1     
STATE LAND PURCHASE AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Candice B. Pierucci

5     
Senate Sponsor: Michael K. McKell

6     

7     LONG TITLE
8     General Description:
9          This bill deals with land conveyances to restricted foreign entities in the state.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     modifies the definition of restricted foreign entity to prevent the following entities
14     from obtaining an interest in land in the state:
15               •     an entity that is owned or directly controlled by the government of China, Iran,
16     North Korea, or Russia; and
17               •     an entity in which a restricted foreign entity owns a majority interest;
18          ▸     requires that a restricted foreign entity alienate any interest in the state within one
19     year;
20          ▸     requires that the Department of Public Safety:
21               •     maintain a publicly available list of restricted foreign entities;
22               •     create a process for reporting a land conveyance to a restricted foreign entity;
23               •     provide an annual notice regarding restricted foreign entities to each county
24     auditor in the state; and
25               •     investigate any conveyance to a restricted foreign entity;
26          ▸     describes the duties of a county recorder in relation to restricted foreign entities; and
27          ▸     provides the Division of Facilities Construction and Management authority to sell
28     an interest in land that a restricted foreign entity fails to timely alienate.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          53-1-106, as last amended by Laws of Utah 2023, Chapters 328, 447
36          63L-13-101, as enacted by Laws of Utah 2023, Chapter 61
37          63L-13-201, as enacted by Laws of Utah 2023, Chapter 61
38          63L-13-202, as enacted by Laws of Utah 2023, Chapter 61
39     

