103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3543

 

Introduced 2/9/2024, by Sen. Jason Plummer

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Military Installation and Critical Infrastructure Protection Act. Prohibits a foreign principal from a foreign adversary country from directly or indirectly owning, having an interest of greater than 25% in, or acquire by purchase, grant, devise, or descent agricultural land or any interest except a de minimis indirect interest. "Foreign adversary" means the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab Republic, including any agent of or any other entity under significant control of such foreign adversary, or any other entity deemed by the Governor in consultation with the Illinois Attorney General. Prohibits a foreign principal from a foreign adversary from leasing or purchasing land within 25 miles of a military installation. Voids any current contract in conflict with this Act. Prohibits a foreign principal from accessing critical infrastructure of the State unless approved by the Illinois Emergency Management Agency and bans certain software from being used in the State infrastructure. Defines terms. Makes other changes. Effective July 1, 2024.


LRB103 39057 JRC 69194 b

 

 

A BILL FOR

 

SB3543LRB103 39057 JRC 69194 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title; purpose.
5    (a) This Act may be cited as the Military Installation and
6Critical Infrastructure Protection Act.
7    (b) The purpose of this Act is to protect military
8installations and State critical infrastructure by prohibiting
9foreign adversaries from purchasing land near military bases
10and from investing in and accessing State critical
11infrastructure.
 
12    Section 2. Definitions. In this Act:
13    (a) "Agricultural land" means a land area that is either
14arable, under permanent crops, or under permanent pastures.
15Arable land includes land under temporary crops such as
16cereals, temporary meadows for mowing or pasture, land under
17market or kitchen gardens, and land temporarily fallow. Land
18abandoned as a result of shifting cultivation is excluded.
19Land under permanent crops is cultivated with crops that
20occupy the land for long periods and need not be replanted
21after each harvest, such as orchards or vineyards. This
22category excludes land under trees grown for wood or timber.
23Permanent pasture land is land used for 5 or more years for

 

 

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1forage, including natural and cultivated crops.
2    (b) "Company" means a for-profit sole proprietorship,
3organization, association, corporation, partnership, joint
4venture, limited partnership, limited liability partnership,
5or limited liability company, including a wholly owned
6subsidiary, majority-owned subsidiary, parent company, or
7affiliate of those entities or business associations that
8exists to make a profit; or a non-profit organization.
9    (c) "Critical infrastructure" means systems and assets,
10whether physical or virtual, so vital to Illinois or the
11United States of America that the incapacity or destruction of
12such systems and assets would have a debilitating impact on
13State or national security, State or national economic
14security, State or national public health, or any combination
15of those matters. A critical infrastructure may be publicly or
16privately owned, and includes, but is not limited to:
17        (1) gas and oil production, storage, or delivery
18    systems;
19        (2) water supply, refinement, storage, or delivery
20    systems;
21        (3) telecommunications networks;
22        (4) electrical power delivery systems;
23        (5) emergency services;
24        (6) transportation systems and services; or
25        (7) personal data or otherwise classified information
26    storage systems, including cybersecurity.

 

 

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1    (d) "Cybersecurity" means the measures taken to protect a
2computer, computer network, computer system, or other
3technology infrastructure against unauthorized use or access.
4    (e) "Domicile" means either the country in which a company
5is registered, or where the company's affairs are primarily
6completed, or where the majority of ownership share is held.
7    (f) "Foreign adversary" means the People's Republic of
8China, the Russian Federation, the Islamic Republic of Iran,
9the Democratic People's Republic of Korea, the Republic of
10Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian
11Arab Republic, including any agent of or any other entity
12under significant control of such foreign adversary, or any
13other entity deemed by the Governor in consultation with the
14Attorney General of Illinois.
15    (g) "Foreign entity" means any corporation, business
16association, partnership, trust, society, or any other entity
17or group that is not incorporated or organized to do business
18in the United States, as well as international organizations,
19foreign governments, and any agency or subdivision of foreign
20governments.
21    (h) "Foreign principal" means:
22        (1) the government or any official of the government
23    of a foreign adversary;
24        (2) a political party or member of a political party
25    or any subdivision of a political party of a foreign
26    adversary;

 

 

