LB1301 LB1301
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LEGISLATIVE BILL 1301
Approved by the Governor April 16, 2024
Introduced by DeKay, 40; Halloran, 33; Aguilar, 35; Jacobson, 42; von Gillern,
4; Linehan, 39; Dorn, 30; McDonnell, 5; Kauth, 31; Brandt, 32;
Lippincott, 34; Holdcroft, 36; Hansen, 16; Hardin, 48; Brewer,
43; Erdman, 47; Albrecht, 17; at the request of the Governor.
A BILL FOR AN ACT relating to real property; to amend sections 4-107, 25-1081,
30-2312, 76-402, 76-404, 76-405, 76-406, 76-407, 76-412, 76-413, 76-414,
81-201, and 84-205, Reissue Revised Statutes of Nebraska; to adopt the Foreign-owned Real Estate National Security Act; to change provisions relating to nonresident aliens taking property by succession or
testamentary disposition; to change and eliminate provisions relating to
foreign ownership of real property; to provide duties for the Department of Agriculture and Attorney General; to harmonize provisions; to provide an operative date; to provide severability; to repeal the original sections; and to outright repeal sections 76-403, 76-408, 76-409, 76-410,
76-411, and 76-415, Reissue Revised Statutes of Nebraska.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 4-107, Reissue Revised Statutes of Nebraska, is amended to read:
4-107 (1) The right of a nonresident an alien not residing within the United States or its territories to take either real or personal property or
the proceeds thereof in this state by succession or testamentary disposition,
upon the same terms and conditions as inhabitants and citizens of the United States, is dependent in each case upon:
(a) The Upon the existence of a reciprocal right upon the part of citizens of the United States to take real and personal property and the proceeds thereof upon the same terms and conditions as inhabitants and citizens of the country of which such nonresident alien is an inhabitant;
(b) The Upon the rights of citizens of the United States to receive by
payment to them within the United States or its territories money originating from the estates of persons dying within such foreign country; and
(c) Proof Upon proof that such nonresident alien heirs, distributees,
devisees, or legatees may receive the benefit, use, or control of property or
proceeds from estates of persons dying in this state without confiscation in
whole or in part, by the governments of such foreign countries; and .
(d) Compliance of the nonresident alien with the Foreign-owned Real Estate National Security Act, except that if the nonresident alien does not comply with the Foreign-owned Real Estate National Security Act, the act shall control the transfer and disposition of any of the property that is agricultural land.
(2) The burden is upon such nonresident alien to establish the fact of
existence of the reciprocal rights set forth in subsection (1) of this section.
(3) If such reciprocal rights are not found to exist, the property shall be delivered to the State Treasurer to be held for a period of five years from date of death during which time such nonresident alien may show that he or she has become eligible to receive such property. If at the end of such period of
five years no showing of eligibility is made by such nonresident alien, his or
her rights to such property or proceeds shall be barred.
(4) At any time within the one year following the date the rights of such nonresident alien have been barred, any other person other than an ineligible nonresident alien who, in the case of succession or testamentary disposition,
would have been entitled to the property or proceeds by virtue of the laws of
Nebraska governing intestate descent and distribution had the nonresident alien predeceased the decedent, may petition the district court of Lancaster County for payment or delivery of such property or proceeds to those entitled thereto.
(5) If no person has petitioned the district court of Lancaster County for payment or delivery of such property or proceeds within six years from the date of death of decedent, such property or proceeds shall be disposed of as escheated property.
(6) All property other than money delivered to the State Treasurer under this section may within one year after delivery be sold by the State Treasurer him to the highest bidder at public sale in whatever city in the state affords in the State Treasurer's his judgment would be the most favorable market for the property involved. The State Treasurer may decline the highest bid and reoffer the property for sale if the State Treasurer he considers the price bid insufficient. The State Treasurer He need not offer any property for sale if,
in the State Treasurer's his opinion, the probable cost of sale exceeds the value of the property. Any sale held under this section shall be preceded by a single publication of notice of such sale thereof at least three weeks in
advance of sale in a an English language newspaper of general circulation in
the county where the property is to be sold and the cost of such publication and other expenses of sale paid out of the proceeds of such sale. The purchaser at any sale conducted by the State Treasurer pursuant to this section shall receive title to the property purchased, free from all claims of the owner or
prior holder of such property thereof and of all persons claiming through or
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under such owner or prior holder them. The State Treasurer shall execute all documents necessary to complete the transfer of title.
(7) For purposes of this section, nonresident alien has the same meaning as in section 5 of this act.
