SSHB125 4573 4230
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 125 2023 Regular Session Echols
AGRICULTURE: Provides relative to agriculture land protection against foreign adversaries
Synopsis of Senate Amendments
1.Removes provisions referencing corporate entities, retirement and investment
accounts, trusts, and the person connected with a foreign adversary and makes
proposed law applicable to prohibited foreign actors.
2. Removes the trigger dates applicable to the sale of agricultural land by foreign
adversaries and instead authorizes prohibited foreign actors to sell their
agricultural land.
3.Authorizes 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.
4.Adds a definition of "prohibited foreign actor" and "controlling interest" as used
in proposed law.
5.Removes a proposed law provision that provides for reporting requirements for
a foreign business that acquires, sells, leases, or transfers agricultural land by
July 30, 2023.
6.Modifies language applying a civil penalty to corporate entities that violate
proposed law and instead specifies that a prohibited foreign actor would be
subject to the civil penalty for any violation.
7.Provides an exception to the lease of land used for agricultural land for
agricultural research and development, experimental purposes, including
testing, developing, and producing crop protection inputs for sale or resale to
farmers.
8.Adds a provision governing the attorney general serving a petition for injunctive
relief on parties to a transaction and authorizes a party to rescind the contractual
agreement. Additionally, authorizes the attorney general to file a notice of lis
pendens in the mortgage records of the parish where the property is located and
specifies that the filing has no effect on certain persons prior to the filing.
9.Adds language authorizing the redaction of nonpublic personal information
from the report, deposition, or other testimony.
10.Adds leases, servitudes, usufructs, rights of use, bonds for deed, or other real
rights to items in which an ownership interest shall not be affected by forfeiture,
seizure, or divestiture provisions of proposed law.
11.Changes the time required for the attorney general to file a copy of a petition in
the mortgage records from seven to three business days.
12.Removes a limitation of liability provision applicable to those parties involved
in the property transaction and instead requires those parties affiliated with a
property transaction investigate whether a party to a transaction involving
immovable property is a foreign adversary or a prohibited foreign actor.
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13.Requires the attorney general to provide notice of pending forfeiture, seizure,
or divestiture to the holder of any interest in the immovable property.
14.Provides a process for the attorney general to cancel a mortgage and petition the
court for proceeds from the sale of immovable property to be deposited in the
registry of the Court.
15.Specifies that proposed law only applies to property acquired by a foreign
adversary or prohibited foreign actor after August 1, 2023. Additionally,
provides certain protections for ownership interests if the immovable property
was previously held by a foreign adversary or prohibited foreign actor.
16.Makes technical changes.
Digest of Bill as Finally Passed by Senate
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 defines a "prohibited foreign actor" as a corporation, limited liability company,
pension or investment fund, trust, or limited partnership in which a foreign adversary has a
controlling interest.
Proposed law defines "controlling interest" as a possession of power to direct or cause the
direction of the management or policies of a company.
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 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.
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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 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 provides a process for the attorney general to cancel a mortgage and petition
the court for proceeds from the sale of immovable property to be deposited in the registry of
the Court.
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 requires those parties affiliated with a property transaction investigate whether
a party to a transaction involving immovable property is a foreign adversary or a prohibited
foreign actor.
Proposed law applies only to property acquired by a foreign adversary or prohibited foreign
actor after Aug. 1, 2023. Additionally, provides certain protections for ownership interests
if the immovable property was previously held by a foreign adversary or prohibited foreign
actor.
(Adds R.S. 3:3613)
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