Bill Summary – FastDemocracy

Enrolled Copy                                                                               H.B. 516
                           STATE LAND PURCHASE AMENDMENTS
                                            2024 GENERAL SESSION
                                                    STATE OF UTAH
                                      Chief Sponsor: Candice B. Pierucci Senate Sponsor: Michael K. McKell Cosponsor:                            Kay J. Christofferson Rosemary T. Lesser Nelson T. Abbott Tyler Clancy Karianne Lisonbee Cheryl K. Acton Paul A. Cutler                      A. Cory Maloy Carl R. Albrecht Stephanie Gricius Calvin R. Musselman Melissa G. Ballard Jon Hawkins Michael J. Petersen Stewart E. Barlow Ken Ivory Rex P. Shipp Kera Birkeland Colin W. Jack Andrew Stoddard Bridger Bolinder Tim Jimenez Keven J. Stratton Brady Brammer Dan N. Johnson Jordan D. Teuscher Walt Brooks Michael L. Kohler Christine F. Watkins Jefferson S. Burton Trevor Lee
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  LONG TITLE
  General Description:
      This bill deals with land conveyances to restricted foreign entities in the state.
  Highlighted Provisions:
      This bill:
      ▸ defines terms;
      ▸ modifies the definition of restricted foreign entity to prevent the following entities from
  obtaining an interest in land in the state:
          ●   an entity that is owned or directly controlled by the government of China, Iran, North
  Korea, or Russia; and
          ●   an entity in which a restricted foreign entity owns a majority interest;
     H.B. 516                                                                                   Enrolled Copy
       ▸ requires that a restricted foreign entity alienate any interest in the state within one year;
       ▸ requires that the Department of Public Safety:
            ●   maintain a publicly available list of restricted foreign entities;
            ●   create a process for reporting a land conveyance to a restricted foreign entity;
            ●   provide an annual notice regarding restricted foreign entities to each county auditor
   in the state; and
            ●   investigate any conveyance to a restricted foreign entity;
       ▸ describes the duties of a county recorder in relation to restricted foreign entities; and
       ▸ provides the Division of Facilities Construction and Management authority to sell an
   interest in land that a restricted foreign entity fails to timely alienate.
   Money Appropriated in this Bill:
       None
   Other Special Clauses:
       None
   Utah Code Sections Affected:
   AMENDS:
       53-1-106, as last amended by Laws of Utah 2023, Chapters 328, 447
       63L-13-101, as enacted by Laws of Utah 2023, Chapter 61
       63L-13-201, as enacted by Laws of Utah 2023, Chapter 61
       63L-13-202, as enacted by Laws of Utah 2023, Chapter 61
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   Be it enacted by the Legislature of the state of Utah:
         Section 1. Section 53-1-106 is amended to read:
         53-1-106 . Department duties -- Powers.
   (1) In addition to the responsibilities contained in this title, the department shall:
       (a) make rules and perform the functions specified in Title 41, Chapter 6a, Traffic Code,
            including:
            (i) setting performance standards for towing companies to be used by the department,
                 as required by Section 41-6a-1406; and
            (ii) advising the Department of Transportation regarding the safe design and
                 operation of school buses, as required by Section 41-6a-1304;
       (b) make rules to establish and clarify standards pertaining to the curriculum and
            teaching methods of a motor vehicle accident prevention course under Section
            31A-19a-211;
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     Enrolled Copy                                                                                   H.B. 516
      (c) aid in enforcement efforts to combat drug trafficking;
      (d) meet with the Division of Technology Services to formulate contracts, establish
          priorities, and develop funding mechanisms for dispatch and telecommunications
          operations;
      (e) provide assistance to the Crime Victim Reparations Board and the Utah Office for
          Victims of Crime in conducting research or monitoring victims' programs, as
          required by Section 63M-7-505;
      (f) develop sexual assault exam protocol standards in conjunction with the Utah Hospital
          Association;
      (g) engage in emergency planning activities, including preparation of policy and
          procedure and rulemaking necessary for implementation of the federal Emergency
          Planning and Community Right to Know Act of 1986, as required by Section
          53-2a-702;
      (h) implement the provisions of Section 53-2a-402, the Emergency Management
          Assistance Compact;
      (i) ensure that any training or certification required of a public official or public
          employee, as those terms are defined in Section 63G-22-102, complies with Title
          63G, Chapter 22, State Training and Certification Requirements, if the training or
          certification is required:
          (i) under this title;
          (ii) by the department; or
          (iii) by an agency or division within the department;
      (j) employ a law enforcement officer as a public safety liaison to be housed at the State
          Board of Education who shall work with the State Board of Education to:
          (i) support training with relevant state agencies for school resource officers as
              described in Section 53G-8-702;
          (ii) coordinate the creation of model policies and memorandums of understanding for
              a local education agency and a local law enforcement agency; and
          (iii) ensure cooperation between relevant state agencies, a local education agency,
              and a local law enforcement agency to foster compliance with disciplinary related
              statutory provisions, including Sections 53E-3-516 and 53G-8-211;
      (k) provide for the security and protection of public officials, public officials' staff, and
          the capitol hill complex in accordance with the provisions of this part;[ and]
      (l) fulfill the duties described in Sections 77-36-2.1 and 78B-7-120 related to lethality
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      H.B. 516                                                                                  Enrolled Copy
            assessments[.] ; and
       (m) fulfill the duties described in Section 63L-13-201 related to restricted foreign
            entities.
