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House File 211 - IntroducedA Bill ForAn Act 1prohibiting the government of, and persons and entities
2from, the People’s Republic of China from acquiring real
3property located in the state.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 9I.2, Code 2023, is amended to read as
2follows:
39I.2 Alien rights Real property — nonresident aliens and
4foreign governments.
51. A nonresident alien, foreign business, or foreign
6government may acquire, by grant, purchase, devise, or descent,
7 real property, except agricultural land or any interest in
8agricultural land in this state, and may own, hold, devise, or
9alienate the real property, and shall incur the same duties and
10liabilities in relation thereto as a citizen and resident of
11the United States.
122. Notwithstanding subsection 1, on or after July 1, 2023,
13the government of the People’s Republic of China, or the
14government of a province, region, municipality, or autonomous
15region of the People’s Republic of China, shall not acquire by
16grant, purchase, devise, or descent any real property located
17in this state.
183. Notwithstanding subsection 1, on or after July 1, 2023,
19a corporation incorporated under the laws of the government of
20the People’s Republic of China, or a business entity whether
21or not incorporated, in which a majority interest is owned
22directly or indirectly by nonresident aliens from the People’s
23Republic of China, or from a province, region, municipality,
24or autonomous region of the People’s Republic of China, shall
25not acquire by grant, purchase, devise, or descent any real
26property located in this state. Legal entities, including
27but not limited to trusts, holding companies, multiple
28corporations, and other business arrangements, shall not affect
29the determination of ownership or control of the foreign
30business.
31 Sec. 2. Section 9I.5, Code 2023, is amended to read as
32follows:
339I.5 Land acquired by devise or descent.
341. A nonresident alien, foreign business, or foreign
35government, or an agent, trustee, or fiduciary thereof, which
-1-1acquires agricultural land or an interest in agricultural
2land, by devise or descent after January 1, 1980, shall divest
3itself of all right, title, and interest in the land within two
4years from the date of acquiring the land or interest. This
5section shall not require divestment of agricultural land or an
6interest in agricultural land, acquired by devise or descent
7from a nonresident alien, if such land or an interest in such
8land was acquired by any nonresident alien prior to July 1,
91979.
102. The government of the People’s Republic of China, or the
11government of a province, region, municipality, or autonomous
12region of the People’s Republic of China, which acquires real
13property or an interest in real property, by devise or descent
14on or after July 1, 2023, shall divest itself of all right,
15title, and interest in the land within two years from the date
16of acquiring the land or interest.
173. A corporation incorporated under the laws of the
18government of the People’s Republic of China, or a business
19entity whether or not incorporated, in which a majority
20interest is owned directly or indirectly by nonresident aliens
21from the People’s Republic of China, or from a province,
22region, municipality, or autonomous region of the People’s
23Republic of China, which acquires real property or an interest
24in real property, by devise or descent on or after July 1,
252023, shall divest itself of all right, title, and interest in
26the land within two years from the date of acquiring the land
27or interest.
28 Sec. 3. Section 9I.6, Code 2023, is amended to read as
29follows:
309I.6 Change of status — divestment.
311. A person or business which purchases or otherwise
32acquires agricultural land in this state except by devise or
33descent, after January 1, 1980, and whose status changes so
34that it becomes a foreign business or nonresident alien subject
35to this chapter, shall divest itself of all right, title, and
-2-1interest in the land within two years from the date that its
2status changed.
32. A person or business which purchases or otherwise
4acquires real property in this state except by devise or
5descent, on or after July 1, 2023, and whose status changes so
6that the person or business is affiliated in any way with the
7government of the People’s Republic of China, or the government
8of a province, region, municipality, or autonomous region of
9the People’s Republic of China, shall divest itself of all
10right, title, and interest in the land within two years from
11the date that the status of the person or the business changed.
123. A person or business which purchases or otherwise
13acquires real property in this state except by devise or
14descent, on or after July 1, 2023, and whose status changes so
15that the person or business is affiliated in any way with a
16corporation incorporated under the laws of the government of
17the People’s Republic of China, or a business entity whether
18or not incorporated, in which a majority interest is owned
19directly or indirectly by nonresident aliens from the People’s
20Republic of China, or from a province, region, municipality,
21or autonomous region of the People’s Republic of China shall
22divest itself of all right, title, and interest in the land
23within two years from the date that the status of the person or
24the business changed.
25 Sec. 4. Section 9I.10, Code 2023, is amended to read as
26follows:
279I.10 Enforcement.
281. a. If the secretary of state finds that a nonresident
29alien, foreign business, foreign government, or an agent,
30trustee, or other fiduciary thereof, has acquired or holds
31title to or interest in agricultural land in this state in
32violation of this chapter or has failed to timely register as
33required under section 9I.7 or has failed to timely report as
34required under section 9I.8, the secretary shall report the
35violation to the attorney general.
