Chief Sponsor: Candice B. Pierucci

Senate Sponsor: Michael K. McKell


8     General Description:
9          This bill enacts the Restrictions on Foreign Acquisitions of Land Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     prohibits a restricted foreign entity from acquiring an interest in land;
14          ▸     requires a restricted foreign entity to alienate certain interests in land; and
15          ▸     provides that certain interests in land escheat to the state after a specified time.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     ENACTS:
22          63L-13-101, Utah Code Annotated 1953
23          63L-13-201, Utah Code Annotated 1953
24          63L-13-202, Utah Code Annotated 1953

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 63L-13-101 is enacted to read:

28          63L-13-101. Definitions.
29          As used in this chapter:
30          (1) "Interest in land" means any right, title, lien, claim, interest, or estate with respect to
31     land.
32          (2) (a) "Land" means all real property within the state.
33          (b) "Land" includes:
34          (i) agricultural land, as defined in Section 4-46-102;
35          (ii) land owned or controlled by a political subdivision;
36          (iii) land owned or controlled by a school district;
37          (iv) non-federal land, as defined in Section 9-9-402;
38          (v) private land;
39          (vi) public land;
40          (vii) state land, as defined in Subsection 9-9-402(14)(a);
41          (viii) waters of the state, as defined in Subsection 19-5-102(23)(a); and
42          (ix) subsurface land.
43          (c) "Land" does not include real property that is owned, controlled, or held in trust by
44     the federal government.
45          (3) "Restricted foreign entity" means:
46          (a) a company that the United States Secretary of Defense is required to identify and
47     report as a military company under Section 1260H of the William M. (Mac) Thornberry
48     National Defense Authorization Act for Fiscal Year 2021, Pub. L. No. 116-283;
49          (b) an affiliate, subsidiary, or holding company of a company described in Subsection
50     (3)(a);
51          (c) a country with a commercial or defense industrial base of which a company
52     described in Subsection (3)(a) or (b) is a part;
53          (d) a state, province, region, prefecture, subdivision, or municipality of a country
54     described in Subsection (3)(c); and
55          (e) an agency, bureau, committee, or department of a country described in Subsection
56     (3)(c).
57          Section 2. Section 63L-13-201 is enacted to read:
Part 2. Interests in Land

59          63L-13-201. Acquisition of land prohibited -- Exceptions.
60          (1) Subject to Subsection (2) and Section 63L-13-202, a restricted foreign entity may
61     not acquire an interest in land in this state.
62          (2) Subsection (1) does not apply to an interest in land that a restricted foreign entity
63     acquired before May 3, 2023:
64          (a) by purchase, grant, gift, donation, devise, or bequest;
65          (b) as security for the repayment of a debt; or
66          (c) as a party to a contract for the transfer or conveyance of an interest in land to the
67     restricted foreign entity.
68          (3) A deed or other written instrument, other than in probate, purporting to convey an
69     interest in land to a restricted foreign entity in violation of Subsection (1) is invalid.
70          Section 3. Section 63L-13-202 is enacted to read:
71          63L-13-202. Alienate within five years - Escheat.
72          (1) A restricted foreign entity that acquires an interest in land on or after May 3, 2023,
73     by grant, gift, donation, devise, or bequest shall alienate the interest within five years after the
74     date of acquisition.
75          (2) If a restricted foreign entity fails to alienate an interest in land in accordance with
76     Subsection (1), the interest escheats to the state.