DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 125 Re-Reengrossed 2023 Regular Session Echols
Abstract: Restricts ownership of agricultural lands by foreign adversaries.
Proposed law restricts any foreign adversary with an ownership interest in a corporation, limited
liability company, pension or investment fund, trust, or limited partnership from directly or
indirectly, owning, acquiring, leasing, or otherwise obtaining any interest, in agricultural land as
defined by present law (R.S. 3:3602).
Proposed law defines "foreign adversary" as an individual or a government identified as a foreign
adversary pursuant to 15 CFR 7.4, including the People's Republic of China and the Hong Kong
Special Administrative Region, Republic of Cuba, Islamic Republic of Iran, Democratic People's
Republic of Korea, Russian Federation, and Venezuela under the leadership of Nicolas Maduro.
Specifies that it does not include a person that is a legal permanent resident with lawful presence in
the U.S.
Proposed law authorizes a foreign adversary to sell or convey ownership interest in agricultural land
in this state that was acquired prior to July 30, 2023, but prohibits the sale or other conveyance of
such ownership interest to any other foreign business entity that qualifies as a foreign adversary after
Aug. 1, 2023.
Proposed law exempts foreign business entities that might otherwise qualify as a foreign adversary
from the ownership restrictions applicable to agricultural lands; under the following circumstances:
(1)If the right is guaranteed by a treaty or if the person's country of origin affords certain real
estate rights to U.S. citizens.
(2)If a title to agricultural land is held as a security to indebtedness or real estate acquired upon
collection of a debt.
(3)If such foreign business entity is a religious, educational, charitable, and scientific
corporation.
(4)If inherited land, or land received by such foreign business entity as payment for a debt, is
sold or transferred within five years.
Proposed law requires any foreign business entity that acquires, sells, leases, or transfers agricultural
land located in the state after July 30, 2023, to report that conveyance to the secretary of state and the attorney general no later than 30 days after the acquisition, sale, or transfer of the agricultural
land is finalized. Specifies that the report must be made in the form and manner prescribed by the
secretary of state. Requires the attorney general to review the reports that he receives and investigate
the conveyance of agricultural land if the attorney general believes it violates proposed law.
Proposed law provides that any corporation, limited liability company, pension or investment fund,
trust, or limited partnership in which a foreign entity has an ownership interest that violates proposed
law is subject to a civil penalty of $50,000 and forfeiture of the agricultural land if such entity does
not divest itself of land acquired in violation of proposed law within one year after judgment is
entered in this action. Establishes requirements for rescinding contracts for violations of proposed
law.
Proposed law establishes a process for the attorney general to bring an action for injunctive relief that
involves discovery through investigative demands and depositions and to compel discovery through
a rule to show cause if a party fails to comply. Authorizes the attorney general to enforce proposed
law through lawful means that are available to him. Authorizes the court to issue additional orders
such as revocation, forfeiture, or suspension of licensure; to appoint a receiver; to dissolve a
domestic corporation; to suspend or terminate a foreign company’s right to do business in the state,
to require restitution; and to require civil forfeiture or divestiture of immovable property.
Proposed law authorizes a foreign adversary or any holder of interest to seek judicial review after
the attorney general's final determination related to an order of divestiture.
Proposed law specifies that the failure to identify a buyer as a foreign adversary does not create
additional liability for those involved in the consummation of a real estate transaction.
(Adds R.S. 3:3613)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Agriculture, Forestry,
Aquaculture, and Rural Development to the original bill:
1. Modify the definition of "foreign adversary" by modeling the language after 15 CFR 7.4.
2. Add "leases" as a mandatory reported transaction.
3. Establish requirements for rescinding contracts for violations of proposed law.
4. Add a process, including service and filing requirements, for the attorney general to
address violations of proposed law by authorizing him to do the following:
(a)Bring an action for injunctive relief that involves discovery through investigative
demands and depositions. (b)Compel discovery through a rule to show cause if a party fails to comply.
(c)Enforce proposed law through whatever lawful means are available to him.
5. Add authorization for the court to issue additional orders involving the following:
(a)Revocation, forfeiture, or suspension of licensure.
(b)Appointment of a receiver.
(c)Dissolution of a domestic corporation.
(d)Suspension or termination of a foreign company’s right to do business in the
state.
(e)Restitution.
(f)Civil forfeiture of immovable property.
6. Add a provision that specifies that the failure to identify a buyer as a foreign adversary
does not create additional liability for those involved in the consummation of a real estate
transaction.
The Committee Amendments Proposed by House Committee on Appropriations to the engrossed
bill:
1. Provide for the divestiture, in addition to civil forfeiture, of immovable property acquired
by a foreign adversary or a person connected with a foreign adversary.
2. Provide the procedure for the divestiture of immovable property acquired by a foreign
adversary or a person connected with a foreign adversary.
3. Provide that no mortgage, lien, privilege, or other security interest and no ownership
interest in indivision shall be affected by the forfeiture, seizure, or divestiture under the
proposed law.
4. Provide for the notice of pending forfeiture, seizure, or divestiture to be provided by the
attorney general to the holder of each mortgage, lien, or security interest.
5. Change language regarding a buyer as a foreign adversary to a party or person affiliated
with a transaction as a foreign adversary or person connected with a foreign adversary.
6. Add mortgage servicer to the list of persons or businesses who will not be held liable for
the failure to identify a foreign adversary. 7. Make technical changes.
The House Floor Amendments to the reengrossed bill:
1. Change language regarding the definition of "foreign adversary" from an individual or
government to a foreign non-governmental person and foreign government.
2. Add "lease" as a mandatory transaction that requires an investigation by the attorney
general upon receiving a report from a foreign business entity.
3. Provide that any civil penalty collected must be paid to the attorney general.
4. Authorize a foreign adversary or any holder of interest to seek judicial review after the
attorney general's final determination that a violation of this Section has occurred.
5. Specify that the Administrative Procedure Act governs any appeal taken as a result of the
attorney general's final determination.
6. Make technical changes.