Bill Text: IA HSB663 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to interests in agricultural land acquired or held by foreign businesses, foreign governments, or nonresident aliens, or by agents, trustees, or fiduciaries thereof, by providing for registration and reporting requirements, providing for enforcement, and providing penalties.(See HF 2483.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-02-13 - Committee report approving bill, renumbered as HF 2483. [HSB663 Detail]
Download: Iowa-2023-HSB663-Introduced.html
House
Study
Bill
663
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
GOVERNOR
BILL)
A
BILL
FOR
An
Act
relating
to
interests
in
agricultural
land
acquired
1
or
held
by
foreign
businesses,
foreign
governments,
or
2
nonresident
aliens,
or
by
agents,
trustees,
or
fiduciaries
3
thereof,
by
providing
for
registration
and
reporting
4
requirements,
providing
for
enforcement,
and
providing
5
penalties.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
9I.1,
Code
2024,
is
amended
by
adding
the
1
following
new
subsections:
2
NEW
SUBSECTION
.
4A.
“Interest”
means
any
estate,
remainder,
3
or
reversion,
or
portion
of
the
estate,
remainder,
or
4
reversion,
or
an
option
pursuant
to
which
one
party
has
a
right
5
to
cause
legal
or
equitable
title
to
agricultural
land
to
be
6
transferred.
7
NEW
SUBSECTION
.
4B.
“Intermediary”
means
any
person,
8
including
a
bank,
broker,
or
dealer,
that
makes
business
or
9
financial
arrangements
between
companies
or
organizations
that
10
do
not
deal
with
each
other
directly.
11
NEW
SUBSECTION
.
6.
“Parent”
means
any
corporation
which
12
directly,
or
indirectly
through
one
or
more
intermediaries,
13
controls
more
than
fifty
percent
of
the
voting
stock
of
another
14
corporation.
15
Sec.
2.
Section
9I.7,
Code
2024,
is
amended
to
read
as
16
follows:
17
9I.7
Registration.
18
A
nonresident
alien,
foreign
business
,
or
foreign
19
government,
or
an
agent,
trustee
,
or
fiduciary
thereof,
which
20
owns
an
interest
in
agricultural
land
within
this
state
on
or
21
after
January
1,
1980,
shall
register
the
agricultural
land
22
with
the
secretary
of
state.
The
registration
shall
be
made
23
within
sixty
days
after
January
1,
1980,
or
within
sixty
days
24
after
acquiring
the
land
or
the
interest
in
land,
whichever
25
time
is
the
later.
The
registration
shall
be
in
the
form
26
and
manner
prescribed
by
the
secretary
and
shall
contain
the
27
name
of
the
owner
and
the
location
and
number
of
acres
of
28
the
agricultural
land
by
township
and
county
of
state
.
If
29
the
owner
of
the
agricultural
land
or
owner
of
the
interest
30
in
agricultural
land
is
an
agent,
trustee
or
fiduciary
of
a
31
nonresident
alien,
foreign
business
or
foreign
government,
32
the
registration
shall
also
include
the
name
of
any
principal
33
for
whom
that
land,
or
interest
in
that
land
was
purchased
as
34
agent.
Information
described
in
this
section
is
a
confidential
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record
and
subject
to
use
in
the
same
manner
as
provided
in
1
section
10B.5.
As
part
of
the
registration,
the
nonresident
2
alien,
foreign
business,
or
foreign
government,
or
an
agent,
3
trustee,
or
fiduciary
thereof,
shall
file
all
of
the
following
4
information:
5
1.
The
legal
name,
street
address,
mailing
address,
6
if
different,
and
the
birthplace
and
nationality
of
the
7
nonresident
alien,
foreign
business,
or
foreign
government
that
8
owns
the
interest
in
the
agricultural
land.
9
2.
The
legal
name,
street
address,
mailing
address,
10
if
different,
and
the
birthplace
and
nationality
of
the
11
agent,
trustee,
or
fiduciary
of
the
nonresident
alien,
12
foreign
business,
or
foreign
government
in
subsection
1,
if
13
specifically
authorized
to
do
any
of
the
following:
14
a.
Purchase
the
agricultural
land.
15
b.
Supervise
the
daily
operations
on
the
agricultural
land.
16
3.
A
statement
of
the
purpose
for
conducting
business
in
17
this
state.
18
4.
A
description
of
the
purpose
of
the
interest
in
the
19
agricultural
land
in
this
state
as
it
relates
to
the
stated
20
business
purpose
in
subsection
3.
21
5.
The
legal
name,
street
address,
and
mailing
address
22
of
any
parent
of
the
registering
party,
including
the
legal
23
name,
street
address,
and
mailing
address
of
any
subsidiary
or
24
intermediary
of
the
parent.
25
6.
