SB2668 103RD GENERAL ASSEMBLY

LRB103 34872 LNS 64735 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2668

Introduced 1/10/2024, by Sen. Sally J. Turner

SYNOPSIS AS INTRODUCED:

See Index

Amends the Property Owned By Noncitizens Act. Provides that a prohibited foreign-party-controlled business shall not acquire by grant, purchase, devise, descent, or otherwise any interest in public or private land in the State. Provides that a prohibited foreign-party-controlled business entity in violation of the provisions has 2 years to divest of the public or private land, and if a prohibited foreign-party-controlled business entity does not divest the public or private land, the Attorney General shall commence an action in the circuit court within the jurisdiction of the public or private land. Provides that a prohibited foreign party shall not acquire by grant, purchase, devise, descent, or otherwise any interest in agricultural land in the State regardless of whether the prohibited foreign party intends to use the agricultural land for nonfarming purposes. Provides that a prohibited foreign party who is a resident alien of the United States shall have the right to acquire and hold agricultural land in the State upon the same terms as a citizen of the United States during the continuance of his or her residence in the State, but if a prohibited foreign party is no longer a resident alien, he or she shall have 2 years to divest of the agricultural land, and that if the prohibited foreign party does not divest of the agricultural land as required, the Attorney General shall commence an action in circuit court within the jurisdiction of the agricultural land. Provides that violation of the provisions by either a prohibited foreign-party-controlled business entity or a prohibited foreign party owning agricultural land shall, upon conviction, be guilty of a Class 4 felony punishable by not more than 2 years imprisonment in the custody of the Department of Corrections or a $15,000 fine, or both. Creates the Office of Agricultural Intelligence within the Department of Agriculture to collect and analyze information concerning the unlawful sale or possession of agricultural land by prohibited foreign parties and administer and enforce the provisions of the Act.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Policy. It is the declared policy of the State to conserve, protect, and encourage the development and improvement of its agricultural and forest lands and other facilities for the production of food, fiber, and other agricultural and silvicultural products.

Section 5. The Property Owned By Noncitizens Act is amended by changing Section 7 and by adding Sections 1, 9, 10, 11, and 12 as follows:

(765 ILCS 60/1 new)

Sec. 1. Definitions. As used in this Act:

"Agricultural land" means any land in the State that is outside the corporate limits of a municipality and is:

(1) used for forestry production, including, but not limited to, land exceeding 10 acres in which 10% of the land is stocked by trees of any size, including land that formerly had trees of any size covering the land that will be naturally or artificially regenerated; or

(2) currently used for, or, if currently idle, land last used within the past 5 years, for farming, ranching, or timber production, except land not exceeding 10 acres in the aggregate, if the annual gross receipts from the sale of the farm, ranch, or timber products produced on the land do not exceed $1,000, including, but not limited to, land used for activities described in the Standard Industrial Classification Manual (1987), Division A, exclusive of industry numbers 0711-0783, 0851, and 0912-0919, which cover animal trapping, game management, hunting carried on as a business enterprise, trapping carried on as a business enterprise, and wildlife management.

"Agricultural land" does not include oil, gas, and all other minerals, including coal, lignite, brine, and all minerals known and recognized as commercial minerals underlying the land.

"Controlling interest" means an ownership interest of 50% or more, in the aggregate.

"Foreign government" means any government other than (i) the federal government or (ii) the government of a state or a political subdivision of a state.

"Interest in agricultural land" means the direct interest acquired, transferred, or held in agricultural land, including, but not limited to, a lease of agricultural land:

(1) for a term of one year or longer; or

(2) renewable by option for terms that, if the options were all exercised, would total one year.

"Party" means any individual, corporation, company, association, firm, partnership, society, joint-stock company, trust, estate, or any other legal entity.

"Prohibited foreign-party-controlled business" means a corporation, company, association, firm, partnership, society, joint-stock company, trust, estate, or other legal entity whose controlling interest is owned by a prohibited foreign party.

