HB 163 — An Act amending the act of April 6, 1980 (P.L.102, No.39), referred to as the Agricultural Land Acquisition by Aliens Law, further prohibiting certain entities from acquiring an interest in agricultural land; providing for investigation by Attorney General and for responsibilities of purchaser and Attorney General; further providing for forfeiture of lands; providing for real estate auction; and further providing for definitions.

PRINTER'S NO.    121

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 163
                                                Session of
                                                  2025

     INTRODUCED BY GLEIM, HAMM, M. MACKENZIE, GREINER, LEADBETER,
        JAMES, KAUFFMAN, COOK, RAPP, BANTA, GROVE, STAMBAUGH, KUZMA,
        SMITH AND ZIMMERMAN, JANUARY 16, 2025

     REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
        JANUARY 16, 2025


                                     AN ACT
 1   Amending the act of April 6, 1980 (P.L.102, No.39), entitled "An
 2      act restricting the acquisition by certain aliens of an
 3      interest in agricultural lands," further prohibiting certain
 4      entities from acquiring an interest in agricultural land;
 5      providing for investigation by Attorney General and for
 6      responsibilities of purchaser and Attorney General; further
 7      providing for forfeiture of lands; providing for real estate
 8      auction; and further providing for definitions.
 9      The General Assembly of the Commonwealth of Pennsylvania
10   hereby enacts as follows:
11      Section 1.    Section 1 of the act of April 6, 1980 (P.L.102,
12   No.39), referred to as the Agricultural Land Acquisition by
13   Aliens Law, is amended to read:
14      Section 1.    (a)   An alien, who is not a resident of a state
15   or territory of the United States or of the District of
16   Columbia; and a foreign government shall not acquire an interest
17   in agricultural land, exceeding 100 acres, except such as may be
18   acquired by devise or inheritance, and such as may be held as
19   security for indebtedness.
20      (b)   An entity which is organized under the laws of a country
 1   of concern; a foreign principal; an entity with a controlling
 2   interest owned by foreign principals; a foreign political party;
 3   a member of a foreign political party; and an individual
 4   domiciled in a country of concern and who is not a lawful
 5   citizen or permanent resident of the United States; shall not
 6   acquire an interest in agricultural land except such as may be
 7   acquired by devise or inheritance, and such as may be held as
 8   security for indebtedness.
 9      (c)   The provisions of this section shall not apply to
10   citizens, foreign governments, entities or subjects of a foreign
11   country whose rights to hold land are secured by treaty.
12      Section 2.   The act is amended by adding sections to read:
13      Section 5.1.   The Attorney General, upon request of or
14   receipt of any information which leads the Attorney General to
15   believe that a violation of section 1 or 4 may exist, shall
16   investigate the possible violation, including the issuance of
17   subpoenas requiring the appearance of witnesses, the production
18   of relevant records and the provision of relevant testimony.
19      Section 5.2.   (a)   A title company involved in a real estate
20   transaction involving agricultural land that willfully fails to
21   determine whether a purchaser is in violation of section 1 or 4
22   shall be subject to a civil penalty of $1,000. The Attorney
23   General shall enforce the provisions of this subsection.
24      (b)   Except as provided under section 5.1 and subsection (a),
25   an individual or entity that is not prohibited from purchasing
26   agricultural land under section 1 or 4 shall not be required to
27   determine or inquire whether another person or entity is subject
28   to this act, and shall bear no civil or criminal liability under
29   this act.
30      Section 3.   Section 6 of the act is amended to read:

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 1      Section 6.    Agricultural lands acquired or held in violation
 2   of sections 1 and 4 shall be forfeited to the Commonwealth. The
 3   Attorney General shall enforce such forfeiture. However, no such
 4   forfeiture may be adjudged unless the action to enforce is
 5   brought within five years after such property has been acquired
 6   or held by such alien. No title to land is invalid or liable to
 7   forfeiture by reason of the alienage of any former owner or
 8   person interested therein. Upon commencement of an action under
 9   this section, the Attorney General shall promptly record a
10   notice of the pendency of the action in the county's land
11   records. Upon the completion of the action to enforce a
12   forfeiture under this section, the Attorney General shall
13   promptly record a notice of the action in the county's land
14   records.
15      Section 4.    The act is amended by adding a section to read:
16      Section 6.1.    Upon forfeiture of agricultural lands under
17   section 6, the Commonwealth, through the Department of General
18   Services, shall sell the agricultural land through a real estate
19   auction. Proceeds of the sale shall be disbursed according to
20   the following order:
21      (1)     The payment of authorized costs of the sale, including
22   all approved fees, expenses and any taxes and assessments due.
23      (2)     The payment, in an amount approved by a court, to the
24   Attorney General for reimbursement of the investigation and
25   litigation costs and expenses.
26      (3)     To bona fide lienholders, in their order of priority,
27   except for liens which under the terms of the sale are to remain
28   on the property.
29      (4)     To the General Fund.
30      Section 5.    Section 7 of the act is amended to read:

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 1      Section 7.   [For purposes of this act, the term "agricultural
 2   land" means land] The following words and phrases when used in
 3   this act shall have the meanings given to them in this section
 4   unless the context clearly indicates otherwise:
 5      "Agricultural land."    Land capable of use in the production
 6   of agricultural crops, timber, livestock or livestock products,
 7   poultry or poultry products, milk or dairy products, or fruit
 8   and other horticultural products but does not include any
 9   royalty interest, any oil, gas or other mineral interest, or any
10   lease, right-of-way, option or easement relating thereto, or any
11   land zoned by a local governmental unit for a use other than and
12   nonconforming with agricultural use.
13      "Country of concern."    China, Russia, Belarus, Iran, North
14   Korea, Venezuela, Syria and any other country which does not
15   permit Americans to purchase farmland in their country.
16      "Foreign political party."    A political party of a country of
17   concern.
18      "Foreign principal."    A government official of a country of
19   concern.
20      "Title company."   A person that is contracted with a party
21   involved in a real estate transaction that provides verification
22   of clean title of the land or title insurance for the purchaser.
23      Section 6.   This act shall take effect in 60 days.




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