The
legal
name,
street
address,
and
mailing
address
of
26
any
subsidiary
of
the
registering
party.
27
7.
A
listing
of
all
other
interests
in
agricultural
land
28
that
are
held
directly
or
indirectly
by
the
registering
party,
29
parent
of
the
registering
party,
or
subsidiary
or
intermediary
30
of
the
parent
in
the
United
States
that
exceeds
two
hundred
31
fifty
acres.
32
Sec.
3.
Section
9I.10,
subsection
1,
Code
2024,
is
amended
33
to
read
as
follows:
34
1.
If
the
secretary
of
state
finds
that
a
nonresident
alien,
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foreign
business,
foreign
government,
or
an
agent,
trustee,
1
or
other
fiduciary
thereof,
has
acquired
or
holds
title
to
or
2
interest
in
agricultural
land
in
this
state
in
violation
of
3
this
chapter
or
has
failed
to
timely
register
as
required
under
4
section
9I.7
or
has
failed
to
timely
report
as
required
under
5
section
9I.8
10B.4
,
the
secretary
shall
report
the
violation
6
to
the
attorney
general.
7
Sec.
4.
Section
9I.10,
Code
2024,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
4.
The
attorney
general
may
conduct
an
10
inquiry
or
investigation
regarding
a
violation
of
this
chapter
11
or
section
10B.4.
As
part
of
that
inquiry
or
investigation,
12
and
in
accordance
with
the
Iowa
rules
of
civil
procedure,
the
13
attorney
general
may
issue
a
subpoena
for
the
production
of
14
records,
including
but
not
limited
to
books,
accounts,
papers,
15
correspondence,
memoranda,
purchase
agreements,
files,
or
other
16
documents
in
a
print
or
electronic
format.
If
a
person
refuses
17
compliance,
the
attorney
general
may
seek
enforcement
by
the
18
district
court.
19
Sec.
5.
Section
9I.12,
Code
2024,
is
amended
to
read
as
20
follows:
21
9I.12
Penalty
——
failure
to
timely
file.
22
A
civil
penalty
of
not
more
than
two
thousand
dollars
to
23
exceed
twenty-five
percent
of
the
county’s
assessed
value
of
24
the
subject
agricultural
land
for
the
previous
year
shall
be
25
imposed,
for
each
offense,
upon
a
nonresident
alien,
foreign
26
business
,
or
foreign
government,
or
an
agent,
trustee
,
or
other
27
fiduciary
thereof,
who
fails
to
timely
file
the
registration
as
28
required
by
section
9I.7
,
or
who
fails
to
timely
file
a
report
29
required
by
section
9I.8
.
30
Sec.
6.
Section
10B.4,
subsection
2,
unnumbered
paragraph
31
1,
Code
2024,
is
amended
to
read
as
follows:
32
A
report
required
pursuant
to
this
section
shall
contain
33
information
for
the
reporting
period
regarding
the
reporting
34
entity
as
required
by
the
secretary
of
state
which
shall
at
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least
include
any
updates
to
the
information
provided
in
the
1
registration
to
the
secretary
of
state
in
section
9I.7
and
all
2
of
the
following:
3
Sec.
7.
Section
10B.4,
Code
2024,
is
amended
by
adding
the
4
following
new
subsection:
5
NEW
SUBSECTION
.
4.
The
attorney
general
may
conduct
an
6
inquiry
or
investigation
regarding
a
violation
of
this
section
7
as
provided
in
section
9I.10.
8
Sec.
8.
Section
10B.4A,
Code
2024,
is
amended
to
read
as
9
follows:
10
10B.4A
Suspension
of
other
filing
requirements.
11
The
secretary
of
state
shall
not
prepare
or
distribute
forms
12
for
reports
or
file
reports
otherwise
required
pursuant
to
13
section
9I.8
or
501.103
.
A
person
required
to
file
a
report
14
pursuant
to
this
chapter
is
not
required
to
file
a
report
under
15
those
sections
section
501.103
.
A
person
required
to
file
a
16
report
pursuant
to
this
chapter
is
not
required
to
register
17
with
the
secretary
of
state
as
otherwise
required
in
section
18
9I.7
.
19
Sec.
9.
NEW
SECTION
.
10B.5A
Annual
summary
to
governor
and
20
general
assembly.
21
The
secretary
of
state
shall
prepare
an
annual
summary
of
22
foreign
landholding.
The
summary
must
be
a
report
summarizing
23
the
compiled
information
included
in
the
current
registrations
24
filed
pursuant
to
section
9I.7
and
the
last
reports
filed
25
pursuant
to
section
10B.4.
The
information
is
a
confidential
26
record
as
provided
in
section
22.7.
The
attorney
general
may
27
have
access
to
the
annual
summary
and
may
use
information
28
in
the
annual
summary
in
any
action
to
enforce
state
law,
29
including
but
not
limited
to
chapters
9H
and
9I,
and
this
30
chapter.
