103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4345

 

Introduced 1/16/2024, by Rep. Chris Miller

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 500/1-10
765 ILCS 60/7  from Ch. 6, par. 7

    Creates the Foreign Land Ownership and Foreign Countries of Concern Act. Provides that a foreign principal may not directly or indirectly own, have a controlling interest in, or acquire by purchase, grant, devise, or descent agricultural land or any interest, except a de minimis indirect interest, in such land in the State. Provides that a foreign principal has a de minimis indirect interest if any ownership is the result of the foreign principal's ownership of registered equities in a publicly traded company owning the land and if the foreign principal's ownership interest in the company is either: (1) less than 5% of any class of registered equities or less than 5% in the aggregate in multiple classes of registered equities; or a noncontrolling interest in an entity controlled by a company that is both registered with the United States Securities and Exchange Commission as an investment adviser under the federal Investment Advisers Act of 1940, as amended, and is not a foreign entity. Provides for registration of certain foreign-owned property. Establishes requirements for acquiring foreign-owned land on or after the effective date of the Act. Provides that a foreign principal may not directly or indirectly own, or have a controlling interest in, or acquire by purchase, grant, devise, or descent any interest, except a de minimis indirect interest, in real property on or within 10 miles of any military installation or critical infrastructure facility in the State. Provides that persons or entities may not directly or indirectly own, have a controlling interest in, or acquire by purchase, grant, devise, or descent any interest, except a de minimis indirect interest, in real property in the State if the person or entity is: the People's Republic of China, the Chinese Communist Party, or any official or member of the People's Republic of China or the Chinese Communist Party, a business principally located in the People's Republic of China of or its subsidiaries, or any person who is domiciled in the People's Republic of China and who is not a citizen or lawful permanent resident of the United States. Provides exemptions. Makes other changes. Amends the Illinois Procurement Code and the Property Owned By Noncitizens Act to make conforming changes.


LRB103 35780 RLC 65862 b

 

 

A BILL FOR

 

HB4345LRB103 35780 RLC 65862 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Foreign Land Ownership and Foreign Countries of Concern Act.
 
6    Section 5. Definitions. In this Act:
7    "Agricultural land" means any land located in this State
8and used for agricultural, forestry, or timber production
9purposes, except agricultural land used primarily to meet
10pollution control laws or regulations, as determined by the
11Director of Agriculture under rules prescribed by the
12Director.
13    "Critical infrastructure facility" means any of the
14following, if it employs measures such as fences, barriers, or
15guard posts that are designed to exclude unauthorized persons:
16        (1) A chemical manufacturing facility.
17        (2) A refinery.
18        (3) An electric utility as defined in Section 3-105 of
19    the Public Utilities Act.
20        (4) A water treatment facility or wastewater treatment
21    plant.
22        (5) A liquid natural gas terminal.
23        (6) A telecommunications central switching office.

 

 

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1        (7) A gas processing plant, including a plant used in
2    the processing, treatment, or fractionation of natural
3    gas.
4        (8) A port facility.
5        (9) An airport as defined in Section 1 of the Airport
6    Authorities Act.
7    "Department" means the Department of Agriculture.
8    "Foreign country of concern" means the People's Republic
9of China, the Russian Federation, the Islamic Republic of
10Iran, the Democratic People's Republic of Korea, the Republic
11of Cuba, the Venezuelan regime of Nicolas Maduro, or the
12Syrian Arab Republic, including any agency of or any other
13entity of significant control of such foreign country of
14concern.
15    "Foreign principal" means:
16        (1) the government or any official of the government
17    of a foreign country of concern;
18        (2) a political party or member of a political party
19    or any subdivision of a political party in a foreign
20    country of concern;
21        (3) a partnership, association, corporation,
22    organization, or other combination of persons organized
23    under the laws of or having its principal place of
24    business in a foreign country of concern, or a subsidiary
25    of such entity;
26        (4) any person who is domiciled in a foreign country

 

 

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1    of concern and is not a citizen or lawful permanent
2    resident of the United States; or
3        (5) any person, entity, or collection of persons or
4    entities, described in paragraphs (1) through (4) of this
5    definition having a controlling interest in a partnership,
6    association, corporation, organization, trust, or any
7    other legal entity or subsidiary formed for the purpose of
8    owning real property in this State.
9    "Military installation" means a base, camp, post, station,
10yard, or center encompassing at least 10 contiguous acres that
11is under the jurisdiction of the Department of Defense or its
12affiliates.
13    "Real property" means land, buildings, fixtures, and all
14other improvements to land.
 
15    Section 10. Purchase of agricultural land by foreign
16principals prohibited.
17    (a) A foreign principal may not directly or indirectly
18own, have a controlling interest in, or acquire by purchase,
19grant, devise, or descent agricultural land or any interest,
20except a de minimis indirect interest, in such land in this
21State. A foreign principal has a de minimis indirect interest
22if any ownership is the result of the foreign principal's
23ownership of registered equities in a publicly traded company
24owning the land and if the foreign principal's ownership
25interest in the company is either:

 

 

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1        (1) less than 5% of any class of registered equities
2    or less than 5% in the aggregate in multiple classes of
3    registered equities; or
4        (2) a noncontrolling interest in an entity controlled
5    by a company that is both registered with the United
6    States Securities and Exchange Commission as an investment
7    adviser under the federal Investment Advisers Act of 1940,
8    as amended, and is not a foreign entity.
9    (b) A foreign principal that directly or indirectly owns
10or acquires agricultural land or any interest in such land in
11this State before the effective date of this Act may continue
12to own or hold such land or interest, but may not purchase or
13otherwise acquire by grant, devise, or descent any additional
14agricultural land or interest in such land in this State.
15    (c)(1) A foreign principal that directly or indirectly
16owns or acquires agricultural land or any interest in such
17land in this State before the effective date of this Act must
18register with the Department of Agriculture by July 1, 2025.
19The Department must establish a form for such registration,
20which, at minimum, must include all of the following:
21        (A) The name of the owner of the agricultural land or
22    the owner of the interest in such land.
23        (B) The address of the agricultural land, the property
24    appraiser's parcel identification number, and the
25    property's legal description.
26        (C) The number of acres of the agricultural land.

