EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0616*
HOUSE BILL 616
N1, M4 4lr2934
CF SB 392
By: Delegates Munoz and Miller
Introduced and read first time: January 25, 2024
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Agricultural Land – Adversarial Foreign Governments – Restrictions on 2
Property Interests 3
FOR the purpose of prohibiting adversarial foreign governments from purchasing, 4
acquiring, leasing, or holding certain property interests in agricultural land in the 5
State; requiring the Attorney General to enforce this Act in a certain manner; and 6
generally relating to the property interests of adversarial foreign governments. 7
BY repealing and reenacting, with amendments, 8
Article – Real Property 9
Section 14–101 10
Annotated Code of Maryland 11
(2023 Replacement Volume) 12
BY adding to 13
Article – Real Property 14
Section 14–101.1 15
Annotated Code of Maryland 16
(2023 Replacement Volume) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Real Property 20
14–101. 21
[Any] EXCEPT AS PROVIDED IN § 14–101.1 OF THIS SUBTITLE, ANY alien who is 22
not an enemy, may own, sell, devise, dispose of, or otherwise deal with property in the same 23
manner as if [he] THE PERSON had been a citizen of the State by birth. 24 2 HOUSE BILL 616
14–101.1. 1
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANI NGS 2
INDICATED. 3
(2) “ADVERSARIAL FOREIGN G OVERNMENT ” MEANS A 4
STATE–CONTROLLED ENTERPRIS E OR GOVERNMENT OF A COUNTRY THAT THE U.S. 5
SECRETARY OF COMMERCE HAS DETERMIN ED TO BE A FOREIGN A DVERSARY UNDER 6
15 C.F.R. § 7.4. 7
(3) “AGRICULTURAL LAND ” MEANS REAL PROPERTY THAT IS OR WAS 8
ASSESSED ON THE BASI S OF FARM OR AGRICUL TURAL USE UNDER § 8–209 OF THE 9
TAX – PROPERTY ARTICLE. 10
(4) “STATE–CONTROLLED ENTERPRIS E” MEANS A BUSINESS 11
ENTERPRISE, HOWEVER DENOMINATED , IN WHICH A FOREIGN GOVERNMENT : 12
(I) POSSESSES MORE THAN 50% OF THE OWNERSHIP 13
INTERESTS; OR 14
(II) DIRECTS THE BUSINESS AND AFFAIRS OF THE E NTERPRISE 15
WITHOUT THE REQUIREM ENT OR CONSENT OF AN Y OTHER PERSON . 16
(B) AN ADVERSARIAL FOREIG N GOVERNMENT MAY NOT PURCHASE, 17
ACQUIRE, LEASE, OR HOLD ANY PROPERTY INTEREST IN AGRICULT URAL LAND IN 18
THE STATE. 19
(C) (1) THE ATTORNEY GENERAL SHALL ENFORCE THIS SECTION. 20
(2) (I) IF THE ATTORNEY GENERAL HAS REASON TO BELIEVE THAT 21
A PERSON IS VIOLATING THIS SECTION, THE ATTORNEY GENERAL SHALL : 22
1. COMMENCE AN ACTION IN THE CIRCUIT COURT OF 23
THE COUNTY WHERE ANY PORTION OF THE AGRIC ULTURAL LAND IS LOCA TED; AND 24
2. FILE A NOTICE OF THE PENDENCY OF THE ACTI ON IN 25
ACCORDANCE WITH T HE MARYLAND RULES. 26
(II) IF THE COURT DETERMIN ES THAT A PERSON HOL DS A 27
PROPERTY INTEREST IN AGRICULTURAL LAND IN VIOLATION OF THIS SE CTION, THE 28
COURT SHALL ENTER AN ORDER: 29
HOUSE BILL 616 3
1. DECLARING THAT THE PE RSON IS AN ADVERSARI AL 1
FOREIGN GOVERNMENT T HAT HOLDS A PROPERTY INTERE ST IN AGRICULTURAL 2
LAND IN VIOLATION OF THIS SECTION; AND 3
2. REQUIRING THE PERSON TO DIVEST ITSELF OF THE 4
PROPERTY INTEREST WI THIN 1 YEAR AFTER THE DATE OF THE ORDER . 5
(III) THE ATTORNEY GENERAL SHALL CAUSE A NY COURT ORDER 6
ISSUED UNDER SUBPARAGRAP H (II) OF THIS PARAGRAPH TO BE FILED IN THE LAND 7
RECORDS IN EACH COUN TY WHERE THE AGRICUL TURAL LAND IS LOCATE D. 8
(IV) A 1–YEAR LIMITATION PERI OD ESTABLISHED BY CO URT 9
ORDER UNDER SUBPARAG RAPH (II) OF THIS PARAGRAPH SH ALL BE CONSIDERE D A 10
COVENANT RUNNING WIT H THE TITLE TO THE L AND AGAINST ANY GRAN TEE OR 11
ASSIGNEE. 12
(V) ANY LAND SUBJECT TO A COURT ORDER UNDER 13
SUBPARAGRAPH (II) OF THIS PARAGRAPH TH AT IS NOT DIVESTED W ITHIN THE TIME 14
PRESCRIBED SHALL BE SOLD AT PUBLIC SALE IN THE MANNER PRESCR IBED BY LAW 15
FOR THE FORECLOSURE OF A MORTGAGE OR DEE D OF TRUST. 16
(3) THE ATTORNEY GENERAL MAY BRING AN ACTION TO ENJOIN A 17
THREATENED OR PROSPE CTIVE VIOLATION OF T HIS SECTION IN ANY M ANNER 18
PROVIDED BY LAW . 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 20
October 1, 2024. 21