H.F. 83 Section 1. Section 9I.2, unnumbered paragraph 1, Code 2025, 1 is amended to read as follows: 2 1. A nonresident alien , or foreign business or foreign 3 government may acquire, by grant, purchase, devise , or descent, 4 real property, except agricultural land or any interest in 5 agricultural land in this state, and may own, hold, devise , or 6 alienate the real property, and shall incur the same duties 7 and liabilities in relation thereto as a citizen and resident 8 of the United States. On or after the effective date of this 9 Act, a foreign government, or an agent, trustee, or fiduciary 10 thereof, shall not acquire, by grant, purchase, devise, or 11 descent, real property or any interest in real property in this 12 state. 13 2. A foreign government, or an agent, trustee, or fiduciary 14 thereof, which has purchased or has otherwise acquired real 15 property or an interest in real property prior to the effective 16 date of this Act, shall divest itself of all right, title, and 17 interest in the land within two years of the effective date of 18 this Act. 19 Sec. 2. Section 9I.3, subsection 1, Code 2025, is amended 20 to read as follows: 21 1. A nonresident alien, foreign business , or foreign 22 government, or an agent, trustee , or fiduciary thereof, shall 23 not purchase or otherwise acquire agricultural land in this 24 state. A nonresident alien, foreign business or foreign 25 government , or an agent, trustee , or fiduciary thereof, which 26 owns or holds agricultural land in this state on January 1, 27 1980, may continue to own or hold the land, but shall not 28 purchase or otherwise acquire additional agricultural land in 29 this state. 30 Sec. 3. Section 9I.3, subsection 3, unnumbered paragraph 1, 31 Code 2025, is amended to read as follows: 32 The restriction set forth in subsection 1 of this section , as 33 to nonresident aliens or foreign businesses or their agents, 34 trustees, or fiduciaries, does not apply to the following: 35 -1- LSB 1647YH (3) 91 ll/jh 1/ 5

H.F. 83 Sec. 4. Section 9I.3, subsection 3, paragraph d, 1 subparagraph (3), subparagraph division (a), Code 2025, is 2 amended to read as follows: 3 (a) The nonresident alien, foreign business, or foreign 4 government or an agent, trustee, or fiduciary of the alien , or 5 business, or government must shall not hold the agricultural 6 land other than as a lessee. The term of the lease must be for 7 not more than twelve years. A lessee shall not renew a lease 8 entered into under this subparagraph (3). The lessee shall not 9 enter into a lease under this paragraph, if another lease under 10 this paragraph has been entered into by the lessee. 11 Sec. 5. Section 9I.3, subsection 3, paragraph d, 12 subparagraph (4), Code 2025, is amended to read as follows: 13 (4) Culls and test animals may be sold under subparagraph 14 (3). For a three-year period beginning on the date that the 15 lease takes effect, the gross sales for any year shall not 16 be greater than five hundred thousand dollars. After the 17 three-year period ends, the gross sales for any year shall not 18 be greater than twenty-five percent of the gross sales for that 19 year of the breeding stock, or five hundred thousand dollars, 20 whichever is less. As used in subparagraph (3), “lessee” 21 means a nonresident alien , or foreign business, or foreign 22 government, or an agent, trustee, or fiduciary acting on behalf 23 of the nonresident alien , or foreign business, or foreign 24 government, or any other trade or business which is under the 25 lessee’s common control as provided in 26 U.S.C. §414. 26 Sec. 6. Section 9I.3, subsection 3, paragraph e, Code 2025, 27 is amended to read as follows: 28 e. An interest in agricultural land, not to exceed three 29 hundred twenty acres, acquired for an immediate or pending 30 use other than farming. However, a nonresident alien , or 31 foreign business or foreign government , or an agent, trustee , 32 or fiduciary thereof, who lawfully owns over three hundred 33 twenty acres on January 1, 1980, may continue to own or 34 hold the land, but shall not purchase or otherwise acquire 35 -2- LSB 1647YH (3) 91 ll/jh 2/ 5