   (2) (a) The department shall establish a schedule of fees as required or allowed in this
       title for services provided by the department.
       (b) All fees not established in statute shall be established in accordance with Section
            63J-1-504.
   (3) The department may establish or contract for the establishment of an Organ
       Procurement Donor Registry in accordance with Section 26B-8-319.
         Section 2. Section 63L-13-101 is amended to read:
         63L-13-101 . Definitions.
     As used in this chapter:
   (1) "Interest in land" means any right, title, lien, claim, interest, or estate with respect to
       land.
   (2) (a) "Land" means all real property within the state.
       (b) "Land" includes:
            (i) agricultural land, as defined in Section 4-46-102;
            (ii) land owned or controlled by a political subdivision;
            (iii) land owned or controlled by a school district;
            (iv) non-federal land, as defined in Section 9-9-402;
            (v) private land;
            (vi) public land;
            (vii) state land, as defined in Subsection 9-9-402(14)(a);
            (viii) waters of the state, as defined in Subsection 19-5-102(23)(a); and
            (ix) subsurface land.
       (c) "Land" does not include real property that is owned, controlled, or held in trust by
            the federal government.
   (3) "Land conveyance" means the transfer of any interest in land from one party to another.
   [(3)] (4) "Restricted foreign entity" means:
       (a) a company that the United States Secretary of Defense is required to identify and
            report as a military company under Section 1260H of the William M. (Mac)
            Thornberry National Defense Authorization Act for Fiscal Year 2021, Pub. L. No.
            116-283;
       (b) an entity that is owned or directly controlled by the government of China, Iran, North
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      Enrolled Copy                                                                                      H.B. 516
          Korea, or Russia;
      (c) an affiliate, subsidiary, or holding company of [a company] an entity described in
          Subsection [(3)(a)] (4)(a) or (b);
      [(c)] (d) a country with a commercial or defense industrial base of which [a company] an
          entity described in Subsection [(3)(a) or (b)] (4)(a), (b), or (c) is a part;
      [(d)] (e) a state, province, region, prefecture, subdivision, or municipality of a country
          described in Subsection [(3)(c); and] (4)(d);
      [(e)] (f) an agency, bureau, committee, or department of a country described in
          Subsection [(3)(c).] (4)(d); or
      (g) any entity in which any entity described in Subsections (4)(a) through (f) maintains
          at least a 51% ownership interest.
        Section 3. Section 63L-13-201 is amended to read:
        63L-13-201 . Acquisition of land prohibited -- Exceptions -- Enforcement.
  (1) As used in this section, "department" means the Department of Public Safety created
      under Section 53-1-103.
  [(1)] (2) Subject to Subsection [(2)] (3) and Section 63L-13-202, a restricted foreign entity
      may not acquire an interest in land in this state.
  [(2) Subsection (1) does not apply to an interest in land that a restricted foreign entity
      acquired before May 3, 2023:]
      [(a) by purchase, grant, gift, donation, devise, or bequest;]
      [(b) as security for the repayment of a debt; or]
      [(c) as a party to a contract for the transfer or conveyance of an interest in land to the
          restricted foreign entity.]
