	431	+	(d) Divestiture of a prohibited person's title under this section
	432	+	shall not be a basis to void, invalidate, or otherwise extinguish any
	433	+	bona fide mortgage, lien, or other interest granted by, through, or
	434	+	under the prohibited person.
	435	+	SECTION 9. IC 32-22-5 IS ADDED TO THE INDIANA CODE AS
	436	+	A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
	437	+	1, 2024]:
	438	+	Chapter 5. Prohibition on Owning Land Near Military Property
	439	+	Sec. 1. As used in this chapter, "military installation" means a
	440	+	military base, camp, post, station, yard, center, or other activity
	441	+	under the jurisdiction of:
	442	+	(1) the secretary of a branch of a federal military department;
	443	+	or
	444	+	(2) the governor.
	445	+	Sec. 2. As used in this chapter, "prohibited person" has the
	446	+	meaning set forth in IC 32-22-3-3.5.
	447	+	Sec. 3. As used in this chapter, "real property" means:
	448	+	(1) land located within Indiana; and
	449	+	(2) a building or fixture situated on land located within
	450	+	Indiana.
	451	+	Sec. 4. (a) Except as provided in subsection (b), after June 30,
	452	+	2024, a prohibited person may not do any of the following:
	453	+	(1) Acquire by grant, purchase, devise, descent, or otherwise
	454	+	any real property located within a fifty (50) mile radius of a
	455	+	EH 1183—LS 6624/DI 137 12
	456	+	military installation located in Indiana.
	457	+	(2) Except for a lease agreement for residential property,
	458	+	enter into a lease agreement as a lessee for any real property
	459	+	located within a fifty (50) mile radius of a military installation
	460	+	located in Indiana.
	461	+	(3) Acquire by grant, purchase, devise, descent, or otherwise
	462	+	any real property located within a ten (10) mile radius of an
	463	+	armory (as defined in IC 10-16-1-2.5) or a maintenance
	464	+	facility of the Indiana National Guard.
	465	+	(4) Except for a lease agreement for residential property,
	466	+	enter into a lease agreement as a lessee for any real property
	467	+	located within a ten (10) mile radius of an armory (as defined
	468	+	in IC 10-16-1-2.5) or a maintenance facility of the Indiana
	469	+	National Guard.
	470	+	(b) A prohibited person may acquire an interest in real property
	471	+	by devise or bequest, through the enforcement of any security
	472	+	interest or through the collection of debt. Any such acquisition
	473	+	shall be subject to sections 5 and 6 of this chapter.
	474	+	(c) A person who is not a prohibited person is not civilly or
	475	+	criminally liable for failing to determine whether a person is a
	476	+	prohibited person under this section.
	477	+	Sec. 5. A prohibited person that directly or indirectly owns an
	478	+	interest in real property located within a fifty (50) mile radius of a
	479	+	military installation located in Indiana or a ten (10) mile radius of
	480	+	an armory (as defined in IC 10-16-1-2.5) or a maintenance facility
	481	+	of the Indiana National Guard shall electronically register the
	482	+	prohibited person's ownership with the attorney general, in the
	483	+	form and manner prescribed by the attorney general, not later
	484	+	than October 31, 2024. The information provided in the electronic
	485	+	registration must include:
	486	+	(1) the name of the prohibited person holding an interest in
	487	+	the real property;
	488	+	(2) the date of acquisition of the real property;
	489	+	(3) the address and legal description of the real property; and
	490	+	(4) the distance, in miles, to the nearest military installation,
	491	+	armory, or maintenance facility of the Indiana National
	492	+	Guard.
	493	+	Sec. 6. (a) Upon receipt of information that leads the attorney
	494	+	general to believe an acquisition or lease of real property violates
	495	+	section 4 of this chapter, the attorney general shall investigate the
	496	+	alleged violation and may issue subpoenas requiring the:
	497	+	(1) appearance of witnesses;
	498	+	EH 1183—LS 6624/DI 137 13
	499	+	(2) production of relevant records; and
	500	+	(3) giving of relevant testimony.
	501	+	(b) The attorney general shall enforce a violation of section 4 of
	502	+	this chapter by commencing a receivership proceeding under
	503	+	IC 32-30-5-1 and selling the real property through the receivership.
