00 SENATE BILL NO. 139 01 "An Act relating to certain agreements having to do with critical infrastructure; relating 02 to who may own or hold certain land; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 34 is amended by adding a new chapter to read: 05 Chapter 87. Holding of Land by Nonresident Persons.  06 Sec. 34.87.010. Persons prohibited from acquiring or leasing land within  07 100 miles of a military installation in the state. (a) Except as provided in (c) of this 08 section, a person who is a citizen of The People's Republic of China, the Islamic 09 Republic of Iran, the Democratic People's Republic of Korea, or the Russian 10 Federation, or a company that is prohibited from entering into agreements relating to 11 critical infrastructure under AS 45.46.010, may not purchase, lease, or otherwise 12 acquire land in the state that is within 100 miles of a military installation. 13 (b) Land purchased, leased, or otherwise acquired in violation of (a) of this 14 section is subject to forfeiture by the attorney general as authorized under 01 AS 34.87.020. However, title to land may not be invalidated and land may not be 02 forfeited under this section because a prior owner or holder of the land violated this 03 section. 04 (c) This section does not apply to 05 (1) a lease of residential property or a dwelling unit; 06 (2) the purchase, lease, or acquisition of land by a person who is a 07 citizen of The People's Republic of China, the Islamic Republic of Iran, the 08 Democratic People's Republic of Korea, or the Russian Federation and who is a 09 United States citizen. 10 (d) In this section, 11 (1) "dwelling unit" has the meaning given in AS 34.03.360; 12 (2) "military installation" means a base, camp, post, station, yard, 13 center, homeport facility for a ship, armory, or other installation under the jurisdiction 14 of the United States Department of Defense, the United States Coast Guard, the 15 Alaska National Guard, the Alaska Naval Militia, or the Alaska State Defense Force. 16 Sec. 34.87.020. Investigation and enforcement of violations of  17 AS 34.87.010. (a) If the attorney general receives evidence of a probable violation of 18 AS 34.87.010, the attorney general shall investigate the alleged violation. 19 (b) The attorney general shall bring an action for forfeiture of an interest in 20 land held in violation of AS 34.87.010 in the judicial district in which the land is 21 located. The attorney general shall record in the recording district in which the land is 22 located a certificate containing the caption and case number of the action and a 23 description of the land. If the court finds that an interest in land in the state is acquired, 24 owned, or held in violation of AS 34.87.010, the court may enter a judgment of 25 forfeiture vesting title to the land in the state, subject to any outstanding liens. The 26 attorney general shall record a certified copy of the court's judgment under this 27 subsection in the recording district in which the land is located. The following apply to 28 a forfeiture proceeding following the court's entering of a judgment of forfeiture under 29 this section: 30 (1) the attorney general shall, if warranted, request the court to appoint 31 a receiver to take over and manage the land before its sale; 01 (2) the attorney general, with the assistance of the Department of 02 Natural Resources, shall sell the land under AS 38.05; 03 (3) when the land is sold, the attorney general shall disburse the 04 proceeds of the sale to lienholders, in an order of priority determined by the 05 lienholders, except for liens that, under the terms of the judgment of forfeiture, are to 06 remain on the property; 07 (4) a lienholder may bid the lienholder's credit, in an amount that is not 08 more than the amount owed to the lienholder on the date of the sale, as determined by 09 the court in the judgment of forfeiture for the property; and 10 (5) no portion of the proceeds may be distributed to the person from 11 whom the land was forfeited, and all proceeds shall be deposited in the general fund. 12 (c) A person may not be held civilly or criminally liable for failing to 13 determine or inquire whether another person is prohibited from acquiring or leasing 14 land under AS 34.87.010. 15 (d) A forfeiture under this section does not void, invalidate, or otherwise 16 extinguish any bona fide mortgage, lien, or other interest granted by, through, or under 17 the person from whom the land was forfeit. 18 Sec. 34.87.030. Right of nonresident alien to acquire, hold, and convey  19 land. (a) Except as provided in AS 34.87.010 and 34.87.050, a person who is a 20 nonresident alien, whether the person resides in the United States or a foreign country, 21 may 22 (1) acquire real estate by purchase, devise, or descent; 23 (2) hold and enjoy real estate; and 24 (3) convey, devise, transmit, mortgage, or otherwise encumber real 25 estate in the same manner and with the same effect as citizens of the United States. 26 (b) The title of any real estate inherited, mortgaged, conveyed, or devised is 27 not affected by the alienage of a person from or through whom the title is claimed or 28 derived. 29 Sec. 34.87.040. Limitations on foreign business entities acquisition of  30 agricultural land. (a) Except as provided in (c) of this section, a foreign business 31 entity may not acquire by grant, purchase, devise, descent, or other means agricultural 01 land located in the state for the purposes of crop farming or timber production. 02 (b) Except as provided in (c) of this section, a foreign business entity that 03 acquired agricultural land in the state for the purposes of crop farming or timber 04 production before July 1, 2025, may not grant, sell, or otherwise transfer the 05 agricultural land to another foreign business entity for the purposes of crop farming or 06 timber production after June 30, 2025. 