LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 238 HLS 24RS 128
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 23, 2024 9:33 AM Author: ECHOLS
Dept./Agy.: Statewide
Subject: Restricts Agriculture Land Ownership by Foreign Adversaries Analyst: Tanesha Morgan
AGRICULTURE EN INCREASE GF EX See Note Page 1 of 1
Provides relative to agriculture land protection against foreign adversaries
Proposed law restricts ownership of agricultural lands in Louisiana by foreign adversaries, defined as certain designated countries and any
entities they control. Specifically, it bars foreign adversaries and "prohibited foreign actors" (entities controlled by foreign adversaries)
from directly or indirectly owning, acquiring, leasing, or obtaining any interest in agricultural land. There are certain exemptions, such as
for foreign entities that have treaty rights to own US land, or that acquire land as debt payment or collateral. Proposed law establishes
penalties for violations, including civil fines and forced divestment of illegally acquired land. Proposed law also outlines investigative and
enforcement mechanisms for the state Attorney General to identify violators. Additional court-ordered penalties are authorized as well.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. INCREASE INCREASE INCREASE INCREASE INCREASE
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law increases expenditure in the Attorney General/Department of Justice. The proposed law prohibits any foreign adversaries or
prohibited foreign actors from owning agricultural land within the state after August 1, 2024. The proposed law authorizes the Attorney
General to bring legal action against any foreign adversary or prohibited foreign actor that violates this measure.
The Attorney General reports the Public Protection Division, which is tasked with enforcement, could require a new section and four (4)
new employees. The staffing estimates for the new section include salaries and related benefits ($494,034). Other recurring costs include
travel ($4,500), supplies ($2,000), operating services ($28,000), and acquisitions beginning in FY 25. One-time expenditures are
acquisitions of office furniture and computer equipment ($17,808). In subsequent fiscal years, the fiscal note presumes a 4% increase in
salaries for market rate adjustments and related benefits as the LFO presumes positions will be classified.
Expenditures FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Salaries $340,000 $353,600 $367,744 $382,454 $397,752
Related Benefits $154,034 $160,505 $167,251 $174,282 $181,613
Personal Services Sub-total $494,034 $514,105 $534,995 $556,736 $579,364
Operating Services $28,000 $28,560 $29,131 $29,714 $30,308
Travel $4,500 $4,590 $4,682 $5,570 $5,681
Supplies $2,000 $2,100 $2,205 $2,315 $2,431
Acquisitions $17,808 $2,000 $2,200 $2,420 $2,541
Total Expenditures $546,342 $551,445 $573,213 $596,755 $620,326
The LFO cannot corroborate the increased workload predicted by the department. To the extent the additional workload is less than what
the Attorney General anticipates, the additional workload may be absorbable, either wholly or partially, using existing staff and resources
or may be achievable with fewer than four positions. The proposed law authorizes the Attorney General to utilize civil penalties collected
under this measure to recover expenses incurred associated with investigation and enforcement. To the extent civil penalties are collected,
the need for SGF in future fiscal years may be mitigated.
REVENUE EXPLANATION
Proposed law allows the Attorney General to assess a civil penalty of $50,000 and forfeiture if a foreign adversary does not divest its
agricultural land within a year after a judgment. The LFO cannot determine the number of foreign adversaries that will be assessed civil
penalties or anticipate the amount of revenue collected from civil penalties.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Patrice Thomas
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer