H.F. 2311 Section 1. Section 9I.2, Code 2022, is amended to read as 1 follows: 2 9I.2 Alien rights Real property —— nonresident aliens and 3 foreign governments . 4 1. A nonresident alien, foreign business or foreign 5 government may acquire , by grant, purchase, devise , or descent , 6 real property, except agricultural land or any interest in 7 agricultural land in this state, and may own, hold, devise , or 8 alienate the real property, and shall incur the same duties and 9 liabilities in relation thereto as a citizen and resident of 10 the United States. 11 2. Notwithstanding subsection 1, the government of the 12 People’s Republic of China, or the government of a province, 13 region, municipality, or autonomous region of the People’s 14 Republic of China, shall not acquire by grant, purchase, 15 devise, or descent any real property located in this state. 16 3. Notwithstanding subsection 1, a corporation incorporated 17 under the laws of the government of the People’s Republic of 18 China, or a business entity whether or not incorporated, in 19 which a majority interest is owned directly or indirectly by 20 nonresident aliens from the People’s Republic of China, or 21 from a province, region, municipality, or autonomous region of 22 the People’s Republic of China, shall not acquire by grant, 23 purchase, devise, or descent any real property located in this 24 state. Legal entities, including but not limited to trusts, 25 holding companies, multiple corporations, and other business 26 arrangements, shall not affect the determination of ownership 27 or control of the foreign business. 28 Sec. 2. Section 9I.5, Code 2022, is amended to read as 29 follows: 30 9I.5 Land acquired by devise or descent. 31 1. A nonresident alien, foreign business or foreign 32 government, or an agent, trustee or fiduciary thereof, which 33 acquires agricultural land or an interest in agricultural 34 land, by devise or descent after January 1, 1980, shall divest 35 -1- LSB 5825YH (5) 89 ko/jh 1/ 5

H.F. 2311 itself of all right, title and interest in the land within two 1 years from the date of acquiring the land or interest. This 2 section shall not require divestment of agricultural land or an 3 interest in agricultural land, acquired by devise or descent 4 from a nonresident alien, if such land or an interest in such 5 land was acquired by any nonresident alien prior to July 1, 6 1979. 7 2. The government of the People’s Republic of China, or the 8 government of a province, region, municipality, or autonomous 9 region of the People’s Republic of China, which acquires real 10 property or an interest in real property, by devise or descent 11 on or after July 1, 2022, shall divest itself of all right, 12 title, and interest in the land within two years from the date 13 of acquiring the land or interest. 14 3. A corporation incorporated under the laws of the 15 government of the People’s Republic of China, or a business 16 entity whether or not incorporated, in which a majority 17 interest is owned directly or indirectly by nonresident aliens 18 from the People’s Republic of China, or from a province, 19 region, municipality, or autonomous region of the People’s 20 Republic of China, which acquires real property or an interest 21 in real property, by devise or descent on or after July 1, 22 2022, shall divest itself of all right, title, and interest in 23 the land within two years from the date of acquiring the land 24 or interest. 25 Sec. 3. Section 9I.6, Code 2022, is amended to read as 26 follows: 27 9I.6 Change of status —— divestment. 28 1. A person or business which purchases or otherwise 29 acquires agricultural land in this state except by devise or 30 descent, after January 1, 1980, and whose status changes so 31 that it becomes a foreign business or nonresident alien subject 32 to this chapter , shall divest itself of all right, title and 33 interest in the land within two years from the date that its 34 status changed. 35 -2- LSB 5825YH (5) 89 ko/jh 2/ 5