07 (c) This section does not apply to a foreign business entity leasing or acquiring 08 agricultural land or an interest in agricultural land 09 (1) that is necessary to the operations of the business for purposes 10 other than crop farming or timber production; 11 (2) for research or experimental purposes, including testing, 12 developing, or producing seeds or plants for sale or resale to farmers as seed stock; 13 (3) that is, in the aggregate, not more than 14 (A) 320 acres in the state and used for crop farming; or 15 (B) 10 acres in the state and used for timber production; or 16 (4) for the purposes of 17 (A) operating a confined feeding operation; or 18 (B) raising poultry or producing eggs, including hatchery 19 operations and other ancillary activities. 20 Sec. 34.87.050. Limitations on the ownership of agricultural land. (a) 21 Except as provided in (c) and (d) of this section, the following persons may not, 22 directly or indirectly, acquire or lease an interest prohibited under (b) of this section in 23 agricultural land in the state: 24 (1) a person who is a citizen of a country designated as a foreign 25 adversary by the United States Secretary of Commerce under 15 C.F.R. 791.4; or 26 (2) a foreign business entity that is 27 (A) wholly owned by, or the majority of stock or other 28 ownership interest of the foreign business entity is held or controlled by 29 (i) persons who are citizens of a country designated as a 30 foreign adversary by the United States Secretary of Commerce under 31 15 C.F.R. 791.4; 01 (ii) a business entity or other entity, including a 02 governmental entity, that is owned or controlled by citizens of, or is 03 directly controlled by the government of, a person or country 04 designated as a foreign adversary by the United States Secretary of 05 Commerce under 15 C.F.R. 791.4; or 06 (B) headquartered in a country that the United States Secretary 07 of Commerce has designated as a foreign adversary under 15 C.F.R. 791.4. 08 (b) Except as provided in (c) and (d) of this section, a person listed under (a) 09 of this section may not 10 (1) acquire by grant, purchase, devise, descent, or otherwise acquire 11 (A) an interest in agricultural land located in the state; or 12 (B) mineral, water, or riparian rights on or in agricultural land 13 located in the state; 14 (2) lease 15 (A) agricultural land located in the state; or 16 (B) mineral, water, or riparian rights on or in any agricultural 17 land located in the state. 18 (c) This section does not apply to a person who is a United States citizen and 19 a citizen of a country designated by the United States Secretary of Commerce as a 20 foreign adversary under 15 C.F.R. 791.4. 21 (d) Notwithstanding the limitations of this section, a person listed under (a) of 22 this section may continue leasing, or renew a lease of, agricultural land, if the person 23 leased the land before July 1, 2025, and the acreage and land subject to the lease does 24 not change. 25 (e) A person may not be held civilly or criminally liable for failing to 26 determine or inquire whether another person is subject to this section. 27 (f) A purchase, acquisition, or lease of agricultural land in violation of this 28 section is subject to forfeiture by the attorney general as authorized under 29 AS 34.87.070. 30 Sec. 34.87.060. Foreign business entity reporting for acquisitions, sales, or  31 other transfers of an interest in agricultural land. (a) A foreign business entity that 01 acquires, sells, or transfers agricultural land located in the state for the purposes of 02 crop farming or timber production shall report the acquisition, sale, or transfer to the 03 attorney general not later than 30 days after the acquisition, sale, or transfer of the 04 agricultural land. 05 (b) The report must be made in the form and manner prescribed by the 06 attorney general. The attorney general shall review reports submitted under this 07 subsection and may investigate an acquisition, sale, or transfer of agricultural land if 08 the attorney general determines that the acquisition, sale, or transfer of agricultural 09 land violates AS 34.87.050.  10 Sec. 34.87.070. Investigation and enforcement of violations of  11 AS 34.87.050. (a) If the attorney general receives evidence of a probable violation of 12 AS 34.87.050, the attorney general shall investigate the alleged violation and may 13 issue subpoenas to require the attendance of witnesses or the production of documents 14 or other physical evidence, administer oaths, and conduct hearings to aid an 15 investigation or inquiry. Service of an order or subpoena must be made in the same 16 manner as a summons in a civil action in the superior court. 17 (b) The attorney general shall bring an action for forfeiture of an interest in 18 agricultural land held in violation of AS 34.87.050 in the judicial district in which the 19 agricultural land is located. The attorney general shall record in the recording district 20 in which the agricultural land is located a certificate containing the caption and case 21 number of the action and a description of the agricultural land. If the court finds that 22 an interest in agricultural land in the state is acquired, owned, or held in violation of 23 AS 34.87.050, the court may enter a judgment of forfeiture vesting title to the 24 agricultural land in the state, subject to any outstanding liens. The attorney general 25 shall record a certified copy of the court's judgment under this subsection in the 26 recording district in which the agricultural land is located. The following apply to a 27 forfeiture