 

 

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1    (2) A foreign principal that fails to timely file a
2registration with the Department is subject to a civil penalty
3of $1,000 for each day that the registration is late. The
4Department may place a lien against the unregistered
5agricultural land for the unpaid balance of any penalties
6assessed under this paragraph.
7    (d) Notwithstanding paragraph (1) of subsection (c), a
8foreign principal may acquire agricultural land on or after
9the effective date of this Act, by devise or descent, through
10the enforcement of security interests, or through the
11collection of debts, provided that the foreign principal
12sells, transfers, or otherwise divests itself of the
13agricultural land within 3 years after acquiring the
14agricultural land.
15    (e)(1) At the time of purchase, a buyer of agricultural
16land or an interest in such land must provide an affidavit
17signed under penalty of perjury attesting that the buyer is:
18        (A) not a foreign principal; and
19        (B) in compliance with the requirements of this
20    Section.
21    (2) The failure to obtain or maintain the affidavit does
22not:
23        (A) affect the title or insurability of the title for
24    the agricultural land; or
25        (B) subject the closing agent to civil or criminal
26    liability, unless the closing agent has actual knowledge

 

 

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1    that the transaction will result in a violation of this
2    Section.
3     The Department of Agriculture shall adopt rules to
4implement this subsection (e), including rules establishing
5the form for the affidavit required under this subsection.
6    (f)(1) The agricultural land or an interest in such land
7that is owned or acquired in violation of this Section may be
8forfeited to the State.
9    (2) The Department of Agriculture may initiate a civil
10action in the circuit court of the county in which the property
11lies for the forfeiture of the agricultural land or any
12interest in the agricultural land.
13    (3) Upon filing such action, the clerk must file a lis
14pendens notice with the clerk of the circuit court. The court
15must advance the cause on the calendar. The defendant may at
16any time petition to modify or discharge the lis pendens based
17upon a finding that there is no probable cause to believe that
18the agricultural land, or any portion of the agricultural
19land, is owned or held in violation of this Section.
20    (4) If the court finds that the agricultural land, or any
21portion of the agricultural land, is owned or held in
22violation of this Section, the court must enter a final
23judgment of forfeiture vesting title to the agricultural land
24in this State, subject only to the rights and interests of bona
25fide lienholders, and such final judgment relates back to the
26date of the lis pendens.

 

 

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1    (5) The Department may sell the agricultural land subject
2to a final judgment of forfeiture. Any proceeds from the sale
3must first be paid to any lienholders of the land, followed by
4payment of any outstanding fines assessed pursuant to this
5Section, after which the Department must be reimbursed for all
6costs related to the forfeiture civil action and any costs
7related to the sale of the land. Any remaining proceeds must be
8paid to the property owner.
9    (6) At any time during the forfeiture proceeding the
10Department may seek an ex parte order of seizure of the
11agricultural land upon a showing that the defendant's control
12of the agricultural land constitutes a clear and present
13danger to the State.
14    (g) A foreign principal that purchases or acquires
15agricultural land or any interest in that land in violation of
16this Section commits a Class B misdemeanor. A person who
17knowingly sells agricultural land or any interest in that land
18in violation of this Section commits a Class B misdemeanor.
 
19    Section 15. Purchase of real property on or around
20military installations or critical infrastructure facilities
21by foreign principals prohibited.
22    (a) A foreign principal may not directly or indirectly
23own, or have a controlling interest in, or acquire by
24purchase, grant, devise, or descent any interest, except a de
25minimis indirect interest, in real property on or within 10

 

 

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1miles of any military installation or critical infrastructure
2facility in this State. A foreign principal has a de minimis
3indirect interest if any ownership is the result of the
4foreign principal's ownership of registered equities in a
5publicly traded company owning the land and if the foreign
6principal's ownership interest in the company is either:
7        (1) less than 5% of any class of registered equities
8    or less than 5% in the aggregate in multiple classes of
9    registered equities; or
10        (2) a noncontrolling interest in an entity controlled
11    by a company that is both registered with the United
12    States Securities and Exchange Commission as an investment
13    adviser under the Investment Advisers Act of 1940, as
14    amended, and is not a foreign entity.
15    A foreign principal that directly or indirectly owns or
16acquires any interest in real property on or within 10 miles of
17any military installation or critical infrastructure facility
18in this State before the effective date of this Act, may
19continue to own or hold such real property, but may not
20purchase or otherwise acquire by grant, devise, or descent any
21additional real property on or within 10 miles of any military
22installation or critical infrastructure facility in this
23State.
24    (b) A foreign principal must register with the Department
25of Commerce and Economic Opportunity if the foreign principal
26owns or acquires real property on or within 10 miles of any

 

 

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1military installation or critical infrastructure facility in
2this State as authorized under subsection (d) or if the
3foreign principal owned or acquired an interest, other than a
4de minimis indirect interest, in such property before the
5effective date of this Act.
6    (c) The Department of Commerce and Economic Opportunity
7must establish a form for such registration which, at a
8minimum, must include all of the following:
9        (1) The name of the owner of the real property.
10        (2) The address of the real property, the property
11    appraiser's parcel identification number, and the
12    property's legal description.
13    A foreign principal that fails to timely file a
14registration with the Department of Commerce and Economic
15Opportunity is subject to a civil penalty of $1,000 for each
16day that the registration is late. A foreign principal must
17register a property interest owned before the effective date
18of this Act, on or before December 31, 2025. The registration
19is considered to be late after January 31, 2026. A foreign
20principal who owns or acquires real property on or after the
21effective date of this Act, as authorized under subsection
22(d), must register the real property within 30 days after the
23property is owned or acquired. The Department may place a lien
24against the unregistered real property for the unpaid balance
25of any penalties assessed under this paragraph.
26    (d) Notwithstanding subsection (a), a foreign principal