	504	+	The following apply to a receivership proceeding under this
	505	+	section:
	506	+	(1) Proceeds of the sale shall be paid as follows:
	507	+	(A) The costs of the receivership and sale.
	508	+	(B) To lienholders, in their order of priority, except for
	509	+	liens which under the terms of the sale are to remain on the
	510	+	property.
	511	+	(C) Any penalty assessed against the prohibited person.
	512	+	(D) Any excess funds to the prohibited person.
153	513		(2) At the receivership sale, lienholders shall be able to have
154	514		a credit bid in an amount that is not more than the amount
155	515		owed to the lienholder on the date of the sale, as established in
156	516		the court order for the sale of the property.
157	517		(3) Upon commencement of an action under this section, the
158	518		attorney general shall promptly file a notice of lis pendens
159	519		with the clerk of court. Upon the entry of an order for the sale
160	520		of the property under this section, the attorney general shall
161	521		promptly record a copy of the order in the office of the
162	522		recorder of the county where the property is located.
	523	+	(4) The court may assess a penalty against the prohibited
	524	+	person for a violation of section 4 of this chapter in an amount
	525	+	not to exceed the greater of:
	526	+	(A) one hundred thousand dollars ($100,000); or
	527	+	(B) five thousand dollars ($5,000) per acre of real property
	528	+	subject to the receivership proceeding.
	529	+	A penalty assessed under this subdivision must be transferred
	530	+	to the state general fund.
163	531		(c) The responsibility for determining whether an individual or
164		-	other entity is subject to section 4.5 of this chapter rests solely with
165		-	HEA 1183 — CC 1 5
	532	+	other entity is subject to section 4 of this chapter rests solely with
166	533		the prohibited person and the attorney general and no other
167	534		individual or entity. An individual or other entity who is not a
168	535		prohibited person shall bear no civil or criminal liability for failing
169	536		to determine or make inquiry of whether an individual or other
170	537		entity is a prohibited person.
171	538		(d) Divestiture of a prohibited person's title under this section
172	539		shall not be a basis to void, invalidate, or otherwise extinguish any
173	540		bona fide mortgage, lien, or other interest granted by, through, or
	541	+	EH 1183—LS 6624/DI 137 14
174	542		under the prohibited person.
175		-	SECTION 7. IC 34-30-2.1-525.4 IS ADDED TO THE INDIANA
	543	+	SECTION 10. IC 34-30-2.1-1.5 IS REPEALED [EFFECTIVE JULY
	544	+	1, 2024]. Sec. 1.5. IC 1-1-16-11(c) (Concerning the sale, lease, or
	545	+	acquisition of property adjacent to a military installation to a prohibited
	546	+	person).
	547	+	SECTION 11. IC 34-30-2.1-525.2 IS ADDED TO THE INDIANA
	548	+	CODE AS A NEW SECTION TO READ AS FOLLOWS
	549	+	[EFFECTIVE JULY 1, 2024]: Sec. 525.2. IC 32-21-16-6 (Concerning
	550	+	real estate closings involving agricultural land).
	551	+	SECTION 12. IC 34-30-2.1-525.4 IS ADDED TO THE INDIANA
176	552		CODE AS A NEW SECTION TO READ AS FOLLOWS
177	553		[EFFECTIVE JULY 1, 2024]: Sec. 525.4. IC 32-22-3-4.5(c)
178	554		(Concerning agricultural land purchased or leased by a prohibited
179	555		person).
180		-	SECTION 8. IC 34-30-2.1-525.5 IS ADDED TO THE INDIANA
	556	+	SECTION 13. IC 34-30-2.1-525.5 IS ADDED TO THE INDIANA
181	557		CODE AS A NEW SECTION TO READ AS FOLLOWS
182	558		[EFFECTIVE JULY 1, 2024]: Sec. 525.5. IC 32-22-3-6.5(c)
183	559		(Concerning agricultural land held by a prohibited person).
184		-	HEA 1183 — CC 1 Speaker of the House of Representatives
185		-	President of the Senate
186		-	President Pro Tempore
187		-	Governor of the State of Indiana
188		-	Date: Time:
189		-	HEA 1183 — CC 1
	560	+	SECTION 14. IC 34-30-2.1-525.6 IS ADDED TO THE INDIANA
	561	+	CODE AS A NEW SECTION TO READ AS FOLLOWS
	562	+	[EFFECTIVE JULY 1, 2024]: Sec. 525.6. IC 32-22-5-4(c)
	563	+	(Concerning real property purchased or leased by a prohibited
	564	+	person near military property).
