HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 1355 Interests of Foreign Countries
SPONSOR(S): State Affairs Committee, Judiciary Committee, Borrero, Waldron and others
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 264
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Judiciary Committee 22 Y, 0 N, As CS Mathews Kramer
2) Appropriations Committee 27 Y, 0 N Willson Pridgeon
3) State Affairs Committee 16 Y, 4 N, As CS Villa Williamson
SUMMARY ANALYSIS
Foreign ownership and investment in United States agricultural land has generated significant interest in recent
years. Several high-profile incidents have prompted lawmakers to evaluate and respond to the potential
impacts of foreign ownership and investment on national security and trade.
Additionally, there is growing concern regarding the impact of foreign land ownership on national food security.
A recent letter from 130 lawmakers to the U.S. Government Accountability Office expressed concern that
“foreign investment in U.S. farmland could result in foreign control of available U.S. farmland, especially prime
agricultural lands, and possibly lead to foreign control over food production and food prices.”
The bill generally restricts the role certain foreign countries may take with respect to land ownership in the
state. The bill restricts a governmental entity’s ability to contract with certain foreign countries of concern and
further prohibits foreign countries of concern, including China, from purchasing or otherwise acquiring real
property in the state. The bill places specific limitations on the type and location of real property that may be
owned or acquired by a foreign country of concern. Notably, the bill prohibits a foreign principal from owning
real property on or within 20 miles of a military installation and further prohibits the foreign ownership of
agricultural land.
The bill also amends the Florida Electronic Health Records Act and Florida Health Care Licensing Procedures
Act to require that any offsite storage of medical information and patient records be physically maintained at a
location within the United States, a territory of the United States, or Canada.
The bill may have a significant indeterminate fiscal impact relating to property ownership in the state, as the bill
allows for the state to seize and sell illegally owned property.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Foreign Ownership of United States Real Property
Foreign ownership and investment in U.S. agricultural land has generated significant interest in recent
years.1 Several high-profile incidents have prompted lawmakers to evaluate and respond to the
potential impacts of foreign ownership and investment on national security, trade, and food security.2
For example, in 2022, Fufeng Group Limited, a Chinese food manufacturer, acquired 300 acres of land
12 miles from the Grand Forks Air Force Base (AFB) in North Dakota in order to build a production
plant.3 Grand Forks AFB reportedly houses a significant amount of the nation’s sophisticated military
drone technology.4 As such, the proximity of the Fufeng Group’s land purchase to the base could make
it conveniently situated to monitor air traffic flow in and out of the base as well as other business
patterns and security-related concerns.5
In January 2023, Andrew P. Hunter, the Assistant Secretary of the Air Force for Acquisition,
Technology and Logistics,6 sent U.S. Senator John Hoeven a letter providing the Air Force’s official
position on the project. The letter confirmed that the AFB is the center of military activities related to
both air and space operations and that the Air Force’s position was that the proposed Fufeng project
presented a significant threat to national security with risks of significant impacts to military operations
in that area.7
Additionally, there is growing concern regarding the impact of foreign land ownership on national food
security. A recent letter from 130 lawmakers to the U.S. Government Accountability Office expressed
concern that “foreign investment in U.S. farmland could result in foreign control of available U.S.
farmland, especially prime agricultural lands, and possibly lead to foreign control over food production
and food prices.”8,9
In 2021, foreign individuals and entities held an interest in 40.8 million acres of the nation’s agricultural
land.10 Foreign land holdings have increased by an average of 2.2 million acres per year since 2015.11
As of 2021, the states with the most foreign-owned agricultural acreage were Texas (5.3 million acres),
Maine (3.6 million acres), Colorado (1.9 million acres), Alabama (1.8 million acres), and Oklahoma (1.7
1 See Aleks Phillips, What the U.S. Is Doing to Curtail Chinese Land Ownership, Newsweek, Feb. 13, 2023,
https://www.newsweek.com/chinese-land-ownership-investment-us-military-bases-1780886 (last visited April 14, 2023).
2 See Letter from Congressmen Glenn “GT” Thompson & James Comer to Gene L. Dodaro, Comptroller General of the U.S.
Government Accountability Office (Oct. 1, 2022), https://oversight.house.gov/wp-content/uploads/
2022/10/20221001_GAO_foreignlandownership.pdf (last visited Mar. 18, 2023).
3 Congressional Research Service (CRS), Foreign Ownership and Holdings of U.S. Agricultural Land (version 4, updated Jan. 24,
2023), https://crsreports.congress.gov/product/pdf/IF/IF11977 (last visited Mar. 18, 2023).