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1        (3) a partnership, association, corporation,
2    organization, or other combination of persons organized
3    under the laws of or having its principal place of
4    business in a foreign adversary, or a subsidiary of such
5    entity, or owned or controlled wholly or in part by any
6    person, entity, or collection of persons or entities of a
7    foreign adversary;
8        (4) any person who is domiciled in a foreign adversary
9    and is not a citizen or lawful permanent resident of the
10    United States; or
11        (5) any person, entity, or collection of persons or
12    entities, described in paragraphs (a) through (d) having a
13    controlling interest in a partnership, association,
14    corporation, organization, trust, or any other legal
15    entity or subsidiary formed for the purpose of owning real
16    property.
17    (i) "Non-notified transactions" means foreign investments
18in the United States that are not voluntarily submitted to the
19Committee on Foreign Investment in the United States for
20review under 50 U.S.C. 4565.
21    (j) "Operational software" means computer programs used
22for the operation, control, maneuver or maintenance of State
23infrastructure, or any other computer program applications
24related to State infrastructure.
25    (k) "Software" means any program or routine, or any set of
26one or more programs or routines, which are used or intended

 

 

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1for use to cause one or more computers or pieces of computer
2related peripheral equipment, or any combination thereof, to
3perform a task or set of tasks, as it relates to State
4infrastructure, or any operational software.
5    (l) "State infrastructure" means Critical Infrastructure
6and Transportation Infrastructure.
7    (m) "Transportation infrastructure" includes, but is not
8limited to:
9        (1) Airports, including but not limited to commercial
10    and intermodal airports and heliports; and all airport
11    infrastructure.
12        (2) Roadways, including but not limited to publicly
13    accessible streets, roads, highways, and bridges; and all
14    roadway infrastructure, including but not limited to
15    signage, toll booths, weigh stations, and traffic signals.
16        (3) Railways, including but not limited to all classes
17    of freight rail and passenger rail; and all railway
18    infrastructure, including but not limited to intermodal
19    rail yards and signals.
20        (4) Ports, including but not limited to inland ports,
21    seaports, deepwater ports, inland waterways, and levees;
22    and all port infrastructure, including but not limited to
23    intermodal stations.
24        (5) Public transit, including bus, ferry, cable car,
25    tram, trolley, and other types of publicly accessible
26    transportation; and all public transit infrastructure.

 

 

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1    (n) "Military base or installation" means any land,
2structure, or property owned or controlled by any division of
3the Department of Defense, Illinois National Guard, or any
4other department of government, State or federal, critical to
5the safety and security of Illinois or the United States of
6America.
 
7    Section 3. Agricultural land purchases.
8    (a) A foreign principal from a foreign adversary country
9may not directly or indirectly own, have an interest of
10greater than 25% in, or acquire by purchase, grant, devise, or
11descent agricultural land or any interest, except a de minimis
12indirect interest, in such land in this State. A foreign
13principal has a de minimis indirect interest if any ownership
14is the result of the foreign principal's ownership of
15registered equities in a publicly traded company owning the
16land and if the foreign principal's ownership in the country
17is either:
18        (1) less than 5% of any class of registered equities
19    or less than 5% in the aggregate in multiple classes of
20    registered equities; or
21        (2) a noncontrolling interest in an entity controlled
22    by a company that is both registered with the United
23    States Securities and Exchange Commission as an investment
24    advisor under the Investment Advisers Act of 1940, as
25    amended, and is not a foreign entity.

 

 

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1    (b) A foreign principal that directly or indirectly owns
2or otherwise controls agricultural land, as defined in
3subsection (a), in this State must sell, transfer, or
4otherwise divest itself of the agricultural land within 180
5days of the effective date of this Act.
6    (c) A foreign principal that directly or indirectly owns
7or acquires agricultural land or any interest in such land in
8this State must register with the Department of Agriculture
9within 60 days of the enactment of this Act or the date of
10acquisition, whichever is latest. The Department must
11establish a form for such registration, which, at minimum,
12must include all of the following:
13        (1) The name of the owner of the agricultural land or
14    the owner of the interest in such land;
15        (2) The address of the agricultural land, the property
16    appraiser's parcel identification number, and the
17    property's legal description; and
18        (3) The number of acres of the agricultural land.
19    (d) Notwithstanding subsection (a), a foreign principal
20from a foreign adversary country may acquire agricultural land
21on or after the passage of this Act, by devise or descent,
22through the enforcement of security interests, or through the
23collection of debts, provided that the foreign principal
24sells, transfers, or otherwise divests itself of the
25agricultural land within 180 days of acquiring the
26agricultural land.

