1 | 1 | | Session of 2024 |
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2 | 2 | | HOUSE BILL No. 2638 |
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3 | 3 | | By Committee on Agriculture and Natural Resources |
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4 | 4 | | Requested by Representative Rahjes |
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5 | 5 | | 1-31 |
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6 | 6 | | AN ACT concerning real property; relating to the conveyance thereof; |
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7 | 7 | | requiring the attorney general to investigate such conveyances; |
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8 | 8 | | prohibiting the conveyance of title to certain real property to foreign |
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9 | 9 | | adversaries and establishing criminal penalties for violations therefor. |
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10 | 10 | | Be it enacted by the Legislature of the State of Kansas: |
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11 | 11 | | Section 1. As used in sections 1 through 3, and amendments thereto: |
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12 | 12 | | (a) "Entity" means a partnership, association, trust, joint venture, |
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13 | 13 | | corporation, group, subgroup or other non-United States governmental |
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14 | 14 | | organization. |
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15 | 15 | | (b) "Foreign adversary" means any governmental or |
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16 | 16 | | nongovernmental person determined to be a foreign adversary pursuant to |
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17 | 17 | | 15 C.F.R. § 7.4, as in effect on July 1, 2024. |
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18 | 18 | | (c) "Person" means an individual or entity. |
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19 | 19 | | (d) "Person owned by, controlled by or subject to the jurisdiction or |
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20 | 20 | | direction of a foreign adversary" means: |
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21 | 21 | | (1) Any person, wherever located, who acts as an agent, |
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22 | 22 | | representative or employee, or any person who acts in any other capacity |
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23 | 23 | | at the order, request or under the direction or control, of a foreign |
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24 | 24 | | adversary or of a person whose activities are directly or indirectly |
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25 | 25 | | supervised, directed, controlled, financed or subsidized in whole or in |
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26 | 26 | | majority part by a foreign adversary; |
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27 | 27 | | (2) any person, wherever located, who is a citizen or resident of a |
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28 | 28 | | nation-state controlled by a foreign adversary, unless such person is a dual |
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29 | 29 | | citizen of the United States and a foreign adversary; |
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30 | 30 | | (3) any corporation, partnership, association or other organization |
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31 | 31 | | organized under the laws of a nation-state controlled by a foreign |
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32 | 32 | | adversary; or |
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33 | 33 | | (4) any corporation, partnership, association or other organization, |
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34 | 34 | | wherever organized or doing business, that is owned or controlled by a |
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35 | 35 | | foreign adversary. |
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36 | 36 | | Sec. 2. (a) (1) On or after July 1, 2024, no person owned by, |
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37 | 37 | | controlled by or subject to the jurisdiction or direction of a foreign |
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38 | 38 | | adversary shall purchase, acquire by grant, devise or descent or otherwise |
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39 | 39 | | obtain ownership of any interest in real property located in this state. |
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74 | 74 | | 35 HB 2638 2 |
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75 | 75 | | (2) (A) The provisions of paragraph (1) shall not apply to land |
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76 | 76 | | acquired by: |
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77 | 77 | | (i) A process of law in the collection of debts; |
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78 | 78 | | (ii) a deed in lieu of foreclosure pursuant to a forfeiture of a contract |
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79 | 79 | | for deed; or |
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80 | 80 | | (iii) any procedure for the enforcement of a lien or claim on the land, |
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81 | 81 | | whether created by mortgage or otherwise. |
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82 | 82 | | (B) Land described in this paragraph shall be sold or otherwise |
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83 | 83 | | disposed of within two years after any title is transferred. |
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84 | 84 | | (b) A person owned by, controlled by or subject to the jurisdiction or |
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85 | 85 | | direction of a foreign adversary may sell or convey all or any portion of an |
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86 | 86 | | ownership interest in real property located in this state that was acquired |
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87 | 87 | | prior to July 1, 2024, but shall not sell or otherwise convey such ownership |
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88 | 88 | | interest to any person owned by, controlled by or subject to the jurisdiction |
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89 | 89 | | or direction of a foreign adversary in violation of subsection (a). |
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90 | 90 | | (c) Any person owned by, controlled by or subject to the jurisdiction |
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91 | 91 | | or direction of a foreign adversary who inherits real property on or after |
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92 | 92 | | July 1, 2024, in violation of this act shall have 12 months to divest such |
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93 | 93 | | property once the violation is known. Such divestiture shall be an |
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94 | 94 | | affirmative defense to any violation of this subsection. |
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95 | 95 | | (d) The attorney general shall investigate any sale, transfer or other |
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96 | 96 | | conveyance of title to real property located in this state if the attorney |
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97 | 97 | | general has reason to believe that such transaction violates subsection (a). |
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98 | 98 | | (e) Real property that is the subject matter of a transaction that |
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99 | 99 | | violates this section shall be subject to forfeiture under K.S.A. 60-4101 et |
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100 | 100 | | seq., and amendments thereto. |
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101 | 101 | | Sec. 3. If any provision or clause of this act or application thereof to |
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102 | 102 | | any person or circumstance is held invalid, such invalidity shall not affect |
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103 | 103 | | other provisions or applications of this act that can be given effect without |
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104 | 104 | | the invalid provision or application, and to this end the provisions of this |
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105 | 105 | | act are declared to be severable. |
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106 | 106 | | Sec. 4. This act shall take effect and be in force from and after its |
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107 | 107 | | publication in the statute book. |
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