-3- 1b. If a county recorder finds that the government of the
2People’s Republic of China, or the government of a province,
3region, municipality, or autonomous region of the People’s
4Republic of China, has acquired or holds title to or interest
5in real property located in this state in violation of this
6chapter, the county recorder shall report the violation to the
7attorney general.
8c. If a county recorder finds that a corporation
9incorporated under the laws of the government of the People’s
10Republic of China, or a business entity whether or not
11incorporated, in which a majority interest is owned directly or
12indirectly by nonresident aliens from the People’s Republic of
13China or a province, region, municipality, or autonomous region
14of the People’s Republic of China, has acquired or holds title
15to or interest in real property in this state in violation of
16this chapter, the county recorder shall report the violation
17to the attorney general.
182. a. Upon receipt of the a report from the secretary of
19state or a county recorder under subsection 1, the attorney
20general shall initiate an action in the district court of any
21county in which the land is located.
223. b. The attorney general shall file a notice of the
23pendency of the action with the recorder of deeds of each
24county in which any of the land is located. If the court
25finds that the land in question has been acquired or held in
26violation of this chapter or the required registration has not
27been timely filed, it shall enter an order so declaring and
28shall file a copy of the order with the recorder of deeds of
29each county in which any portion of the land is located.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill prohibits the government of the People’s Republic
34of China (China), or the government of a province, region,
35municipality, or autonomous region of China (related regions)
-4-1from acquiring real property located in this state by grant,
2purchase, devise, or descent on or after July 1, 2023.
3The bill also prohibits a corporation incorporated under
4the laws of the government of China, or a business entity
5whether or not incorporated, in which a majority interest is
6owned directly or indirectly by nonresident aliens from China
7or related regions, from acquiring real property in this state
8by grant, purchase, devise, or descent on or after July 1,
92023. The bill provides that legal entities, including but not
10limited to trusts, holding companies, multiple corporations,
11and other business arrangements, do not affect the
12determination of ownership or control of the foreign business.
13The bill requires a county recorder to report a violation
14of the bill to the attorney general. Upon receipt of a report
15from a county recorder, the attorney general shall initiate an
16action in the district court of any county in which the land is
17located. If the court finds that the land in question has been
18acquired in violation of the bill, the court shall declare the
19land escheated to the state pursuant to Code section 9I.11.
20The bill makes conforming changes to Code section 9I.5 (land
21acquired by devise or descent) and Code section 9I.6 (change of
22status — divestment).
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2from, the People’s Republic of China from acquiring real
3property located in the state.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 9I.2, Code 2023, is amended to read as
2follows:
39I.2 Alien rights Real property — nonresident aliens and
4foreign governments.
51. A nonresident alien, foreign business, or foreign
6government may acquire, by grant, purchase, devise, or descent,
7 real property, except agricultural land or any interest in
8agricultural land in this state, and may own, hold, devise, or
9alienate the real property, and shall incur the same duties and
10liabilities in relation thereto as a citizen and resident of
11the United States.
122. Notwithstanding subsection 1, on or after July 1, 2023,
13the government of the People’s Republic of China, or the
14government of a province, region, municipality, or autonomous
15region of the People’s Republic of China, shall not acquire by
16grant, purchase, devise, or descent any real property located
17in this state.
183. Notwithstanding subsection 1, on or after July 1, 2023,
19a corporation incorporated under the laws of the government of
20the People’s Republic of China, or a business entity whether
21or not incorporated, in which a majority interest is owned
22directly or indirectly by nonresident aliens from the People’s
23Republic of China, or from a province, region, municipality,
24or autonomous region of the People’s Republic of China, shall
25not acquire by grant, purchase, devise, or descent any real
26property located in this state. Legal entities, including
27but not limited to trusts, holding companies, multiple
28corporations, and other business arrangements, shall not affect
29the determination of ownership or control of the foreign
30business.
31 Sec. 2. Section 9I.5, Code 2023, is amended to read as
32follows:
339I.5 Land acquired by devise or descent.
341. A nonresident alien, foreign business, or foreign
35government, or an agent, trustee, or fiduciary thereof, which
-1-1acquires agricultural land or an interest in agricultural
2land, by devise or descent after January 1, 1980, shall divest
3itself of all right, title, and interest in the land within two
4years from the date of acquiring the land or interest. This
5section shall not require divestment of agricultural land or an
6interest in agricultural land, acquired by devise or descent
7from a nonresident alien, if such land or an interest in such
8land was acquired by any nonresident alien prior to July 1,
91979.
102. The government of the People’s Republic of China, or the
11government of a province, region, municipality, or autonomous
12region of the People’s Republic of China, which acquires real
13property or an interest in real property, by devise or descent
14on or after July 1, 2023, shall divest itself of all right,
15title, and interest in the land within two years from the date
16of acquiring the land or interest.
