HF 2740 (LSB 5658YH (5) 91)

HOUSE FILE 2740

BY  SCHOLTEN, RAMIREZ, BAETH, KONFRST, BROWN-POWERS, COOLING, WILBURN, LEVIN, B. MEYER, BAGNIEWSKI, KRESSIG, JACOBY, CROKEN, MADISON, McBURNEY, EHLERT, R. JOHNSON, GOSA, GJERDE, OLSON, KURTH, WESSEL-KROESCHELL, TUREK, and JAMES

A BILL FOR

An Act relating to the confidentiality of certain information filed with the secretary of state by foreign persons holding agricultural land.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 9I.7, unnumbered paragraph 1, Code 2026, is amended to read as follows:
   A nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, which that owns an interest in agricultural land within this state on or after January 1, 1980, shall register the agricultural land with the secretary of state. The registration shall be made within sixty days after January 1, 1980, or within sixty days after acquiring the land or the interest in land, whichever is later. The registration shall be made online or in the form and manner prescribed by the secretary of state. Information described in this section is a confidential record and subject to use in the same manner as provided in section 10B.5. As part of the registration, the nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, shall file all of the following information:
    Sec. 2.  Section 10B.5, subsection 2, Code 2026, is amended to read as follows:
   2.  Information Except as provided in section 10B.5A, information in reports required in this chapter is a confidential record as provided in section 22.7. The attorney general may have access to the reports, and may use information in the reports in any action to enforce state law, including but not limited to chapters 9H and 9I. The reports shall be made available to members of the general assembly and appropriate committees of the general assembly in order to determine the extent that agricultural land is held in this state by corporations and other business and foreign entities and the effect of such land ownership upon the economy of this state. The secretary of state shall assist any committee of the general assembly studying these issues.
    Sec. 3.  Section 10B.5A, Code 2026, is amended to read as follows:
   10B.5A  Annual summary to governor and general assembly —— foreign landholdings.
   The secretary of state shall prepare an annual summary of foreign landholding. The summary must be a report summarizing the compiled information included in the current registrations filed pursuant to section 9I.7 and the last reports filed pursuant to section 10B.4. The information is a confidential record as provided in section 22.7. The attorney general may have access to the annual summary and may use information in the annual summary in any action to enforce state law, including but not limited to chapters 9H and 9I, and this chapter. The annual summary shall be made available to the governor, members of the general assembly, and appropriate committees of the general assembly in order to determine the extent that agricultural land is held in this state by foreign entities and the effect of such land ownership upon the economy of this state. Upon request, the secretary of state shall assist any committee of the general assembly studying these issues.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   BILL’S PROVISIONS. This bill provides that information in a registration required to be filed by a foreign person holding agricultural land in this state and a summary report by the secretary of state (secretary) of compiled information included in the last registrations and biennial reports filed by foreign persons is no longer confidential.
   BACKGROUND —— RESTRICTIONS UPON A FOREIGN PERSON HOLDING AN INTEREST IN AGRICULTURAL LAND. Code chapter 9I restricts certain foreign persons from acquiring or holding a legal interest in agricultural land suitable for farming if the agricultural land was acquired on or after January 1, 1980 (Code section 9I.3). Certain exceptions apply. However, generally a foreign person must convert the agricultural land to a purpose other than farming within five years. A foreign person includes a foreign business (e.g., a corporation formed in another country), a foreign government, or a nonresident alien (not a United States citizen or a person admitted for permanent residence in the United States). The restriction also applies to an authorized representative acting on behalf of the foreign person as an agent, trustee, or fiduciary.
   BACKGROUND —— REGISTRATION AND REPORTING REQUIREMENTS. A foreign person acquiring an interest in agricultural land must register with the secretary (Code section 9I.7). The registration must include information regarding the foreign person and the person’s agricultural landholdings. The foreign person is also required to file a biennial report with the secretary, which must include updates to the information stated in the person’s latest filed registration (Code section 10B.4). The report must also include detailed information regarding the agricultural land held by the foreign person. The secretary must prepare an annual summary report of the compiled information included in the last filed registrations and biennial reports (Code section 10B.5A). Information included in the registrations, reports, and summary report is confidential notwithstanding Iowa’s open records law (Code chapter 22). However, the secretary’s summary report must be made available to the governor and members of the general assembly.
   BACKGROUND —— ENFORCEMENT AND PENALTIES. The attorney general may conduct an inquiry or investigation regarding an alleged violation of a registration requirement (Code section 9I.10) or the biennial reporting requirement (Code section 10B.4). A foreign person who fails to file a timely registration is subject to a penalty of not more than 25 percent of the county’s assessed value of the subject agricultural land for the previous year for each offense (Code section 9I.12). A foreign person who fails to file a biennial report is subject to a civil penalty of up to $10,000 (Code section 10B.6).