H.F. 83 additional agricultural land in this state except by devise 1 or descent from a nonresident alien. Pending the development 2 of the agricultural land for purpose other than farming, the 3 land shall not be used for farming except under lease to an 4 individual, trust, corporation, partnership , or other business 5 entity not subject to the restriction on the increase in 6 agricultural land holdings imposed by section 9H.4 . 7 Sec. 7. Section 9I.3, subsection 4, Code 2025, is amended 8 to read as follows: 9 4. A nonresident alien , or foreign business or foreign 10 government , or an agent, trustee , or fiduciary thereof , shall 11 not transfer title to or interest in agricultural land to a 12 nonresident alien , or foreign business or foreign government , 13 or an agent, trustee , or fiduciary thereof , except by devise 14 or descent. 15 Sec. 8. Section 9I.5, Code 2025, is amended to read as 16 follows: 17 9I.5 Land acquired by devise or descent. 18 1. A nonresident alien , or foreign business or foreign 19 government , or an agent, trustee , or fiduciary thereof, which 20 acquires agricultural land or an interest in agricultural 21 land, by devise or descent after January 1, 1980, shall divest 22 itself of all right, title , and interest in the land within two 23 years from the date of acquiring the land or interest. This 24 section shall not require divestment of agricultural land or an 25 interest in agricultural land, acquired by devise or descent 26 from a nonresident alien, if such land or an interest in such 27 land was acquired by any nonresident alien prior to July 1, 28 1979. 29 2. A foreign government, or an agent, trustee, or fiduciary 30 thereof, which has acquired real property, or an interest 31 in real property, or agricultural land, or an interest in 32 agricultural land, by devise or descent prior to the effective 33 date of this Act, shall divest itself of all right, title, 34 and interest in the land within two years of the effective 35 -3- LSB 1647YH (3) 91 ll/jh 3/ 5

H.F. 83 date of this Act. A foreign government, or an agent, trustee, 1 or fiduciary thereof, which acquires real property, or an 2 interest in real property, or agricultural land, or an interest 3 in agricultural land, by devise or descent on or after the 4 effective date of this Act, shall divest itself of all right, 5 title, and interest in the land within two years from the date 6 of acquiring the land or interest. 7 Sec. 9. Section 9I.10, subsection 1, Code 2025, is amended 8 to read as follows: 9 1. a. If the secretary of state finds that a nonresident 10 alien, foreign business, foreign government, or an agent, 11 trustee, or other fiduciary thereof, has acquired or holds 12 title to or interest in agricultural land in this state in 13 violation of this chapter or has failed to timely register as 14 required under section 9I.7 or has failed to timely report as 15 required under section 10B.4 , the secretary shall report the 16 violation to the attorney general. 17 b. If a county recorder finds that a foreign government, or 18 an agent, trustee, or fiduciary thereof, has acquired or holds 19 title to, or interest in, real property located in this state 20 in violation of this chapter, the county recorder shall report 21 the violation to the attorney general. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill prohibits foreign governments from acquiring 26 real property, or an interest in real property, located in 27 the state by grant, purchase, devise, or descent on or after 28 the effective date of the bill. Under current law, except 29 for agricultural land, foreign governments may acquire real 30 property. The bill provides for divestment of real property 31 or interests in real property currently owned or acquired by 32 foreign governments within two years of the effective date 33 of the bill. Under current law, foreign governments may own 34 agricultural land acquired on or before January 1, 1980, and 35 -4- LSB 1647YH (3) 91 ll/jh 4/ 5

H.F. 83 agricultural land of a certain size or for certain purposes. 1 The bill makes conforming changes to prohibit foreign 2 government ownership in agricultural land in Code section 9I.3 3 (restriction on agricultural land holdings). 4 The bill requires real property or agricultural land 5 acquired by a foreign government by devise or descent prior 6 to the effective date of the bill to be divested within two 7 years from the effective date of the bill. Real property 8 or agricultural land acquired by a foreign government by 9 devise or descent after the effective date of the bill must be 10 divested within two years from the date of acquiring the land 11 or interest. The divestment language for real property in the 12 bill aligns with the divestment requirement for agricultural 13 land acquired by devise or descent by a nonresident alien, 14 foreign business, or foreign government in current law. 15 The bill requires a county recorder to report a violation 16 of the bill to the attorney general. Upon receipt of a report 17 from the secretary of state, the attorney general shall 18 initiate an action in the district court of any county in which 19 the land is located. If the court finds that the land in 20 question has been acquired in violation of the bill, the court 21 shall declare the land escheated to the state pursuant to Code 22 section 9I.11. 23 -5- LSB 1647YH (3) 91 ll/jh 5/ 5