103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3394

 

Introduced 2/8/2024, by Sen. Sue Rezin

 

SYNOPSIS AS INTRODUCED:
 
New Act
765 ILCS 60/7  from Ch. 6, par. 7

    Creates the Foreign Countries of Concern Act. Prohibits governmental entities from entering into contracts with certain prohibited entities that would give those prohibited entities access to an individual's personal identifying information. Prohibits certain entities from receiving economic incentives. Provides that certain prohibited entities may not own interests in agricultural land or land on or around military installations or critical infrastructure facilities. Prohibits the purchase or acquisition of real property by certain entities associated with the People's Republic of China. Amends the Property Owned By Noncitizens Act to make conforming changes.


LRB103 35899 HLH 65984 b

 

 

A BILL FOR

 

SB3394LRB103 35899 HLH 65984 b

1    AN ACT concerning State government.
 
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 Countries of Concern Act.
 
6    Section 5. Contracting with entities of foreign countries
7of concern prohibited.
8    (a) As used in this Section:
9    "Controlling interest" means possession of the power to
10direct or cause the direction of the management or policies of
11a company, whether through ownership of securities, by
12contract, or otherwise. A person or entity that directly or
13indirectly has the right to vote 25% or more of the voting
14interests of the company or is entitled to 25% or more of the
15company's profits is presumed to possess a controlling
16interest.
17    "Department" means the Department of Central Management
18Services.
19    "Foreign country of concern" means the People's Republic
20of China, the Russian Federation, the Islamic Republic of
21Iran, the Democratic People's Republic of Korea, the Republic
22of Cuba, Venezuela, or the Syrian Arab Republic, including any
23agency of or any other entity of significant control of such

 

 

SB3394- 2 -LRB103 35899 HLH 65984 b

1foreign country of concern.
2    "Governmental entity" means any legislative, executive,
3administrative, or advisory body of the State, any State
4university or college, any county, township, city, village,
5incorporated town, or school district, and any other municipal
6corporation, board, bureau, committee, or commission of the
7State.
8    (b) Beginning on the effective date of this Act, a
9governmental entity may not knowingly enter into a contract
10with an entity that would give the entity access to an
11individual's personal identifying information if:
12        (1) the entity is owned by the government of a foreign
13    country of concern;
14        (2) the government of a foreign country of concern has
15    a controlling interest in the entity; or
16        (3) the entity is organized under the laws of or has
17    its principal place of business in a foreign country of
18    concern.
19    (c) Beginning on the effective date of this Act, a
20governmental entity may not extend or renew a contract with an
21entity listed in subsection (b) if the contract would give
22that entity access to an individual's personal identifying
23information.
24    (d) Beginning on the effective date of this Act, a
25governmental entity may not accept a bid on a contract, accept
26a proposal for a contract, or enter into a contract with an

 

 

SB3394- 3 -LRB103 35899 HLH 65984 b

1entity if that contract would grant the entity access to an
2individual's personal identifying information unless the
3entity provides the governmental entity with an affidavit
4signed by an officer or representative of the entity under
5penalty of perjury attesting that the entity does not meet any
6of the criteria in subsection (b).
7    If an entity extends or renews a contract with a
8governmental entity that would grant the entity access to an
9individual's personal identifying information, then the entity
10must provide the governmental entity with an affidavit signed
11by an officer or representative of the entity under penalty of
12perjury attesting that the entity does not meet any of the
13criteria in subsection (b).
14    (e) The Attorney General may bring a civil action in any
15court of competent jurisdiction against an entity that
16violates this Section. Violations of this Section may result
17in:
18        (1) a civil penalty equal to twice the amount of the
19    subject contract;
20        (2) ineligibility to enter into, renew, or extend any
21    contract, including any grant agreements, with any
22    governmental entity for up to 5 years; and
23        (3) ineligibility to receive or renew any license,
24    certification, or credential issued by a governmental
25    entity for up to 5 years.
26    (f) Any penalties collected under subsection (e) must be

 

 

SB3394- 4 -LRB103 35899 HLH 65984 b

1deposited into the General Revenue Fund.
2    (g) The Department shall adopt rules to implement this
3Section, including rules establishing the form for the
4affidavit required under subsection (d).
 