proceeding following the court's entering of a judgment of forfeiture under 28 this section: 29 (1) the attorney general shall, if warranted, request the court to appoint 30 a receiver to take over and manage the agricultural land before its sale; 31 (2) the attorney general, with the assistance of the Department of 01 Natural Resources, shall sell the land under AS 38.05; 02 (3) when the agricultural land is sold, the attorney general shall 03 disburse the proceeds of the sale to lienholders, in the order of priority determined by 04 the lienholders, except for liens that, under the terms of the judgment of forfeiture, are 05 to remain on the property; 06 (4) a lienholder may bid the lienholder's credit, in an amount that is not 07 more than the amount owed to the lienholder on the date of the sale, as determined by 08 the court in the judgment of forfeiture for the property; and 09 (5) no portion of the proceeds may be distributed to the person from 10 whom the agricultural land was forfeited, and all proceeds shall be deposited in the 11 general fund. 12 (c) A person may not be held civilly or criminally liable for failing to 13 determine or inquire whether another person is prohibited from acquiring or leasing 14 land under AS 34.87.050. 15 (d) Title to agricultural land may not be invalidated and agricultural land may 16 not be forfeited under this section because a prior owner or holder of the agricultural 17 land violated AS 34.87.040 or 34.87.050. 18 (e) A forfeiture under this section does not void, invalidate, or otherwise 19 extinguish any bona fide mortgage, lien, or other interest granted by, through, or under 20 the person from whom the land was forfeit. 21 Sec. 34.87.090. Definitions. In this chapter, 22 (1) "agricultural land" means land used for crop farming, timber 23 production, or pasture; 24 (2) "confined feeding operation" means the feeding of the following 25 animals in a confined space: 26 (A) at least 300 cattle; 27 (B) at least 600 swine or sheep; 28 (C) at least 30,000 fowl; or 29 (D) at least 500 horses; 30 (3) "crop farming" means the cultivation of land for the production of 31 plants or plant products that can be grown and harvested exclusively for profit or 01 subsistence; 02 (4) "foreign business entity" includes 03 (A) a corporation, professional corporation, nonprofit 04 corporation, limited liability company, partnership, limited partnership that is 05 organized under the laws of another country, or similar entity; and 06 (B) an agent, trustee, or fiduciary of the entity. 07  * Sec. 2. AS 45 is amended by adding a new chapter to read: 08 Chapter 46. Critical Infrastructure Agreements.  09 Sec. 45.46.010. Restrictions on critical infrastructure agreements with  10 certain companies. (a) A person, state agency, or political subdivision of the state 11 may not enter into an agreement relating to a critical infrastructure facility in the state 12 with a company if  13 (1) the company would be able to directly or remotely access or 14 control the facility or a cybersecurity system related to the facility under the 15 agreement; and 16 (2) the company is 17 (A) owned by, or the majority of stock or other ownership 18 interest of the company is held or controlled by 19 (i) persons who are citizens of The People's Republic of 20 China, the Islamic Republic of Iran, the Democratic People's Republic 21 of Korea, or the Russian Federation; or 22 (ii) a company or other entity, including a governmental 23 entity, that is owned or controlled by citizens of, or is directly 24 controlled by the government of, The People's Republic of China, the 25 Islamic Republic of Iran, the Democratic People's Republic of Korea, 26 or the Russian Federation; or 27 (B) headquartered in The People's Republic of China, the 28 Islamic Republic of Iran, the Democratic People's Republic of Korea, or the 29 Russian Federation. 30 (b) This section applies to a company regardless of whether 31 (1) the company's securities, or the securities of its parent company, 01 are publicly traded; or 02 (2) the company or the company's parent company is listed as a 03 Chinese, Iranian, North Korean, or Russian company on a public stock exchange. 04 (c) In this section, 05 (1) "company" means a person, other than an individual, organized for 06 business or profit-making purposes; 07 (2) "critical infrastructure facility" 08 (A) includes 09 (i) a facility used for manufacturing, mineral 10 exploration, steel making, refining, hazardous waste, transmission and 11 storage of electricity, water treatment, communications, transportation, 12 or the storage or transport of oil, gas, or other minerals; 13 (ii) a dam or reservoir regulated by the Department of 14 Natural Resources, port, railway, railroad switching yard, or trucking 15 terminal; 16 (iii) a facility used by the industry or a utility; 17 (iv) a facility whose owner or operator is required to 18 submit a risk management plan under 42 U.S.C. 7412(r) (Chemical 19 Safety Information, Site Security and Fuels Regulatory Relief Act) or 20 that is regulated under United States Department of Homeland Security 21 Chemical Facility Anti-Terrorism Standards; and 22 (v) a military installation; 23 (B) does not include 24 (i) land, an easement, or a right-of-way that is not 25 completely enclosed, posted, and maintained by an electric or natural 26 gas utility; or 27 (ii) a railroad track that is not part of a railroad 28 switching yard; 29 (3) "cybersecurity system" means a system designed to protect a 30 computer, computer network, computer system, or other technology infrastructure 31 against unauthorized use or access; 01 (4) "military installation" has the meaning given in AS 34.87.010(d). 02  * Sec. 3. This Act takes effect July 1, 2025.