House
File
542
-
Introduced
HOUSE
FILE
542
BY
THOMSON
and
ANDREWS
A
BILL
FOR
An
Act
prohibiting
the
government
of,
and
persons
and
entities
1
from,
the
People’s
Republic
of
China,
and
companies
or
2
persons
under
control
of
the
communist
party
of
China,
from
3
acquiring
or
owning
real
property
located
in
the
state.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
2469YH
(4)
90
ko/ns
H.F.
542
Section
1.
Section
9I.1,
Code
2023,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
6.
“Ultimate
beneficial
owner”
shall
mean
3
the
natural
person
who
ultimately
controls
or
owns
specific
4
real
property,
or
on
whose
behalf
a
real
property
transaction
5
is
conducted.
6
Sec.
2.
Section
9I.2,
Code
2023,
is
amended
to
read
as
7
follows:
8
9I.2
Alien
rights
Real
property
——
nonresident
aliens
and
9
foreign
governments
.
10
1.
A
nonresident
alien,
foreign
business
or
foreign
11
government
may
acquire
,
by
grant,
purchase,
devise
,
or
descent
,
12
real
property,
except
agricultural
land
or
any
interest
in
13
agricultural
land
in
this
state,
and
may
own,
hold,
devise
,
or
14
alienate
the
real
property,
and
shall
incur
the
same
duties
and
15
liabilities
in
relation
thereto
as
a
citizen
and
resident
of
16
the
United
States.
17
2.
Notwithstanding
subsection
1,
effective
July
1,
2023,
18
the
government
of
the
People’s
Republic
of
China
shall
not
19
acquire
by
grant,
purchase,
devise,
or
descent
any
real
20
property
located
in
this
state.
21
3.
Notwithstanding
subsection
1,
effective
July
1,
2023,
22
a
corporation
incorporated
under
the
laws
of
the
government
23
of
the
People’s
Republic
of
China,
or
a
business
entity
24
whether
or
not
incorporated,
in
which
a
majority
interest
25
is
owned
directly
or
indirectly
by
nonresident
aliens
from
26
the
People’s
Republic
of
China
shall
not
acquire
by
grant,
27
purchase,
devise,
or
descent
any
real
property
located
in
28
this
state.
Legal
entities,
including
but
not
limited
to
29
trusts,
holding
companies,
multiple
corporations,
and
other
30
business
arrangements,
shall
not
affect
the
determination
of
31
ownership
or
control
of
the
foreign
business.
If
a
corporation
32
incorporated
under
the
laws
of
the
government
of
the
People’s
33
Republic
of
China,
or
a
business
entity
whether
or
not
34
incorporated,
in
which
a
majority
interest
is
owned
directly
35
-1-
LSB
2469YH
(4)
90
ko/ns
1/
9
H.F.
542
or
indirectly
by
nonresident
aliens
from
the
People’s
Republic
1
of
China
owns
or
holds
real
property
in
this
state
on
July
1,
2
2023,
the
corporation
or
business
entity
shall
divest
itself
3
of
all
right,
title,
and
interest
in
the
real
property
before
4
December
31,
2023.
5
4.
Notwithstanding
subsection
1,
effective
July
1,
2023,
a
6
company
or
a
person
under
the
control
of
the
communist
party
7
of
China
shall
not
acquire
by
grant,
purchase,
devise,
or
8
descent
any
real
property
located
in
this
state.
If
a
company
9
or
a
person
under
the
control
of
the
communist
party
of
China
10
owns
or
holds
real
property
in
this
state
on
July
1,
2023,
the
11
company
or
person
shall
divest
itself
of
all
right,
title,
and
12
interest
in
the
real
property
before
December
31,
2023.
13
Sec.
3.
Section
9I.3,
Code
2023,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
5.
a.
Notwithstanding
subsections
1,
2,
3,
16
and
4,
the
government
of
the
People’s
Republic
of
China
shall
17
not
purchase
or
otherwise
acquire
agricultural
land
in
this
18
state.