 

 

HB4345- 10 -LRB103 35780 RLC 65862 b

1who is a natural person may purchase one residential real
2property that is up to 2 acres in size if all of the following
3apply:
4        (1) The parcel is not on or within 5 miles of any
5    military installation in this State.
6        (2) The person has a current verified United States
7    Visa that is not limited to authorizing tourist-based
8    travel or official documentation confirming that the
9    person has been granted asylum in the United States, and
10    such visa or documentation authorizes the person to be
11    legally present within this State.
12        (3) The purchase is in the name of the person who holds
13    the visa or official documentation described in paragraph
14    (2).
15    (e) Notwithstanding subsections (a) and (b), a foreign
16principal may acquire real property or any interest in real
17property which is on or within 10 miles of any military
18installation or critical infrastructure facility in this State
19on or after the effective date of this Act, by devise or
20descent, through the enforcement of security interests, or
21through the collection of debts, provided that the foreign
22principal sells, transfers, or otherwise divests itself of
23such real property within 3 years after acquiring the real
24property.
25    (f)(1) At the time of purchase, a buyer of the real
26property that is on or within 10 miles of any military

 

 

HB4345- 11 -LRB103 35780 RLC 65862 b

1installation or critical infrastructure facility in this State
2must provide an affidavit signed under penalty of perjury
3attesting that the buyer is:
4        (A) not a foreign principal or not a foreign principal
5    prohibited from purchasing the subject real property; and
6        (B) in compliance with the requirements of this
7    Section.
8    (2) The failure to obtain or maintain the affidavit does
9not:
10        (A) affect the title or insurability of the title for
11    the real property; or
12        (B) subject the closing agent to civil or criminal
13    liability, unless the closing agent has actual knowledge
14    that the transaction will result in a violation of this
15    Section.
16    (3) The Department of Financial and Professional
17Regulation, in consultation with the Real Estate
18Administration and Disciplinary Board of the Department, shall
19adopt rules to implement this subsection (f), including rules
20establishing the form for the affidavit required under this
21subsection (f).
22    (g)(1) If any real property is owned or acquired in
23violation of this Section, the real property may be forfeited
24to the State.
25    (2) The Department of Commerce and Economic Opportunity
26may initiate a civil action in the circuit court of the county

 

 

HB4345- 12 -LRB103 35780 RLC 65862 b

1in which the property lies for the forfeiture of the real
2property or any interest in the real property.
3    (3) Upon filing such action, the clerk must record a lis
4pendens. The court must advance the cause on the calendar. The
5defendant may at any time petition to modify or discharge the
6lis pendens based upon a finding that there is no probable
7cause to believe that the real property, or any portion of the
8real property, is owned or held in violation of this Section.
9    (4) If the court finds that the real property, or any
10portion of the real property, is owned or held in violation of
11this Section, the court must enter a final judgment of
12forfeiture vesting title to the real property in this State,
13subject only to the rights and interests of bona fide
14lienholders, and such final judgment relates back to the date
15of the lis pendens.
16    (5) The Department of Commerce and Economic Opportunity
17may sell the real property subject to a final judgment of
18forfeiture. Any proceeds from the sale must first be paid to
19any lienholders of the land, followed by payment of any
20outstanding fines assessed pursuant to this Section, after
21which the Department must be reimbursed for all costs related
22to the forfeiture civil action and any costs related to the
23sale of the land. Any remaining proceeds must be paid to the
24property owner.
25    (6) At any time during the forfeiture proceeding, the
26Department may seek an ex parte order of seizure of the real

 

 

HB4345- 13 -LRB103 35780 RLC 65862 b

1property upon a showing that the defendant's control of the
2real property constitutes a clear and present danger to the
3State.
4    (h) A foreign principal that purchases or acquires real
5property or any interest in real property in violation of this
6Section commits a Class B misdemeanor.
7    (i) A person who knowingly sells real property or any
8interest in real property in violation of this Section commits
9a Class B misdemeanor.
10    (j) The Department of Commerce and Economic Opportunity
11shall adopt rules to implement this Section.
 
12    Section 20. Purchase or acquisition of real property by
13the People's Republic of China prohibited.
14    (a)(1) The following persons or entities may not directly
15or indirectly own, have a controlling interest in, or acquire
16by purchase, grant, devise, or descent any interest, except a
17de minimis indirect interest, in real property in this State:
18        (A) The People's Republic of China, the Chinese
19    Communist Party, or any official or member of the People's
20    Republic of China or the Chinese Communist Party.
21        (B) Any other political party or member of a political
22    party or a subdivision of a political party in the
23    People's Republic of China.
24        (C) A partnership, an association, a corporation, an
25    organization, or any other combination of persons

 

 

HB4345- 14 -LRB103 35780 RLC 65862 b

1    organized under the laws of or having its principal place
2    of business in the People's Republic of China, or a
3    subsidiary of such entity.
4        (D) Any person who is domiciled in the People's
5    Republic of China and who is not a citizen or lawful
6    permanent resident of the United States.
7        (E) Any person, entity, or collection of persons or
8    entities described in subparagraphs (A) through (D) having
9    a controlling interest in a partnership, association,
10    corporation, organization, trust, or any other legal
11    entity or subsidiary formed for the purpose of owning real
12    property in this State.
13    (2) A person or entity has a de minimis indirect interest
14if any ownership is the result of the person's or entity's
15ownership of registered equities in a publicly traded company
16owning the land and if the person's or entity's ownership
17interest in the company is either:
18        (A) less than 5% of any class of registered equities
19    or less than 5% in the aggregate in multiple classes of
20    registered equities; or
21        (B) a noncontrolling interest in an entity controlled
22    by a company that is both registered with the United
23    States Securities and Exchange Commission as an investment
24    adviser under the federal Investment Advisers Act of 1940,
25    as amended, and is not a foreign entity.
26    (b) Notwithstanding subsection (a), a natural person

