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North Dakota House Bill HB1208

North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1208 Compare Versions

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11 25.0062.02000
22 Sixty-ninth
33 Legislative Assembly
44 of North Dakota
55 Introduced by
66 Representatives S. Olson, Fisher, D. Johnston, Nehring, J. Olson
77 Senators Castaneda, Paulson
88 A BILL for an Act to create and enact a new section to chapter 47-02 of the North Dakota
99 Century Code, relating to foreign ownership of real property near military installations; to amend
1010 and reenact sections 11-11-70, 40-05-26, and 47-01-09 of the North Dakota Century Code,
1111 relating to the powers of a board of county commissioners, a board of city commissioners, and
1212 a city council regarding development by a foreign country of concern or foreign organization of
1313 concern, prohibiting ownership of real property by a foreign country of concern or a foreign
1414 organization of concern; and to provide a penalty.
1515 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
1616 SECTION 1. AMENDMENT. Section 11-11-70 of the North Dakota Century Code is
1717 amended and reenacted as follows:
1818 11-11-70. Development by a foreign adversarycountry of concern or foreign
1919 organization of concern - Prohibition. (Expired effective July 31, 2025)
2020 1.A board of county commissioners, including a board in a home rule county, may not
2121 procure, authorize, or approve a development agreement, building plan, or proposal
2222 relating to county development with an individual or government identified as a foreign
2323 adversarycountry of concern or a foreign organization of concern under 15 CFR 7.4(a)
2424 or a person identified on the office of foreign assets control sanctions listsection
2525 47 - 01 - 09 .
2626 2.This section does not apply to a foreign adversary defined under subsection
2727 1organization of concern possessing an interest in real property if the foreign
2828 adversaryorganization of concern:
2929 a.Is a duly registered business and has maintained a status of good standing with
3030 the secretary of state for seven years or longer before August 1, 2023;
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5858 b.Has been approved by the committee on foreign investment in the United States;
5959 and
6060 c.Maintains an active national security agreement with the federal government.
6161 SECTION 2. AMENDMENT. Section 40-05-26 of the North Dakota Century Code is
6262 amended and reenacted as follows:
6363 40-05-26. Development by a foreign adversarycountry of concern or foreign
6464 organization of concern - Prohibition. (Expired effective July 31, 2025)
6565 1.A board of city commissioners or city council, including a board or council in a home
6666 rule city, may not procure, authorize, or approve a development agreement, building
6767 plan, or proposal relating to city development with an individual or government
6868 identified as a foreign adversarycountry of concern or foreign organization of concern
6969 under 15 CFR 7.4(a) or a person identified on the office of foreign assets control
7070 sanctions listsection 47 - 01 - 09 .
7171 2.This section does not apply to a foreign adversary as defined in subsection
7272 1organization of concern possessing an interest in real property if the foreign
7373 adversaryorganization of concern:
7474 a.Is a duly registered business and has maintained a status of good standing with
7575 the secretary of state for seven years or longer before August 1, 2023;
7676 b.Has been approved by the committee on foreign investment in the United States;
7777 and
7878 c.Maintains an active national security agreement with the federal government.
7979 SECTION 3. AMENDMENT. Section 47-01-09 of the North Dakota Century Code is
8080 amended and reenacted as follows:
8181 47-01-09. Public or private ownership - All property subject to - Foreign ownership
8282 prohibited. (Effective through July 31, 2025)
8383 1.All property in this state has an owner, whether that owner is the United States or the
8484 state, and the property public, or the owner an individual, and the property private. The
8585 state also may hold property as a private proprietor.
8686 2.Notwithstanding any other provision of law, the following governments or entities may
8787 not purchase or otherwise acquire title to real property in this state after July 31,
8888 20232025:
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122122 a.A foreign adversarycountry of concern.
123123 b.A foreign business entityorganization of concern with a principal executive office
124124 located in a foreign country that is identified as a foreign adversaryof concern.
125125 c.A foreign business entityorganization of concern in which a foreign adversary
126126 owns:
127127 (1)More than fifty percent of the total controlling interests or total ownership
128128 interests, as defined under section 10-19.1-01, in the foreign business
129129 entity, unless the foreign business entity was operating lawfully in the United
130130 States on August 1, 2023; or
131131 (2)Fifty percent or less of the total controlling interests or total ownership
132132 interests, as defined under section 10-19.1-01, in the foreign business
133133 entity, if the foreign adversarycountry of concern owns any ownership
134134 interest in the foreign organization of concern or the foreign country of
135135 concern controls or directs the business operations and affairs of the foreign
136136 business entityorganization of concern without the requirement of consent of
137137 any nonforeign adversaryfrom the committee on foreign investment in the
138138 United States, unless the foreign business entityorganization of concern
139139 was operating lawfully in the United States on or before August 1, 2023.
140140 3.When requested by a city council or commission, county commission, or title agent or
141141 company, the attorney general shall complete a civil review, to the extent allowable by
142142 law, relating to. Under the review, the qualifications of anyattorney general shall
143143 determine whether a foreign adversary business entity acquiringorganization of
144144 concern is qualified and eligible to acquire real property under subdivision c of
145145 subsection 2.
146146 4.This section does not apply to an entitya foreign organization of concern possessing
147147 an interest in real property under subsection 2 if the entityforeign organization of
148148 concern:
149149 a.Is a duly registered business and has maintained a status of good standing with
150150 the secretary of state for seven years or longer before August 1, 2023;
151151 b.Has been approved by the committee on foreign investment in the United States;
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186186 c.Maintains an active national security agreement with the federal government.