5    Section 10. Economic incentives to foreign countries of
6concern prohibited.
7    (a) As used in this Section:
8    "Controlled by" means having possession of the power to
9direct or cause the direction of the management or policies of
10a company, whether through ownership of securities, by
11contract, or otherwise. A person or entity that directly or
12indirectly has the right to vote 25% or more of the voting
13interests of the company or that is entitled to 25% or more of
14the company's profits is presumed to control the company.
15    "Department" means the Department of Commerce and Economic
16Opportunity.
17    "Economic incentive" means all programs administered by,
18or for which an applicant for the program must seek
19certification, approval, or other action by, the Department,
20and all economic development programs, grants, or financial
21benefits administered by a political subdivision of the State.
22    "Foreign country of concern" has the same meaning as in
23Section 5.
24    "Government entity" means a State agency, a political
25subdivision of the State, or any other public or private

 

 

SB3394- 5 -LRB103 35899 HLH 65984 b

1agency, person, partnership, corporation, or business entity
2acting on behalf of any public agency.
3    "Prohibited entity" means an entity that is:
4        (1) owned or controlled by the government of a foreign
5    country of concern; or
6        (2) a partnership, association, corporation,
7    organization, or other combination of persons organized
8    under the laws of or having its principal place of
9    business in a foreign country of concern, or a subsidiary
10    of such an entity.
11    (b) A government entity may not knowingly enter into an
12agreement or contract for an economic incentive with a
13prohibited entity.
14    (c) Before providing any economic incentive, a government
15entity must require the recipient or applicant to provide the
16government entity with an affidavit signed under penalty of
17perjury attesting that the recipient or applicant is not a
18prohibited entity.
19    (d) The Department shall adopt rules to administer this
20Section, including rules establishing the form for the
21affidavit required under subsection (c).
 
22    Section 15. Purchase of agricultural land by foreign
23principals prohibited.
24    (a) As used in this Section:
25    "Agricultural land" means any land located in this State

 

 

SB3394- 6 -LRB103 35899 HLH 65984 b

1and used for agricultural, forestry, or timber production
2purposes.
3    "Department" means the Department of Agriculture.
4    "Foreign country of concern" has the same meaning as in
5Section 5.
6    "Prohibited entity" means:
7        (1) the government or any official of the government
8    of a foreign country of concern;
9        (2) a political party or member of a political party
10    or any subdivision of a political party in a foreign
11    country of concern;
12        (3) a partnership, association, corporation,
13    organization, or other combination of persons organized
14    under the laws of or having its principal place of
15    business in a foreign country of concern, or a subsidiary
16    of such entity;
17        (4) any person who is domiciled in a foreign country
18    of concern and is not a citizen or lawful permanent
19    resident of the United States; or
20        (5) any person, entity, or collection of persons or
21    entities, described in paragraphs (1) through (4) having a
22    controlling interest in a partnership, association,
23    corporation, organization, trust, or any other legal
24    entity or subsidiary formed for the purpose of owning real
25    property in this State.
26    "Real property" means land, buildings, fixtures, and all

 

 

SB3394- 7 -LRB103 35899 HLH 65984 b

1other improvements to land.
2    (b) A prohibited entity may not directly or indirectly
3own, have a controlling interest in, or acquire by purchase,
4grant, devise, or descent agricultural land or any interest,
5except a de minimis indirect interest, in agricultural land in
6this State. A prohibited entity has a de minimis indirect
7interest if any ownership is the result of the entity's
8ownership of registered equities in a publicly traded company
9owning the land and if the entity's ownership interest in the
10company is either:
11        (1) less than 5% of any class of registered equities
12    or less than 5% in the aggregate in multiple classes of
13    registered equities; or
14        (2) a noncontrolling interest in an entity controlled
15    by a company that is both registered with the United
16    States Securities and Exchange Commission as an investment
17    adviser under the Investment Advisers Act of 1940 and is
18    not a foreign entity.
19    (c) A prohibited entity that directly or indirectly owns
20or acquires agricultural land in this State or any interest in
21agricultural land in this State before the effective date of
22this Act may continue to own or hold that land or interest but,
23except as provided in subsection (d), may not purchase or
24otherwise acquire by grant, devise, or descent any additional
25agricultural land in this State or any interest in
26agricultural land in this State on or after the effective date

