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LB 7

Change provisions relating to real estate and the Foreign-owned Real Estate National Security Act

109th Legislature (2025-2026) Introduced by Barry DeKay

LB 7 clarifies Nebraska's Foreign-owned Real Estate Act: updates definitions, excludes Indian tribes from 'foreign government,' ties exemptions to CFIUS/OFAC, strengthens filings.

Approved by Governor on April 7, 2025
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WeVote Research Nonpartisan
Bill Summary · LB 7

Summary — LB 7 (2025)

Title: Change provisions relating to real estate and the Foreign‑owned Real Estate National Security Act
Status: Approved by Governor (signed April 7, 2025)

Purpose

LB 7 is a technical clean‑up and clarification bill for Nebraska’s Foreign‑owned Real Estate National Security Act and related real‑estate affidavit requirements. The bill updates federal cross‑references, defines key terms (including clarifying that federally or state‑recognized Indian tribes are not “foreign governments”), adds limited exemptions tied to federal CFIUS and OFAC determinations, and adjusts notification and enforcement procedures.

Key provisions

  • Affidavit for "covered real estate" (sec. 76‑2,141)

    • Retains requirement that purchasers of real estate within federally defined “covered real estate” complete an affidavit attesting they are not an agent of a foreign government or a person designated a foreign adversary.
    • Updates federal citations: uses 31 C.F.R. 802.211(b)(3) as it existed on January 1, 2025 to define covered real estate; references 15 C.F.R. 791.4 for “foreign adversary” determinations (date references in statute reflect Feb 7, 2025 / Jan 1, 2025 as provided).
    • Affidavit must be filed with the county register of deeds (who must withhold recording until received) and a copy is sent to the Nebraska Attorney General.
    • Puts responsibility for determining whether the affidavit is required solely on the purchaser; false statements subject to criminal penalty under section 28‑915.01.

  • Definitions and scope (sec. 76‑3702 and related)

    • Adds and clarifies definitions: “foreign corporation,” “foreign government” (expressly excludes Indian tribes), “Indian tribe,” “person,” and refines “nonresident alien.”
    • Defines “restricted entity” to include parties on OFAC sanctions lists (as of Jan 1, 2025) and entities/governments found by the U.S. Secretary of Commerce to have engaged in conduct adverse to U.S. national security under the referenced federal regulation.

  • Restrictions, exemptions, and safe harbors (secs. 76‑3703, 76‑3704, 76‑3708, 76‑3709)

    • Continues general prohibition on nonresident aliens, foreign corporations, or foreign governments acquiring Nebraska real estate after Jan 1, 2025 except as provided.
    • Clarifies that a party from an “excepted real estate foreign state” (as designated under CFIUS rules, 31 C.F.R. 802.1001(a) and 802.214 as of Jan 1, 2025) is exempt unless a restricted entity.
    • Maintains exemptions for oil/gas leases (up to 10 years and as long as production continues) and for real estate necessary to operate railroads, public utilities, or common carriers — but excludes restricted entities from these exemptions.
    • Clarifies a safe harbor for manufacturing/industrial or distribution properties where CFIUS has either determined no national‑security concern or there is an active national security agreement and annual certification of compliance.

  • Enforcement and notifications (secs. 76‑3710, 76‑3712, 76‑3715)

    • Clarifies divestment remedies for violations and adds duty for the Attorney General (or retained counsel) to notify the Governor and the Clerk of the Legislature of court‑ordered divestments under the Act.
    • Harmonizes language across sections and inserts a severability clause; repeals prior conflicting sections.

Who is affected

  • Purchasers of real estate in federally defined military‑sensitive areas (must file affidavit).
  • Nonresident aliens, foreign corporations, and foreign governments seeking to acquire Nebraska real estate (subject to Act’s prohibitions and exemptions).
  • Entities and governments on OFAC sanctions lists or identified by Commerce as national‑security risks (treated as restricted entities; excluded from exemptions).
  • Federally or state‑recognized Indian tribes (explicitly excluded from the definition of “foreign government” and thus not treated as foreign governments under the Act).
  • County registers of deeds and the Nebraska Attorney General (administrative/notification duties).

Legislative history & status

  • Introduced Jan 9, 2025; heard Jan 28, 2025 (Agriculture Committee).
  • Committee amendments (AM77, later DeKay AM310 and ER22) adopted; added definitions, exemption language tied to CFIUS rules, and Clerk notification requirement.
  • Passed Final Reading 47‑0‑2 on April 3, 2025; presented to Governor April 3, 2025; approved by Governor April 7, 2025.

Practical impact

LB 7 primarily clarifies who is covered by and exempt from Nebraska’s foreign‑ownership restrictions, narrows ambiguity around tribal status (excluding tribes from the “foreign government” label), ties certain exemptions to federal CFIUS/OFAC determinations, and strengthens procedural reporting and record‑keeping for conveyances in sensitive areas.

Compiled from official sources — confirm details with the bill’s official record.

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