Session of 2023
Senate Substitute for HOUSE BILL No. 2069
By Committee on Judiciary
3-27
AN ACT concerning real property; relating to the conveyance thereof;
prohibiting the conveyance of certain real property to foreign
adversaries; establishing criminal penalties therefor; requiring the
attorney general to investigate such conveyances.
Be it enacted by the Legislature of the State of Kansas:
Section 1. As used in sections 1 through 3, and amendments thereto:
(a) "Entity" means a partnership, association, trust, joint venture,
corporation, group, subgroup or other non-United States governmental
organization.
(b) (1) "Foreign adversary" means any government or non-
government person determined to be a foreign adversary pursuant to 15
C.F.R. § 7.4, as in effect on July 1, 2023, except as otherwise provided by
paragraph (2).
(2) Upon any occasion when 15 C.F.R. § 7.4 is amended after July 1,
2023, the secretary of agriculture may, in the secretary's sole discretion,
adopt rules and regulations to add or remove a government or non-
government person from the definition of "foreign adversary" but only
after giving due consideration to the risks to state and national security and
the economic costs and benefits of such action.
(c) "Person" means an individual or entity.
(d) "Person owned by, controlled by or subject to the jurisdiction or
direction of a foreign adversary" means:
(1) Any person, wherever located, who acts as an agent,
representative or employee, or any person who acts in any other capacity
at the order, request or under the direction or control, of a foreign
adversary or of a person whose activities are directly or indirectly
supervised, directed, controlled, financed or subsidized in whole or in
majority part by a foreign adversary;
(2) any person, wherever located, who is a citizen or resident of a
nation-state controlled by a foreign adversary, unless such person is a dual
citizen of the United States and a foreign adversary;
(3) any corporation, partnership, association or other organization
organized under the laws of a nation-state controlled by a foreign
adversary; or
(4) any corporation, partnership, association or other organization,
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wherever organized or doing business, that is owned or controlled by a
foreign adversary.
Sec. 2. (a) (1) On or after July 1, 2023, no person owned by,
controlled by or subject to the jurisdiction or direction of a foreign
adversary shall purchase, acquire by grant, devise or descent or otherwise
obtain ownership of any interest in real property located in this state.
(2) The provisions of paragraph (1) shall not apply to:
(A) Residential real property acquired for the purpose of the owner
establishing a personal residence; or
(B) land acquired by:
(i) A process of law in the collection of debts;
(ii) a deed in lieu of foreclosure pursuant to a forfeiture of a contract
for deed; or
(iii) any procedure for the enforcement of a lien or claim on the land,
whether created by mortgage or otherwise.
(3) Land described in paragraph (2)(B) shall be sold or otherwise
disposed of within two years after title is transferred.
(b) A person owned by, controlled by or subject to the jurisdiction or
direction of a foreign adversary may sell or convey all or any portion of an
ownership interest in real property located in this state that is residential
real property acquired pursuant to paragraph (a)(2)(A) after July 1, 2023,
or was acquired prior to July 1, 2023, but shall not sell or otherwise
convey such ownership interest to any person owned by, controlled by or
subject to the jurisdiction or direction of a foreign adversary in violation of
subsection (a).
(c) A person owned by, controlled by or subject to the jurisdiction or
direction of a foreign adversary who inherits real property on or after July
1, 2023, in violation of this act shall have 12 months to divest such
property once the violation is known. Such divestiture shall be an
affirmative defense to any violation of this subsection.
(d) The attorney general shall investigate any sale, transfer or other
conveyance of title to real property located in this state if the attorney
general has reason to believe that such transaction violates subsection (a).
(e) Real property that is the subject matter of a transaction that
violates this section shall be subject to forfeiture under K.S.A. 60-4101 et
seq., and amendments thereto.
Sec. 3. The provisions of sections 1 through 3, and amendments
thereto, are hereby declared severable. If any provision of sections 1
through 3, and amendments thereto, or the application thereof is held
invalid, such invalidity shall not affect any other provision of sections 1
through 3, and amendments thereto, that can be given effect without the
invalid provision.
Sec. 4. This act shall take effect and be in force from and after its
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publication in the statute book.1