25.0062.02000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives S. Olson, Fisher, D. Johnston, Nehring, J. Olson
Senators Castaneda, Paulson
A BILL for an Act to create and enact a new section to chapter 47-02 of the North Dakota
Century Code, relating to foreign ownership of real property near military installations; to amend
and reenact sections 11-11-70, 40-05-26, and 47-01-09 of the North Dakota Century Code,
relating to the powers of a board of county commissioners, a board of city commissioners, and
a city council regarding development by a foreign country of concern or foreign organization of
concern, prohibiting ownership of real property by a foreign country of concern or a foreign
organization of concern; and to provide a penalty.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 11-11-70 of the North Dakota Century Code is
amended and reenacted as follows:
11-11-70. Development by a foreign adversarycountry of concern or foreign
organization of concern - Prohibition. (Expired effective July 31, 2025)
1.A board of county commissioners, including a board in a home rule county, may not
procure, authorize, or approve a development agreement, building plan, or proposal
relating to county development with an individual or government identified as a foreign
adversarycountry of concern or a foreign organization of concern under 15 CFR 7.4(a)
or a person identified on the office of foreign assets control sanctions listsection
47 - 01 - 09 .
2.This section does not apply to a foreign adversary defined under subsection
1organization of concern possessing an interest in real property if the foreign
adversaryorganization of concern:
a.Is a duly registered business and has maintained a status of good standing with
the secretary of state for seven years or longer before August 1, 2023;
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HOUSE BILL NO. 1208
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b.Has been approved by the committee on foreign investment in the United States;
and
c.Maintains an active national security agreement with the federal government.
SECTION 2. AMENDMENT. Section 40-05-26 of the North Dakota Century Code is
amended and reenacted as follows:
40-05-26. Development by a foreign adversarycountry of concern or foreign
organization of concern - Prohibition. (Expired effective July 31, 2025)
1.A board of city commissioners or city council, including a board or council in a home
rule city, may not procure, authorize, or approve a development agreement, building
plan, or proposal relating to city development with an individual or government
identified as a foreign adversarycountry of concern or foreign organization of concern
under 15 CFR 7.4(a) or a person identified on the office of foreign assets control
sanctions listsection 47 - 01 - 09 .
2.This section does not apply to a foreign adversary as defined in subsection
1organization of concern possessing an interest in real property if the foreign
adversaryorganization of concern:
a.Is a duly registered business and has maintained a status of good standing with
the secretary of state for seven years or longer before August 1, 2023;
b.Has been approved by the committee on foreign investment in the United States;
and
c.Maintains an active national security agreement with the federal government.
SECTION 3. AMENDMENT. Section 47-01-09 of the North Dakota Century Code is
amended and reenacted as follows:
47-01-09. Public or private ownership - All property subject to - Foreign ownership
prohibited. (Effective through July 31, 2025)
1.All property in this state has an owner, whether that owner is the United States or the
state, and the property public, or the owner an individual, and the property private. The
state also may hold property as a private proprietor.
2.Notwithstanding any other provision of law, the following governments or entities may
not purchase or otherwise acquire title to real property in this state after July 31,
20232025:
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a.A foreign adversarycountry of concern.
b.A foreign business entityorganization of concern with a principal executive office
located in a foreign country that is identified as a foreign adversaryof concern.
c.A foreign business entityorganization of concern in which a foreign adversary
owns:
(1)More than fifty percent of the total controlling interests or total ownership
interests, as defined under section 10-19.1-01, in the foreign business
entity, unless the foreign business entity was operating lawfully in the United
States on August 1, 2023; or
(2)Fifty percent or less of the total controlling interests or total ownership
interests, as defined under section 10-19.1-01, in the foreign business
entity, if the foreign adversarycountry of concern owns any ownership
interest in the foreign organization of concern or the foreign country of
concern controls or directs the business operations and affairs of the foreign
business entityorganization of concern without the requirement of consent of
any nonforeign adversaryfrom the committee on foreign investment in the
United States, unless the foreign business entityorganization of concern
was operating lawfully in the United States on or before August 1, 2023.
3.When requested by a city council or commission, county commission, or title agent or
company, the attorney general shall complete a civil review, to the extent allowable by
law, relating to. Under the review, the qualifications of anyattorney general shall
determine whether a foreign adversary business entity acquiringorganization of
concern is qualified and eligible to acquire real property under subdivision c of
subsection 2.
4.This section does not apply to an entitya foreign organization of concern possessing
an interest in real property under subsection 2 if the entityforeign organization of
concern:
a.Is a duly registered business and has maintained a status of good standing with
the secretary of state for seven years or longer before August 1, 2023;
b.Has been approved by the committee on foreign investment in the United States;
and
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c.Maintains an active national security agreement with the federal government.
5.A foreign government of a foreign country of concern or foreign business
entityorganization of concern subject to and in violation of this section shall divest itself
of all real property in this state within thirty-six months after August 1, 2023.
