103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2668

 

Introduced 1/10/2024, by Sen. Sally J. Turner

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Property Owned By Noncitizens Act. Provides that a prohibited foreign-party-controlled business shall not acquire by grant, purchase, devise, descent, or otherwise any interest in public or private land in the State. Provides that a prohibited foreign-party-controlled business entity in violation of the provisions has 2 years to divest of the public or private land, and if a prohibited foreign-party-controlled business entity does not divest the public or private land, the Attorney General shall commence an action in the circuit court within the jurisdiction of the public or private land. Provides that a prohibited foreign party shall not acquire by grant, purchase, devise, descent, or otherwise any interest in agricultural land in the State regardless of whether the prohibited foreign party intends to use the agricultural land for nonfarming purposes. Provides that a prohibited foreign party who is a resident alien of the United States shall have the right to acquire and hold agricultural land in the State upon the same terms as a citizen of the United States during the continuance of his or her residence in the State, but if a prohibited foreign party is no longer a resident alien, he or she shall have 2 years to divest of the agricultural land, and that if the prohibited foreign party does not divest of the agricultural land as required, the Attorney General shall commence an action in circuit court within the jurisdiction of the agricultural land. Provides that violation of the provisions by either a prohibited foreign-party-controlled business entity or a prohibited foreign party owning agricultural land shall, upon conviction, be guilty of a Class 4 felony punishable by not more than 2 years imprisonment in the custody of the Department of Corrections or a $15,000 fine, or both. Creates the Office of Agricultural Intelligence within the Department of Agriculture to collect and analyze information concerning the unlawful sale or possession of agricultural land by prohibited foreign parties and administer and enforce the provisions of the Act.


LRB103 34872 LNS 64735 b

 

 

A BILL FOR

 

SB2668LRB103 34872 LNS 64735 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. Policy. It is the declared policy of the State
5to conserve, protect, and encourage the development and
6improvement of its agricultural and forest lands and other
7facilities for the production of food, fiber, and other
8agricultural and silvicultural products.
 
9    Section 5. The Property Owned By Noncitizens Act is
10amended by changing Section 7 and by adding Sections 1, 9, 10,
1111, and 12 as follows:
 
12    (765 ILCS 60/1 new)
13    Sec. 1. Definitions. As used in this Act:
14    "Agricultural land" means any land in the State that is
15outside the corporate limits of a municipality and is:
16        (1) used for forestry production, including, but not
17    limited to, land exceeding 10 acres in which 10% of the
18    land is stocked by trees of any size, including land that
19    formerly had trees of any size covering the land that will
20    be naturally or artificially regenerated; or
21        (2) currently used for, or, if currently idle, land
22    last used within the past 5 years, for farming, ranching,

 

 

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1    or timber production, except land not exceeding 10 acres
2    in the aggregate, if the annual gross receipts from the
3    sale of the farm, ranch, or timber products produced on
4    the land do not exceed $1,000, including, but not limited
5    to, land used for activities described in the Standard
6    Industrial Classification Manual (1987), Division A,
7    exclusive of industry numbers 0711-0783, 0851, and
8    0912-0919, which cover animal trapping, game management,
9    hunting carried on as a business enterprise, trapping
10    carried on as a business enterprise, and wildlife
11    management.
12    "Agricultural land" does not include oil, gas, and all
13other minerals, including coal, lignite, brine, and all
14minerals known and recognized as commercial minerals
15underlying the land.
16    "Controlling interest" means an ownership interest of 50%
17or more, in the aggregate.
18    "Foreign government" means any government other than (i)
19the federal government or (ii) the government of a state or a
20political subdivision of a state.
21    "Interest in agricultural land" means the direct interest
22acquired, transferred, or held in agricultural land,
23including, but not limited to, a lease of agricultural land:
24        (1) for a term of one year or longer; or
25        (2) renewable by option for terms that, if the options
26    were all exercised, would total one year.

 

 

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1    "Party" means any individual, corporation, company,
2association, firm, partnership, society, joint-stock company,
3trust, estate, or any other legal entity.
4    "Prohibited foreign-party-controlled business" means a
5corporation, company, association, firm, partnership, society,
6joint-stock company, trust, estate, or other legal entity
7whose controlling interest is owned by a prohibited foreign
8party.
9    "Prohibited foreign party" means:
10        (1) a citizen or resident of a country subject to the
11    International Traffic in Arms Regulation, 22 CFR 120-130;
12        (2) a foreign government formed within a country
13    subject to the International Traffic in Arms Regulation,
14    22 CFR 120-130;
15        (3) a party, other than an individual or a government,
16    created or organized under the laws of a foreign
17    government within a country subject to the International
18    Traffic in Arms Regulation, 22 CFR 120-130;
19        (4) any party, other than an individual or a
20    government:
21            (A) that is created or organized under the laws of
22        any state; and
23            (B) in which a significant interest or substantial
24        control is directly or indirectly held or is capable
25        of being exercised by:
26                (i) an individual referred to in paragraph (1)