 

 

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1    (e) Any current deeds, contracts, rental agreements, or
2other legal agreements in conflict with this Act shall be
3deemed invalid from the date of adoption unless otherwise
4provided.
5    (f) The Department of Agriculture shall adopt rules to
6implement this Section.
7    (g) The responsibility for determining whether an entity
8is subject to this Section rests solely with the foreign
9entity, the Attorney General of Illinois, any qualifying
10whistleblower, and no other individual or entity. An
11individual or entity who is not a foreign entity shall not be
12required to determine or inquire whether another person or
13entity is or may be subject to this Section, and shall bear no
14civil or criminal liability under this Section.
15    (h) If a foreign principal from a foreign adversary
16country does not divest the public or private lands as
17required by this Section, the Attorney General shall commence
18an action in the circuit court within the jurisdiction of the
19public or private land.
20    (i) If the public or private land is held in violation of
21this Section, the circuit court shall order that the public or
22private land be sold through judicial foreclosure.
23    (j) If a whistleblower referral results in a divestiture
24of land or other assets held in violation of this Section, the
25whistleblower shall be entitled to a reward equal to 30% of the
26proceeds of the land sale that results from the violation of

 

 

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1this Section after payments to lienholders. Proceeds of the
2sale shall be disbursed in the following order, as applicable:
3        (1) The payment of authorized costs of the sale,
4    including all approved fees and expenses of the referee
5    and any taxes and assessments due.
6        (2) The payment, in an amount approved by the court,
7    to the Attorney General for reimbursement of investigation
8    and litigation costs and expenses.
9        (3) To bona fide lien holders, in their order of
10    priority, except for liens which under the terms of the
11    sale are to remain on the property.
12        (4) To whistleblowers.
13        (5) To the restricted foreign entity.
 
14    Section 4. Prohibited lease or purchase of land or
15dwellings near military installations.
16    (a) A foreign principal from a foreign adversary country
17shall not be allowed to directly or indirectly purchase, hold,
18rent, or otherwise control any property within 25 miles of a
19military base or installation.
20    (b) A foreign principal that directly or indirectly
21controls any property covered by subsection (a), excluding
22temporary contractual agreements such as rental or lease
23agreements, must sell, transfer, or otherwise divest itself of
24the property within 180 days of the passage of this Act.
25    (c) Any current deeds, contracts, rental agreements, or

 

 

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1other legal agreements in conflict with this Act shall be
2deemed invalid from the date of adoption unless otherwise
3provided.
4    (d) If a foreign principal from a foreign adversary
5country does not divest the public or private lands as
6required by this Section, the Attorney General shall commence
7an action in the circuit court within the jurisdiction of the
8public or private land.
9    (e) If the public or private land is held in violation of
10this Section, the circuit court shall order that the public or
11private land be sold through judicial foreclosure.
12    (f) If a whistleblower referral results in a divestiture
13of land or other assets held in violation of this Section, the
14whistleblower shall be entitled to a reward equal to 30% of the
15proceeds of the land sale that results from the violation of
16this Section after payments to lienholders. Proceeds of the
17sale shall be disbursed in the following order, as applicable:
18        (1) The payment of authorized costs of the sale,
19    including all approved fees and expenses of the referee
20    and any taxes and assessments due.
21        (2) The payment, in an amount approved by the court,
22    to the Attorney General for reimbursement of investigation
23    and litigation costs and expenses.
24        (3) To bona fide lien holders, in their order of
25    priority, except for liens which under the terms of the
26    sale are to remain on the property.

 

 

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1        (4) To whistleblowers.
2        (5) To the restricted foreign entity.
3    (g) The responsibility for determining whether an entity
4is subject to this Section rests solely with the foreign
5entity, the Attorney General of Illinois, any qualifying
6whistleblower, and no other individual or entity. An
7individual or entity who is not a foreign entity shall not be
8required to determine or inquire whether another person or
9entity is or may be subject to this Section, and shall bear no
10civil or criminal liability under this Section.
 
11    Section 5. Whistleblower enforcement reward.
12    (a) Any individual may act as a whistleblower and provide
13a referral to the Office of the Illinois Attorney General for
14violations of Section 3 and Section 4 of this Act.
15    (b) If a whistleblower referral results in a divestiture
16of land or other assets held in violation of this Act, the
17whistleblower shall be entitled to a reward equal to 30% of the
18proceeds of the land sale that results from violation of this
19Act.
20    (c) The whistleblower enforcement provision takes effect
21180 days after the effective date of this Act.
 