 

 

HB4345- 15 -LRB103 35780 RLC 65862 b

1described in paragraph (1) of subsection (a) may purchase one
2residential real property that is up to 2 acres in size if all
3of the following apply:
4        (1) The parcel is not on or within 5 miles of any
5    military installation in this State.
6        (2) The person has a current verified United States
7    Visa that is not limited to authorizing tourist-based
8    travel or official documentation confirming that the
9    person has been granted asylum in the United States and
10    such visa or documentation authorizes the person to be
11    legally present within this State.
12        (3) The purchase is in the name of the person who holds
13    the visa or official documentation described in paragraph
14    (2) of this subsection (b).
15    (c) A person or entity described in paragraph (1) of
16subsection (a) that directly or indirectly owns or acquires
17any interest in real property in this State before the
18effective date of this Act, may continue to own or hold such
19real property, but may not purchase or otherwise acquire by
20grant, devise, or descent any additional real property in this
21State.
22    (d)(1) A person or entity described in subparagraph (A),
23(B), or (E) of paragraph (1) of subsection (a) must register
24with the Department of Commerce and Economic Opportunity if
25the person or entity owns or acquires more than a de minimis
26indirect interest in real property in this State. The

 

 

HB4345- 16 -LRB103 35780 RLC 65862 b

1Department of Commerce and Economic Opportunity must establish
2a form for such registration which, at a minimum, must include
3all of the following:
4        (A) The name of the owner of the real property.
5        (B) The address of the real property, the property
6    appraiser's parcel identification number, and the
7    property's legal description.
8    (2) A person or entity that fails to timely file a
9registration with the Department of Commerce and Economic
10Opportunity is subject to a civil penalty of $1,000 for each
11day that the registration is late. The person or entity
12subject to the registration requirements must register the
13property or property interests owned or acquired before the
14effective date of this Act, on or before December 31, 2025. The
15registration is considered to be late 30 days after January
1631, 2026. A person or entity that owns or acquires real
17property or an interest in real property as authorized under
18subparagraph (B) or (E) of paragraph (1) of subsection (a),
19other than a de minimis indirect interest, on or after the
20effective date of this Act, must register the real property or
21interest within 30 days after the property or interest is
22owned or acquired. The Department may place a lien against the
23unregistered real property for the unpaid balance of any
24penalties assessed under this paragraph.
25    (e) Notwithstanding subsection (a), a person or an entity
26described in paragraph (1) of subsection (a) may acquire real

 

 

HB4345- 17 -LRB103 35780 RLC 65862 b

1property in this State on or after the effective date of this
2Act, by devise or descent, through the enforcement of security
3interests, or through the collection of debts, provided that
4the person or entity sells, transfers, or otherwise divests
5itself of such real property within 3 years after acquiring
6the real property, unless the person or entity is exempt under
7Section 35.
8    (f)(1) At the time of purchase, a buyer of real property in
9this State must provide an affidavit signed under penalty of
10perjury attesting that the buyer is:
11        (A) not a person or entity described in paragraph (1)
12    of subsection (a) or that the buyer is a person described
13    in paragraph (1) of subsection (a) but is authorized under
14    subsection (b) to purchase the subject property; and
15        (B) in compliance with the requirements of this
16    Section.
17    (2) The failure to obtain or maintain the affidavit does
18not:
19        (A) affect the title or insurability of the title for
20    the real property; or
21        (B) subject the closing agent to civil or criminal
22    liability, unless the closing agent has actual knowledge
23    that the transaction will result in a violation of this
24    Section.
25    (3) The Department of Financial and Professional
26Regulation, in consultation with the Real Estate

 

 

HB4345- 18 -LRB103 35780 RLC 65862 b

1Administration and Disciplinary Board of the Department, shall
2adopt rules to implement this subsection, including rules
3establishing the form for the affidavit required under this
4subsection.
5    (g)(1) If any real property is owned or acquired in
6violation of this Section, the real property may be forfeited
7to the State.
8    (2) The Department of Commerce and Economic Opportunity
9may initiate a civil action in the circuit court of the county
10in which the property lies for the forfeiture of the real
11property or any interest in real property.
12    (3) Upon filing such action, the clerk must record a lis
13pendens in accordance with court rule. The court must advance
14the cause on the calendar. The defendant may at any time
15petition to modify or discharge the lis pendens based upon a
16finding that there is no probable cause to believe that the
17real property, or any portion of the real property, is owned or
18held in violation of this Section.
19    (4) If the court finds that the real property, or any
20portion of the real property, is owned or held in violation of
21this Section, the court must enter a final judgment of
22forfeiture vesting title to the real property in this State,
23subject only to the rights and interests of bona fide
24lienholders, and such final judgment relates back to the date
25of the lis pendens.
26    (5) The Department of Commerce and Economic Opportunity

 

 

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1may sell the real property subject to a final judgment of
2forfeiture. Any proceeds from the sale must first be paid to
3any lienholders of the land, followed by payment of any
4outstanding fines assessed pursuant to this Section, after
5which the Department of Commerce and Economic Opportunity must
6be reimbursed for all costs related to the forfeiture civil
7action and any costs related to the sale of the land. Any
8remaining proceeds must be paid to the property owner.
9    (6) At any time during the forfeiture proceeding, the
10Department of Commerce and Economic Opportunity may seek an ex
11parte order of seizure of the real property upon a showing that
12the defendant's control of the real property constitutes a
13clear and present danger to the State.
14    (g) A violation of this Section constitutes a Class 3
15felony.
16    (h) A person who knowingly sells real property or any
17interest in the real property in violation of this Section
18commits a Class A misdemeanor.
 
