CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 475

Introduced by Assembly Members Mathis and Quirk-Silva

February 07, 2023

An act to add Chapter 6 (commencing with Section 747) to Title 2 of Part 1 of Division 2 of the Civil Code, relating to property.


LEGISLATIVE COUNSEL'S DIGEST


AB 475, as introduced, Mathis. Sensitive military land: foreign ownership and interests: foreign governments.
Existing law provides that all property has an owner, whether that owner is the state, and the property is public, or the owner is an individual, and the property is private. Existing law establishes the California National Guard and regulates the operation of that force. The United States Constitution authorizes Congress to provide for the common defense and general welfare of the United States.
This bill would prohibit a foreign government from purchasing, acquiring, leasing, or holding an interest, as defined, in any land that is located within 50 miles of a United States military base or California National Guard base within the State of California. The bill would exempt land held by foreign governments before January 1, 2024, from that prohibition. The bill would provide that these provisions may not be applied in a manner inconsistent with any provision of any treaty between the United States and another country.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 6 (commencing with Section 747) is added to Title 2 of Part 1 of Division 2 of the Civil Code, to read:
CHAPTER  6. Foreign Governments and Property Ownership

747.
 For purposes of this chapter, the following definitions apply:
(a) “Controlling interest” means either of the following:
(1) Possession of 51 percent or more of the ownership interests in an entity.
(2) A percentage ownership interest in an entity of less than 51 percent, if the foreign government actually directs the business and affairs of the entity without the requirement or consent of any other party.
(b) “Foreign government” means a government or the state-controlled enterprise of a foreign government, except “foreign government” does not include the government of the United States, its states, territories, or possessions, or federally recognized tribes or their government units and enterprises.
(c) “Interest” means any estate, remainder, or reversion enumerated in Chapter 1 (commencing with Section 761) of Title 2 of Part 2, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to agricultural land to be transferred.
(d) “Sensitive land” means any land within the state that is located within 50 miles of a United States Military base or California National Guard base.
(e) “State-controlled enterprise” means a business enterprise, however denominated, in which the government has a controlling interest.

747.5.
 (a) Notwithstanding any other law, on and after January 1, 2024, a foreign government shall not purchase, acquire, lease, or hold any interest in sensitive land in the State of California.
(b) This section does not apply to any interest in sensitive land held by a foreign government before January 1, 2024.
(c) This section does not apply to a federally recognized Indian tribe or its government units and enterprises.
(d) A transfer of an interest in land in violation of this section is void.
(e) This section shall not be applied in a manner inconsistent with any provision of any treaty between the United States and another country.