40     Be it enacted by the Legislature of the state of Utah:
41          Section 1. Section 53-1-106 is amended to read:
42          53-1-106. Department duties -- Powers.
43          (1) In addition to the responsibilities contained in this title, the department shall:
44          (a) make rules and perform the functions specified in Title 41, Chapter 6a, Traffic
45     Code, including:
46          (i) setting performance standards for towing companies to be used by the department,
47     as required by Section 41-6a-1406; and
48          (ii) advising the Department of Transportation regarding the safe design and operation
49     of school buses, as required by Section 41-6a-1304;
50          (b) make rules to establish and clarify standards pertaining to the curriculum and
51     teaching methods of a motor vehicle accident prevention course under Section 31A-19a-211;
52          (c) aid in enforcement efforts to combat drug trafficking;
53          (d) meet with the Division of Technology Services to formulate contracts, establish
54     priorities, and develop funding mechanisms for dispatch and telecommunications operations;
55          (e) provide assistance to the Crime Victim Reparations Board and the Utah Office for
56     Victims of Crime in conducting research or monitoring victims' programs, as required by
57     Section 63M-7-505;
58          (f) develop sexual assault exam protocol standards in conjunction with the Utah
59     Hospital Association;
60          (g) engage in emergency planning activities, including preparation of policy and
61     procedure and rulemaking necessary for implementation of the federal Emergency Planning
62     and Community Right to Know Act of 1986, as required by Section 53-2a-702;
63          (h) implement the provisions of Section 53-2a-402, the Emergency Management
64     Assistance Compact;
65          (i) ensure that any training or certification required of a public official or public
66     employee, as those terms are defined in Section 63G-22-102, complies with Title 63G, Chapter
67     22, State Training and Certification Requirements, if the training or certification is required:
68          (i) under this title;
69          (ii) by the department; or
70          (iii) by an agency or division within the department;
71          (j) employ a law enforcement officer as a public safety liaison to be housed at the State
72     Board of Education who shall work with the State Board of Education to:
73          (i) support training with relevant state agencies for school resource officers as
74     described in Section 53G-8-702;
75          (ii) coordinate the creation of model policies and memorandums of understanding for a
76     local education agency and a local law enforcement agency; and
77          (iii) ensure cooperation between relevant state agencies, a local education agency, and
78     a local law enforcement agency to foster compliance with disciplinary related statutory
79     provisions, including Sections 53E-3-516 and 53G-8-211;
80          (k) provide for the security and protection of public officials, public officials' staff, and
81     the capitol hill complex in accordance with the provisions of this part; [and]
82          (l) fulfill the duties described in Sections 77-36-2.1 and 78B-7-120 related to lethality
83     assessments[.]; and
84          (m) fulfill the duties described in Section 63L-13-201 related to restricted foreign
85     entities.
86          (2) (a) The department shall establish a schedule of fees as required or allowed in this
87     title for services provided by the department.
88          (b) All fees not established in statute shall be established in accordance with Section
89     63J-1-504.
90          (3) The department may establish or contract for the establishment of an Organ
91     Procurement Donor Registry in accordance with Section 26B-8-319.
92          Section 2. Section 63L-13-101 is amended to read:
93          63L-13-101. Definitions.
94          As used in this chapter:
95          (1) "Interest in land" means any right, title, lien, claim, interest, or estate with respect to
96     land.
97          (2) (a) "Land" means all real property within the state.
98          (b) "Land" includes:
99          (i) agricultural land, as defined in Section 4-46-102;
100          (ii) land owned or controlled by a political subdivision;
101          (iii) land owned or controlled by a school district;
102          (iv) non-federal land, as defined in Section 9-9-402;
103          (v) private land;
104          (vi) public land;
105          (vii) state land, as defined in Subsection 9-9-402(14)(a);
106          (viii) waters of the state, as defined in Subsection 19-5-102(23)(a); and
107          (ix) subsurface land.
108          (c) "Land" does not include real property that is owned, controlled, or held in trust by
109     the federal government.
110          (3) "Land conveyance" means the transfer of any interest in land from one party to
111     another.
112          [(3)] (4) "Restricted foreign entity" means:
113          (a) a company that the United States Secretary of Defense is required to identify and
114     report as a military company under Section 1260H of the William M. (Mac) Thornberry
115     National Defense Authorization Act for Fiscal Year 2021, Pub. L. No. 116-283;
116          (b) an entity that is owned or directly controlled by the government of China, Iran,
117     North Korea, or Russia;
118          (c) an affiliate, subsidiary, or holding company of a company described in Subsection
119     [(3)(a)] (4)(a) or (b);
120          [(c)] (d) a country with a commercial or defense industrial base of which [a company]
121     an entity described in Subsection [(3)(a) or (b)] (4)(a), (b), or (c) is a part;
122          [(d)] (e) a state, province, region, prefecture, subdivision, or municipality of a country
123     described in Subsection [(3)(c); and] (4)(d);
124          [(e)] (f) an agency, bureau, committee, or department of a country described in
125     Subsection [(3)(c).] (4)(d); or
126          (g) any entity in which any entity described in Subsections (4)(a) through (f) maintains
127     at least a 51% ownership interest.
128          Section 3. Section 63L-13-201 is amended to read:
129          63L-13-201. Acquisition of land prohibited -- Exceptions -- Enforcement.
130          (1) As used in this section, "department" means the Department of Public Safety
131     created under Section 53-1-103.
132          [(1)] (2) Subject to Subsection [(2)] (3) and Section 63L-13-202, a restricted foreign
133     entity may not acquire an interest in land in this state.
134          [(2) Subsection (1) does not apply to an interest in land that a restricted foreign entity
135     acquired before May 3, 2023:]
136          [(a) by purchase, grant, gift, donation, devise, or bequest;]
137          [(b) as security for the repayment of a debt; or]
138          [(c) as a party to a contract for the transfer or conveyance of an interest in land to the
139     restricted foreign entity.]
140          [(3) A deed or other written instrument, other than in probate, purporting to convey an
141     interest in land to a restricted foreign entity in violation of Subsection (1) is invalid.]
142          (3) A restricted foreign entity that, in violation of Subsection (2), obtains an interest in
143     land shall alienate the interest in accordance with Section 63L-13-202.
144          (4) The department shall:
145          (a) maintain a publicly available list of restricted foreign entities;
146          (b) create a process by which a county recorder may report a land conveyance the
147     county recorder suspects is prohibited under this section;
148          (c) provide an annual notice to each county recorder in the state that includes:
149          (i) instruction on how to identify a restricted foreign entity;
150          (ii) the process by which a county recorder may report to the department a land
151     conveyance the county recorder suspects is prohibited under this section; and
152          (iii) any additional information the department deems necessary;
153          (d) investigate the validity of each land conveyance a county recorder reports under this
154     section;
155          (e) when, after investigation, the department determines that a land conveyance
156     violates this section:
157          (i) give notice to the restricted foreign entity that:
158          (A) the land conveyance violates this section; and
159          (B) Section 63L-13-202 requires the restricted foreign entity to alienate the restricted
160     foreign entity's interest in the land within one year or the Division of Facilities Construction
161     and Management will sell the interest in accordance with Subsection 63L-13-202(3); and
162          (ii) notify the county recorder of the county in which the land is located of the land
163     conveyance; and
164          (f) coordinate with the Division of Facilities Construction and Management to facilitate
165     a sale of the interest in land as described in Section 63L-13-202.
166          (5) A county recorder:
167          (a) is not liable for recording a conveyance to a restricted foreign entity, if an entity
168     does not appear on the department's list described in Subsection (4)(a); and
169          (b) shall, upon notice from the department under Subsection (4)(e)(ii), create a record
170     of each violation of this section.
171          Section 4. Section 63L-13-202 is amended to read:
172          63L-13-202. Alienate within one year -- Sale of property.
173          (1) A restricted foreign entity that acquires an interest in land on or after [May 3, 2023,
174     by grant, gift, donation, devise, or bequest] May 1, 2024, shall alienate the interest within [five
175     years] one year after the date of acquisition.
176          (2) If a restricted foreign entity fails to alienate an interest in land [in accordance with
177     Subsection (1), the interest escheats to the state.] as described in Subsection (1), the Division of
178     Facilities Construction and Management shall sell the interest in land in accordance with
179     Subsection (3).
180          (3) The Division of Facilities Construction and Management shall sell an interest in
181     land described in Subsection (2):
182          (a) at public auction;
183          (b) when practicable, in the city, town, or precinct where the land is located;
184          (c) the day after the one year time period described in Subsection (1) elapses, but not
185     longer than one year after the day on which the time period in Subsection (1) elapses;
186          (d) after publication of the date, time, and place of sale:
187          (i) in a newspaper having general circulation in the county, once in each of the two
188     successive weeks immediately preceding the date of the sale; and
189          (ii) in accordance with Section 45-1-101 for the two weeks immediately preceding the
190     date of the sale; and
191          (e) after notification, sent by certified mail at least 10 days before the first date of
192     publication described in Subsection (3)(d), to:
193          (i) the restricted foreign entity;
194          (ii) all lien holders of record; and
195          (iii) any other person known to have an interest in the land.
196          (4) Proceeds from a sale under Subsection (3) shall:
197          (a) satisfy any outstanding liens on the interest in land; and
198          (b) after satisfying any outstanding liens, be deposited into the General Fund.
199          Section 5. Effective date.
200          This bill takes effect on May 1, 2024.