"Prohibited foreign party" means:

(1) a citizen or resident of a country subject to the International Traffic in Arms Regulation, 22 CFR 120-130;

(2) a foreign government formed within a country subject to the International Traffic in Arms Regulation, 22 CFR 120-130;

(3) a party, other than an individual or a government, created or organized under the laws of a foreign government within a country subject to the International Traffic in Arms Regulation, 22 CFR 120-130;

(4) any party, other than an individual or a government:

(A) that is created or organized under the laws of any state; and

(B) in which a significant interest or substantial control is directly or indirectly held or is capable of being exercised by:

(i) an individual referred to in paragraph (1) of this definition;

(ii) a foreign government referred to in paragraph (2) of this definition;

(iii) a party referred to in paragraph (3) of this definition; or

(iv) a combination of the individuals, parties, or governments referred to in this subparagraph;

(5) an entity of particular concern designated by the United States Department of State; or

(6) an agent, trustee, or other fiduciary of a person or entity enumerated in paragraphs (1) through (5) of this definition.

"Residence" means a person's principal dwelling place where the person intends to remain permanently for an indefinite period of time.

"Resident alien" means a person who:

(1) is not a citizen of the United States; and

(2) is a resident of a:

(A) state of the United States;

(B) territory of the United States;

(C) trusteeship of the United States; or

(D) protectorate of the United States.

"Significant interest" or "substantial control" means:

(1) an interest of 33% or more held by:

(A) a party referred to in paragraph (4) of the definition of "prohibited foreign party";

(B) a party referred to in paragraph (1) of the definition of "prohibited foreign party";

(C) a party referred to in paragraph (3) of the definition of "prohibited foreign party"; or

(D) a single government referred to in paragraph (2) of the definition of "prohibited foreign party";

(2) an interest of 33% or more held whenever the parties, individuals, or governments referred to in subparagraph (A) of paragraph (1) of this definition are acting in concert with respect to the interest even though no single individual, party, or government holds an interest of 33% or more; or

(3) an interest of 50% or more, in the aggregate, held by parties, individuals, or governments referred to in subparagraph (A) of paragraph (1) of this definition even though the individuals, parties, or foreign governments may not be acting in concert.

(765 ILCS 60/7) (from Ch. 6, par. 7)

Sec. 7. Except as provided in Sections 9, 10, and 11, all All noncitizens may acquire, hold, and dispose of real and personal property in the same manner and to the same extent as natural born citizens of the United States, and the personal estate of a noncitizen dying intestate shall be distributed in the same manner as the estates of natural born citizens, and all persons interested in such estate shall be entitled to proper distributive shares thereof under the laws of this state, whether they are noncitizens or not.

This amendatory Act of 1992 does not apply to the Agricultural Foreign Investment Disclosure Act.

(Source: P.A. 102-1030, eff. 5-27-22.)

(765 ILCS 60/9 new)

Sec. 9. Land ownership by prohibited foreign-party-controlled business prohibited.

(a) A prohibited foreign-party-controlled business shall not acquire by grant, purchase, devise, descent, or otherwise any interest in public or private land in this State. A party may not hold public or private land as an agent, trustee, or other fiduciary for a prohibited foreign-party-controlled business in violation of this Section.

(b) A prohibited foreign-party-controlled business entity in violation of this Section shall have 2 years to divest of the public or private land. If a prohibited foreign-party-controlled business entity does not divest the public or private land, the Attorney General shall commence an action in the circuit court within the jurisdiction of the public or private land. If the public or private land is held in violation of this Section, the circuit court shall order that the public or private land be sold through judicial foreclosure. Proceeds of the sale shall be disbursed to lienholders, in the order of priority, except for liens that, under the terms of the sale, are to remain on the public or private land. The Attorney General shall promptly record a copy of the following in the local land records:

(1) upon commencement, notice of the pendency of an action brought under this subsection; and

(2) the order for the sale of the public or private land under this subsection.

(c) A prohibited foreign-party-controlled business entity shall, upon conviction for a violation of this Section, be guilty of a Class 4 felony punishable by not more than 2 years imprisonment in the custody of the Department of Corrections or a $15,000 fine, or both.

(d) It is an affirmative defense to prosecution under this Section that a prohibited foreign-party-controlled business entity is a resident alien of the State.