19    Section 25. Contracting with entities of foreign countries
20of concern prohibited.
21    (a) In this Section:
22    "Controlling interest" means possession of the power to
23direct or cause the direction of the management or policies of
24a company, whether through ownership of securities, by
25contract, or otherwise. A person or entity that directly or

 

 

HB4345- 20 -LRB103 35780 RLC 65862 b

1indirectly has the right to vote 25% or more of the voting
2interests of the company or is entitled to 25% or more of its
3profits is presumed to possess a controlling interest.
4    "Department" means the Department of Central Management
5Services.
6    "Foreign country of concern" means the People's Republic
7of China, the Russian Federation, the Islamic Republic of
8Iran, the Democratic People's Republic of Korea, the Republic
9of Cuba, the Venezuelan regime of Nicolas Maduro, or the
10Syrian Arab Republic, including any agency of or any other
11entity of significant control of such foreign country of
12concern.
13    "Governmental entity" means the State, a unit of local
14government, or school district.
15    (b) A governmental entity may not knowingly enter into a
16contract with an entity which would give access to an
17individual's personal identifying information if:
18        (1) the entity is owned by the government of a foreign
19    country of concern;
20        (2) the government of a foreign country of concern has
21    a controlling interest in the entity; or
22        (3) the entity is organized under the laws of or has
23    its principal place of business in a foreign country of
24    concern.
25    (c) Beginning July 1, 2025, a governmental entity may not
26extend or renew a contract with an entity listed in paragraphs

 

 

HB4345- 21 -LRB103 35780 RLC 65862 b

1(1) through (3) of subsection (b) if the contract would give
2such entity access to an individual's personal identifying
3information.
4    (d) Beginning January 1, 2025, a governmental entity may
5not accept a bid on, a proposal for, or a reply to, or enter
6into, a contract with an entity which would grant the entity
7access to an individual's personal identifying information
8unless the entity provides the governmental entity with an
9affidavit signed by an officer or representative of the entity
10under penalty of perjury attesting that the entity does not
11meet any of the criteria in paragraphs (1) through (3) of
12subsection (b).
13    (e) Beginning July 1, 2025, when an entity extends or
14renews a contract with a governmental entity which would grant
15the entity access to an individual's personal identifying
16information, the entity must provide the governmental entity
17with an affidavit signed by an officer or representative of
18the entity under penalty of perjury attesting that the entity
19does not meet any of the criteria in paragraphs (1) through (3)
20of subsection (b).
21    (f) The Attorney General may bring a civil action in any
22circuit court against an entity that violates this Section.
23Violations of this Section may result in:
24        (1) a civil penalty equal to twice the amount of the
25    contract for which the entity submitted a bid or proposal
26    for, replied to, or entered into;

 

 

HB4345- 22 -LRB103 35780 RLC 65862 b

1        (2) ineligibility to enter into, renew, or extend any
2    contract, including any grant agreements, with any
3    governmental entity for up to 5 years;
4        (3) ineligibility to receive or renew any license,
5    certification, or credential issued by a governmental
6    entity for up to 5 years; and
7        (4) placement on the suspended persons list pursuant
8    to the Illinois Procurement Code.
9        (5) Any penalties collected under this subsection (f)
10    must be deposited into the General Revenue Fund.
11    (g) The Department shall adopt rules to implement this
12Section, including rules establishing the form for the
13affidavit required under subsection (e).
 
14    Section 30. Economic incentives to foreign countries of
15concern prohibited.
16    (a) In this Section:
17    "Controlled by" means having possession of the power to
18direct or cause the direction of the management or policies of
19a company, whether through ownership of securities, by
20contract, or otherwise. A person or entity that directly or
21indirectly has the right to vote 25% or more of the voting
22interests of the company or that is entitled to 25% or more of
23its profits is presumed to control the foreign entity.
24    "Economic incentive" means all programs administered by,
25or for which an applicant for the program must seek

 

 

HB4345- 23 -LRB103 35780 RLC 65862 b

1certification, approval, or other action by, the Department
2under the Department of Commerce and Economic Opportunity Law
3and all local economic development programs, grants, or
4financial benefits administered by a political subdivision or
5an agent of a political subdivision.
6    "Foreign country of concern" has the same meaning as in
7Section 5.
8    "Foreign entity" means an entity that is:
9        (1) owned or controlled by the government of a foreign
10    country of concern; or
11        (2) a partnership, association, corporation,
12    organization, or other combination of persons organized
13    under the laws of or having its principal place of
14    business in a foreign country of concern, or a subsidiary
15    of such entity.
16    "Government entity" means a State agency, a political
17subdivision, or any other public or private agency, person,
18partnership, corporation, or business entity acting on behalf
19of any public agency.
20    (b) A government entity may not knowingly enter into an
21agreement or contract for an economic incentive with a foreign
22entity.
23    (c) Before providing any economic incentive, a government
24entity must require the recipient or applicant to provide the
25government entity with an affidavit signed under penalty of
26perjury attesting that the recipient or applicant is not a

 

 

HB4345- 24 -LRB103 35780 RLC 65862 b

1foreign entity.
2    (d) The Department shall adopt rules to administer this
3Section, including rules establishing the form for the
4affidavit required under subsection (c).
 
5    Section 35. Inapplicability of Act to real property for
6diplomatic purposes. This Act does not apply to a foreign
7principal that acquires real property for a diplomatic purpose
8that is recognized, acknowledged, or allowed by the federal
9government.
 