Sec. 2. Section 25-1081, Reissue Revised Statutes of Nebraska, is amended to read:
25-1081 A receiver may be appointed by the district court (1) in an action by a vendor to vacate a fraudulent purchase of property, by a creditor to
subject any property or fund to his or her claim, or between partners, limited liability company members, or others jointly owning or interested in any property or fund on the application of any party to the suit when the property or fund is in danger of being lost, removed, or materially injured, (2) in an
action for the foreclosure of a mortgage or in an action to foreclose a trust deed as a mortgage when the mortgaged property or property subject to the trust deed is in danger of being lost, removed, or materially injured or is probably insufficient to discharge the mortgage debt secured by the mortgage or trust deed, (3) in connection with the exercise of the power of sale under a trust deed and following the filing of a notice of default under the Nebraska Trust Deeds Act when the property subject to the trust deed is in danger of being lost, removed, or materially injured or is probably insufficient to discharge the debt secured by the trust deed, (4) in an action brought pursuant to
section 52-1705 to enforce a written assignment of rents provision contained in
any agreement and the agreement provides for the appointment of a receiver, (5)
in any other case in which a mortgagor or trustor has agreed in writing to the appointment of a receiver, (6) after judgment or decree to carry the judgment into execution, to dispose of the property according to the decree or judgment,
or to preserve it during the pendency of an appeal, (7) in an action under the Foreign-owned Real Estate National Security Act, (8) (7) in all cases provided for by special statutes, and (9) (8) in all other cases when receivers have heretofore been appointed by the usages of courts of equity.
Sec. 3. Section 30-2312, Reissue Revised Statutes of Nebraska, is amended to read:
30-2312 No person is disqualified to take as an heir because he or she or
a person through whom he or she claims is or has been an alien except as
provided in section 4-107 and under the Foreign-owned Real Estate National Security Act Chapter 76, article 4.
Sec. 4. Sections 4 to 20 of this act shall be known and may be cited as
the Foreign-owned Real Estate National Security Act.
Sec. 5. For purposes of the Foreign-owned Real Estate National Security Act:
(1) Nonresident alien means any person who:
(a) Is not a citizen of the United States;
(b) Is not a national of the United States;
(c) Is not a lawful permanent resident of the United States; and
(d) Has not been physically present in the United States for at least one hundred eighty-three days during a three-year period that includes the current year and the two years immediately preceding the current year; and
(2) Restricted entity means:
(a) Any person or entity identified on the sanctions lists maintained by
the Office of Foreign Assets Control of the United States Department of the Treasury as such sanctions lists existed on the operative date of this act; or
(b) Any person or foreign government or entity determined by the United States Secretary of Commerce to have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States pursuant to 15 C.F.R. 7.4, as such regulation existed on the operative date of this act.
Sec. 6. Section 76-402, Reissue Revised Statutes of Nebraska, is amended to read:
76-402 (1) Except as provided in the Foreign-owned Real Estate National Security Act, a nonresident alien, a foreign corporation, a government other than the United States Government or a government of its states, political subdivisions, territories, or possessions, or an agent, a trustee, or a fiduciary thereof:
(a) Shall not purchase, acquire title to, or take Aliens and corporations not incorporated under the laws of the State of Nebraska are prohibited from acquiring title to or taking or holding any land, or real estate, or any leasehold interest extending for a period for more than five years or any other greater interest less than fee in any land, or real estate in this state by
descent, devise, purchase or otherwise on or after the operative date of this act, except as provided in the Foreign-owned Real Estate National Security Act;
and sections 76-403 to 76-405.
(b) Shall be in compliance with the federal Agricultural Foreign Investment Disclosure Act of 1978, 7 U.S.C. 3501 et seq., with respect to any real estate in Nebraska.
(2) Except as provided in the Foreign-owned Real Estate National Security Act, a restricted entity, a nonresident alien, a foreign corporation, a government other than the United States Government or a government of its states, political subdivisions, territories, or possessions, or an agent, a trustee, or a fiduciary thereof, that on or after the operative date of this act purchases, acquires title to, or takes any real estate or any leasehold interest in violation of the Foreign-owned Real Estate National Security Act shall be subject to divestment as prescribed under section 15 of this act.
Sec. 7. Section 76-404, Reissue Revised Statutes of Nebraska, is amended
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to read:
76-404 (1) Except as provided in subsection (2) of this section,
corporations Corporations incorporated under the laws of the United States of
America, or under the laws of any state of the United States of America, or any foreign corporation or any nonresident alien, doing business in this state, may acquire, own, hold, or operate leases for oil, gas, or other hydrocarbon substances, for a period as long as ten years and as long thereafter as oil,
gas, or other hydrocarbon substances shall or can be produced in commercial quantities.
(2) Subsection (1) of this section shall not apply to a restricted entity or an agent, trustee, or fiduciary thereof. A restricted entity that violates subsection (1) of this section shall be in violation of the Foreign-owned Real Estate National Security Act and subject to divestment as prescribed under section 15 of this act.
