GREEN SHEET REDIGEST
HB 125 2023 Regular Session Echols
AGRICULTURE: Provides relative to agriculture land protection against foreign
adversaries.
DIGEST
Proposed law restricts any foreign adversary or prohibited foreign actor 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 prohibited foreign actor to sell or convey ownership interest in
agricultural land in this state.
Proposed law authorizes a person to rely conclusively upon an affidavit made by a person
intending to acquire or holding an interest in immovable property as long as that person is
not a foreign adversary nor a prohibited foreign actor. Provides penalties for giving a false
affidavit.
Proposed law provides definitions of "prohibited foreign actor" and "controlling interest".
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 provides that a prohibited foreign actor who violates the provisions of
proposed law is subject to a civil penalty of $50,000 and forfeiture of the agricultural land
if such person 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
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Prepared by Lebra Bias. 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 a prohibited foreign actor 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 or prohibited
foreign actor does not create additional liability for those involved in the consummation of
a real estate transaction.
Proposed law provides immunity to specific individuals under certain circumstances.
(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:
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Prepared by Lebra Bias. 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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Agriculture, Forestry,
Aquaculture, and Rural Development to the re-reengrossed bill
1. Add "prohibited foreign actor" to the list of individuals restricted from directly
or indirectly, owning, acquiring, leasing, or otherwise obtaining any interest, in
agricultural land.
2. Authorize a person to rely upon an affidavit made by a person intending to
acquire or holding an interest in immovable property as long as that person is not
a foreign adversary nor a prohibited foreign actor.
3. Provide definitions of "prohibited foreign actor" and "controlling interest".
4. Provide for additional authority of the attorney general.
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Prepared by Lebra Bias. 5. Provide immunity to specific individuals under certain circumstances.
6. Make technical changes.
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Prepared by Lebra Bias.