10    Section 90. The Illinois Procurement Code is amended by
11changing Section 1-10 as follows:
 
12    (30 ILCS 500/1-10)
13    Sec. 1-10. Application.
14    (a) This Code applies only to procurements for which
15bidders, offerors, potential contractors, or contractors were
16first solicited on or after July 1, 1998. This Code shall not
17be construed to affect or impair any contract, or any
18provision of a contract, entered into based on a solicitation
19prior to the implementation date of this Code as described in
20Article 99, including, but not limited to, any covenant
21entered into with respect to any revenue bonds or similar
22instruments. All procurements for which contracts are
23solicited between the effective date of Articles 50 and 99 and

 

 

HB4345- 25 -LRB103 35780 RLC 65862 b

1July 1, 1998 shall be substantially in accordance with this
2Code and its intent.
3    (b) This Code shall apply regardless of the source of the
4funds with which the contracts are paid, including federal
5assistance moneys. This Code shall not apply to:
6        (1) Contracts between the State and its political
7    subdivisions or other governments, or between State
8    governmental bodies, except as specifically provided in
9    this Code.
10        (2) Grants, except for the filing requirements of
11    Section 20-80.
12        (3) Purchase of care, except as provided in Section
13    5-30.6 of the Illinois Public Aid Code and this Section.
14        (4) Hiring of an individual as an employee and not as
15    an independent contractor, whether pursuant to an
16    employment code or policy or by contract directly with
17    that individual.
18        (5) Collective bargaining contracts.
19        (6) Purchase of real estate, except that notice of
20    this type of contract with a value of more than $25,000
21    must be published in the Procurement Bulletin within 10
22    calendar days after the deed is recorded in the county of
23    jurisdiction. The notice shall identify the real estate
24    purchased, the names of all parties to the contract, the
25    value of the contract, and the effective date of the
26    contract.

 

 

HB4345- 26 -LRB103 35780 RLC 65862 b

1        (7) Contracts necessary to prepare for anticipated
2    litigation, enforcement actions, or investigations,
3    provided that the chief legal counsel to the Governor
4    shall give his or her prior approval when the procuring
5    agency is one subject to the jurisdiction of the Governor,
6    and provided that the chief legal counsel of any other
7    procuring entity subject to this Code shall give his or
8    her prior approval when the procuring entity is not one
9    subject to the jurisdiction of the Governor.
10        (8) (Blank).
11        (9) Procurement expenditures by the Illinois
12    Conservation Foundation when only private funds are used.
13        (10) (Blank).
14        (11) Public-private agreements entered into according
15    to the procurement requirements of Section 20 of the
16    Public-Private Partnerships for Transportation Act and
17    design-build agreements entered into according to the
18    procurement requirements of Section 25 of the
19    Public-Private Partnerships for Transportation Act.
20        (12) (A) Contracts for legal, financial, and other
21    professional and artistic services entered into by the
22    Illinois Finance Authority in which the State of Illinois
23    is not obligated. Such contracts shall be awarded through
24    a competitive process authorized by the members of the
25    Illinois Finance Authority and are subject to Sections
26    5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,

 

 

HB4345- 27 -LRB103 35780 RLC 65862 b

1    as well as the final approval by the members of the
2    Illinois Finance Authority of the terms of the contract.
3        (B) Contracts for legal and financial services entered
4    into by the Illinois Housing Development Authority in
5    connection with the issuance of bonds in which the State
6    of Illinois is not obligated. Such contracts shall be
7    awarded through a competitive process authorized by the
8    members of the Illinois Housing Development Authority and
9    are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
10    and 50-37 of this Code, as well as the final approval by
11    the members of the Illinois Housing Development Authority
12    of the terms of the contract.
13        (13) Contracts for services, commodities, and
14    equipment to support the delivery of timely forensic
15    science services in consultation with and subject to the
16    approval of the Chief Procurement Officer as provided in
17    subsection (d) of Section 5-4-3a of the Unified Code of
18    Corrections, except for the requirements of Sections
19    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
20    Code; however, the Chief Procurement Officer may, in
21    writing with justification, waive any certification
22    required under Article 50 of this Code. For any contracts
23    for services which are currently provided by members of a
24    collective bargaining agreement, the applicable terms of
25    the collective bargaining agreement concerning
26    subcontracting shall be followed.

 

 

HB4345- 28 -LRB103 35780 RLC 65862 b

1        On and after January 1, 2019, this paragraph (13),
2    except for this sentence, is inoperative.
3        (14) Contracts for participation expenditures required
4    by a domestic or international trade show or exhibition of
5    an exhibitor, member, or sponsor.
6        (15) Contracts with a railroad or utility that
7    requires the State to reimburse the railroad or utilities
8    for the relocation of utilities for construction or other
9    public purpose. Contracts included within this paragraph
10    (15) shall include, but not be limited to, those
11    associated with: relocations, crossings, installations,
12    and maintenance. For the purposes of this paragraph (15),
13    "railroad" means any form of non-highway ground
14    transportation that runs on rails or electromagnetic
15    guideways and "utility" means: (1) public utilities as
16    defined in Section 3-105 of the Public Utilities Act, (2)
17    telecommunications carriers as defined in Section 13-202
18    of the Public Utilities Act, (3) electric cooperatives as
19    defined in Section 3.4 of the Electric Supplier Act, (4)
20    telephone or telecommunications cooperatives as defined in
21    Section 13-212 of the Public Utilities Act, (5) rural
22    water or waste water systems with 10,000 connections or
23    less, (6) a holder as defined in Section 21-201 of the
24    Public Utilities Act, and (7) municipalities owning or
25    operating utility systems consisting of public utilities
26    as that term is defined in Section 11-117-2 of the

 

 

