PRINTER'S NO. 331 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL No.386 Session of 2025 INTRODUCED BY KEEFER, ROTHMAN, PHILLIPS-HILL, LANGERHOLC, DUSH AND STEFANO, MARCH 6, 2025 REFERRED TO AGRICULTURE AND RURAL AFFAIRS, MARCH 6, 2025 AN ACT Amending the act of April 6, 1980 (P.L.102, No.39), entitled "An act restricting the acquisition by certain aliens of an interest in agricultural lands," further prohibiting certain entities from acquiring an interest in agricultural land; providing for investigation by Attorney General and for responsibilities of purchaser and Attorney General; further providing for forfeiture of lands; providing for real estate auction; and further providing for definitions. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Section 1 of the act of April 6, 1980 (P.L.102, No.39), referred to as the Agricultural Land Acquisition by Aliens Law, is amended to read: Section 1. (a) An alien, who is not a resident of a state or territory of the United States or of the District of Columbia; and a foreign government shall not acquire an interest in agricultural land, exceeding 100 acres, except such as may be acquired by devise or inheritance, and such as may be held as security for indebtedness. (b) An entity that is organized under the laws of a country of concern; a foreign principal; an entity with a controlling 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 interest owned by foreign principals; a foreign political party; a member of a foreign political party; and an individual domiciled in a country of concern and who is not a lawful citizen or permanent resident of the United States; shall not acquire an interest in agricultural land except such as may be acquired by devise or inheritance, and such as may be held as security for indebtedness. (c) The provisions of this section shall not apply to citizens, foreign governments , entities or subjects of a foreign country whose rights to hold land are secured by treaty. Section 2. The act is amended by adding sections to read: Section 5.1. The Attorney General, upon request of or receipt of any information that leads the Attorney General to believe that a violation of section 1 or 4 may exist, shall investigate the possible violation, including the issuance of subpoenas requiring the appearance of witnesses, the production of relevant records and the provision of relevant testimony. Section 5.2. (a) A title company involved in a real estate transaction involving agricultural land that willfully fails to determine whether a purchaser is in violation of section 1 or 4 shall be subject to a civil penalty of $1,000. The Attorney General shall enforce the provisions of this subsection. (b) Except as provided under section 5.1 and subsection (a), an individual or entity that is not prohibited from purchasing agricultural land under section 1 or 4 shall not be required to determine or inquire whether another person or entity is subject to this act and shall bear no civil or criminal liability under this act. Section 3. Section 6 of the act is amended to read: Section 6. Agricultural lands acquired or held in violation 20250SB0386PN0331 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 of sections 1 and 4 shall be forfeited to the Commonwealth. The Attorney General shall enforce such forfeiture. However, no such forfeiture may be adjudged unless the action to enforce is brought within five years after such property has been acquired or held by such alien. No title to land is invalid or liable to forfeiture by reason of the alienage of any former owner or person interested therein. Upon commencement of an action under this section, the Attorney General shall promptly record a notice of the pendency of the action in the county's land records. Upon the completion of the action to enforce a forfeiture under this section, the Attorney General shall promptly record a notice of the action in the county's land records. Section 4. The act is amended by adding a section to read: Section 6.1. Upon forfeiture of agricultural lands under section 6, the Commonwealth, through the Department of General Services, shall sell the agricultural land through a real estate auction. Proceeds of the sale shall be disbursed according to the following order: (1) Payment of authorized costs of the sale, including all approved fees, expenses and any taxes and assessments due. (2) Payment, in an amount approved by a court, to the Attorney General for reimbursement of the investigation and litigation costs and expenses. (3) To bona fide lienholders, in their order of priority, except for liens that under the terms of the sale are to remain on the property. (4) To the General Fund. Section 5. Section 7 of the act is amended to read: Section 7. [For purposes of this act, the term "agricultural 20250SB0386PN0331 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 land" means land] The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Agricultural land." Land capable of use in the production of agricultural crops, timber, livestock or livestock products, poultry or poultry products, milk or dairy products, or fruit and other horticultural products but does not include any royalty interest, any oil, gas or other mineral interest, or any lease, right-of-way, option or easement relating thereto, or any land zoned by a local governmental unit for a use other than and nonconforming with agricultural use. "Country of concern." China, Russia, Belarus, Iran, North Korea, Venezuela, Syria and any other country which does not permit Americans to purchase farmland in their country. "Foreign political party." A political party of a country of concern. "Foreign principal." A government official of a country of concern. "Title company." A person that is contracted with a party involved in a real estate transaction that provides verification of clean title of the land or title insurance for the purchaser. Section 6. This act shall take effect in 60 days. 20250SB0386PN0331 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22