In a recent government meeting, lawmakers discussed a new bill aimed at regulating foreign ownership of agricultural and non-agricultural land. The legislation, set to take effect on January 1, 2025, prohibits foreign parties or businesses controlled by foreign entities from holding interests in such lands.

Under the new law, any foreign entity found in violation will have a two-year period to divest its interests. Violations are classified as misdemeanors, and companies currently holding interests will be grandfathered in until the effective date.

The bill mandates that foreign parties with interests in agricultural land must register with the commissioner of agriculture, while those with non-agricultural land must register with the secretary of state. Failure to register could result in a civil penalty of $2,000. Additionally, any violations must be reported to the attorney general, who has the authority to initiate legal action if necessary. If a court determines that land is held in violation of the law, it will be ordered to revert to the state and sold at auction.

Exemptions are provided for certain professionals, including real estate agents and banks, who assist in transactions that may otherwise violate the law. Furthermore, foreign parties that are registered and in good standing as of the effective date, and have received prior approval regarding national security concerns, may also be exempt.

The discussion highlighted the need for clarity regarding what constitutes a \"prohibited foreign party,\" with lawmakers seeking further information on existing lists or definitions. The implications of this legislation are significant, as it aims to safeguard domestic land ownership from foreign influence while establishing a framework for compliance and enforcement.