The
annual
summary
shall
be
made
available
to
the
31
governor,
members
of
the
general
assembly,
and
appropriate
32
committees
of
the
general
assembly
in
order
to
determine
the
33
extent
that
agricultural
land
is
held
in
this
state
by
foreign
34
entities
and
the
effect
of
such
land
ownership
upon
the
economy
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of
this
state.
Upon
request,
the
secretary
of
state
shall
1
assist
any
committee
of
the
general
assembly
studying
these
2
issues.
3
Sec.
10.
Section
10B.6,
subsection
1,
Code
2024,
is
amended
4
to
read
as
follows:
5
1.
a.
The
Except
as
provided
in
paragraph
“b”
,
the
failure
6
to
timely
file
a
report
or
the
filing
of
false
information
in
a
7
report
as
provided
in
section
10B.4
is
punishable
by
a
civil
8
penalty
not
to
exceed
one
thousand
dollars.
9
b.
The
failure
to
file
a
report
or
the
filing
of
false
10
information
in
a
report
by
a
nonresident
alien,
foreign
11
business,
or
foreign
government,
or
an
agent,
trustee,
or
other
12
fiduciary
thereof
as
provided
in
section
10B.4
is
punishable
by
13
a
civil
penalty
of
up
to
ten
thousand
dollars
for
each
offense.
14
Sec.
11.
REPEAL.
Section
9I.8,
Code
2024,
is
repealed.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
BACKGROUND
——
GENERAL
(CODE
CHAPTERS
9H,
9I,
AND
10B).
19
Currently,
three
related
Code
chapters
impose
requirements
upon
20
the
acquisition
or
holding
of
agricultural
land
suitable
for
21
farming
in
this
state.
22
BACKGROUND
——
FARMING
BY
A
DOMESTIC
OR
FOREIGN
BUSINESS
23
ENTITY
(CODE
CHAPTER
9H).
Code
chapter
9H,
which
is
referred
24
to
but
not
amended
by
this
bill,
restricts
certain
business
25
entities
classified
as
either
domestic
(meaning
formed
in
the
26
state)
or
foreign
(meaning
formed
outside
the
state)
from
27
acquiring
or
holding
agricultural
land,
subject
to
a
number
28
of
exceptions
such
as
a
family
farm
corporation
(Code
section
29
9H.4).
The
Code
chapter’s
reporting
requirement
was
repealed
30
in
2003
(2003
Iowa
Acts,
chapter
115,
sections
17
and
19).
31
BACKGROUND
——
FARMING
BY
A
FOREIGN
PERSON
(CODE
CHAPTER
32
9I).
Code
chapter
9I,
amended
by
the
bill,
restricts
a
foreign
33
person
from
acquiring
agricultural
land
suitable
for
use
in
34
farming
in
this
state
(Code
section
9I.3).
The
Code
chapter
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specifically
describes
a
foreign
person
as
a
foreign
business,
1
foreign
government,
or
nonresident
alien
and
any
authorized
2
representative
of
the
foreign
business,
foreign
government,
or
3
nonresident
alien.
Similarly,
the
Code
chapter
describes
an
4
authorized
representative
as
an
agent,
trustee,
or
fiduciary.
5
A
foreign
business
is
a
corporation
incorporated
under
the
6
laws
of
a
foreign
country
or
any
other
type
of
business
entity
7
(e.g.,
limited
liability
company)
if
the
majority
interest
8
is
owned
directly
or
indirectly
by
one
or
more
nonresident
9
aliens.
A
foreign
person
must
file
two
documents
with
the
10
secretary
of
state,
including
a
one-time
registration
(Code
11
section
9I.7)
and
an
annual
report
(Code
section
9I.8).
The
12
annual
report
must
be
filed
by
a
foreign
person
that
acquires
13
agricultural
land
for
development
and
is
required
to
convert
14
it
for
a
nonfarming
purpose
within
five
years
(Code
section
15
9I.4).
Information
in
the
registration
or
annual
report
is
16
not
a
confidential
record
under
Iowa’s
open
records
law
(Code
17
chapter
22).
A
foreign
person
who
fails
to
file
a
timely
18
annual
report
is
subject
to
a
civil
penalty
of
not
more
than
19
$2,000
(Code
section
9I.12).
If
the
foreign
person
acquires
20
or
fails
to
convert
agricultural
land
to
a
purpose
other
than
21
farming
within
five
years,
the
agricultural
land
escheats
to
22
the
state
pursuant
to
an
enforcement
action
by
the
attorney
23
general
(Code
section
9I.11).
24
BACKGROUND
——
SUPERSEDING
FILING
REQUIREMENTS
(CODE
CHAPTER
25
10B).