HB4345- 29 -LRB103 35780 RLC 65862 b

1    Illinois Municipal Code.
2        (16) Procurement expenditures necessary for the
3    Department of Public Health to provide the delivery of
4    timely newborn screening services in accordance with the
5    Newborn Metabolic Screening Act.
6        (17) Procurement expenditures necessary for the
7    Department of Agriculture, the Department of Financial and
8    Professional Regulation, the Department of Human Services,
9    and the Department of Public Health to implement the
10    Compassionate Use of Medical Cannabis Program and Opioid
11    Alternative Pilot Program requirements and ensure access
12    to medical cannabis for patients with debilitating medical
13    conditions in accordance with the Compassionate Use of
14    Medical Cannabis Program Act.
15        (18) This Code does not apply to any procurements
16    necessary for the Department of Agriculture, the
17    Department of Financial and Professional Regulation, the
18    Department of Human Services, the Department of Commerce
19    and Economic Opportunity, and the Department of Public
20    Health to implement the Cannabis Regulation and Tax Act if
21    the applicable agency has made a good faith determination
22    that it is necessary and appropriate for the expenditure
23    to fall within this exemption and if the process is
24    conducted in a manner substantially in accordance with the
25    requirements of Sections 20-160, 25-60, 30-22, 50-5,
26    50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,

 

 

HB4345- 30 -LRB103 35780 RLC 65862 b

1    50-36, 50-37, 50-38, and 50-50 of this Code; however, for
2    Section 50-35, compliance applies only to contracts or
3    subcontracts over $100,000. Notice of each contract
4    entered into under this paragraph (18) that is related to
5    the procurement of goods and services identified in
6    paragraph (1) through (9) of this subsection shall be
7    published in the Procurement Bulletin within 14 calendar
8    days after contract execution. The Chief Procurement
9    Officer shall prescribe the form and content of the
10    notice. Each agency shall provide the Chief Procurement
11    Officer, on a monthly basis, in the form and content
12    prescribed by the Chief Procurement Officer, a report of
13    contracts that are related to the procurement of goods and
14    services identified in this subsection. At a minimum, this
15    report shall include the name of the contractor, a
16    description of the supply or service provided, the total
17    amount of the contract, the term of the contract, and the
18    exception to this Code utilized. A copy of any or all of
19    these contracts shall be made available to the Chief
20    Procurement Officer immediately upon request. The Chief
21    Procurement Officer shall submit a report to the Governor
22    and General Assembly no later than November 1 of each year
23    that includes, at a minimum, an annual summary of the
24    monthly information reported to the Chief Procurement
25    Officer. This exemption becomes inoperative 5 years after
26    June 25, 2019 (the effective date of Public Act 101-27).

 

 

HB4345- 31 -LRB103 35780 RLC 65862 b

1        (19) Acquisition of modifications or adjustments,
2    limited to assistive technology devices and assistive
3    technology services, adaptive equipment, repairs, and
4    replacement parts to provide reasonable accommodations (i)
5    that enable a qualified applicant with a disability to
6    complete the job application process and be considered for
7    the position such qualified applicant desires, (ii) that
8    modify or adjust the work environment to enable a
9    qualified current employee with a disability to perform
10    the essential functions of the position held by that
11    employee, (iii) to enable a qualified current employee
12    with a disability to enjoy equal benefits and privileges
13    of employment as are enjoyed by other similarly situated
14    employees without disabilities, and (iv) that allow a
15    customer, client, claimant, or member of the public
16    seeking State services full use and enjoyment of and
17    access to its programs, services, or benefits.
18        For purposes of this paragraph (19):
19        "Assistive technology devices" means any item, piece
20    of equipment, or product system, whether acquired
21    commercially off the shelf, modified, or customized, that
22    is used to increase, maintain, or improve functional
23    capabilities of individuals with disabilities.
24        "Assistive technology services" means any service that
25    directly assists an individual with a disability in
26    selection, acquisition, or use of an assistive technology

 

 

HB4345- 32 -LRB103 35780 RLC 65862 b

1    device.
2        "Qualified" has the same meaning and use as provided
3    under the federal Americans with Disabilities Act when
4    describing an individual with a disability.
5        (20) Procurement expenditures necessary for the
6    Illinois Commerce Commission to hire third-party
7    facilitators pursuant to Sections 16-105.17 and 16-108.18
8    of the Public Utilities Act or an ombudsman pursuant to
9    Section 16-107.5 of the Public Utilities Act, a
10    facilitator pursuant to Section 16-105.17 of the Public
11    Utilities Act, or a grid auditor pursuant to Section
12    16-105.10 of the Public Utilities Act.
13        (21) Procurement expenditures for the purchase,
14    renewal, and expansion of software, software licenses, or
15    software maintenance agreements that support the efforts
16    of the Illinois State Police to enforce, regulate, and
17    administer the Firearm Owners Identification Card Act, the
18    Firearm Concealed Carry Act, the Firearms Restraining
19    Order Act, the Firearm Dealer License Certification Act,
20    the Law Enforcement Agencies Data System (LEADS), the
21    Uniform Crime Reporting Act, the Criminal Identification
22    Act, the Illinois Uniform Conviction Information Act, and
23    the Gun Trafficking Information Act, or establish or
24    maintain record management systems necessary to conduct
25    human trafficking investigations or gun trafficking or
26    other stolen firearm investigations. This paragraph (21)

 

 

HB4345- 33 -LRB103 35780 RLC 65862 b

1    applies to contracts entered into on or after January 10,
2    2023 (the effective date of Public Act 102-1116) this
3    amendatory Act of the 102nd General Assembly and the
4    renewal of contracts that are in effect on January 10,
5    2023 (the effective date of Public Act 102-1116) this
6    amendatory Act of the 102nd General Assembly.
7        (22) Contracts for project management services and
8    system integration services required for the completion of
9    the State's enterprise resource planning project. This
10    exemption becomes inoperative 5 years after June 7, 2023
11    (the effective date of the changes made to this Section by
12    Public Act 103-8) this amendatory Act of the 103rd General
13    Assembly. This paragraph (22) applies to contracts entered
14    into on or after June 7, 2023 (the effective date of the
15    changes made to this Section by Public Act 103-8) this
16    amendatory Act of the 103rd General Assembly and the
17    renewal of contracts that are in effect on June 7, 2023
18    (the effective date of the changes made to this Section by
19    Public Act 103-8) this amendatory Act of the 103rd General
20    Assembly.
21        (23) (22) Procurements necessary for the Department of
22    Insurance to implement the Illinois Health Benefits
23    Exchange Law if the Department of Insurance has made a
24    good faith determination that it is necessary and
25    appropriate for the expenditure to fall within this
26    exemption. The procurement process shall be conducted in a