	565	+	SECTION 15. IC 34-30-2.1-525.8 IS ADDED TO THE INDIANA
	566	+	CODE AS A NEW SECTION TO READ AS FOLLOWS
	567	+	[EFFECTIVE JULY 1, 2024]: Sec. 525.8. IC 32-22-5-6(c)
	568	+	(Concerning real property held by a prohibited person near
	569	+	military property).".
	570	+	Renumber all SECTIONS consecutively.
	571	+	and when so amended that said bill do pass.
	572	+	(Reference is to HB 1183 as reprinted February 1, 2024.)
	573	+	LEISING, Chairperson
	574	+	Committee Vote: Yeas 8, Nays 0.
	575	+	EH 1183—LS 6624/DI 137 15
	576	+	SENATE MOTION
	577	+	Madam President: I move that Engrossed House Bill 1183 be
	578	+	amended to read as follows:
	579	+	Page 1, delete lines 1 through 17, begin a new paragraph and insert:
	580	+	"SECTION 1. IC 1-1-16-10, AS ADDED BY P.L.118-2023,
	581	+	SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	582	+	JULY 1, 2024]: Sec. 10. (a) After June 30, 2023, a prohibited person
	583	+	may not purchase, lease, or acquire a parcel of real property that is:
	584	+	(1) located in Indiana; and
	585	+	(2) directly adjacent to a military installation.
	586	+	(b) After June 30, 2024, a prohibited person may not purchase,
	587	+	lease, or acquire a parcel of real property that is:
	588	+	(1) located in Indiana; and
	589	+	(2) located within a ten (10) mile radius of a military
	590	+	installation.
	591	+	(b) (c) A purchase, lease, or acquisition of a parcel of real property
	592	+	in violation of subsection (a) or (b) is subject to divestiture pursuant to
	593	+	section 11 of this chapter.
	594	+	(c) (d) No title to real property shall be invalid or subject to
	595	+	divestiture by reason of the violation of this section by any former
	596	+	owner or other individual or entity holding or owning a former interest
	597	+	in the real property.".
	598	+	Delete page 2.
	599	+	Page 3, delete lines 1 through 10.
	600	+	Page 4, between lines 18 and 19, begin a new line blocked left and
	601	+	insert:
	602	+	"The term, as used in subdivisions (1) and (2)(A)(i), does not
	603	+	include an individual who holds dual citizenship with a foreign
	604	+	adversary (as defined in 15 CFR 7.4) and the United States.".
	605	+	Page 5, delete lines 29 through 30, begin a new line double block
	606	+	indented and insert:
	607	+	"(C) No proceeds shall be distributed from the receivership
	608	+	sale to the prohibited person. Any excess proceeds are
	609	+	forfeited and shall be transferred to the state general fund
	610	+	by the receiver.".
	611	+	Page 5, delete lines 41 through 42.
	612	+	Page 6, delete lines 1 through 6.
	613	+	Page 6, delete lines 18 through 42.
	614	+	Delete pages 7 through 8.
	615	+	Page 9, delete lines 1 through 4.
	616	+	Page 9, delete lines 14 through 23.
	617	+	EH 1183—LS 6624/DI 137 16
	618	+	Renumber all SECTIONS consecutively.
	619	+	(Reference is to EHB 1183 as printed February 28, 2024.)
	620	+	BUSCH
	621	+	_____
	622	+	SENATE MOTION
	623	+	Madam President: I move that Engrossed House Bill 1183 be
	624	+	amended to read as follows:
	625	+	Page 4, between lines 18 and 19, begin a new line blocked left and
	626	+	insert:
	627	+	"The term, as used in subdivisions (1) and (2)(A)(i), does not
	628	+	include an individual who holds dual citizenship with a foreign
	629	+	adversary (as defined in 15 CFR 7.4) and the United States or an
	630	+	individual who is a lawful permanent resident of the United
	631	+	States.".
	632	+	(Reference is to EHB 1183 as printed February 28, 2024.)
	633	+	BROWN L
	634	+	EH 1183—LS 6624/DI 137