  [(3) A deed or other written instrument, other than in probate, purporting to convey an
      interest in land to a restricted foreign entity in violation of Subsection (1) is invalid.]
  (3) A restricted foreign entity that, in violation of Subsection (2), obtains an interest in land
      shall alienate the interest in accordance with Section 63L-13-202.
  (4) The department shall:
      (a) maintain a publicly available list of restricted foreign entities;
      (b) create a process by which a county recorder may report a land conveyance the county
          recorder suspects is prohibited under this section;
      (c) provide an annual notice to each county recorder in the state that includes:
          (i) instruction on how to identify a restricted foreign entity;
          (ii) the process by which a county recorder may report to the department a land
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      H.B. 516                                                                                   Enrolled Copy
                conveyance the county recorder suspects is prohibited under this section; and
            (iii) any additional information the department deems necessary;
       (d) investigate the validity of each land conveyance a county recorder reports under this
            section;
       (e) when, after investigation, the department determines that a land conveyance violates
            this section:
            (i) give notice to the restricted foreign entity that:
                (A) the land conveyance violates this section; and
                (B) Section 63L-13-202 requires the restricted foreign entity to alienate the
                       restricted foreign entity's interest in the land within one year or the Division of
                       Facilities Construction and Management will sell the interest in accordance
                       with Subsection 63L-13-202(3); and
            (ii) notify the county recorder of the county in which the land is located of the land
                conveyance; and
       (f) coordinate with the Division of Facilities Construction and Management to facilitate
            a sale of the interest in land as described in Section 63L-13-202.
   (5) A county recorder:
       (a) is not liable for a conveyance to a restricted foreign entity; and
       (b) shall, upon notice from the department under Subsection (4)(e)(ii), create a public
            record of each violation of this section.
         Section 4. Section 63L-13-202 is amended to read:
         63L-13-202 . Alienate within one year -- Sale of property.
   (1) (a) A restricted foreign entity that acquires an interest in land on or after [May 3,
       2023, by grant, gift, donation, devise, or bequest] May 1, 2024, shall alienate the
       interest within [five years] one year after the date of acquisition.
       (b) A restricted foreign entity that acquired an interest in land before May 1, 2024, shall
            alienate the interest on or before May 1, 2025.
   (2) If a restricted foreign entity fails to alienate an interest in land [in accordance with
       Subsection (1), the interest escheats to the state.] as described in Subsection (1), the
       Division of Facilities Construction and Management shall sell the interest in land in
       accordance with Subsection (3).
   (3) The Division of Facilities Construction and Management shall sell an interest in land
       described in Subsection (2):
       (a) at public auction;
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      Enrolled Copy                                                                                       H.B. 516
      (b) when practicable, in the city, town, or precinct where the land is located;
      (c) the day after the one year time period described in Subsection (1) elapses, but not
          longer than one year after the day on which the time period in Subsection (1) elapses;
      (d) after publication of the date, time, and place of sale:
          (i) in a newspaper having general circulation in the county, once in each of the two
               successive weeks immediately preceding the date of the sale; and
          (ii) in accordance with Section 45-1-101 for the two weeks immediately preceding
               the date of the sale; and
      (e) after notification, sent by certified mail at least 10 days before the first date of
          publication described in Subsection (3)(d), to:
          (i) the restricted foreign entity;
          (ii) all lien holders of record; and
          (iii) any other person known to have an interest in the land.
  (4) If a political subdivision sold an interest in land described in Subsection (2) to the
      restricted foreign entity, the political subdivision has a right of first refusal before the
      sale described in Subsection (3).
  (5) After the sale of the interest in land described in Subsection (3), the Division of
      Facilities Construction and Management shall submit to the county recorder for
      recording notice of a sale described in this section.
  (6) Proceeds from a sale under Subsection (3) shall:
      (a) satisfy any outstanding liens on the interest in land; and
      (b) after satisfying any outstanding liens, be deposited into the General Fund.
        Section 5. Effective date.
    This bill takes effect on May 1, 2024.
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Statutes affected: 
Introduced: 53-1-106, 63L-13-101, 63L-13-201, 63L-13-202
Amended: 53-1-106, 63L-13-101, 63L-13-201, 63L-13-202
Enrolled: 53-1-106, 63L-13-101, 63L-13-201, 63L-13-202