Code
chapter
10B
requires
that
a
business
entity
26
described
in
Code
chapter
9H,
or
a
foreign
person
described
27
in
Code
chapter
9I,
acquiring
or
holding
agricultural
land,
28
file
a
biennial
report
with
the
secretary
of
state
(Code
29
section
10B.4).
In
addition,
a
foreign
person’s
duty
to
30
file
a
registration
and
annual
report
under
Code
chapter
9I
31
is
permanently
suspended
(Code
section
10B.4A).
Information
32
published
in
the
biennial
report
is
a
confidential
record
but
33
may
be
released
to
the
attorney
general
and
members
of
the
34
general
assembly
(Code
section
10B.5).
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BILL’S
PROVISIONS
——
REGISTRATION
REQUIREMENT
(CODE
1
CHAPTERS
9I
AND
10B).
The
bill
eliminates
the
suspension
2
of
the
registration
requirement
(Code
section
10B.4A).
The
3
same
confidentiality
requirements
that
currently
apply
to
4
information
in
a
biennial
report
(Code
section
10B.5)
apply
5
to
information
in
the
reinstated
registration
under
Code
6
section
9I.7.
The
bill
requires
specific
information
to
7
be
included
in
the
registration.
A
foreign
person
must
8
provide
its
legal
name,
mailing
address,
and
nationality.
An
9
authorized
representative
of
a
foreign
person
must
state
the
10
representative’s
legal
name,
street
and
mailing
address,
and
11
nationality;
and
its
authority
to
purchase
the
agricultural
12
land
and
supervise
any
daily
operations
on
the
agricultural
13
land.
The
foreign
person
must
include
a
statement
of
the
14
purpose
of
conducting
a
business
in
this
state;
a
description
15
of
the
purpose
in
the
interest
in
the
agricultural
land;
the
16
legal
name
and
mailing
address
of
a
parent
corporation,
or
an
17
intermediary
or
subsidiary
of
the
parent
corporation;
and
a
18
listing
of
all
other
interests
in
agricultural
land
totaling
19
more
than
250
acres
held
in
the
United
States
by
the
foreign
20
person,
a
parent
of
the
foreign
corporation,
or
intermediary
or
21
subsidiary
of
the
parent.
22
BILL’S
PROVISIONS
——
INQUIRY
OR
INVESTIGATION
BY
THE
23
ATTORNEY
GENERAL
(CODE
CHAPTERS
9I
AND
10B).
The
bill
24
authorizes
the
attorney
general
to
conduct
an
inquiry
or
25
investigation
regarding
a
violation
of
Code
chapter
9I
(Code
26
section
9I.10)
or
the
biennial
reporting
requirements
in
Code
27
chapter
10B
(Code
section
10B.4).
This
includes
the
power
to
28
issue
a
subpoena
for
the
production
of
records,
and
to
seek
29
compliance
of
the
subpoena
in
district
court.
30
BILL’S
PROVISIONS
——
PENALTIES
(CODE
CHAPTER
9I).
The
bill
31
changes
the
civil
penalty
imposed
for
failing
to
timely
file
32
a
registration
to
an
amount
not
more
than
25
percent
of
the
33
county’s
assessed
value
of
the
subject
agricultural
land
for
34
the
previous
year,
and
retains
language
referring
to
“each
35
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_____
H.F.
_____
offense”.
1
BILL’S
PROVISIONS
——
REPORTING
REQUIREMENTS
(CODE
CHAPTERS
2
9I
AND
10B).
The
bill
eliminates
the
suspended
annual
3
reporting
requirements
in
Code
chapter
9I
(Code
section
4
10B.4A).
Unlike
the
reinstated
registration
requirement,
the
5
annual
reporting
requirement
is
repealed
(Code
section
9I.8).
6
The
bill
amends
the
biennial
reporting
requirements
in
Code
7
chapter
10B
(Code
section
10B.4).
Specifically,
the
biennial
8
report
must
include
any
updates
to
the
information
stated
9
in
the
registration.
The
secretary
of
state
must
prepare
10
an
annual
summary
of
compiled
information
in
the
current
11
registrations
and
last
filed
reports
(Code
section
10B.5A).
12
The
information
is
a
confidential
record.
However,
the
bill
13
creates
an
exception
allowing
access
to
the
record
by
the
14
attorney
general
for
enforcement
purposes,
and
the
governor
and
15
general
assembly
for
public
policy
purposes.
16
BILL’S
PROVISIONS
——
PENALTIES
(CODE
CHAPTER
10B).
The
17
civil
penalty
for
failing
to
timely
file
a
biennial
report
or
18
filing
false
information
in
such
report
is
increased
to
an
19
amount
of
not
more
than
$10,000
for
violations
by
a
foreign
20
person.
There
is
another
reference
to
“each
offense”
(Code
21
section
10B.6).
22
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