 

 

HB4345- 34 -LRB103 35780 RLC 65862 b

1    manner substantially in accordance with the requirements
2    of Sections 20-160 and 25-60 and Article 50 of this Code. A
3    copy of these contracts shall be made available to the
4    Chief Procurement Officer immediately upon request. This
5    paragraph is inoperative 5 years after June 27, 2023 (the
6    effective date of Public Act 103-103) this amendatory Act
7    of the 103rd General Assembly.
8    Notwithstanding any other provision of law, for contracts
9with an annual value of more than $100,000 entered into on or
10after October 1, 2017 under an exemption provided in any
11paragraph of this subsection (b), except paragraph (1), (2),
12or (5), each State agency shall post to the appropriate
13procurement bulletin the name of the contractor, a description
14of the supply or service provided, the total amount of the
15contract, the term of the contract, and the exception to the
16Code utilized. The chief procurement officer shall submit a
17report to the Governor and General Assembly no later than
18November 1 of each year that shall include, at a minimum, an
19annual summary of the monthly information reported to the
20chief procurement officer.
21    (c) This Code does not apply to the electric power
22procurement process provided for under Section 1-75 of the
23Illinois Power Agency Act and Section 16-111.5 of the Public
24Utilities Act.
25    (d) Except for Section 20-160 and Article 50 of this Code,
26and as expressly required by Section 9.1 of the Illinois

 

 

HB4345- 35 -LRB103 35780 RLC 65862 b

1Lottery Law, the provisions of this Code do not apply to the
2procurement process provided for under Section 9.1 of the
3Illinois Lottery Law.
4    (e) This Code does not apply to the process used by the
5Capital Development Board to retain a person or entity to
6assist the Capital Development Board with its duties related
7to the determination of costs of a clean coal SNG brownfield
8facility, as defined by Section 1-10 of the Illinois Power
9Agency Act, as required in subsection (h-3) of Section 9-220
10of the Public Utilities Act, including calculating the range
11of capital costs, the range of operating and maintenance
12costs, or the sequestration costs or monitoring the
13construction of clean coal SNG brownfield facility for the
14full duration of construction.
15    (f) (Blank).
16    (g) (Blank).
17    (h) This Code does not apply to the process to procure or
18contracts entered into in accordance with Sections 11-5.2 and
1911-5.3 of the Illinois Public Aid Code.
20    (i) Each chief procurement officer may access records
21necessary to review whether a contract, purchase, or other
22expenditure is or is not subject to the provisions of this
23Code, unless such records would be subject to attorney-client
24privilege.
25    (j) This Code does not apply to the process used by the
26Capital Development Board to retain an artist or work or works

 

 

HB4345- 36 -LRB103 35780 RLC 65862 b

1of art as required in Section 14 of the Capital Development
2Board Act.
3    (k) This Code does not apply to the process to procure
4contracts, or contracts entered into, by the State Board of
5Elections or the State Electoral Board for hearing officers
6appointed pursuant to the Election Code.
7    (l) This Code does not apply to the processes used by the
8Illinois Student Assistance Commission to procure supplies and
9services paid for from the private funds of the Illinois
10Prepaid Tuition Fund. As used in this subsection (l), "private
11funds" means funds derived from deposits paid into the
12Illinois Prepaid Tuition Trust Fund and the earnings thereon.
13    (m) This Code shall apply regardless of the source of
14funds with which contracts are paid, including federal
15assistance moneys. Except as specifically provided in this
16Code, this Code shall not apply to procurement expenditures
17necessary for the Department of Public Health to conduct the
18Healthy Illinois Survey in accordance with Section 2310-431 of
19the Department of Public Health Powers and Duties Law of the
20Civil Administrative Code of Illinois.
21    (n) This Code is subject to the provisions of the Foreign
22Land Ownership and Foreign Countries of Concern Act.
23(Source: P.A. 102-175, eff. 7-29-21; 102-483, eff 1-1-22;
24102-558, eff. 8-20-21; 102-600, eff. 8-27-21; 102-662, eff.
259-15-21; 102-721, eff. 1-1-23; 102-813, eff. 5-13-22;
26102-1116, eff. 1-10-23; 103-8, eff. 6-7-23; 103-103, eff.

 

 

HB4345- 37 -LRB103 35780 RLC 65862 b

16-27-23; revised 9-5-23.)
 
2    Section 95. The Property Owned By Noncitizens Act is
3amended by changing Section 7 as follows:
 
4    (765 ILCS 60/7)  (from Ch. 6, par. 7)
5    Sec. 7. Except as otherwise provided in the Foreign Land
6Ownership and Foreign Countries of Concern Act, all All
7noncitizens may acquire, hold, and dispose of real and
8personal property in the same manner and to the same extent as
9natural born citizens of the United States, and the personal
10estate of a noncitizen dying intestate shall be distributed in
11the same manner as the estates of natural born citizens, and
12all persons interested in such estate shall be entitled to
13proper distributive shares thereof under the laws of this
14state, whether they are noncitizens or not.
15    This amendatory Act of 1992 does not apply to the
16Agricultural Foreign Investment Disclosure Act.
17(Source: P.A. 102-1030, eff. 5-27-22.)