6.If a foreign government of a foreign country of concern or foreign business
entityorganization of concern subject to this section fails to divest itself of all real
property in this state within the period specified under subsection 4, the state's
attorney of the county in which the majority of the real property is situated may issue
subpoenas to compel witnesses to appear to provide testimony or produce records.
7.Upon receiving testimony and records, if the state's attorney concludes a foreign
government of a foreign country of concern or foreign business entityorganization of
concern, in violation of this section, has failed to divest ownership of real property as
required under this section, the state's attorney shall commence an action in the
district court of the county in which the majority of the real property is situated. Once
the action is commenced, the state's attorney shall file a notice pursuant to section
28-05-07 with the recorder of each county where the real property subject to the action
is situated. If the court finds divestment of real property under this section is proper,
the district court shall enter an order consistent with its findings. As part of the order,
the court shall cancel the notice pursuant to section 28-05-08.
8.Pursuant to an order for divestment, a foreign government of a foreign country of
concern or foreign business entityorganization of concern subject to an order shall
divest all real property within six months from the date of the final entry of judgment. A
foreign government of a foreign country of concern or foreign business
entityorganization of concern that fails to comply with the court's order is subject to a
civil penalty not to exceed twenty-five thousand dollars.
9.Any real property not divested within the period prescribed by law may be sold at a
public sale in the manner provided under chapter 32-19 through an action brought by
the state's attorney. A title to real property or encumbrance on the real property may
not be deemed invalid by an order of divestiture under this section.
10.A person that is not subject to this section may not be required to:
a.Determine whether another person is subject to this section; or
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b.Inquire if another person is subject to this section.
11.For purposes ofAs used in this section, "foreign adversary":
a."Foreign country of concern" means an individual or a government identified as a
foreign adversary in 15 CFR 7.4(a)under title 15, Code of Federal Regulations,
part 791.4(a) or a person identified on the office of foreign assets control
sanctions list.
b."Foreign organization of concern" means an organization domiciled or formed
within a foreign country of concern.
c."Owns" means the act of holding or possessing an ownership interest in an
organization.
Public or private ownership - All property subject to. (Effective after July 31, 2025)
All property in this state has an owner, whether that owner is the United States or the state,
and the property public, or the owner an individual, and the property private. The state also may
hold property as a private proprietor.
SECTION 4. A new section to chapter 47-02 of the North Dakota Century Code is created
and enacted as follows:
Prohibited ownership near military installations - Penalty.
1.For purposes of this section:
a."Critical infrastructure" has the meaning provided in section 44 - 04 - 24.
b."Foreign country of concern" has the meaning provided in section 47 - 01 - 09.
c."Foreign organization of concern" has the meaning provided in section 47 - 01 - 09.
d."Military installation" has the meaning provided in section 15.1 - 04.1 - 01.
2.Notwithstanding section 47 - 01 - 09 or chapter 47 - 10.1, a foreign country of concern or
foreign organization of concern may not:
a.Lease, purchase, or otherwise acquire title to critical infrastructure or real
property within ten miles [16.09 kilometers] of a military installation located within
this state; or
b.Enter a contract with a person under which a foreign country of concern or
foreign organization of concern has direct or indirect control of critical
infrastructure located within this state.
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3.A foreign country of concern or foreign organization of concern in violation of this
section shall divest itself of its interest in all critical infrastructure or real property within
one year after acquisition. If the foreign country of concern or foreign organization of
concern fails to divest its interest in the critical infrastructure or real property within one
year, the state's attorney of the county in which the majority of the real property is
located may issue a subpoena to compel a witness to appear to provide testimony or
produce records.
4.The state's attorney shall commence an action in the district court of the county in
which the majority of the critical infrastructure or real property is located if, upon
receiving testimony and records, the state's attorney concludes a foreign country of
concern or foreign organization of concern has failed to divest ownership of critical
infrastructure or real property as required under this section. When the action is
commenced, the state's attorney shall file a notice pursuant to section 28 - 05 - 07 with
the recorder of each county in which the critical infrastructure or real property subject
to the action is located. If the court finds divestment of critical infrastructure or real
property is proper under this section, the district court shall enter an order consistent
with its findings. As part of the order, the court shall cancel the notice pursuant to
section 28 - 05 - 08.
5.Pursuant to an order for divestment, a foreign country of concern or foreign
organization of concern shall divest all critical infrastructure or real property within
six months from the date of the final entry of judgment. A foreign country of concern or
foreign organization of concern that fails to comply with the court's order is subject to a
civil penalty not to exceed twenty - five thousand dollars.
6.Any critical infrastructure or real property not divested within the period prescribed by
law may be sold at a public sale in the manner provided under chapter 32 - 19 through
an action brought by the state's attorney. A title to real property or encumbrance on the
real property may not be deemed invalid by an order of divestiture under this section.
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