(e) Title to public or private land is not invalid or subject to divestiture due to a violation of this Section by:

(1) any former owner; or

(2) other person holding or owning a former interest in the public or private land.

(f) No person not subject to this Section shall be required to determine or inquire into whether another person is or may be subject to this Section.

(765 ILCS 60/10 new)

Sec. 10. Foreign ownership of agricultural land.

(a) A prohibited foreign party shall not acquire by grant, purchase, devise, descent, or otherwise any interest in agricultural land in this State regardless of whether the prohibited foreign party intends to use the agricultural land for nonfarming purposes. A party may not hold agricultural land as an agent, trustee, or other fiduciary for a prohibited foreign party in violation of this Section.

(b) A prohibited foreign party that acquires agricultural land in violation of this Section remains in violation as long as the prohibited foreign party holds an interest in the agricultural land.

(765 ILCS 60/11 new)

Sec. 11. Interest in agricultural land owned by prohibited foreign parties; exceptions; penalties.

(a) A prohibited foreign party who is a resident alien of the United States shall have the right to acquire and hold agricultural land in the State upon the same terms as a citizen of the United States during the continuance of his or her residence in the State.

(b) If a prohibited foreign party is no longer a resident alien under subsection (a), he or she shall have 2 years to divest of the agricultural land. If the prohibited foreign party does not divest of the agricultural land as required by this subsection, the Attorney General shall commence an action in circuit court within the jurisdiction of the agricultural land. If the agricultural land is held in violation of this Section, the circuit court shall order that the agricultural land be sold through judicial foreclosure.

(c) When the Office of Agricultural Intelligence determines a prohibited foreign party has acquired agricultural land in this State in violation of this Section, the Office of Agricultural Intelligence shall report the violation to the Attorney General. Upon receiving notice under this subsection or upon receipt of information that leads the Attorney General to believe that a violation of this Section may exist, the Attorney General may issue subpoenas requiring the:

(1) appearance of witnesses;

(2) production of relevant records; and

(3) giving of relevant testimony.

If, as a result of the investigation under this subsection, the Attorney General concludes that a violation of this Section has occurred, the Attorney General shall commence an action in circuit court within the jurisdiction of the agricultural land. If the agricultural land is held in violation of this Section, the circuit court shall order that the agricultural land be sold through judicial foreclosure.

(d) The proceeds of a sale of agricultural land by judicial foreclosure authorized under this Section shall be disbursed to lienholders, in the order of priority, except for liens which under the terms of the sale are to remain on the agricultural land. The Attorney General shall promptly record a copy of the following in the local land records:

(1) upon commencement, notice of the pendency of an action under this Section; and

(2) the order for the sale of agricultural land under this Section.

(e) A prohibited foreign party owning agricultural land subsequent to the effective date of this amendatory Act of the 103rd General Assembly and not listed under an exception in subsection (a) or (b) shall, upon conviction, be guilty of a Class 4 felony punishable by not more than 2 years imprisonment in the custody of the Department of Corrections or a $15,000 fine, or both.

(f) It is an affirmative defense to prosecution under this Section that a prohibited foreign party is a resident alien of the State.

(g) Title to agricultural land is not invalid or subject to divestiture due to a violation of this Section by:

(1) any former owner; or

(2) other person holding or owning a former interest in the agricultural land.

(h) No person not subject to this Section shall be required to determine or inquire into whether another person is or may be subject to this Section.

(765 ILCS 60/12 new)

Sec. 12. Office of Agricultural Intelligence.

(a) There is created within the Department of Agriculture the Office of Agricultural Intelligence.

(b) The Office of Agricultural Intelligence is authorized and directed to:

(1) collect and analyze information concerning the unlawful sale or possession of agricultural land by prohibited foreign parties; and

(2) administer and enforce the provisions of this Act, including, but not limited to, the reporting of a violation of this Act to the Attorney General under subsection (c) of Section 11.

(c) The Director of Agriculture may designate employees of the Department of Agriculture who have the power of a peace officer or institutional law enforcement officer in the enforcement of criminal laws of this State to perform the duties of the Office of Agricultural Intelligence under subsection (b).

(d) The Office of Agricultural Intelligence shall operate under the direction of the Director of Agriculture.