187187 5.A foreign government of a foreign country of concern or foreign business
188188 entityorganization of concern subject to and in violation of this section shall divest itself
189189 of all real property in this state within thirty-six months after August 1, 2023.
190190 6.If a foreign government of a foreign country of concern or foreign business
191191 entityorganization of concern subject to this section fails to divest itself of all real
192192 property in this state within the period specified under subsection 4, the state's
193193 attorney of the county in which the majority of the real property is situated may issue
194194 subpoenas to compel witnesses to appear to provide testimony or produce records.
195195 7.Upon receiving testimony and records, if the state's attorney concludes a foreign
196196 government of a foreign country of concern or foreign business entityorganization of
197197 concern, in violation of this section, has failed to divest ownership of real property as
198198 required under this section, the state's attorney shall commence an action in the
199199 district court of the county in which the majority of the real property is situated. Once
200200 the action is commenced, the state's attorney shall file a notice pursuant to section
201201 28-05-07 with the recorder of each county where the real property subject to the action
202202 is situated. If the court finds divestment of real property under this section is proper,
203203 the district court shall enter an order consistent with its findings. As part of the order,
204204 the court shall cancel the notice pursuant to section 28-05-08.
205205 8.Pursuant to an order for divestment, a foreign government of a foreign country of
206206 concern or foreign business entityorganization of concern subject to an order shall
207207 divest all real property within six months from the date of the final entry of judgment. A
208208 foreign government of a foreign country of concern or foreign business
209209 entityorganization of concern that fails to comply with the court's order is subject to a
210210 civil penalty not to exceed twenty-five thousand dollars.
211211 9.Any real property not divested within the period prescribed by law may be sold at a
212212 public sale in the manner provided under chapter 32-19 through an action brought by
213213 the state's attorney. A title to real property or encumbrance on the real property may
214214 not be deemed invalid by an order of divestiture under this section.
215215 10.A person that is not subject to this section may not be required to:
216216 a.Determine whether another person is subject to this section; or
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250250 b.Inquire if another person is subject to this section.
251251 11.For purposes ofAs used in this section, "foreign adversary":
252252 a."Foreign country of concern" means an individual or a government identified as a
253253 foreign adversary in 15 CFR 7.4(a)under title 15, Code of Federal Regulations,
254254 part 791.4(a) or a person identified on the office of foreign assets control
255255 sanctions list.
256256 b."Foreign organization of concern" means an organization domiciled or formed
257257 within a foreign country of concern.
258258 c."Owns" means the act of holding or possessing an ownership interest in an
259259 organization.
260260 Public or private ownership - All property subject to. (Effective after July 31, 2025)
261261 All property in this state has an owner, whether that owner is the United States or the state,
262262 and the property public, or the owner an individual, and the property private. The state also may
263263 hold property as a private proprietor.
264264 SECTION 4. A new section to chapter 47-02 of the North Dakota Century Code is created
265265 and enacted as follows:
266266 Prohibited ownership near military installations - Penalty.
267267 1.For purposes of this section:
268268 a."Critical infrastructure" has the meaning provided in section 44 - 04 - 24.
269269 b."Foreign country of concern" has the meaning provided in section 47 - 01 - 09.
270270 c."Foreign organization of concern" has the meaning provided in section 47 - 01 - 09.
271271 d."Military installation" has the meaning provided in section 15.1 - 04.1 - 01.
272272 2.Notwithstanding section 47 - 01 - 09 or chapter 47 - 10.1, a foreign country of concern or
273273 foreign organization of concern may not:
274274 a.Lease, purchase, or otherwise acquire title to critical infrastructure or real
275275 property within ten miles [16.09 kilometers] of a military installation located within
276276 this state; or
277277 b.Enter a contract with a person under which a foreign country of concern or
278278 foreign organization of concern has direct or indirect control of critical
279279 infrastructure located within this state.
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312312 3.A foreign country of concern or foreign organization of concern in violation of this
313313 section shall divest itself of its interest in all critical infrastructure or real property within
314314 one year after acquisition. If the foreign country of concern or foreign organization of
315315 concern fails to divest its interest in the critical infrastructure or real property within one
316316 year, the state's attorney of the county in which the majority of the real property is
317317 located may issue a subpoena to compel a witness to appear to provide testimony or
318318 produce records.
319319 4.The state's attorney shall commence an action in the district court of the county in
320320 which the majority of the critical infrastructure or real property is located if, upon
321321 receiving testimony and records, the state's attorney concludes a foreign country of
322322 concern or foreign organization of concern has failed to divest ownership of critical
323323 infrastructure or real property as required under this section. When the action is
324324 commenced, the state's attorney shall file a notice pursuant to section 28 - 05 - 07 with
325325 the recorder of each county in which the critical infrastructure or real property subject
326326 to the action is located. If the court finds divestment of critical infrastructure or real
327327 property is proper under this section, the district court shall enter an order consistent
328328 with its findings. As part of the order, the court shall cancel the notice pursuant to
329329 section 28 - 05 - 08.
330330 5.Pursuant to an order for divestment, a foreign country of concern or foreign
331331 organization of concern shall divest all critical infrastructure or real property within
332332 six months from the date of the final entry of judgment. A foreign country of concern or
333333 foreign organization of concern that fails to comply with the court's order is subject to a
334334 civil penalty not to exceed twenty - five thousand dollars.
335335 6.Any critical infrastructure or real property not divested within the period prescribed by
336336 law may be sold at a public sale in the manner provided under chapter 32 - 19 through
337337 an action brought by the state's attorney. A title to real property or encumbrance on the
338338 real property may not be deemed invalid by an order of divestiture under this section.
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