Session of 2024
HOUSE BILL No. 2638
By Committee on Agriculture and Natural Resources
Requested by Representative Rahjes
1-31
AN ACT concerning real property; relating to the conveyance thereof;
requiring the attorney general to investigate such conveyances;
prohibiting the conveyance of title to certain real property to foreign
adversaries and establishing criminal penalties for violations therefor.
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) "Foreign adversary" means any governmental or
nongovernmental person determined to be a foreign adversary pursuant to
15 C.F.R. § 7.4, as in effect on July 1, 2024.
(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,
wherever organized or doing business, that is owned or controlled by a
foreign adversary.
Sec. 2. (a) (1) On or after July 1, 2024, 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.
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(2) (A) The provisions of paragraph (1) shall not apply to 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.
(B) Land described in this paragraph shall be sold or otherwise
disposed of within two years after any 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 was acquired
prior to July 1, 2024, 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) Any 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, 2024, 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. If any provision or clause of this act or application thereof to
any person or circumstance is held invalid, such invalidity shall not affect
other provisions or applications of this act that can be given effect without
the invalid provision or application, and to this end the provisions of this
act are declared to be severable.
Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.
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