General appropriations; State Fiscal Year July 1, 2025 - June 30, 2026

2025-2026 Regular Session Introduced by Jon Burns and 3 co-sponsors

House Bill 68 prohibits foreign entities, including those on U.S. sanctions lists, from acquiring interests in agricultural and forest properties, protecting local ownership.

Effective Date

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Bill Overview

Bill Number: HB 68
Title: Leasehold interests added to prohibition against acquisition of ownership interests by certain individuals, governments, political parties in agricultural, forest and other real property; adds companies, individuals on U.S. Treasury sanctions lists to sanctions list prohibition; specifies overall pertinence to property in the state
Status: Currently Indefinitely Postponed
Introduced: December 04, 2024
Classification: Bill
Subject: Property & Estates

Purpose and Intent

House Bill 68 aims to strengthen existing laws that restrict foreign entities from acquiring interests in agricultural and forest properties, as well as other real estate within the state. The bill expands the definition of "foreign principal" to include individuals and companies on U.S. Treasury sanctions lists, thereby broadening the scope of entities prohibited from acquiring ownership or leasehold interests in specified properties.

Key Provisions

Expanded Definition of Foreign Principal:

The bill modifies the definition to include not just governments and political parties from certain countries, but also any individual or company listed on U.S. Treasury sanctions lists.

Prohibition on Acquisition of Interests:

The bill prohibits foreign principals from acquiring:
Title to or controlling interests in agricultural and forest properties.
Leasehold interests in these properties.

Clarification of Property Types:

Defines "agricultural and forest property" and "real property" specifically as properties located within the state.

Effective Dates:

The prohibition on acquiring title or controlling interests applies to transactions occurring on or after August 1, 2023.
The prohibition on acquiring leasehold interests applies to transactions occurring on or after August 1, 2025.

Affected Parties

Foreign Entities: Individuals and companies from countries identified on U.S. Treasury sanctions lists will be directly impacted, as they will be prohibited from acquiring interests in specified properties.

Property Owners and Investors: Local property owners and investors may see changes in the market dynamics as foreign competition is restricted.

Real Estate Professionals: Title insurers, agents, and real estate licensees will need to navigate the new regulations and ensure compliance.

Procedural Aspects

Legislative Timeline:

Introduced on December 4, 2024.
Read for the first time and referred to the House Committee on Urban and Rural Development on February 4, 2025.
Reported out of committee and read for the second time on February 12, 2025.
Currently, the bill is indefinitely postponed as of May 6, 2025.

Conclusion

House Bill 68 seeks to enhance property protection measures within the state by restricting foreign ownership and leasehold interests in critical agricultural and forest properties. While the bill is currently indefinitely postponed, its implications could significantly affect property transactions and ownership dynamics in the state if enacted.

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