 

 

SB3394- 8 -LRB103 35899 HLH 65984 b

1of this Act.
2    A prohibited entity that directly or indirectly owns or
3acquires agricultural land in this State or owns or acquires
4any interest in agricultural land in this State before the
5effective date of this Act must register with the Department
6within 6 months after the effective date of this Act. The
7Department must establish a form for those registrations that,
8at minimum, includes all of the following:
9        (1) the name of the owner of the agricultural land or
10    the owner of the interest in that land;
11        (2) the address of the agricultural land, the property
12    appraiser's parcel identification number, and the
13    property's legal description; and
14        (3) the number of acres of the agricultural land.
15    A prohibited entity that fails to timely file a
16registration with the Department is subject to a civil penalty
17of $1,000 for each day that the registration is late. The
18Department may place a lien against the unregistered
19agricultural land for the unpaid balance of any penalties
20assessed under this Section.
21    (d) Notwithstanding the provisions of this Section, a
22prohibited entity may acquire agricultural land on or after
23the effective date of this Act by devise or descent, through
24the enforcement of security interests, or through the
25collection of debts, provided that the entity sells,
26transfers, or otherwise divests itself of the agricultural

 

 

SB3394- 9 -LRB103 35899 HLH 65984 b

1land within 3 years after acquiring the agricultural land.
2    (e) At the time of purchase, a buyer of agricultural land
3or an interest in agricultural land must provide an affidavit
4signed under penalty of perjury attesting that the buyer is:
5        (1) not a prohibited entity; and
6        (2) in compliance with the requirements of this
7    Section.
8    (f) The failure to obtain or maintain the affidavit does
9not affect the title or insurability of the title for the
10agricultural land or subject the closing agent to civil or
11criminal liability, unless the closing agent has actual
12knowledge that the transaction will result in a violation of
13this Section.
14    (g) The Department may initiate a civil action in the
15circuit court of the county in which the property is located
16for the forfeiture of the agricultural land or any interest in
17that land.
18    (h) The Department shall adopt rules to implement this
19Section, including rules establishing the form for the
20affidavit required under subsection (e).
 
21    Section 20. Purchase of real property on or around
22military installations or critical infrastructure facilities
23by foreign principals prohibited.
24    (a) As used in this Section:
25    "Critical infrastructure facility" means any of the

 

 

SB3394- 10 -LRB103 35899 HLH 65984 b

1following, if it employs measures such as fences, barriers, or
2guard posts that are designed to exclude unauthorized persons:
3        (1) a chemical manufacturing facility;
4        (2) a refinery;
5        (3) an electrical power plant;
6        (4) a water treatment facility or wastewater treatment
7    plant;
8        (5) a liquid natural gas terminal;
9        (6) a telecommunications central switching office;
10        (7) a gas processing plant, including a plant used in
11    the processing, treatment, or fractionation of natural
12    gas; and
13        (8) an airport.
14    "Department" means the Department of Commerce and Economic
15Opportunity.
16    "Foreign country of concern" has the same meaning as in
17Section 5.
18    "Foreign principal" means:
19        (1) the government or any official of the government
20    of a foreign country of concern;
21        (2) a political party or member of a political party
22    or any subdivision of a political party in a foreign
23    country of concern;
24        (3) a partnership, association, corporation,
25    organization, or other combination of persons organized
26    under the laws of or having its principal place of

 

 

SB3394- 11 -LRB103 35899 HLH 65984 b

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

 

 

