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SB0139B -1- SSSB 139
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SPONSOR SUBSTITUTE FOR SENATE BILL NO. 139
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR HUGHES
Introduced: 4/2/25
Referred: Resources, Judiciary
A BILL
FOR AN ACT ENTITLED
"An Act relating to who may own or hold certain land; relating to certain agreements 1
having to do with critical infrastructure; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 34 is amended by adding a new chapter to read: 4
Chapter 87. Holding of Land by Nonresident Persons. 5
Sec. 34.87.010. Persons prohibited f rom acquiring or leasing la nd within 6
100 miles of a military installation in the state. (a) Except as provided in (c) of this 7
section, a person or entity listed in AS 34.87.040(a) may not p urchase, lease, or 8
otherwise acquire land in the state that is within 100 miles of a military installation. 9
(b) Land purchased, leased, or o therwise acquired in violation of (a) of this 10
section is subject to forfeiture by the attorney general as aut horized under 11
AS 34.87.020. However, title to land may not be invalidated and land may not be 12
forfeited under this section because a prior owner or holder of the land violated this 13
section. 14
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(c) This section does not apply to 1
(1) a lease of residential property or a dwelling unit; 2
(2) the purchase, lease, or acquisition of land by a person wh o is a 3
United States citizen and a citizen of a country designated by the United States 4
Secretary of Commerce as a foreign adversary under 15 C.F.R. 791.4. 5
(d) In this section, 6
(1) "dwelling unit" has the meaning given in AS 34.03.360; 7
(2) "military installation" means a base, camp, post, station, yard, 8
center, homeport facility for a ship, armory, or other installa tion under the jurisdiction 9
of the United States Department o f Defense, the United States C oast Guard, the 10
Alaska National Guard, the Alaska Naval Militia, or the Alaska State Defense Force. 11
Sec. 34.87.020. Investigation and en forcement of violations of 12
AS 34.87.010. (a) If the attorney general receives evidence of a probable vio lation of 13
AS 34.87.010, the attorney general shall investigate the alleged violation. 14
(b) The attorney general shall bring an action for forfeiture of an interest in 15
land held in violation of AS 34.87.010 in the judicial district in which the land is 16
located. The attorney general shall record in the recording dis trict in which the land is 17
located a certificate containing the caption and case number of the action and a 18
description of the land. If the court finds that an interest in land in the state is acquired, 19
owned, or held in violation of AS 34.87.010, the court may ente r a judgment of 20
forfeiture vesting title to the land in the state, subject to a ny outstanding liens. The 21
attorney general shall record a certified copy of the court's j udgment under this 22
subsection in the recording district in which the land is located. The following apply to 23
a forfeiture proceeding following the court's entering of a jud gment of forfeiture under 24
this section: 25
(1) the attorney general shall, if warranted, request the cour t to appoint 26
a receiver to take over and manage the land before its sale; 27
( 2 ) t h e a t t o r n e y g e n e r a l , w i t h t h e a s s i s t a n c e o f t h e D e p a r t m e nt of 28
Natural Resources, shall sell the land under AS 38.05; 29
(3) when the land is sold, the attorney general shall disburse the 30
proceeds of the sale to lienholders, in an order of priority de termined by the 31
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lienholders, except for liens that, under the terms of the judg ment of forfeiture, are to 1
remain on the property; 2
(4) a lienholder may bid the lienholder's credit, in an amount that is not 3
more than the amount owed to the lienholder on the date of the sale, as determined by 4
the court in the judgment of forfeiture for the property; and 5
(5) no portion of the proceeds may be distributed to the perso n from 6
whom the land was forfeited, and all proceeds shall be deposited in the general fund. 7
(c) A person may not be held civilly or criminally liable for failing to 8
determine or inquire whether anot her person is prohibited from acquiring or leasing 9
land under AS 34.87.010. 10
(d) A forfeiture under this section does not void, invalidate, or otherwise 11
extinguish any bona fide mortgage, lien, or other interest granted by, through, or under 12
the person from whom the land was forfeit. 13
Sec. 34.87.030. Right of n onresident alien to acquire, hold, an d convey 14
land. (a) Except as provided in AS 34.87.010 and 34.87.040, a person who is a 15
nonresident alien, whether the person resides in the United States or a foreign country, 16
may 17
(1) acquire real estate by purchase, devise, or descent; 18
(2) hold and enjoy real estate; and 19
(3) convey, devise, transmit, mortgage, or otherwise encumber real 20