173. A corporation incorporated under the laws of the
18government of the People’s Republic of China, or a business
19entity whether or not incorporated, in which a majority
20interest is owned directly or indirectly by nonresident aliens
21from the People’s Republic of China, or from a province,
22region, municipality, or autonomous region of the People’s
23Republic of China, which acquires real property or an interest
24in real property, by devise or descent on or after July 1,
252023, shall divest itself of all right, title, and interest in
26the land within two years from the date of acquiring the land
27or interest.
28 Sec. 3. Section 9I.6, Code 2023, is amended to read as
29follows:
309I.6 Change of status — divestment.
311. A person or business which purchases or otherwise
32acquires agricultural land in this state except by devise or
33descent, after January 1, 1980, and whose status changes so
34that it becomes a foreign business or nonresident alien subject
35to this chapter, shall divest itself of all right, title, and
-2-1interest in the land within two years from the date that its
2status changed.
32. A person or business which purchases or otherwise
4acquires real property in this state except by devise or
5descent, on or after July 1, 2023, and whose status changes so
6that the person or business is affiliated in any way with the
7government of the People’s Republic of China, or the government
8of a province, region, municipality, or autonomous region of
9the People’s Republic of China, shall divest itself of all
10right, title, and interest in the land within two years from
11the date that the status of the person or the business changed.
123. A person or business which purchases or otherwise
13acquires real property in this state except by devise or
14descent, on or after July 1, 2023, and whose status changes so
15that the person or business is affiliated in any way with a
16corporation incorporated under the laws of the government of
17the People’s Republic of China, or a business entity whether
18or not incorporated, in which a majority interest is owned
19directly or indirectly by nonresident aliens from the People’s
20Republic of China, or from a province, region, municipality,
21or autonomous region of the People’s Republic of China shall
22divest itself of all right, title, and interest in the land
23within two years from the date that the status of the person or
24the business changed.
25 Sec. 4. Section 9I.10, Code 2023, is amended to read as
26follows:
279I.10 Enforcement.
281. a. If the secretary of state finds that a nonresident
29alien, foreign business, foreign government, or an agent,
30trustee, or other fiduciary thereof, has acquired or holds
31title to or interest in agricultural land in this state in
32violation of this chapter or has failed to timely register as
33required under section 9I.7 or has failed to timely report as
34required under section 9I.8, the secretary shall report the
35violation to the attorney general.
-3- 1b. If a county recorder finds that the government of the
2People’s Republic of China, or the government of a province,
3region, municipality, or autonomous region of the People’s
4Republic of China, has acquired or holds title to or interest
5in real property located in this state in violation of this
6chapter, the county recorder shall report the violation to the
7attorney general.
8c. If a county recorder finds that a corporation
9incorporated under the laws of the government of the People’s
10Republic of China, or a business entity whether or not
11incorporated, in which a majority interest is owned directly or
12indirectly by nonresident aliens from the People’s Republic of
13China or a province, region, municipality, or autonomous region
14of the People’s Republic of China, has acquired or holds title
15to or interest in real property in this state in violation of
16this chapter, the county recorder shall report the violation
17to the attorney general.
182. a. Upon receipt of the a report from the secretary of
19state or a county recorder under subsection 1, the attorney
20general shall initiate an action in the district court of any
21county in which the land is located.
223. b. The attorney general shall file a notice of the
23pendency of the action with the recorder of deeds of each
24county in which any of the land is located. If the court
25finds that the land in question has been acquired or held in
26violation of this chapter or the required registration has not
27been timely filed, it shall enter an order so declaring and
28shall file a copy of the order with the recorder of deeds of
29each county in which any portion of the land is located.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill prohibits the government of the People’s Republic
34of China (China), or the government of a province, region,
35municipality, or autonomous region of China (related regions)
-4-1from acquiring real property located in this state by grant,
2purchase, devise, or descent on or after July 1, 2023.
3The bill also prohibits a corporation incorporated under
4the laws of the government of China, or a business entity
5whether or not incorporated, in which a majority interest is
6owned directly or indirectly by nonresident aliens from China
7or related regions, from acquiring real property in this state
8by grant, purchase, devise, or descent on or after July 1,
92023. The bill provides that legal entities, including but not
10limited to trusts, holding companies, multiple corporations,
11and other business arrangements, do not affect the
12determination of ownership or control of the foreign business.
13The bill requires a county recorder to report a violation
14of the bill to the attorney general. Upon receipt of a report
15from a county recorder, the attorney general shall initiate an
16action in the district court of any county in which the land is
17located. If the court finds that the land in question has been
18acquired in violation of the bill, the court shall declare the
19land escheated to the state pursuant to Code section 9I.11.
20The bill makes conforming changes to Code section 9I.5 (land
21acquired by devise or descent) and Code section 9I.6 (change of
22status — divestment).
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