4 Ariel Zilber, Chinese Firm Bought North Dakota Farm Near U.S. Air Force Drone Base: Report, New York Post, Jul. 1, 2022,
https://nypost.com/2022/07/01/chinese-firm-bought-farm-near-us-air-force-drone-base-report/ (last visited Mar. 20, 2023); see also
Letter from Thompson & Comer, supra note 2; see also Lauren Greenwood, U.S.-China Economic and Security Review Commission,
China’s Interests in U.S. Agriculture: Augmenting Food Security through Investment Ab road (May 26, 2022)
https://www.uscc.gov/sites/default/files/2022-05/Chinas_Interests_in_U.S._Agriculture.pdf (last visited Mar. 18, 2023).
5 Greenwood, supra note 4.
6 U.S. Air Force, Andrew P. Hunter (Sept. 2022), https://www.af.mil/About-Us/Biographies/Display/Article/3154079/andrew-p-hunter/
(last visited Mar. 18, 2023).
7 Letter from Andrew P. Hunter, Office of the Assistant Secretary, to U.S. Senator John Hoeven (Jan. 27, 2023),
https://www.hoeven.senate.gov/imo/media/doc/USAIRFORCE-FUFENG-LETTER-HOEVEN.pdf (last visited Mar. 20, 2023).
8 Letter from Thompson & Comer, supra note 2.
9 Rachel Treisman, NPR, China is Buying Up More U.S. Farmland. Some Lawmakers Consider That a Security Threa t (Mar. 1, 2023),
https://www.npr.org/2023/03/01/1160297853/china-farmland-purchases-house-hearing-competition (last visited Mar. 20, 2023).
10 CRS, supra note 3, at 2.
11 Id.
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 million acres). Other states with more than 1 million foreign-owned acres include Arkansas, California,
Florida, Georgia, Kansas, Louisiana, Michigan, New Mexico, Oregon, and Washington. 12
According to the U.S. Department of Agriculture, of the 21,849,568 acres of privately held agricultural
land in Florida, 1,382,284 acres (6.3 percent) are held by foreign nationals, which is among the highest
proportions in the U.S.13
Government Procurement
In General
Chapter 287, F.S., sets forth the procurement and contracting procedures for most state agencies.14 In
general, the law requires a competitive solicitation process when state agencies wish to procure
commodities or contractual services that cost more than $35,000. 15 A “competitive solicitation” is the
process of requesting and receiving two or more sealed bids, proposals, or replies submitted by
responsive vendors.16 Depending on the type of contract and scope of work or goods sought, an
agency may use one of three procurement methods:
 Invitation to bid (ITB) – An agency must use an ITB when the agency is capable of specifically
defining the scope of work for which a contractual service is required or when the agency is
capable of establishing precise specifications defining the actual commodity or group of
commodities required.17
 Request for proposals (RFP) – An agency must use an RFP when the purposes and uses for
which the commodity, group of commodities, or contractual service being sought can be
specifically defined and the agency is capable of identifying necessary deliverables.18
 Invitation to negotiate (ITN) – An ITN is a solicitation used by an agency that is intended to
determine the best method for achieving a specific goal or solving a particular problem and
identifies one or more responsive vendors with which the agency may negotiate in order to
receive the best value.19
Contracts for commodities or services may be renewed for the term of the original contract or for up to
three years, whichever is longer. Renewals must be in writing, are contingent upon satisfactory
performance evaluations by the agency and the availability of funds, and may not include compensation
for costs associated with the renewal.20
The Department of Management Services (DMS) oversees state purchasing activity and registers
vendors that wish to provide goods or services to the state.21 DMS also maintains lists of vendors who
may not submit bids, proposals, or replies to agency requests for proposals. These include companies
identified on the following lists:
 Suspended vendor list, which includes vendors who are in default on a contract or have
repeatedly failed to fulfill the terms of state contracts. Contracts cannot be awarded to such
12 Id.
13 Farm Service Agency, U.S. Department of Agriculture, Foreign Holdings of U.S. Agricultural Land Through Dec. 31, 2021,
https://www.fsa.usda.gov/programs-and-services/economic-and-policy-analysis/afida/annual-reports/index (last visited Mar. 20, 2023).
14 “Agency” means any of the various state officers, departments, boards, com missions, divisions, bureaus, and councils and any other
unit of organization, however designated, of the executive branch of state government. “Agency” does not include the universi ty and
college boards of trustees or the state universities and colleges. S. 287.012(1), F.S.
15 Ss. 287.057 and 287.017, F.S.
16 S. 287.012(6), F.S.
17 S. 287.057(1)(a), F.S.
18 S. 287.057(1)(b), F.S.
19 S. 287.057(1)(c), F.S.
20 S. 287.057(14), F.S.
21 Ss. 287.032 and 287.042, F.S.; see also Department of Management Services, Vendor Registration and Vendor Lists,
https://www.dms.myflorida.com/business_operations/state_purchasing/state_agency_resources/vendor_registration_and_vendor_list s
(last visited Mar. 20, 2023).