If
the
government
of
the
People’s
Republic
of
China
19
owns
or
holds
agricultural
land
in
this
state
on
July
1,
2023,
20
the
government
of
the
People’s
Republic
of
China
shall
divest
21
itself
of
all
right,
title,
and
interest
in
the
agricultural
22
land
before
December
31,
2023.
23
b.
Notwithstanding
subsections
1,
2,
3,
and
4,
a
corporation
24
incorporated
under
the
laws
of
the
government
of
the
People’s
25
Republic
of
China,
or
a
business
entity
whether
or
not
26
incorporated,
in
which
a
majority
interest
is
owned
directly
or
27
indirectly
by
nonresident
aliens
from
the
People’s
Republic
of
28
China
shall
not
purchase
or
otherwise
acquire
agricultural
land
29
in
this
state.
If
a
corporation
incorporated
under
the
laws
of
30
the
government
of
the
People’s
Republic
of
China,
or
a
business
31
entity
whether
or
not
incorporated,
in
which
a
majority
32
interest
is
owned
directly
or
indirectly
by
nonresident
aliens
33
from
the
People’s
Republic
of
China
owns
or
holds
agricultural
34
land
in
this
state
on
July
1,
2023,
the
corporation
or
business
35
-2-
LSB
2469YH
(4)
90
ko/ns
2/
9
H.F.
542
entity
shall
divest
itself
of
all
right,
title,
and
interest
in
1
the
agricultural
land
before
December
31,
2023.
2
c.
Notwithstanding
subsections
1,
2,
3,
and
4,
a
company
3
or
a
person
under
the
control
of
the
communist
party
of
China
4
shall
not
purchase
or
otherwise
acquire
agricultural
land
in
5
this
state.
If
a
company
or
a
person
under
the
control
of
the
6
communist
party
of
China
owns
or
holds
agricultural
land
in
7
this
state
on
July
1,
2023,
the
company
or
person
shall
divest
8
itself
of
all
right,
title,
and
interest
in
the
agricultural
9
land
before
December
31,
2023.
10
Sec.
4.
Section
9I.5,
Code
2023,
is
amended
to
read
as
11
follows:
12
9I.5
Land
acquired
by
devise
or
descent.
13
1.
A
nonresident
alien,
foreign
business
or
foreign
14
government,
or
an
agent,
trustee
or
fiduciary
thereof,
which
15
acquires
agricultural
land
or
an
interest
in
agricultural
16
land,
by
devise
or
descent
after
January
1,
1980,
shall
divest
17
itself
of
all
right,
title
and
interest
in
the
land
within
two
18
years
from
the
date
of
acquiring
the
land
or
interest.
This
19
section
shall
not
require
divestment
of
agricultural
land
or
an
20
interest
in
agricultural
land,
acquired
by
devise
or
descent
21
from
a
nonresident
alien,
if
such
land
or
an
interest
in
such
22
land
was
acquired
by
any
nonresident
alien
prior
to
July
1,
23
1979.
24
2.
If
the
government
of
the
People’s
Republic
of
China,
25
acquired
real
property
or
an
interest
in
real
property
by
26
devise
or
descent
on
or
before
July
1,
2023,
the
government
27
of
the
People’s
Republic
of
China
shall
divest
itself
of
all
28
right,
title,
and
interest
in
the
land
before
December
31,
29
2023.
30
3.
If
a
corporation
incorporated
under
the
laws
of
the
31
government
of
the
People’s
Republic
of
China,
or
a
business
32
entity
whether
or
not
incorporated,
in
which
a
majority
33
interest
is
owned
directly
or
indirectly
by
nonresident
aliens
34
from
the
People’s
Republic
of
China,
acquired
real
property
or
35
-3-
LSB
2469YH
(4)
90
ko/ns
3/
9
H.F.
542
an
interest
in
real
property
by
devise
or
descent
on
or
before
1
July
1,
2023,
the
corporation
or
business
entity
shall
divest
2
itself
of
all
right,
title,
and
interest
in
the
land
before
3
December
31,
2023.
4
4.
