Bill > S382

Introduced Session

This bill prohibits adverse foreign governments and certain associated foreign persons, as defined in the bill, from acquiring, purchasing, or otherwise obtaining a legal, beneficial, or other interest in any real property in the State on or after the bill's effective date, with limited exceptions. The bill applies to governments listed as a threat of terrorism, transnational repression, or to the critical infrastructure or economic security of the United States, in at least one of the three most recent Annual Threat Assessments of the U.S. Intelligence Community. These governments currently consist of the People's Republic of China, Russia, Iran, and North Korea. The bill permits impacted foreign governments and foreign persons that already own or hold an interest in real property in the State, on the bill's effective date, to continue to own or hold that interest for a maximum of five years thereafter. Within five years after the bill's effective date, the foreign government or foreign person would be required to sell or otherwise convey the ownership of, or interest in, the real property to an individual, trust, corporation, partnership, or other business entity. The bill provides the following exceptions to the general prohibition on the continued foreign ownership of real property in the State: 1) the acquisition of real property through a process of law involving the collection of debt, the execution of a deed in lieu of foreclosure, the forfeiture of a contract for deed, or the imposition of a lien or claim on the property, whether by mortgage or otherwise, provided that the person or government sell or convey the property, within two years after the transfer of title to the person or government, to an individual, trust, corporation, partnership, or other business entity that is not prohibited from owning real property in the State; and 2) the acquisition of real property by devise or descent, or pursuant to a bona fide encumbrance established on real property taken for the purposes of security. The bill provides that any provision of the bill that is inconsistent with, or in violation of, the federal Constitution, or any law, treaty, rule, regulation, or executive order (federal law) is not to apply only to the extent that the provision is determined to be inconsistent or in conflict with, impede the federal objectives, or in violation of the federal law. If a provision is determined inconsistent or in conflict, impeding the federal objectives, or in violation of federal law, the provisions of the bill are to be construed to apply to only to those persons of an adverse foreign country that are determined to have taken action that directly poses a threat of terrorism and transnational repression, or that directly pose a threat to the critical infrastructure or economic security of the United States. The bill authorizes the attorney general to bring an action against an entity that violates the bill. An entity in violation of the bill is to be liable to the State for a civil penalty in an amount not to exceed the greater of:· $250,000; or · 50 percent of the market value of the interest in the real property subject to the violation. The bill directs the Secretary of State to adopt rules and regulations to effectuate the provisions of the bill.

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Douglas Steinhardt (R)*, 

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 01/13/2026)

Official Document