Amendment vs bill Senate Floor Amendment, #4492, Bass, Adopted vs Enrolled

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ENROLLED Regular Session HOUSE BILL NO.
SFAHB816 428 4492 SENATE FLOOR AMENDMENTS Regular Session Amendments proposed by Senator Bass to Reengrossed House Bill No.
816 BY REPRESENTATIVES GALLE, AMEDEE, BAYHAM, CARRIER, CREWS, DICKERSON, ECHOLS, EGAN, FIRMENT, HORTON, KNOX, LAFLEUR, MELERINE, OWEN, SAWYER, SCHAMERHORN, STAGNI, WILDER, AND WYBLE AND SENATORS ALLAIN, BASS, BOUDREAUX, CATHEY, CONNICK, FESI, FOIL, HENRY, HENSGENS, HODGES, MIGUEZ, MIZELL, PRESSLY, AND TALBOT AN ACT To amend and reenact R.S.
816 by Representative Galle AMENDMENT NO.
1 On page 1, delete lines 2 and 3, and insert the following:
"To amend and reenact R.S.
9:2717.1.2 through 2717.1.8, relative to immovable property;toproviderelativetoforeignadversariesorpersonsconnectedwithforeign adversaries;toprohibittheacquisitionofcertainimmovableproperty;toprovidefor definitions;
9:2717.1.2 through 2717.1.8, relative to immovable" AMENDMENT NO.
to provide with respect to agents of foreign adversaries or mandataries of foreign adversaries;
2 On page 1, line 6, after "definitions;" insert "to provide with respect to agents of foreign adversaries or mandataries of foreign adversaries;" AMENDMENT NO.
to provide for exceptions;
3 On page 1, delete lines 11 and 12, and insert the following:
to provide for civil actions;
"Section 1.
to provide for civil penalties;
to provide relative to the protection of ownership interests;
to provide for the duties of the attorneygeneral;to provide for a limitation of liability;
to provide for applicability;
and to provide for related matters.
Be it enacted by the Legislature of Louisiana:
Section 1.
9:2717.1(F)(introductory paragraph) and (G) are hereby amended and reenacted and Part I of Chapter 1-B of Title 9 of Code Title II of the Louisiana Revised Statutes of 1950, comprised of R.S.
9:2717.1(F)(introductory paragraph) and (G) are hereby amended and reenacted and Part I of Chapter 1-B of Title 9 of Code Title II of the LouisianaRevisedStatutesof1950,comprisedofR.S.9:2717.1.2through2717.1.8, is hereby enacted to read" AMENDMENT NO.
9:2717.1.2 through 2717.1.8, is herebyenacted to read as follows:
4 On page 1, after line 13, insert the following:
§2717.1.
"§2717.1.
Prohibition ofacquisitionofimmovablepropertybyaforeignadversaryor a person connected with a foreign adversary * * * F.
Prohibition of acquisition of immovable property by a foreign adversary or a person connected with a foreign adversary * * * F.
* * * Page 1 of 14 CODING:
* * * G.
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HB NO.
816 ENROLLED G.
(d) Is a juridical person or a subsidiary that is owned by, or the majority of stock or other ownership interest of which is held or controlled by, a corporation or entity described in Subparagraph (c) of this Paragraph.
Page 1 of 3 SFAHB816 428 4492 (d) Is a juridical person or a subsidiary that is owned by, or the majority of stock or other ownership interest of which is held or controlled by, a corporation or entity described in Subparagraph (c) of this Paragraph.
(1)(2) "Foreign adversary" means an individual or a government identified as a foreign adversaryin 15 CFR 7.4(a)andidentifiedin the databasemaintained by the United States Department of the Treasury, Office of Foreign Assets Control.
(1)(2) "Foreign adversary" means an individual or a government identified as a foreign adversaryin 15 CFR 7.4(a) and identifiedin thedatabasemaintainedby the United States Department of the Treasury, Office of Foreign Assets Control.