If
a
company
or
a
person
under
the
control
of
the
5
communist
party
of
China
acquired
real
property
or
an
interest
6
in
real
property
by
devise
or
descent
on
or
before
July
1,
7
2023,
the
company
or
person
shall
divest
itself
of
all
right,
8
title,
and
interest
in
the
agricultural
land
before
December
9
31,
2023.
10
Sec.
5.
Section
9I.6,
Code
2023,
is
amended
to
read
as
11
follows:
12
9I.6
Change
of
status
——
divestment.
13
1.
A
person
or
business
which
purchases
or
otherwise
14
acquires
agricultural
land
in
this
state
except
by
devise
or
15
descent,
after
January
1,
1980,
and
whose
status
changes
so
16
that
it
becomes
a
foreign
business
or
nonresident
alien
subject
17
to
this
chapter
,
shall
divest
itself
of
all
right,
title
and
18
interest
in
the
land
within
two
years
from
the
date
that
its
19
status
changed.
20
2.
A
person
or
business
which
purchased
or
otherwise
21
acquired
real
property
in
this
state
except
by
devise
or
22
descent,
and
whose
status
changed
so
that
the
person
or
23
business
is
affiliated
in
any
way
with
the
government
of
the
24
People’s
Republic
of
China
or
the
communist
party
of
China,
25
shall
divest
itself
of
all
right,
title,
and
interest
in
the
26
land
before
December
31,
2023.
27
3.
A
person
or
business
which
purchased
or
otherwise
28
acquired
real
property
in
this
state
except
by
devise
29
or
descent,
and
whose
status
changed
so
that
the
person
30
or
business
is
affiliated
in
any
way
with
a
corporation
31
incorporated
under
the
laws
of
the
government
of
the
People’s
32
Republic
of
China
or
the
communist
party
of
China,
shall
divest
33
itself
of
all
right,
title,
and
interest
in
the
land
before
34
December
31,
2023.
35
-4-
LSB
2469YH
(4)
90
ko/ns
4/
9
H.F.
542
Sec.
6.
Section
9I.10,
Code
2023,
is
amended
to
read
as
1
follows:
2
9I.10
Enforcement.
3
1.
a.
If
the
secretary
of
state
finds
that
a
nonresident
4
alien,
foreign
business,
foreign
government,
or
an
agent,
5
trustee,
or
other
fiduciary
thereof,
has
acquired
or
holds
6
title
to
or
interest
in
agricultural
land
in
this
state
in
7
violation
of
this
chapter
or
has
failed
to
timely
register
as
8
required
under
section
9I.7
or
has
failed
to
timely
report
as
9
required
under
section
9I.8
,
the
secretary
shall
report
the
10
violation
to
the
attorney
general.
11
b.
If
a
county
recorder
finds
that
the
government
of
the
12
People’s
Republic
of
China
has
acquired
or
holds
title
to
or
13
interest
in
real
property
located
in
this
state
in
violation
of
14
this
chapter,
the
county
recorder
shall
report
the
violation
15
to
the
attorney
general.
16
c.
If
a
county
recorder
finds
that
a
corporation
17
incorporated
under
the
laws
of
the
government
of
the
People’s
18
Republic
of
China,
or
a
business
entity
whether
or
not
19
incorporated,
in
which
a
majority
interest
is
owned
directly
20
or
indirectly
by
nonresident
aliens
from
the
People’s
Republic
21
of
China
has
acquired
or
holds
title
to
or
interest
in
real
22
property
in
this
state
in
violation
of
this
chapter,
the
county
23
recorder
shall
report
the
violation
to
the
attorney
general.
24
d.
If
a
county
recorder
finds
that
a
company
or
person
under
25
the
control
of
the
communist
party
of
China
has
acquired
or
26
holds
title
to
or
interest
in
real
property
in
this
state
in
27
violation
of
this
chapter,
the
county
recorder
shall
report
the
28
violation
to
the
attorney
general.
29
2.
a.