22    Section 6. Prohibited access to critical infrastructure.
23    (a) An entity constructing, repairing, operating, or
24otherwise having significant access to critical infrastructure

 

 

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1may not enter into an agreement relating to critical
2infrastructure in this State with a foreign principal from a
3foreign adversary country, or use products or services
4produced by a foreign principal from a foreign adversary
5country.
6    (b) A governmental entity may not enter into a contract or
7other agreement relating to critical infrastructure in this
8State with a company that is a foreign principal from a foreign
9adversary country, or use products or services produced by a
10foreign principal from a foreign adversary country.
11    (c) Notwithstanding subsections (a) and (b), an entity or
12governmental entity may enter into a contract or agreement
13relating to critical infrastructure with a foreign principal
14from a foreign adversary country or use products or services
15produced by a foreign principal from a foreign adversary
16country if:
17        (1) there is no other reasonable option for addressing
18    the need relevant to State critical infrastructure;
19        (2) the contract is pre-approved by Illinois Emergency
20    Management Agency and Office of Homeland Security; and
21        (3) not entering into such a contract or agreement
22    would pose a greater threat to the State than the threat
23    associated with entering into the contract.
 
24    Section 7. Requirements for access to critical
25infrastructure.

 

 

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1    (a) In order to access critical infrastructure, a company
2must file a certification form with and pay a certification
3fee to the Illinois Emergency Management Agency and Office of
4Homeland Security. The Agency shall prescribe the registration
5form to be filed pursuant to this Section.
6    (b) To maintain registration as a company with access to
7critical infrastructure, a company must:
8        (1) identify all employee positions in the
9    organization that have access to critical infrastructure;
10        (2) before hiring a person described in subdivision
11    (a) or allowing such person to continue to have access to
12    critical infrastructure, obtain from the Illinois State
13    Police or a private vendor criminal history record
14    information relating to the prospective employee and any
15    other background information considered necessary by the
16    company or required by the Agency to protect critical
17    infrastructure from foreign adversary infiltration or
18    interference;
19        (3) prohibit foreign nationals from an adversary
20    nation from access to critical infrastructure; and
21        (4) be compliant with Section 6 of this Act.
22    (c) The Agency shall set the fee in an amount sufficient to
23cover the costs of administering the certification process but
24not to exceed $150.
25    (d) The Agency shall provide that a company is compliant
26with all requirements of this Section or revoke certification.
 

 

 

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1    Section 8. Prohibitions on certain software in critical
2infrastructure.
3    (a) All software used in State infrastructure located
4within or serving Illinois shall henceforth not include any
5software produced by a federally banned corporation, nor any
6software banned at the federal level.
7    (b) All software used in State infrastructure located
8within or serving Illinois shall henceforth not include any
9software produced in or by a foreign adversary, a State-owned
10enterprise of a foreign adversary, or a company domiciled
11within a foreign adversary.
12    (c) All software used in State infrastructure in operation
13within or serving Illinois, to include any State
14infrastructure which is not permanently disabled, shall have
15all software prohibited by subsection (a) or (b)removed and
16replaced with software that
is not prohibited by subsection
17(a) or (b).
18    (d) Any State infrastructure provider that removes,
19discontinues, or replaces any prohibited software shall not be
20required to obtain any additional permits from any State
21agency or political subdivision for the removal,
22discontinuance, or replacement of such software as long as the
23State agency or political subdivision is properly notified of
24the necessary replacements and the replacement software is
25similar to the existing software.
 

 

 

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1    Section 9. Reporting non-notified transactions.
2    (a) The Office of the Illinois Attorney General shall
3establish a process by which local officials, states
4officials, or other persons may submit information or concerns
5to the Office regarding non-notified transactions in Illinois.
6The Office of the Illinois Attorney General may adopt any
7necessary rules to implement this subsection.
8    (b) The Illinois Attorney General may submit a memorandum
9or report concerning non-notified transactions the Office of
10the Attorney General has identified in Illinois to the
11Committee on Foreign Investment in the United States.
12    (c) The Office of the Illinois Attorney General shall:
13        (1) retain a copy of any documents submitted to the
14    committee described in subsection (b) that are included
15    with a memorandum or report submitted under that
16    subsection; and
17        (2) notify the General Assembly and the Governor as
18    soon as practicable after submitting a memorandum, report,
19    or other information under subsection (b).
 
20    Section 10. Severability. If any provision of this Act, or
21the application of any provision to any person or
22circumstance, is held to be invalid, the remainder of this Act
23and the application of its provisions to any other person or
24circumstance shall not be affected thereby.
 

 

 

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1    Section 99. Effective date. This Act takes effect July 1,
22024.