Arkansas Senate Bill SB340

Arkansas 2023 Regular Session

• Introduced: 2/27/23
• Refer: 2/27/23
• Failed: 5/1/23

Caption

To Amend The Law Concerning Ownership And Possession Of Real Property.

Impact

This legislation represents a significant change in how Arkansas regulates foreign ownership of agricultural lands, reflecting broader national concerns regarding the implications of foreign investment in crucial sectors. By allowing resident aliens of certain foreign nations to retain ownership provided they maintain their residency, the bill attempts to balance economic interests while safeguarding land critical for domestic food and fiber production. Nonetheless, it places a tight timeline and severe penalties for failure to comply, including felony charges for violations, which indicates a strong state commitment to enforcing these new rules.

Summary

Senate Bill 340, introduced to amend laws concerning the ownership and possession of real property, specifically targets the restrictions on agricultural land ownership by foreign entities. The bill's primary focus is on prohibiting individuals from specific foreign countries from acquiring agricultural land in Arkansas while allowing existing resident aliens to hold such land under certain conditions. Importantly, if a prohibited foreign party ceases to be a resident alien, they are required to divest their agricultural holdings within two years or face mandatory sale enforced by the court.

Contention

While proponents argue that SB340 is essential for protecting state agriculture from potential foreign threats, critics express concerns over the broad definitions of 'prohibited foreign parties' that could inadvertently affect business operations for legitimate investors. Additionally, the bill has generated debate about its potential to establish a precedent for limiting property rights based on nationality, raising questions about future implications for land ownership rights in Arkansas.