SB3394- 12 -LRB103 35899 HLH 65984 b

1    or less than 5% in the aggregate in multiple classes of
2    registered equities; or
3        (2) a noncontrolling interest in an entity controlled
4    by a company that is both registered with the United
5    States Securities and Exchange Commission as an investment
6    adviser under the Investment Advisers Act of 1940 and is
7    not a foreign entity.
8    (c) A foreign principal that directly or indirectly owns
9or acquires any interest in real property on or within 10 miles
10of any military installation or critical infrastructure
11facility in this State before the effective date of this Act
12may continue to own or hold that real property but, except as
13provided in subsections (e) and (f), may not purchase or
14otherwise acquire by grant, devise, or descent any additional
15real property on or within 10 miles of any military
16installation or critical infrastructure facility in this
17State.
18    (d) A foreign principal must register with the Department
19if the foreign principal owns or acquires real property on or
20within 10 miles of any military installation or critical
21infrastructure facility in this State as authorized under
22subsection (e) or if the foreign principal owned or acquired
23an interest, other than a de minimis indirect interest, in
24that property before the effective date of this Act. The
25Department must establish a form for such registration which,
26at a minimum, includes the following:

 

 

SB3394- 13 -LRB103 35899 HLH 65984 b

1        (1) the name of the owner of the real property; and
2        (2) the address of the real property, the property
3    appraiser's parcel identification number, and the
4    property's legal description.
5    A foreign principal that fails to timely file a
6registration with the Department is subject to a civil penalty
7of $1,000 for each day that the registration is late. A foreign
8principal must register a property interest owned before the
9effective date of this Act within 90 days after the effective
10date of this Act. A foreign principal who owns or acquires real
11property on or after the effective date of this Act must
12register the real property within 30 days after the property
13is owned or acquired. The Department may place a lien against
14the unregistered real property for the unpaid balance of any
15penalties assessed under this paragraph.
16    (e) Notwithstanding the provisions of this Section, a
17foreign principal who is a natural person may purchase one
18residential real property that is up to 2 acres in size if all
19of the following apply:
20        (1) the parcel is not on or within 5 miles of any
21    military installation in this State;
22        (2) the person has a current verified United States
23    visa that is not limited to authorizing tourist-based
24    travel or official documentation confirming that the
25    person has been granted asylum in the United States, and
26    that visa or documentation authorizes the person to be

 

 

SB3394- 14 -LRB103 35899 HLH 65984 b

1    legally present within this State; and
2        (3) The purchase is in the name of the person who holds
3    the visa or official documentation described in paragraph
4    (2).
5    (f) Notwithstanding the provisions of this Section, a
6foreign principal may acquire real property or any interest
7therein which is on or within 10 miles of any military
8installation or critical infrastructure facility in this State
9on or after the effective date of this Act, by devise or
10descent, through the enforcement of security interests, or
11through the collection of debts, provided that the foreign
12principal sells, transfers, or otherwise divests itself of
13such real property within 3 years after acquiring the real
14property.
15    (g) At the time of purchase, a buyer of the real property
16that is on or within 10 miles of any military installation or
17critical infrastructure facility in this State must provide an
18affidavit signed under penalty of perjury attesting that the
19buyer is:
20        (1) not a foreign principal or not a foreign principal
21    prohibited from purchasing the subject real property; and
22        (2) in compliance with the requirements of this
23    Section.
24    The failure to obtain or maintain the affidavit does not
25affect the title or insurability of the title for the real
26property or subject the closing agent to civil or criminal

 

 

SB3394- 15 -LRB103 35899 HLH 65984 b

1liability, unless the closing agent has actual knowledge that
2the transaction will result in a violation of this Section.
3    (h) The Department shall adopt rules to implement this
4Section, including rules establishing the form for the
5affidavit required under this Section.
6    (i) The Department may initiate a civil action in the
7circuit court of the county in which the property is located
8for the forfeiture of the real property or any interest in the
9property.
 
