Prohibiting the government of, and persons and entities from, the People’s Republic of China, and companies or persons under control of the communist party of China, from acquiring or owning real property located in the state

This bill prohibits the government of, and persons and entities from, the People’s Republic of China, and companies or persons under the control of the communist party of China, from acquiring or owning real property located in the state. The bill provides that effective July 1, 2023, the government of the People’s Republic of China (government), a corporation incorporated under the laws of the government of the People’s Republic of China (corporation) or a business entity whether or not incorporated in which a majority interest is owned directly or indirectly by nonresident aliens from the People’s Republic of China (entity), and a company or a person under the control of the communist party (company or person) of China shall not acquire by grant, purchase, devise, or descent any real property, including agricultural land, located in this state. If the government, corporation, entity, company, or person owns or holds real property in this state on July 1, 2023, the government, corporation, entity, company, or person shall divest itself of all right, title, and interest in the real property before December 31, 2023. If real property, including agricultural land, was acquired by the government, corporation, entity, company, or person by devise or descent on or before July 1, 2023, the government, corporation, entity, company, or person shall divest itself of all right, title, and interest in the real property before December 31, 2023. A person or business which purchased or otherwise acquired real property in this state except by devise or descent, and whose status changed so that the person or business is affiliated in any way with the government, corporation, entity, or a company or person shall divest itself of all right, title, and interest in the land before December 31, 2023. The bill provides that if a county recorder finds that a government, corporation, entity, company, or person has violated a requirement of the bill, the county recorder shall report the violation to the attorney general. Upon receipt of a report of a violation, the attorney general shall initiate an action in the district court of any county in which the land is located. Under the bill, if the ultimate beneficial owner of any real property located in this state cannot be 100 percent determined, the presumption shall be that the real property is owned by a resident of the government. “Ultimate beneficial owner” is defined in the bill. Effective January 1, 2024, the bill imposes a monthly foreign lands administrative tax of percent of the fair market value of any real property in this state that is owned by the government, corporation, entity, company, person, or an ultimate beneficial owner, and the tax shall be a lien on the real property. Notwithstanding any law to the contrary, on December 1, 2024, the county treasurer of each county in which real property is located on which the foreign lands administrative tax is delinquent shall offer such real estate at public sale pursuant to Code chapter 446. Notwithstanding any law to the contrary, on January 1, 2025, the bill provides that any real property located in this state that is owned by the government, corporation, entity, company, person, or an ultimate beneficial owner, shall be placed in a trust administered by the treasurer of state. The Iowa public employees’ retirement system shall be the beneficiary of the trust.