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(2)(3) "Person connected with a foreign adversary" means either of the following:
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HB NO.
816 ENROLLED (2)(3) "Person connected with a foreign adversary" means either of the following:
* * * PART I.
* * * " AMENDMENT NO.
PROHIBITED OWNERSHIP BY FOREIGN ADVERSARIES §2717.1.2.
5 On page 2, line 2, change "§2717.1.1" to "§2717.1.2" AMENDMENT NO.
Ownershipofmilitary-installation-adjacentlandsbyforeignadversaries restricted A.
6 On page 4, delete lines 9 through 11, insert the following:
No foreign adversary or prohibited foreign actor shall directly or indirectly own, acquire, lease, or otherwise obtain any interest in military-installation-adjacent land.
"(5) "Prohibited foreign actor" means any of following:
B.
A prohibited foreign actor may sell or convey an ownership interest in military-installation-adjacent land in this state.
C.
A person may conclusively rely upon an affidavit made by a person intending to acquire or holding an interest in immovable property to the effect that the person is not a foreign adversary or a prohibited foreign actor, and the correctness of those facts maynot be controverted against anyperson relying on the affidavit, unless actual fraud by such person is proven.
A person who gives a false affidavit shall be responsible for any loss or damage suffered by any person whose rights are adverselyaffected.
§ 2717.1.3.
Definitions For purposes of this Part, the following terms have the following meanings:
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(1) "Controlling interest" means possession of the power to direct or cause the direction of the management or policies of a company, whether through Page 3 of 14 CODING:
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HB NO.
816 ENROLLED ownership of securities, bycontract or otherwise.
A person or entitythat directlyor indirectly has the right to vote fifty percent or more of the voting interests of an entity or is entitled to fifty percent or more of its profits is presumed to possess a controlling interest.
(2) "Foreign adversary" means a foreign nongovernmental person or foreign government identified as a foreign adversary pursuant to 15 CFR 791.4 and identified in the database maintained by the United States Department of the Treasury,OfficeofForeignAssetsControl.
Thistermdoesnotincludeapersonwho is a legal permanent resident with lawful presence in the United States.
(3) "Military installation" means any site that meets any of the following descriptions:
(a) Active Air Force ballistic missile fields.
(b) Air Force bases administering active Air Force ballistic missile fields.
(c) AirForcebases and major annexes of those bases containinga unit from the Air Force Air Combat Command.
(d) Air Force bases and major annexes of those bases containing an Air Force research laboratoryor test unit and associated sites.
(e) AirForcebasesandmajorannexesofthosebases,andSpaceForcebases andmajorannexesofthosebasescontainingaunitoftheNorthAmericanAerospace Defense Command and its regions.
(f) Air Force bases, Air Force stations, Space Force bases, Space Force stations, and major annexes of those stations and bases that contain satellite, telemetry, tracking, or commanding systems.
(g) Armybases,ammunition plants, centersofexcellence,majordepotsand arsenals, military terminals, research laboratories, and anyrelated major annexes.
(h) Army combat training centers located in the continental United States.
(i) Headquarters of the Office of the Secretary of Defense, the Defense Advanced Research Projects Agency, and major offices and anyrelated annexes.
(j) Long range radar sites and major annexes of sites described in this Paragraph.
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HB NO.
816 ENROLLED (k) Major range and test facilitybase activities as defined in 10 U.S.C.
196.
(l) Marine Corps bases, air stations, and major annexes of these bases and stations, excluding detachments and recruit depots.
(m) Militaryrangesasdefinedin10U.S.C.101(f)(1)orjoint forcestraining centers.
(n) Naval bases and air stations including major support activities and annexes.
(o) Navalsurface,air,andunderseawarfarecentersandresearchlaboratories and major annexes of these centers and laboratories.
(p) Navy off-shore range complexes and off-shore operating areas.