H.F. 2311 2. A person or business which purchases or otherwise 1 acquires real property in this state except by devise or 2 descent, on or after July 1, 2022, and whose status changes so 3 that the person or business is affiliated in any way with the 4 government of the People’s Republic of China, or the government 5 of a province, region, municipality, or autonomous region of 6 the People’s Republic of China, shall divest itself of all 7 right, title, and interest in the land within two years from 8 the date that the status of the person or the business changed. 9 3. A person or business which purchases or otherwise 10 acquires real property in this state except by devise or 11 descent, on or after July 1, 2022, and whose status changes so 12 that the person or business is affiliated in any way with a 13 corporation incorporated under the laws of the government of 14 the People’s Republic of China, or a business entity whether 15 or not incorporated, in which a majority interest is owned 16 directly or indirectly by nonresident aliens from the People’s 17 Republic of China, or from a province, region, municipality, 18 or autonomous region of the People’s Republic of China shall 19 divest itself of all right, title, and interest in the land 20 within two years from the date that the status of the person or 21 the business changed. 22 Sec. 4. Section 9I.10, Code 2022, is amended to read as 23 follows: 24 9I.10 Enforcement. 25 1. a. If the secretary of state finds that a nonresident 26 alien, foreign business, foreign government, or an agent, 27 trustee, or other fiduciary thereof, has acquired or holds 28 title to or interest in agricultural land in this state in 29 violation of this chapter or has failed to timely register as 30 required under section 9I.7 or has failed to timely report as 31 required under section 9I.8 , the secretary shall report the 32 violation to the attorney general. 33 b. If a county recorder finds that the government of the 34 People’s Republic of China, or the government of a province, 35 -3- LSB 5825YH (5) 89 ko/jh 3/ 5

H.F. 2311 region, municipality, or autonomous region of the People’s 1 Republic of China, has acquired or holds title to or interest 2 in real property located in this state in violation of this 3 chapter, the county recorder shall report the violation to the 4 attorney general. 5 c. If a county recorder finds that a corporation 6 incorporated under the laws of the government of the People’s 7 Republic of China, or a business entity whether or not 8 incorporated, in which a majority interest is owned directly or 9 indirectly by nonresident aliens from the People’s Republic of 10 China or a province, region, municipality, or autonomous region 11 of the People’s Republic of China, has acquired or holds title 12 to or interest in real property in this state in violation of 13 this chapter, the county recorder shall report the violation 14 to the attorney general. 15 2. a. Upon receipt of the a report from the secretary of 16 state or a county recorder under subsection 1 , the attorney 17 general shall initiate an action in the district court of any 18 county in which the land is located. 19 3. b. The attorney general shall file a notice of the 20 pendency of the action with the recorder of deeds of each 21 county in which any of the land is located. If the court 22 finds that the land in question has been acquired or held in 23 violation of this chapter or the required registration has not 24 been timely filed, it shall enter an order so declaring and 25 shall file a copy of the order with the recorder of deeds of 26 each county in which any portion of the land is located. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill prohibits the government of the People’s Republic 31 of China (China), or the government of a province, region, 32 municipality, or autonomous region of China (related regions) 33 from acquiring real property located in this state by grant, 34 purchase, devise, or descent. 35 -4- LSB 5825YH (5) 89 ko/jh 4/ 5

H.F. 2311 The bill also prohibits a corporation incorporated under 1 the laws of the government of China, or a business entity 2 whether or not incorporated, in which a majority interest is 3 owned directly or indirectly by nonresident aliens from China 4 or related regions, from acquiring real property in this state 5 by grant, purchase, devise, or descent. The bill provides 6 that legal entities, including but not limited to trusts, 7 holding companies, multiple corporations, and other business 8 arrangements, do not affect the determination of ownership or 9 control of the foreign business. 10 The bill requires a county recorder to report a violation 11 of the bill to the attorney general. Upon receipt of a report 12 from a county recorder, the attorney general shall initiate an 13 action in the district court of any county in which the land is 14 located. If the court finds that the land in question has been 15 acquired in violation of the bill, the court shall declare the 16 land escheated to the state pursuant to Code section 9I.11. 17 The bill makes conforming changes to Code section 9I.5 (land 18 acquired by devise or descent) and Code section 9I.6 (change of 19 status —— divestment). 20 -5- LSB 5825YH (5) 89 ko/jh 5/ 5