estate in the same manner and with the same effect as citizens of the United States. 21
(b) The title of any real estate inherited, mortgaged, conveye d, or devised is 22
not affected by the alienage of a person from or through whom t he title is claimed or 23
derived. 24
Sec. 34.87.040. Limitations on the ownership of agricultural la nd. (a) 25
Except as provided in (c) and (d) of this section, the followin g persons may not, 26
directly or indirectly, acquire or lease an interest prohibited under (b) of this section in 27
agricultural land in the state: 28
(1) a person who is a citizen of a country designated as a for eign 29
adversary by the United States Secretary of Commerce under 15 C.F.R. 791.4; or 30
(2) a foreign business entity that is 31
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( A ) w h o l l y o w n e d b y , o r t h e m a j o r i t y o f s t o c k o r o t h e r 1
ownership interest of the foreign business entity is held or controlled by, 2
(i) persons who are citizens of a country designated as a 3
foreign adversary by the United States Secretary of Commerce un der 4
15 C.F.R. 791.4; 5
(ii) a business entity or other entity, including a 6
governmental entity, that is owned or controlled by citizens of , or is 7
directly controlled by the government of, a person or country 8
designated as a foreign adversary by the United States Secretar y of 9
Commerce under 15 C.F.R. 791.4; or 10
(B) headquartered in a country that the United States Secretar y 11
of Commerce has designated as a foreign adversary under 15 C.F.R. 791.4. 12
(b) Except as provided in (c) and (d) of this section, a perso n listed under (a) 13
of this section may not 14
(1) acquire by grant, purchase, devise, descent, or otherwise acquire 15
(A) an interest in agricultural land located in the state; or 16
(B) mineral, water, or riparian rights on or in agricultural l and 17
located in the state; 18
(2) lease 19
(A) agricultural land located in the state; or 20
(B) mineral, water, or riparian rights on or in any agricultur al 21
land located in the state. 22
(c) This section does not apply to a person who is a United States citizen and a 23
citizen of a country designated by the United States Secretary of Commerce as a 24
foreign adversary under 15 C.F.R. 791.4. 25
(d) Notwithstanding the limitations of this section, a person listed under (a) of 26
this section may continue leasing, or renew a lease of, agricul tural land, if the person 27
leased the land before July 1, 2025, and the acreage and land s ubject to the lease does 28
not change. 29
(e) A person may not be held civilly or criminally liable for failing to 30
determine or inquire whether another person is subject to this section. 31
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(f) A purchase, acquisition, or l ease of agricultural land in violation of this 1
section is subject to forfeiture by the attorney general as aut horized under 2
AS 34.87.050. 3
Sec. 34.87.050. Investigation and en forcement of violations of 4
AS 34.87.040. (a) If the attorney general receives evidence of a probable vio lation of 5
AS 34.87.040, the attorney general shall investigate the allege d violation and may 6
issue subpoenas to require the a ttendance of witnesses or the p roduction of documents 7
or other physical evidence, administer oaths, and conduct heari ngs to aid an 8
investigation or inquiry. Servi ce of an order or subpoena must be made in the same 9
manner as a summons in a civil action in the superior court. 10
(b) The attorney general shall bring an action for forfeiture of an interest in 11
agricultural land held in violation of AS 34.87.040 in the judi cial district in which the 12
agricultural land is located. The attorney general shall record in the recording district 13
in which the agricultural land is located a certificate contain ing the caption and case 14
number of the action and a descri ption of the agricultural land . If the court finds that 15
an interest in agricultural land in the state is acquired, owne d, or held in violation of 16
AS 34.87.040, the court may enter a judgment of forfeiture vest ing title to the 17
agricultural land in the state, subject to any outstanding lien s. The attorney general 18
shall record a certified copy of the court's judgment under thi s subsection in the 19
recording district in which the agricultural land is located. T he following apply to a 20
forfeiture proceeding following the court's entering of a judgm ent of forfeiture under 21
this section: 22
(1) the attorney general shall, if warranted, request the cour t to appoint 23
a receiver to take over and manage the agricultural land before its sale; 24
( 2 ) t h e a t t o r n e y g e n e r a l , w i t h t h e a s s i s t a n c e o f t h e D e p a r t m e nt of 25
Natural Resources, shall sell the land under AS 38.05; 26
(3) when the agricultural land is sold, the attorney general s hall 27
disburse the proceeds of the sal e to lienholders, in the order of priority determined by 28
the lienholders, except for liens that, under the terms of the judgment of forfeiture, are 29