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 vendors until the vendor reimburses the agency for the costs of re-procurement and the agency
is satisfied that further default will not occur.22
 Convicted vendor list, which includes vendors who have been disqualified due to conviction of
a public entity crime, which includes fraud, theft, bribery, collusion, racketeering, conspiracy, or
material misrepresentation related to a contract for services to be provided to a public entity. 23
 Discriminatory vendor list, which includes vendors who have been disqualified for violating any
state or federal law prohibiting discrimination based on race, gender, national origin, disability,
or religion.24
 Antitrust violator vendor list, which includes vendors who have been disqualified due to being
convicted or held civilly liable for an antitrust violation. 25
Scrutinized List of Prohibited Companies
Companies on the Scrutinized Companies with Activities in Sudan list, on the Scrutinized Companies
with Activities in the Iran Petroleum Energy Sector list, or engaged in business operations 26 in Syria are
prohibited from bidding on, submitting a proposal for, or entering into or renewing a contract with an
agency or a local governmental entity27 for goods or services of $1 million or more.28 Similarly, a
company on the Scrutinized Companies that Boycott Israel list or engaged in a boycott of Israel may
not bid on, submit a proposal for, or enter into or renew a contract with an agency or local governmental
entity for goods or services of any amount.29 The State Board of Administration is charged with
maintaining a complete list of scrutinized companies based on criteria outlined in statute. 30
Accessibility of Florida Medical and Health Care Records
The Florida Electronic Health Records Exchange Act
The Florida Electronic Health Records Exchange Act31 (Act) authorizes a health care provider to
release or access an identifiable health record of a patient without his or her consent for use in treating
an emergency medical condition, when consent cannot be obtained from the patient or the patient’s
representative due to the patient’s condition.32 Under current law, an “identifiable health record” means
any health record33 that identifies the patient with respect to which there is a reasonable basis to
believe the information can be used to identify the patient.34 The Act provides immunity from civil
liability for a health care provider who accesses or releases an identifiable health record in good faith
under s. 408.051, F.S. It also directs the Agency for Health Care Administration (AHCA) to create a
form to document patient authorization for the use or release of an identifiable health record. 35
The Health Care Licensing Procedures Act
22 S. 287.1351, F.S.
23 S. 287.133, F.S.
24
S. 287.134, F.S.
25 S. 287.137, F.S.
26 “Business operations” means, for purposes specifically related to Syria, engaging in commerce in any form in Syria, including , but not
limited to, acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating e quipment, facilities, personnel,
products, services, personal property, real property, military equipment, or any other apparatus of business or commerce. S.
287.135(1)(c), F.S.
27 “Local governmental entity” means a county, municipality, special district, or other political subdivision of the state. S. 287.135(1)(d),
F.S.
28 S. 287.135(2)(b), F.S.
29 S. 287.135(2)(a), F.S.
30 Ss. 215.4725, and 215.473, F.S.
31 S. 408.051, F.S.
32 S. 408.051(3), F.S.
33 S. 408.051(2)(d), F.S., defines a “health record” as any information, recorded in any form or medium, which relates to the past,
present, or future health of an individual for the primary purpose of providing health care and health -related services.
34 S. 408.051(2)(f), F.S., defines a “patient” as an individual who has sought, is seeking, is undergoing, or has undergone care or
treatment in a health care facility or by a health care provider.
35 S. 408.051(4), F.S.
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 The Health Care Licensing Procedures Act36 (Act) provides a streamlined and consistent set of basic
licensing requirements for health care providers.37 The Act is intended to minimize confusion,
standardize terminology, and address issues relating to specific providers.38 The Act provides minimum
licensure requirements, with which applicants and licensees must comply to obtain and maintain a
license.39
Effect of Proposed Changes
Contracts and Personal Identifying Information
The bill creates s. 287.138, F.S., to prohibit a governmental entity from entering into a contract with an
entity which would give access to an individual’s personal identifying information under certain
situations. The bill provides the following definitions for the section:
 “Controlling interest” means the possession of the power to direct or cause the direction of the
management or policies of a company, whether through ownership of securities, by contract, or
otherwise. A person or entity that directly or indirectly has the right to vote 25 percent or more of
the voting interests of the company or is entitled to 25 percent or more of its profits is presumed
to possess a controlling interest.
 “Department” means the Florida Department of Management Services (DMS).
 “Foreign country of concern” means:
o The People’s Republic of China.
o The Russian Federation.
o The Islamic Republic of Iran.
o The Democratic People’s Republic of Korea.
o The Republic of Cuba.
o The Venezuelan regime of Nicolás Maduro.
o The Syrian Arab Republic.
o Any agency of, or any other entity under the signif