(q) Any structure or enclosure that the presentation of a military identification issued by the Department of Defense to active dutyservice members is required to enter or access.
(4) "Military-installation-adjacent land" means immovable property within twenty-five miles of a military installation.
(5) "Prohibited foreign actor" means any of following:
(b) Directly or indirectly has the right to vote fifty percent or more of the voting interests of an entity that is owned or controlled by a foreign adversary or is entitled to fiftypercent or more of its profits and is, therefore, presumed to have the Page 5 of 14 CODING:
(b) Directly or indirectly has the right to vote fifty percent or more of the voting interests of an entity that is owned or controlled by a foreign adversary or is entitled to fiftypercent or more of its profits and is, therefore, presumed to have the power to direct or cause the direction of the management or policies of the juridical person.
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HB NO.
816 ENROLLED power to direct or cause the direction of the management or policies of the juridical person.
(iii) Is owned by, or the majority of stock or other ownership interest is held or controlled by, any person who is a citizen of a foreign adversary, unless that person is a legal permanent resident of the United States.
(iii) Is owned by, or the majorityof stock or other ownership interest is held or controlled by, any person who is a citizen of a foreign adversary, unless that person is a legal permanent resident of the United States.
(e)Anyindividual person who is a citizen of a foreign adversary, unless that personisalegalpermanentresidentoftheUnitedStatesanddoesnototherwisemeet any of the criteria provided in Subparagraphs (a) through (d) of this Paragraph.
(e)Anyindividual person who is a citizen of a foreign adversary, unless that personisalegalpermanentresidentoftheUnitedStatesanddoesnototherwisemeet any of the criteria provided in Subparagraphs (a) through (d) of this Paragraph." Page 2 of 3 SFAHB816 428 4492 AMENDMENT NO.
§2717.1.4.
7 On page 12, after line 9, insert the following:
Exceptions The provisions of this Part do not apply to a person who might otherwise qualify as a prohibited foreign actor owning military-installation-adjacent lands under any of the following circumstances:
"Section 2.
(1) The person is a natural person who is a United States citizen, regardless of whether the United States citizenship was acquired by birth or the United States citizenshipwasgrantedtoapersonaftermeetingtherequirementsestablishedbythe UnitedStatesCongressintheImmigrationandNationalityAct,8U.S.C.1101etseq.
(2) The person is a natural person who is not a United States citizen but is a permanent legal resident or is lawfully present in the United States by virtue of authorization by the United States Department of Homeland Security.
(3) The personis ajuridicalperson,asdefinedin Civil CodeArticle24, that is wholly owned by persons who qualify under Paragraphs (1) or (2) of this Subsection.
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HB NO.
816 ENROLLED (4) Themilitary-installation-adjacentlandisimmovablepropertypurchased, leased, or otherwise acquiredbyanaturalpersonthatis used as a one-to-fourfamily residential property.
§2717.1.5.
Civil penalties;
actions A.(1) A prohibited foreign actor that violates the provisions of this Part is subject to a civil penalty of fifty thousand dollars and forfeiture if such entity does not divest itself of military-installation-adjacent land that is acquired in violation of this Part within one year after a judgment is entered in a civil action.
(2) Any civil penalty collected pursuant to this Section shall be paid to the attorneygeneralto offset costs associated with enforcementofprovisions contained in this Section.
B.
Apartytothecontracttopurchase,lease,orotherwiseacquireimmovable property mayrescind the contract prior to the transfer of the immovable propertyif the partydetermines that a foreign adversaryhas an ownership interest that violates the provisions of this Part.
C.
Theattorneygeneralmaybringanactionforinjunctivereliefinthename of the state against the foreign adversary or prohibited foreign actor to restrain and enjoin the sale or lease prior to the transfer of the immovable propertyor to restrain or enjoin the lease.
The attorneygeneral shall serve the petition for injunctive relief upon the parties to the transaction.