 

 

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1            of this definition;
2                (ii) a foreign government referred to in
3            paragraph (2) of this definition;
4                (iii) a party referred to in paragraph (3) of
5            this definition; or
6                (iv) a combination of the individuals,
7            parties, or governments referred to in this
8            subparagraph;
9        (5) an entity of particular concern designated by the
10    United States Department of State; or
11        (6) an agent, trustee, or other fiduciary of a person
12    or entity enumerated in paragraphs (1) through (5) of this
13    definition.
14    "Residence" means a person's principal dwelling place
15where the person intends to remain permanently for an
16indefinite period of time.
17    "Resident alien" means a person who:
18        (1) is not a citizen of the United States; and
19        (2) is a resident of a:
20            (A) state of the United States;
21            (B) territory of the United States;
22            (C) trusteeship of the United States; or
23            (D) protectorate of the United States.
24    "Significant interest" or "substantial control" means:
25        (1) an interest of 33% or more held by:
26            (A) a party referred to in paragraph (4) of the

 

 

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1        definition of "prohibited foreign party";
2            (B) a party referred to in paragraph (1) of the
3        definition of "prohibited foreign party";
4            (C) a party referred to in paragraph (3) of the
5        definition of "prohibited foreign party"; or
6            (D) a single government referred to in paragraph
7        (2) of the definition of "prohibited foreign party";
8        (2) an interest of 33% or more held whenever the
9    parties, individuals, or governments referred to in
10    subparagraph (A) of paragraph (1) of this definition are
11    acting in concert with respect to the interest even though
12    no single individual, party, or government holds an
13    interest of 33% or more; or
14        (3) an interest of 50% or more, in the aggregate, held
15    by parties, individuals, or governments referred to in
16    subparagraph (A) of paragraph (1) of this definition even
17    though the individuals, parties, or foreign governments
18    may not be acting in concert.
 
19    (765 ILCS 60/7)  (from Ch. 6, par. 7)
20    Sec. 7. Except as provided in Sections 9, 10, and 11, all
21All noncitizens may acquire, hold, and dispose of real and
22personal property in the same manner and to the same extent as
23natural born citizens of the United States, and the personal
24estate of a noncitizen dying intestate shall be distributed in
25the same manner as the estates of natural born citizens, and

 

 

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1all persons interested in such estate shall be entitled to
2proper distributive shares thereof under the laws of this
3state, whether they are noncitizens or not.
4    This amendatory Act of 1992 does not apply to the
5Agricultural Foreign Investment Disclosure Act.
6(Source: P.A. 102-1030, eff. 5-27-22.)
 
7    (765 ILCS 60/9 new)
8    Sec. 9. Land ownership by prohibited
9foreign-party-controlled business prohibited.
10    (a) A prohibited foreign-party-controlled business shall
11not acquire by grant, purchase, devise, descent, or otherwise
12any interest in public or private land in this State. A party
13may not hold public or private land as an agent, trustee, or
14other fiduciary for a prohibited foreign-party-controlled
15business in violation of this Section.
16    (b) A prohibited foreign-party-controlled business entity
17in violation of this Section shall have 2 years to divest of
18the public or private land. If a prohibited
19foreign-party-controlled business entity does not divest the
20public or private land, the Attorney General shall commence an
21action in the circuit court within the jurisdiction of the
22public or private land. If the public or private land is held
23in violation of this Section, the circuit court shall order
24that the public or private land be sold through judicial
25foreclosure. Proceeds of the sale shall be disbursed to

 

 

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1lienholders, in the order of priority, except for liens that,
2under the terms of the sale, are to remain on the public or
3private land. The Attorney General shall promptly record a
4copy of the following in the local land records:
5        (1) upon commencement, notice of the pendency of an
6    action brought under this subsection; and
7        (2) the order for the sale of the public or private
8    land under this subsection.
9    (c) A prohibited foreign-party-controlled business entity
10shall, upon conviction for a violation of this Section, be
11guilty of a Class 4 felony punishable by not more than 2 years
12imprisonment in the custody of the Department of Corrections
13or a $15,000 fine, or both.
14    (d) It is an affirmative defense to prosecution under this
15Section that a prohibited foreign-party-controlled business
16entity is a resident alien of the State.
17    (e) Title to public or private land is not invalid or
18subject to divestiture due to a violation of this Section by:
19        (1) any former owner; or
20        (2) other person holding or owning a former interest
21    in the public or private land.
22    (f) No person not subject to this Section shall be
23required to determine or inquire into whether another person
24is or may be subject to this Section.
 
