ONE HUNDRED NINTH LEGISLATURE - FIRST SESSION - 2025
COMMITTEE STATEMENT
LB7
Hearing Date: Tuesday January 28, 2025
Committee On: Agriculture
Introducer: DeKay
One Liner: Change provisions relating to real estate and the Foreign-owned Real Estate National Security Act
Roll Call Vote - Final Committee Action:
Advanced to General File with amendment(s)
Vote Results:
Aye: 8 Senators DeKay, Hansen, Holdcroft, Ibach, Kauth, McKeon,
Raybould, Storm
Nay:
Absent:
Present Not Voting:
Testimony:
Proponents: Representing:
Senator Barry DeKay Opening Presenter
Kent Rogert Ponca Tribe of Nebraska
Joey Adler Ruane Winnebago Tribe of Nebraska
Hannes Zetzsche Self
Brent Smoyer Blackshirt Feeders
John K. Hansen Nebraska Farmers Union
Opponents: Representing:
Neutral: Representing:
Nicholas Grandgenett Nebraska Appleseed
* ADA Accommodation Written Testimony
Summary of purpose and/or changes:
LB 7 is a clean-up bill to clarify provisions of the Foreign-owned Real Estate National Security Act and to correct a
reference in a separate but related provision regarding affidavits filed with certain transfers of real property.
Section-by-section:
Sec. 1: Amends sec. 76-2,141 which requires the filing of an affidavit upon the conveyance of real estate located
within military sensitive locations in the state as defined by reference to 31 CFR 802.211(b)(3). The affidavit attests
that the purchaser is not an agent for a foreign government or actor designated a foreign adversary pursuant to 15
CFR 7.4. LB 7 updates the federal reference to its current citation at 15 CFR 791.4.
Committee Statement: LB7
Agriculture Committee
Page 1 242f0585a35529aa54d43613a791b170 Sec. 2: Amends sec. 76-3702 which defines terms utilized in the Foreign-owned Real Estate National Security Act.
LB 7 inserts three new defined terms:
“Foreign government” defined to clarify that the term excludes tribal governments. The term is utilized throughout the
Act to avoid repetitious listing of domestic governments excluded from various provisions of the Act.
“Indian tribe” defined to include tribes located in Nebraska recognized by federal law or state acknowledgement.
“Person” defined to include individuals and enumerated legal entities. This term is utilized throughout the Act to avoid
repetition of phrasing that the Act’s provisions apply to individuals and other entities.
Sec. 3: Amends sec. 76-3703 which sets forth the general restriction against nonresident aliens, foreign
corporations or foreign governments from owning, leasing or acquiring other interests in real estate in Nebraska
except as provided elsewhere in the Act. LB 7 makes harmonizing changes for style and clarity.
Sec 4: Amends sec. 76-3704 which provides for an exemption to the Act's restrictions against foreign real estate
holdings if the real estate interest is used for gas or oil development except for interests acquired by restricted
entities. LB 7 revises this section for style and clarity.
Sec 5: Amends sec. 76-3708 which provides for an exemption to the Act's restrictions against foreign real estate
holdings if the real estate interest is used for or operations of railroad, public utilities or common carriers. This section
provides that this exemption does not apply to restricted entities. LB 7 revises this section for style and clarity.
Sec 6: Amends sec. 76-3709 which provides for a general exemption on restrictions against foreign real estate
holdings used for manufacturing, other industrial purpose, or gas and oil distribution and retailing unless the entity is a
restricted entity. This section currently provides for a safe harbor shield from the divestment remedies of the Act if the
acquisition and holding of property interests has been reviewed by the Committee on Foreign Investment in the U.S.
(CFIUS), the entity has entered and maintains compliance with a national security agreement with CFIUS, and
annually certifies its compliance. LB 7 would insert specific reference to the federal regulation which provide for
CFIUS review and determinations and would in effect clarify the safe harbor provision to include properties for which
CFIUS has determined the property holding does not present a national security concern.
Sec. 7: Amends 76-3710 to add inadvertently omitted text
Secs. 8 & 9: Amends sec. 76-3712 and 76-3715 with revisions for clarity. Section 8 also adds a duty of the Attorney
General or retained counsel to notify the Governor and the Legislature of court-ordered divestments pursuant to the
Act.
Sec. 10: Inserts the severability clause
Sec. 11: Repealer
Explanation of amendments:
The Committee amendment (AM77) inserts the following additional clarifications:
-- Amends Section 1 to provide that the citation to 31 CFR 802.211(b)(3) is to that regulation as it existed on January
1, 2025.
Committee Statement: LB7
Agriculture Committee
Page 2 242f0585a35529aa54d43613a791b170 -- Strikes original section 2 but reinserts a new section 2 revising Sec. 76-3702. AM 77 retains the addition of new
defined terms inserted by the original bill but with two revisions. First, AM 77 inserts a new defined term for “foreign
corporation”. The term is defined term to mean a business corporation formed under the laws of a jurisdiction outside
of the U.S. and to expressly provide that entities incorporated under the laws of any state, territory or Indian tribe are
not a foreign corporation. Secondly, the term “resident alien” is revised to clarify that it refers to individuals.
– Amends section 3 of the bill by inserting a new subsection (3) to sec. 76-3703 which provides that persons,
governments or business entities of countries designated by the Committee on Foreign Investment in the US as an
“excepted real estate foreign state” pursuant to 31 C.F.R. 802.1001(a) and 802.214 are exempt from the
Foreign-Owned Real Estate National Security Act unless a restricted entity.
– Specifies that notifications to the Legislature of court-ordered divestments of real estate inserted by Section 8 of
the bill be submitted to the Clerk of the Legislature.
Barry DeKay, Chairperson
Committee Statement: LB7
Agriculture Committee
Page 3 242f0585a35529aa54d43613a791b170