SB 9 — House Substitute for SB 9 by Committee on Commerce, Labor and Economic Development - Prohibiting foreign principals from acquiring interests in real estate in proximity to military installations, state agencies and local government from purchasing drones or critical components of drones from foreign principals or that are manufactured in countries of concern and foreign principals from receiving benefits from economic development programs.

Session of 2025 House Substitute for SENATE BILL No.

9 By Committee on Commerce, Labor and Economic Development 3-5 AN ACT concerning property;

or H Sub SB 9 2 (2) nonprofit organization.

117-263 and such company is not adomiciled foreignHouse entity.Substitute for SENATE BILL No.

9—page 2 outside of the United States.

(4) property that has been purchased, acquired, constructed, reconstructed, improved, equipped, furnished, repaired, enlarged or remodeled with all or any part of the proceeds of revenue bonds issued under any authority granted in article 17 of chapter 12 of the Kansas HStatutes SubAnnotated, SB 9 3 StatutesAnnotated, and amendments thereto;

(g) "Foreign entity"principal" meansmeans: any company whose domicile is any country other than the United States.

(h) "Foreign principal" means:

(i) "Fusion(h) "Fusion center oversight board" means the fusion center oversight board established in K.S.A.

(j) "Interest(i) "Interest in real property" means any:

(k) "Military(j) "Military installation" means any land, buildings or other structures owned or controlled by any division of the United States department of defense, Kansas national guard or any other federal or stateHouse agencySubstitute thatfor isSENATE criticalBILL toNo. the safety and security of Kansas or the United States.

H9—page Sub3 SBstate 9agency 4 (l) "Non-notified transaction" means any transaction involving foreign investment in the United States that is notcritical voluntarily submitted to the committeesafety onand foreignsecurity investmentof inKansas or the United StatesStates. for review pursuant to 50 U.S.C.

(k) "Non-notified transaction" means any transaction involving foreign investment in the United States that is not voluntarily submitted to the committee on foreign investment in the United States for review pursuant to 50 U.S.C.

(m) "Real(l) "Real property" means any real estate located in this state except residential real property.

(n) "Residential(m) "Residential real property" means real property that is used exclusively as a place of residence for human habitation.

(o) "Social(n) "Social and domestic tax credits" means the adoption credit created pursuant to K.S.A.

(p) "State(o) "State agency" means any department, authority, bureau, division, office or other governmental agency of this state.

(q) "Tax(p) "Tax credit" means any credit allowed against the tax imposed by the Kansas income tax act, the premium or privilege fees imposed pursuant to K.S.A.

3. (a) Except as provided in subsections (d)(b) and (e),(f), on and after July 1, 2025, no foreign principal shall directly or indirectly acquire any interest in any real property located within 100 miles of the boundary of any military installation located in this state or any adjacent state, except a de minimis interest in such real property.

(b) Any(b) A foreign principal that owns any interest in real property as described in subsection (a) orprior directlyto orJuly indirectly1, acquires2025, anyand interestseeks into acquire additional real property as described in subsection (a) shallfor filethe registrationpurpose of suchexpansion interestof withoperations theshall attorneyrequest generalapproval infor such formacquisition andfrom manner as prescribed by the attorneygovernor. general not later than 90 days after the effective date of this act or the date such interest is acquired, whichever occurs later.

The governor shall consult with the attorney general and the fusion center oversight board to determine whether there is any security risk to military installations or critical infrastructure due to the expansion.

The governor shall issue approval or denial of such expansion within 90 days of receiving the request.

(c) Any foreign principal that owns any interest in real property as described in subsection (a) or directly or indirectly acquires any interest in real property as described in subsection (a) shall file registration of such interest with the attorney general in such form and manner as prescribed by the attorney general not later than 90 days after the effective date of this act or the date such interest is acquired, whichever occurs later.

(c)(d) The (1) Anysecretary foreignof principalstate thatshall failsprovide tonotice fileof the registration asrequirement requiredfor underforeign principals of subsection (b)(c) orto directlyall orbusiness indirectlyentities acquiresand anynonprofit interestorganizations inat realthe propertytime asof describedeach inof subsectionsuch (a)business shallentity's divestor suchnonprofit interestorganization's inregistration Hwith Subthe SBsecretary 9of 5state suchor realof property.any other filing with the secretary of state.

The attorney general shall provide the secretary of state with instructions for fulfilling the requirements of subsection (c), and the secretary of state shall provide such instructions with such notice to business entities and House Substitute for SENATE BILL No.

9—page 4 nonprofit organizations.

(e) (1) (A) Except as provided by paragraph (B), if applicable, any foreign principal that fails to file the registration as required under subsection (c) or directly or indirectly acquires any interest in real property as described in subsection (a) shall divest such interest in such real property.

(B) Any foreign principal that owns any interest in real property as described in subsection (a) on July 1, 2025, and fails to file the registration as required under subsection (c) with respect to such interest in real property shall receive a warning from the attorney general advising the foreign principal of such registration requirement and instructing the foreign principal as to the manner of fulfilling such requirement.

The foreign principal shall be allowed a period of 30 days from the date of receipt of such warning and instructions to file such registration as required under subsection (c) without a requirement of divestiture of such interest in real property.

If such foreign principal fails to file such registration within such 30-day period, such foreign principal shall divest such interest in such real property.

The provisions of this subparagraph shall expire on June 30, 2028.

(d) A(f) A foreign principal may acquire an interest in real property by devise or bequest, through the enforcement of any security interest or through the collection of a debt.

Any such acquisition shall be subject to the provisions of subsections (b)(c) and (c).(e).

(1) A(1) Acourt court order directing the defendant to divest such defendant's interest in such real property;

6. (a) TheAny attorneyperson generalmay shallreport establishinformation policiesconcerning andnon-notified procedurestransactions forin thesuch reportingform ofand informationmanner concerningas non-notifiedprescribed transactionsby to the attorney general.

Any person may report information concerning such transactions in such form and manner as prescribed by the attorney general.

A copy of such report shall be submitted to the governor, the adjutant general and the standing committees on federal and state affairs of the senate and the house of representatives or any successor committee of either such standing committee.House Substitute for SENATE BILL No.

(c) On9—page or5 beforecommittee. February 1 of each year, the attorney general shall H Sub SB 9 6 prepare and submit a report to the governor, the adjutant general, the standing committee on commerce, labor and economic development of the house of representatives, the standing committee on commerce of the senate, the standing committee on federal and state affairs of the house of representatives and the standing committee on federal and state affairs of the senate or any successor committee of such standing committees.

(c) On or before February 1 of each year, the attorney general shall prepare and submit a report to the governor, the adjutant general, the standing committee on commerce, labor and economic development of the house of representatives, the standing committee on commerce of the senate, the standing committee on federal and state affairs of the house of representatives and the standing committee on federal and state affairs of the senate or any successor committee of such standing committees.

H Sub SB 9 7 (b) violations involving controlled substances, as described in K.S.A.