Upon
receipt
of
the
a
report
from
the
secretary
of
30
state
or
a
county
recorder
under
subsection
1
,
the
attorney
31
general
shall
initiate
an
action
in
the
district
court
of
any
32
county
in
which
the
land
is
located.
33
3.
b.
The
attorney
general
shall
file
a
notice
of
the
34
pendency
of
the
action
with
the
recorder
of
deeds
of
each
35
-5-
LSB
2469YH
(4)
90
ko/ns
5/
9
H.F.
542
county
in
which
any
of
the
land
is
located.
If
the
court
1
finds
that
the
land
in
question
has
been
acquired
or
held
in
2
violation
of
this
chapter
or
the
required
registration
has
not
3
been
timely
filed,
it
shall
enter
an
order
so
declaring
and
4
shall
file
a
copy
of
the
order
with
the
recorder
of
deeds
of
5
each
county
in
which
any
portion
of
the
land
is
located.
6
Sec.
7.
NEW
SECTION
.
9I.13
Ultimate
beneficial
owner
——
7
presumption.
8
If
the
ultimate
beneficial
owner
of
any
real
property
9
located
in
this
state
cannot
be
one
hundred
percent
determined,
10
the
presumption
shall
be
that
the
real
property
is
owned
by
a
11
resident
of
the
People’s
Republic
of
China.
12
Sec.
8.
NEW
SECTION
.
9I.14
Foreign
lands
administration
13
tax.
14
Effective
January
1,
2024,
a
monthly
foreign
lands
15
administrative
tax
of
ten
percent
of
the
fair
market
value
of
16
any
real
property
in
this
state
that
is
owned
by
a
company
or
a
17
person
under
the
control
of
the
communist
party
of
China,
the
18
government
of
the
People’s
Republic
of
China,
a
corporation
19
incorporated
under
the
laws
of
the
government
of
the
People’s
20
Republic
of
China,
or
a
business
entity
whether
or
not
21
incorporated,
in
which
a
majority
interest
is
owned
directly
22
or
indirectly
by
nonresident
aliens
from
the
People’s
Republic
23
of
China,
or
an
ultimate
beneficial
owner
under
section
9I.13
24
shall
be
charged
to
the
owner
and
shall
be
a
lien
on
the
real
25
property.
26
Sec.
9.
NEW
SECTION
.
9I.15
Tax
sale.
27
Notwithstanding
any
law
to
the
contrary,
on
December
28
1,
2024,
the
county
treasurer
of
each
county
in
which
real
29
property
is
located
on
which
the
foreign
lands
administrative
30
tax
under
section
9I.14
is
delinquent,
shall
offer
such
real
31
property
at
public
sale
pursuant
to
chapter
446.
32
Sec.
10.
NEW
SECTION
.
9I.16
Treasurer
of
state
——
33
administrator
of
trust.
34
Notwithstanding
any
law
to
the
contrary,
on
January
1,
2025,
35
-6-
LSB
2469YH
(4)
90
ko/ns
6/
9
H.F.
542
any
real
property
located
in
this
state
that
is
owned
by
a
1
company
or
a
person
under
the
control
of
the
communist
party
2
of
China,
the
government
of
the
People’s
Republic
of
China,
a
3
corporation
incorporated
under
the
laws
of
the
government
of
4
the
People’s
Republic
of
China,
or
a
business
entity
whether
5
or
not
incorporated,
in
which
a
majority
interest
is
owned
6
directly
or
indirectly
by
nonresident
aliens
from
the
People’s
7
Republic
of
China,
or
an
ultimate
beneficial
owner
under
8
section
9I.13,
shall
be
placed
in
a
trust
administered
by
the
9
treasurer
of
state.
The
Iowa
public
employees’
retirement
10
system
shall
be
the
beneficiary
of
the
trust.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
prohibits
the
government
of,
and
persons
and
15
entities
from,
the
People’s
Republic
of
China,
and
companies
or
16
persons
under
the
control
of
the
communist
party
of
China,
from
17
acquiring
or
owning
real
property
located
in
the
state.