to remain on the property; 30
(4) a lienholder may bid the lienholder's credit, in an amount that is not 31
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more than the amount owed to the lienholder on the date of the sale, as determined by 1
the court in the judgment of forfeiture for the property; and 2
(5) no portion of the proceeds may be distributed to the perso n from 3
whom the agricultural land was forfeited, and all proceeds shal l be deposited in the 4
general fund. 5
(c) A person may not be held civilly or criminally liable for failing to 6
determine or inquire whether anot her person is prohibited from acquiring or leasing 7
land under AS 34.87.040. 8
(d) Title to agricultural land may not be invalidated and agri cultural land may 9
not be forfeited under this section because a prior owner or ho lder of the agricultural 10
land violated AS 34.87.040. 11
(e) A forfeiture under this s ection does not void, invalidate, or otherwise 12
extinguish any bona fide mortgage, lien, or other interest granted by, through, or under 13
the person from whom the land was forfeit. 14
Sec. 34.87.090. Definitions. In this chapter, 15
(1) "agricultural land" means land used for crop farming, timb er 16
production, or pasture; 17
(2) "crop farming" means the cultivation of land for the produ ction of 18
plants or plant products that can be grown and harvested exclus ively for profit or 19
subsistence; 20
(3) "foreign business entity" includes 21
(A) a corporation, profe ssional corporation, nonprofit 22
corporation, limited liability co mpany, partnership, limited pa rtnership that is 23
organized under the laws of another country, or similar entity; and 24
(B) an agent, trustee, or fiduciary of the entity. 25
* Sec. 2. AS 45 is amended by adding a new chapter to read: 26
Chapter 46. Critical Infrastructure Agreements. 27
Sec. 45.46.010. Restrictions on criti cal infrastructure agreeme nts with 28
certain companies. (a) A person, state agency, or political subdivision of the sta te 29
may not enter into an agreement relating to a critical infrastr ucture facility in the state 30
with a company if 31
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(1) the company would be able to directly or remotely access o r 1
control the facility or a cybersecurity system related to the f acility under the 2
agreement; and 3
(2) the company is 4
( A ) o w n e d b y , o r t h e m a j o r i t y o f s t o c k o r o t h e r o w n e r s h i p 5
interest of the company is held or controlled by, 6
(i) persons who are citizens of a country designated by 7
the United States Secretary of Commerce as a foreign adversary under 8
15 C.F.R. 791.4; or 9
(ii) a company or other entity, including a governmental 10
entity, that is owned or controlled by citizens of, or is direc tly 11
controlled by the government of, a country designated by the Un ited 12
States Secretary of Commerce as a foreign adversary under 15 C. F.R. 13
791.4; or 14
(B) headquartered in a country designated by the United States 15
Secretary of Commerce as a foreign adversary under 15 C.F.R. 791.4. 16
(b) This section applies to a company regardless of whether 17
(1) the company's securities, or the securities of its parent company, 18
are publicly traded; or 19
(2) the company or the company's parent company is listed on a public 20
stock exchange as a company headquartered in a country designat ed by the United 21
States Secretary of Commerce as a foreign adversary under 15 C.F.R. 791.4. 22
(c) In this section, 23
(1) "company" means a person, ot her than an individual, organi zed for 24
business or profit-making purposes; 25
(2) "critical infrastructure facility" 26
(A) includes 27
(i) a facility used for manufacturing, mineral 28
exploration, steel making, refin ing, hazardous waste, transmiss ion and 29
storage of electricity, water treatment, communications, transp ortation, 30
or the storage or transport of oil, gas, or other minerals; 31
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(ii) a dam or reservoir regulated by the Department of 1
Natural Resources, port, railway , railroad switching yard, or t rucking 2
terminal; 3
(iii) a facility used by the industry or a utility; 4
(iv) a facility whose owner or operator is required to 5
submit a risk management plan under 42 U.S.C. 7412(r) (Chemical 6
Safety Information, Site Security and Fuels Regulatory Relief A ct) or 7
that is regulated under United States Department of Homeland Se curity 8
Chemical Facility Anti-Terrorism Standards; and 9
(v) a military installation; 10
(B) does not include 11
(i) land, an easement, or a right-of-way that is not 12
completely enclosed, posted, and maintained by an electric or n atural 13
gas utility; or 14
(ii) a railroad track that is not part of a railroad 15
switching yard; 16
(3) "cybersecurity system" means a system designed to protect a 17
computer, computer network, com puter system, or other technolog y infrastructure 18
against unauthorized use or access; 19
(4) "military installation" has the meaning given in AS 34.87.010(d). 20
* Sec. 3. This Act takes effect July 1, 2025. 21