Sec. 8. Section 76-405, Reissue Revised Statutes of Nebraska, is amended to read:
76-405 Any nonresident resident alien may acquire title to lands in this state by devise or descent only, except that provided such nonresident alien shall be required to sell and convey such said real estate property within five years after from the date of acquiring it, and if the nonresident alien fails he shall fail to dispose of it to a bona fide purchaser for value within such that time, the nonresident alien it shall be in violation of the Foreign-owned Real Estate National Security Act and the real estate shall be subject to
divestment as prescribed in section 15 of this act revert and escheat to the State of Nebraska. If a person no longer meets the definition of nonresident alien within five years of acquiring title to real estate by devise or descent,
such person shall not be required to dispose or divest of the property.
Sec. 9. Section 76-406, Reissue Revised Statutes of Nebraska, is amended to read:
76-406 No corporation organized under the laws of this state and no
corporation organized under the laws of any other state or country, doing business in this state, which was organized to hold or is holding real estate,
except as provided in the Foreign-owned Real Estate National Security Act sections 76-404 and 76-412 to 76-414, shall elect nonresident aliens as members of its board of directors or board of trustees in a number sufficient to
constitute a majority of such board, nor elect nonresident aliens as executive officers or managers nor have a majority of its capital stock owned by
nonresident aliens.
Sec. 10. Section 76-407, Reissue Revised Statutes of Nebraska, is amended to read:
76-407 Any such corporation described in section 9 of this act violating such the provisions of section 76-406 shall be construed and held to be a nonresident an alien and within the provisions of the Foreign-owned Real Estate National Security Act sections 76-401 to 76-415 applicable to nonresident aliens alien persons. Any such domestic corporation violating the provisions of
section 9 of this act 76-406 shall forfeit its charter and be dissolved. Any such foreign corporation violating the provisions of said section 9 of this act shall forfeit its right to do business in the State of Nebraska.
Sec. 11. Section 76-412, Reissue Revised Statutes of Nebraska, is amended to read:
76-412 (1) Except as provided in subsection (2) of this section, the The provisions of sections 6, 9, and 10 of this act 76-402, 76-406, 76-407 and
76-411 shall not apply to the real estate necessary for the construction and operation of railroads, public utilities, and common carriers.
(2) Subsection (1) of this section shall not apply to a restricted entity or an agent, trustee, or fiduciary thereof. A restricted entity that violates subsection (1) of this section shall be in violation of the Foreign-owned Real Estate National Security Act and subject to divestment as prescribed under section 15 of this act.
Sec. 12. Section 76-413, Reissue Revised Statutes of Nebraska, is amended to read:
76-413 (1) Except as provided in subsection (2) of this section, any nonresident Any alien, or foreign corporation, government other than the United States Government or a government of its states, political subdivisions,
territories, or possessions, or agent, trustee, or fiduciary thereof:
(a) May may purchase, acquire, and hold title to, or be a lessor or lessee of as much real estate as shall be necessary for the purpose of (i) (1)
erecting on such real estate thereon manufacturing or industrial establishments, and in addition thereto such real estate as may be required for facilities incidental to such establishments, or (ii) (2) erecting and maintaining establishments primarily operated for the storage, sale, and distribution of petroleum products or hydrocarbon substances, commonly known as
filling stations or bulk stations; and .
(b) Shall not expand establishments or facilities purchased, acquired,
held, or leased pursuant to subdivision (1)(a) of this section or build new such establishments or facilities if a restricted entity or an agent, trustee,
or fiduciary thereof.
(2) A restricted entity, or an agent, trustee, or fiduciary thereof, shall not purchase, acquire, hold title to, or be a lessor or lessee of real estate pursuant to subdivision (1)(a) of this section unless such restricted entity has a national security agreement with the Committee on Foreign Investment in
the United States as of the operative date of this act, maintains such national security agreement, and certifies the validity of such national security
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agreement annually to the Department of Agriculture within thirty days after the operative date of this act and on or before January 15 of each year thereafter.
(3) A restricted entity that violates this section shall be in violation of the Foreign-owned Real Estate National Security Act and subject to
divestment as prescribed under section 15 of this act.
Sec. 13. Section 76-414, Reissue Revised Statutes of Nebraska, is amended to read:
76-414 (1) Except as provided in subsection (2) of this section, the The provisions of the Foreign-owned Real Estate National Security Act sections
76-402 to 76-413 shall not apply to any real estate lying within the corporate limits of cities and villages, or within three miles of such corporate limits thereof, nor to any manufacturing or industrial establishment described referred to in section 12 of this act 76-413.
(2) A restricted entity, or an agent, trustee, or fiduciary thereof, that purchases, acquires, holds title to, or is the lessor or lessee of any real estate lying within the corporate limits of cities and villages, or within three miles of such corporate limits, or any manufacturing or industrial establishment described in section 12 of this act shall be subject to sections
6 and 12 of this act. A restricted entity that violates this subsection shall be subject to divestment as prescribed under section 15 of this act.
Sec. 14. (1) The Attorney General shall establish a process by which any person may submit information or concerns to the Attorney General regarding real estate transactions in Nebraska.
(2) The Attorney General may submit a report concerning real estate transactions that the Attorney General has identified in Nebraska to the