Upon receipt of the petition, a partymayrescind the contract to purchase, lease, or otherwise acquire immovable property pursuant to Subsection B of this Section.
The attorney general shall file a notice of lis pendens in the mortgage records of the parish where the propertyis located no later thanthreebusinessdaysafterinstitutingtheproceeding.
Theinstitutionoftheaction and the filing of the notice of lis pendens shall have no effect on persons obtaining rights in the immovable property prior to the filing of the notice of the pending action.
D.(1) The attorneygeneral mayserve an investigative demand or subpoena for deposition testimony to any person who is believed to have information, documentary material, or physical evidence relevant to the alleged or suspected Page 7 of 14 CODING:
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HB NO.
816 ENROLLED attempttoenterinto,conspiracytoenterinto,orenteringinto acontracttopurchase, lease, or otherwise acquire immovable property in this state if all of the following circumstances exist:
(a) Theattorneygeneralhasevidencethataforeignadversaryoraprohibited foreign actor is attempting to enter into, conspiring to enter into, or has entered into a contract to purchase, lease, or otherwise acquire immovable propertyin this state.
(b) The attorney general believes it to be in the public interest that an investigationshouldbemadetoascertainwhetheraforeignadversaryoraprohibited foreign actor in fact is attempting to enter into, conspiring to enter into, or has entered into a contract to purchase, lease, or otherwise acquire immovable property in this state.
(2)(a) Suchinvestigativedemandorsubpoenafordepositiontestimonyshall containadescriptionoftheattempttoenterinto,conspiracytoenterinto,orentering into a contract to purchase, lease, or otherwise acquire immovable property in this state under investigation and shall require such person to furnish, under oath or otherwise, a report in writing setting forth the relevant facts and circumstances of which the person has knowledge, or to produce relevant documentary material or physical evidence for examination, at such reasonable time and place as may be stated in the investigative demand that is the subject matter of the investigation.
Nonpublic personal information may be excluded from the report, deposition, or other testimony.
(b) Any subpoena for deposition testimony issued pursuant to this Section shall include a notice informing the prospective deponent of the deponent's right to counsel at the deposition with an opportunity for cross examination, and the deposition shall be conducted at the principal place of business, place of residence, domicile, or, if agreeable to the deponent, at some other place convenient to the attorney general and the deponent's attorney.
(c) Any deposition conducted pursuant to this Section shall be held at a reasonable time as may be stated in the investigative subpoena.
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HB NO.
816 ENROLLED or within twenty days after the demand or deposition notice has been served, whicheverisshorter,apetitionstatinggoodcauseforaprotectiveordertoextendthe return date or to modifyor set aside the demand or deposition notice maybe filed in thedistrictcourtthathasciviljurisdictionintheparishwherethepersonservedwith thedemandresides,is domiciled,orwherehis principalplaceofbusiness is located.
(d) If no protective order from the court is secured and the written request bytheattorneygeneralis not compliedwith bythereturndateofthewrittenrequest, theattorneygeneralmayapplyto thecourtforanordercompellingcompliancewith the investigative demand or deposition notice.
(e) If any person fails or refuses to file any statement, report, documentary material, orphysical evidenceor obeyanyinvestigative subpoena or demand issued by the attorney general, except as permitted by a protective order issued by an appropriate court, the attorney general may apply to the district court with civil jurisdiction in the parish where the person served with the demand or subpoena resides, is domiciled, or wherehis principal place of business is located for a rule to show cause regarding why an order compelling compliance should not be issued.
(f) Any disobedience of an order compelling compliance pursuant to this Section by a court shall be punished as a contempt of court.
E.
Serviceofanydemand,subpoena,orpetitionshallbemadeinthemanner provided by law.
F.
Anyimmovable propertyacquired bya foreign adversaryor a prohibited foreign actor is subject to divestiture or civil forfeiture to the state.
G.
The attorney general may use all other procedures and authority for investigation, supervision, and conduct of actions on behalf of the state as provided by law to enforce the provisions of this Part.
H.
A court that the attorneygeneral has petitioned mayissue anyadditional orders or render judgments against the foreign adversary or the prohibited foreign actor as maybe necessaryto protect the public.
Such orders shall include but not be limited to any of the following:
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HB NO.
816 ENROLLED (1) Revocation, forfeiture, or suspension of any license, charter, franchise, certificate, or other evidence of authorityof any person to do business in the state.
(2) Appointment of a receiver.
(3) Dissolution of domestic corporations or associations.
(4) Suspension or termination of the right of foreign corporations or associations to do business in this state.
(5) Restitution to compensate anyperson who did not knowingly enter into a transaction with the foreign adversary or a prohibited foreign actor for any loss, expenses, court costs, or attorneyfees which mayhave been incurredbecauseof the sale being void or enjoined.
(6) Civil forfeiture of any immovable property acquired by the foreign adversary or the prohibited foreign actor in accordance with this Section.
I.(1) If, after examining the evidence, the attorneygeneral concludes that a violation of this Part has occurred, the attorney general may order the foreign adversary or prohibited foreign actor to divest himself of all interests in the land withinninetydaysafterserviceoftheorderupontheforeignadversaryorprohibited foreign actor.
(2) The order of divestiture described in Paragraph (1) of this Subsection shall be served personally or by certified mail.
J.(1) If the holder of the interest that is ordered to be divested disputes the determinationoftheattorneygeneralthataviolationofthisPartoccurred,theholder may submit a written request to the attorney general for a judicial determination.
(2) The written request described in Paragraph (1) of this Subsection shall be delivered to the attorney general within sixty days after service of the order of divestiture.
If no written request is received within this time, the determination of the attorney general shall become final.
(3) A foreign adversary, prohibited foreign actor, or any holder of interest may seek judicial review after the final determination of the attorneygeneral.
(4) Anyappeal from the final determination of the attorneygeneral shall be in accordance with the Administrative Procedure Act.
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HB NO.
816 ENROLLED K.(1) If the foreign adversary or prohibited foreign actor fails to divest himself of all interests pursuant to Paragraph (I)(1) of this Section or if a holder of the interest submits a written request pursuant to Subsection J of this Section, the attorney general may bring an action to divest the interest.
(2) The attorney general may initiate a civil action pursuant to this Section in either the parish of East Baton Rouge or a parish where a portion of the immovable property is located.
(3) The attorney general shall record in the public mortgage records of the parish clerk of court of each parish where anyportion of the immovable property is located a notice of pendencyof the action pursuant to Chapter 4 of Code Title II of Book VII of the Code of Civil Procedure.
L.
Iftheholderoftheinterestinimmovablepropertyhassubmittedawritten request pursuant to Subsection J of this Section, the court shall conduct an evidentiaryhearing to determine, bya preponderance of the evidence, if a violation of this Part occurred prior to taking any other action.
If the court determines that therehasbeenno violation,thecourtshalldismisstheactionandexpungethenotice of pending action.
M.(1) If a court of competent jurisdiction determines that a violation of this Parthasoccurred,thecourtshallorderthesheriffintheparishwheretheimmovable property is located to sell the immovable property in the same manner as a judicial sale in accordance with the requirements of Chapter 3 of Code Title VII of Book III of the Code of Civil Procedure.
(2) The court shall order that the price of the sale is no less than the sum of all of the following:
(a) Advaloremtaxesandotherliens payableto apoliticalsubdivisionofthe state that are due or past due and attributable to the property.
(b) Indebtedness,includinginterests,penalties,attorneyfees,courtcosts,and other expenses, secured bya conventional mortgage on the property or any portion of the property.
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HB NO.
816 ENROLLED (c) Indebtedness,includinginterest,penalties,attorneyfees,andcourtcosts, secured by a judicial or legal mortgage on the property.