18
The
bill
provides
that
effective
July
1,
2023,
the
19
government
of
the
People’s
Republic
of
China
(government),
a
20
corporation
incorporated
under
the
laws
of
the
government
of
21
the
People’s
Republic
of
China
(corporation)
or
a
business
22
entity
whether
or
not
incorporated
in
which
a
majority
interest
23
is
owned
directly
or
indirectly
by
nonresident
aliens
from
the
24
People’s
Republic
of
China
(entity),
and
a
company
or
a
person
25
under
the
control
of
the
communist
party
(company
or
person)
of
26
China
shall
not
acquire
by
grant,
purchase,
devise,
or
descent
27
any
real
property,
including
agricultural
land,
located
in
this
28
state.
If
the
government,
corporation,
entity,
company,
or
29
person
owns
or
holds
real
property
in
this
state
on
July
1,
30
2023,
the
government,
corporation,
entity,
company,
or
person
31
shall
divest
itself
of
all
right,
title,
and
interest
in
the
32
real
property
before
December
31,
2023.
33
If
real
property,
including
agricultural
land,
was
acquired
34
by
the
government,
corporation,
entity,
company,
or
person
by
35
-7-
LSB
2469YH
(4)
90
ko/ns
7/
9
H.F.
542
devise
or
descent
on
or
before
July
1,
2023,
the
government,
1
corporation,
entity,
company,
or
person
shall
divest
itself
2
of
all
right,
title,
and
interest
in
the
real
property
before
3
December
31,
2023.
4
A
person
or
business
which
purchased
or
otherwise
acquired
5
real
property
in
this
state
except
by
devise
or
descent,
6
and
whose
status
changed
so
that
the
person
or
business
is
7
affiliated
in
any
way
with
the
government,
corporation,
entity,
8
or
a
company
or
person
shall
divest
itself
of
all
right,
title,
9
and
interest
in
the
land
before
December
31,
2023.
10
The
bill
provides
that
if
a
county
recorder
finds
that
11
a
government,
corporation,
entity,
company,
or
person
has
12
violated
a
requirement
of
the
bill,
the
county
recorder
shall
13
report
the
violation
to
the
attorney
general.
Upon
receipt
of
14
a
report
of
a
violation,
the
attorney
general
shall
initiate
15
an
action
in
the
district
court
of
any
county
in
which
the
land
16
is
located.
17
Under
the
bill,
if
the
ultimate
beneficial
owner
of
any
18
real
property
located
in
this
state
cannot
be
100
percent
19
determined,
the
presumption
shall
be
that
the
real
property
is
20
owned
by
a
resident
of
the
government.
“Ultimate
beneficial
21
owner”
is
defined
in
the
bill.
22
Effective
January
1,
2024,
the
bill
imposes
a
monthly
23
foreign
lands
administrative
tax
of
10
percent
of
the
fair
24
market
value
of
any
real
property
in
this
state
that
is
owned
25
by
the
government,
corporation,
entity,
company,
person,
or
26
an
ultimate
beneficial
owner,
and
the
tax
shall
be
a
lien
on
27
the
real
property.
Notwithstanding
any
law
to
the
contrary,
28
on
December
1,
2024,
the
county
treasurer
of
each
county
in
29
which
real
property
is
located
on
which
the
foreign
lands
30
administrative
tax
is
delinquent
shall
offer
such
real
estate
31
at
public
sale
pursuant
to
Code
chapter
446.
32
Notwithstanding
any
law
to
the
contrary,
on
January
1,
2025,
33
the
bill
provides
that
any
real
property
located
in
this
state
34
that
is
owned
by
the
government,
corporation,
entity,
company,
35
-8-
LSB
2469YH
(4)
90
ko/ns
8/
9
H.F.
542
person,
or
an
ultimate
beneficial
owner,
shall
be
placed
in
a
1
trust
administered
by
the
treasurer
of
state.
The
Iowa
public
2
employees’
retirement
system
shall
be
the
beneficiary
of
the
3
trust.
4
-9-
LSB
2469YH
(4)
90
ko/ns
9/
9