25    (765 ILCS 60/10 new)

 

 

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1    Sec. 10. Foreign ownership of agricultural land.
2    (a) A prohibited foreign party shall not acquire by grant,
3purchase, devise, descent, or otherwise any interest in
4agricultural land in this State regardless of whether the
5prohibited foreign party intends to use the agricultural land
6for nonfarming purposes. A party may not hold agricultural
7land as an agent, trustee, or other fiduciary for a prohibited
8foreign party in violation of this Section.
9    (b) A prohibited foreign party that acquires agricultural
10land in violation of this Section remains in violation as long
11as the prohibited foreign party holds an interest in the
12agricultural land.
 
13    (765 ILCS 60/11 new)
14    Sec. 11. Interest in agricultural land owned by prohibited
15foreign parties; exceptions; penalties.
16    (a) A prohibited foreign party who is a resident alien of
17the United States shall have the right to acquire and hold
18agricultural land in the State upon the same terms as a citizen
19of the United States during the continuance of his or her
20residence in the State.
21    (b) If a prohibited foreign party is no longer a resident
22alien under subsection (a), he or she shall have 2 years to
23divest of the agricultural land. If the prohibited foreign
24party does not divest of the agricultural land as required by
25this subsection, the Attorney General shall commence an action

 

 

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1in circuit court within the jurisdiction of the agricultural
2land. If the agricultural land is held in violation of this
3Section, the circuit court shall order that the agricultural
4land be sold through judicial foreclosure.
5    (c) When the Office of Agricultural Intelligence
6determines a prohibited foreign party has acquired
7agricultural land in this State in violation of this Section,
8the Office of Agricultural Intelligence shall report the
9violation to the Attorney General. Upon receiving notice under
10this subsection or upon receipt of information that leads the
11Attorney General to believe that a violation of this Section
12may exist, the Attorney General may issue subpoenas requiring
13the:
14        (1) appearance of witnesses;
15        (2) production of relevant records; and
16        (3) giving of relevant testimony.
17    If, as a result of the investigation under this
18subsection, the Attorney General concludes that a violation of
19this Section has occurred, the Attorney General shall commence
20an action in circuit court within the jurisdiction of the
21agricultural land. If the agricultural land is held in
22violation of this Section, the circuit court shall order that
23the agricultural land be sold through judicial foreclosure.
24    (d) The proceeds of a sale of agricultural land by
25judicial foreclosure authorized under this Section shall be
26disbursed to lienholders, in the order of priority, except for

 

 

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1liens which under the terms of the sale are to remain on the
2agricultural land. The Attorney General shall promptly record
3a copy of the following in the local land records:
4        (1) upon commencement, notice of the pendency of an
5    action under this Section; and
6        (2) the order for the sale of agricultural land under
7    this Section.
8    (e) A prohibited foreign party owning agricultural land
9subsequent to the effective date of this amendatory Act of the
10103rd General Assembly and not listed under an exception in
11subsection (a) or (b) shall, upon conviction, be guilty of a
12Class 4 felony punishable by not more than 2 years
13imprisonment in the custody of the Department of Corrections
14or a $15,000 fine, or both.
15    (f) It is an affirmative defense to prosecution under this
16Section that a prohibited foreign party is a resident alien of
17the State.
18    (g) Title to agricultural land is not invalid or subject
19to divestiture due to a violation of this Section by:
20        (1) any former owner; or
21        (2) other person holding or owning a former interest
22    in the agricultural land.
23    (h) No person not subject to this Section shall be
24required to determine or inquire into whether another person
25is or may be subject to this Section.
 

 

 

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1    (765 ILCS 60/12 new)
2    Sec. 12. Office of Agricultural Intelligence.
3    (a) There is created within the Department of Agriculture
4the Office of Agricultural Intelligence.
5    (b) The Office of Agricultural Intelligence is authorized
6and directed to:
7        (1) collect and analyze information concerning the
8    unlawful sale or possession of agricultural land by
9    prohibited foreign parties; and
10        (2) administer and enforce the provisions of this Act,
11    including, but not limited to, the reporting of a
12    violation of this Act to the Attorney General under
13    subsection (c) of Section 11.
14    (c) The Director of Agriculture may designate employees of
15the Department of Agriculture who have the power of a peace
16officer or institutional law enforcement officer in the
17enforcement of criminal laws of this State to perform the
18duties of the Office of Agricultural Intelligence under
19subsection (b).
20    (d) The Office of Agricultural Intelligence shall operate
21under the direction of the Director of Agriculture.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    765 ILCS 60/1 new
4    765 ILCS 60/7from Ch. 6, par. 7
5    765 ILCS 60/9 new
6    765 ILCS 60/10 new
7    765 ILCS 60/11 new
8    765 ILCS 60/12 new