(d) Indebtedness,includinginterest,penalties,attorneyfees,andcourtcosts, secured by a lien or privilege on the property.
(e) Commissions due to a real estate broker or real estate agent.
(f) Costs related to the perfection of the sale.
(2) After satisfaction of all mortgages, liens, privileges, and other encumbrances of the property and payment of all persons providing services in connection with the transfer of the property, sheriff's fees, and credits to the purchaser relating to tax and other customaryprorations, the remaining proceeds of the sale shall beconsideredacivil assetforfeitureandthemoneyshall be paid to the Department of Justice.
§2717.1.6.
Protection of ownership interests A.
All forfeitures or dispositions under this Part shall be made with due provisionsfortherightsofanypersonwhodidnotknowinglyenterintoatransaction with the foreign adversary or the prohibited foreign actor.
B.
No mortgage, lien, privilege, or other security interest recognized under the laws of this state and no ownership interest in indivision, lease, servitude, usufruct, right of use, bond for deed, or other real right shall be affected by the forfeiture, seizure, or divestiture provisions of this Part.
C.
No forfeiture or disposition pursuant to this Part shall affect the rights of anypersonwhodidnotknowinglyenterintoatransactionwiththeforeignadversary or a prohibited foreign actor.
D.
The attorney general shall, within three business days of instituting any action pursuant to this Part, file a copy of the petition or other pleading instituting the action in the mortgage records of the parish where any related immovable property is situated.
E.
The attorney general shall provide notice of pending forfeiture, seizure, or divestiture to the holder of each mortgage, lien, or security interest in the same manner as provided in R.S.
14:90.1 or R.S.
40:2608.
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HB NO.
816 ENROLLED F.
The attorney general shall provide notice of pending forfeiture, seizure, or divestiture to the holder of any interest in the immovable property being seized.
G.
The attorney general may cause the cancellation of the petition or other pleadingfrom the mortgage recordsno later than threebusiness days afterjudgment is renderedorafterarequestforcancellationismadebyanyinterestedpartyseeking to transfer the property to a person other than a foreign adversary or a prohibited foreign actor.
If the petition or other pleadingrelates to a propertyinterest vested in a foreign adversary or a prohibited foreign actor, the attorney general may petition the court for an order requiring that the proceeds of the sale attributable to the property interest of the foreign adversaryor a prohibited foreign actor be deposited in the registry of the court where the proceeding is pending after the deduction of payments to mortgagees, lienholders, person providing services in connection with the transfer of the property, and credits to the purchaser relating to tax and other customary prorations.
§2717.1.7.
Limitation of liability for failure to identify a foreign adversary or prohibited foreign actor No attorney, title insurer, title insurance producer, title insurance agency producer, lender, mortgage servicer, notary public, real estate agent, real estate broker,seller,orlessor,oranyoftheirdirectors,officers,oremployees,arerequired tomakeanyinvestigationastowhetherapartytoatransactioninvolvingimmovable property is a foreign adversary or prohibited foreign actor, nor is any such person liable for failing to identify that a party to a transaction involving immovable property is a foreign adversary or prohibited foreign actor.
§2717.1.8.
Applicability Except as otherwise provided in this Part, the provisions contained in this Partapplyonlytoimmovablepropertyacquiredbyaforeignadversaryorprohibited foreign actoron orafterAugust 1,2026.
Ifaforeignadversaryorprohibitedforeign actoracquiresimmovablepropertydespitetheprohibitionscontainedinthisPart,the property shall be subject to forfeiture only during the period in which the foreign adversary or prohibited foreign actor owns the property.
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HB NO.
816 ENROLLED property shall not be void or voidable because the propertyor right in that property was previously held by a foreign adversary or prohibited foreign actor.
Section 2.
9:2717.1.2 through 2717.1.8.
9:2717.1.2 through 2717.1.8." Page 3 of 3
SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:
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