10    Section 25. Purchase or acquisition of real property by
11the People's Republic of China prohibited.
12    (a) The following persons or entities may not directly or
13indirectly own, have a controlling interest in, or acquire by
14purchase, grant, devise, or descent any interest, except a de
15minimis indirect interest, in real property in this State:
16        (1) The People's Republic of China, the Chinese
17    Communist Party, or any official or member of the People's
18    Republic of China or the Chinese Communist Party.
19        (2) Any other political party or member of a political
20    party or a subdivision of a political party in the
21    People's Republic of China.
22        (3) A partnership, an association, a corporation, an
23    organization, or any other combination of persons
24    organized under the laws of or having its principal place
25    of business in the People's Republic of China, or a

 

 

SB3394- 16 -LRB103 35899 HLH 65984 b

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

 

 

SB3394- 17 -LRB103 35899 HLH 65984 b

1        (1) The parcel is not on or within 5 miles of any
2    military installation in this State.
3        (2) The person has a current verified United States
4    visa that is not limited to authorizing tourist-based
5    travel or official documentation confirming that the
6    person has been granted asylum in the United States and
7    such visa or documentation authorizes the person to be
8    legally present within this State.
9        (3) The purchase is in the name of the person who holds
10    the visa or official documentation described in paragraph
11    (2).
12    (d) A person or entity described in subsection (a) that
13directly or indirectly owns or acquires any interest in real
14property in this State before the effective date of this Act
15may continue to own or hold such real property but, except as
16provided in subsection (g), may not purchase or otherwise
17acquire by grant, devise, or descent any additional real
18property in this State.
19    (e) A person or entity described in subsection(a) must
20register with the Department if the person or entity owns or
21acquires more than a de minimis indirect interest in real
22property in this State. The Department must establish a form
23for such registration which, at a minimum, must include the
24following:
25        (1) The name of the owner of the real property.
26        (2) The address of the real property, the property

 

 

SB3394- 18 -LRB103 35899 HLH 65984 b

1    appraiser's parcel identification number, and the
2    property's legal description.
3    (f) A person or entity that fails to timely file a
4registration with the Department is subject to a civil penalty
5of $1,000 for each day that the registration is late. The
6Department may place a lien against the unregistered real
7property for the unpaid balance of any penalties assessed
8under this paragraph.
9    (g) Notwithstanding subsection (a), a person or an entity
10described in subsection (a) may acquire real property in this
11State on or after the effective date of this Act, by devise or
12descent, through the enforcement of security interests, or
13through the collection of debts, provided that the person or
14entity sells, transfers, or otherwise divests itself of that
15real property within 3 years after acquiring the real
16property.
17    (h) At the time of purchase, a buyer of real property in
18this State must provide an affidavit signed under penalty of
19perjury attesting that the buyer is:
20        (1) not a person or entity described in subsection (a)
21    or that the buyer is a person described in subsection (a)
22    but is authorized to purchase the subject property; and
23        (2) in compliance with the requirements of this
24    Section.
25    The failure to obtain or maintain the affidavit does not
26affect the title or insurability of the title for the real

 

 

SB3394- 19 -LRB103 35899 HLH 65984 b

1property or subject the closing agent to civil or criminal
2liability, unless the closing agent has actual knowledge that
3the transaction will result in a violation of this Section.
4    (i) If any real property is owned or acquired in violation
5of this Section, the real property may be forfeited to the
6State.
7    (j) The Department shall adopt rules to implement this
8Section.
 
9    Section 900. The Property Owned By Noncitizens Act is
10amended by changing Section 7 as follows:
 
11    (765 ILCS 60/7)  (from Ch. 6, par. 7)
12    Sec. 7. Real property held by noncitizens. Except as
13provided in the Foreign Countries of Concern Act, all All
14noncitizens may acquire, hold, and dispose of real and
15personal property in the same manner and to the same extent as
16natural born citizens of the United States, and the personal
17estate of a noncitizen dying intestate shall be distributed in
18the same manner as the estates of natural born citizens, and
19all persons interested in such estate shall be entitled to
20proper distributive shares thereof under the laws of this
21state, whether they are noncitizens or not.
22    This amendatory Act of 1992 does not apply to the
23Agricultural Foreign Investment Disclosure Act.
24(Source: P.A. 102-1030, eff. 5-27-22.)