FOREIGN COUNTRIES OF CONCERN

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3040

Introduced 1/28/2026, by Sen. Sue Rezin

SYNOPSIS AS INTRODUCED:

New Act
765 ILCS 60/7

from Ch. 6, par. 7

Creates the Foreign Countries of Concern Act. Prohibits governmental
entities from entering into contracts with certain prohibited entities
that would give those prohibited entities access to an individual's
personal identifying information. Prohibits certain entities from
receiving economic incentives. Provides that certain prohibited entities
may not own interests in agricultural land or land on or around military
installations or critical infrastructure facilities. Prohibits the
purchase or acquisition of real property by certain entities associated
with the People's Republic of China. Amends the Property Owned By
Noncitizens Act to make conforming changes.
LRB104 18749 HLH 32192 b

A BILL FOR

SB3040
LRB104 18749 HLH 32192 b
1

AN ACT concerning State government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
5
Foreign Countries of Concern Act.

6

Section 5.
Contracting with entities of foreign countries
7
of concern prohibited.
8

(a) As used in this Section:
9

"Controlling interest" means possession of the power to
10
direct or cause the direction of the management or policies of
11
a company, whether through ownership of securities, by
12
contract, or otherwise. A person or entity that directly or
13
indirectly has the right to vote 25% or more of the voting
14
interests of the company or is entitled to 25% or more of the
15
company's profits is presumed to possess a controlling
16
interest.
17

"Department" means the Department of Central Management
18
Services.
19

"Foreign country of concern" means the People's Republic
20
of China, the Russian Federation, the Islamic Republic of
21
Iran, the Democratic People's Republic of Korea, the Republic
22
of Cuba, Venezuela, or the Syrian Arab Republic, including any
23
agency of or any other entity under significant control of

SB3040
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1
such foreign country of concern.
2

"Governmental entity" means any legislative, executive,
3
administrative, or advisory body of the State, any State
4
university or college, any county, township, city, village,
5
incorporated town, or school district, and any other municipal
6
corporation, board, bureau, committee, or commission of the
7
State.
8

(b) Beginning on the effective date of this Act, a
9
governmental entity may not knowingly enter into a contract
10
with an entity that would give the entity access to an
11
individual's personal identifying information if:
12

(1) the entity is owned by the government of a foreign
13

country of concern;
14

(2) the government of a foreign country of concern has
15

a controlling interest in the entity; or
16

(3) the entity is organized under the laws of or has
17

its principal place of business in a foreign country of
18

concern.
19

(c) Beginning on the effective date of this Act, a
20
governmental entity may not extend or renew a contract with an
21
entity described in subsection (b) if the contract would give
22
that entity access to an individual's personal identifying
23
information.
24

(d) Beginning on the effective date of this Act, a
25
governmental entity may not accept a bid on a contract, accept
26
a proposal for a contract, or enter into a contract with an

SB3040
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1
entity if that contract would grant the entity access to an
2
individual's personal identifying information unless the
3
entity provides the governmental entity with an affidavit
4
signed by an officer or representative of the entity under
5
penalty of perjury attesting that the entity does not meet any
6
of the criteria in subsection (b).
7

If an entity extends or renews a contract with a
8
governmental entity that would grant the entity access to an
9
individual's personal identifying information, then the entity
10
must provide the governmental entity with an affidavit signed
11
by an officer or representative of the entity under penalty of
12
perjury attesting that the entity does not meet any of the
13
criteria in subsection (b).
14

(e) The Attorney General may bring a civil action in any
15
court of competent jurisdiction against an entity that
16
violates this Section. Violations of this Section may result
17
in:
18

(1) a civil penalty equal to twice the amount of the
19

subject contract;
20

(2) ineligibility to enter into, renew, or extend any
21

contract, including any grant agreements, with any
22

governmental entity for up to 5 years; and
23

(3) ineligibility to receive or renew any license,
24

certification, or credential issued by a governmental
25

entity for up to 5 years.
26

(f) Any penalties collected under subsection (e) must be

SB3040
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LRB104 18749 HLH 32192 b
1
deposited into the General Revenue Fund.
2

(g) The Department shall adopt rules to implement this
3
Section, including rules establishing the form for the
4
affidavit required under subsection (d).

5

Section 10.
Economic incentives to foreign countries of
6
concern prohibited.
7

(a) As used in this Section:
8

"Controlled by" means having possession of the power to
9
direct or cause the direction of the management or policies of
10
a company, whether through ownership of securities, by
11
contract, or otherwise. A person or entity that directly or
12
indirectly has the right to vote 25% or more of the voting
13
interests of the company or that is entitled to 25% or more of
14
the company's profits is presumed to control the company.
15

"Department" means the Department of Commerce and Economic
16
Opportunity.
17

"Economic incentive" means all programs administered by,
18
or for which an applicant for the program must seek
19
certification, approval, or other action by, the Department,
20
and all economic development programs, grants, or financial
21
benefits administered by a political subdivision of the State.
22

"Foreign country of concern" has the same meaning as in
23
Section 5.
24

"Governmental entity" means a State agency, a political
25
subdivision of the State, or any other public or private

SB3040
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1
agency, person, partnership, corporation, or business entity
2
acting on behalf of any public agency.
3

"Prohibited entity" means an entity that is:
4

(1) owned or controlled by the government of a foreign
5

country of concern; or
6

(2) a partnership, association, corporation,
7

organization, or other combination of persons organized
8

under the laws of or having its principal place of
9

business in a foreign country of concern, or a subsidiary
10

of such an entity.
11

(b) A government entity may not knowingly enter into an
12
agreement or contract for an economic incentive with a
13
prohibited entity.
14

(c) Before providing any economic incentive, a government
15
entity must require the recipient or applicant to provide the
16
government entity with an affidavit signed under penalty of
17
perjury attesting that the recipient or applicant is not a
18
prohibited entity.
19

(d) The Department shall adopt rules to administer this
20
Section, including rules establishing the form for the
21
affidavit required under subsection (c).

22

Section 15.
Purchase of agricultural land by foreign
23
principals prohibited.
24

(a) As used in this Section:
25

"Agricultural land" means any land located in this State

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1
and used for agricultural, forestry, or timber production
2
purposes.
3

"Department" means the Department of Agriculture.
4

"Foreign country of concern" has the same meaning as in
5
Section 5.
6

"Prohibited entity" means:
7

(1) the government or any official of the government
8

of a foreign country of concern;
9

(2) a political party or member of a political party
10

or any subdivision of a political party in a foreign
11

country of concern;
12

(3) a partnership, association, corporation,
13

organization, or other combination of persons organized
14

under the laws of or having its principal place of
15

business in a foreign country of concern, or a subsidiary
16

of such entity;
17

(4) any person who is domiciled in a foreign country
18

of concern and is not a citizen or lawful permanent
19

resident of the United States; or
20

(5) any person, entity, or collection of persons or
21

entities, described in paragraphs (1) through (4), having
22

a controlling interest in a partnership, association,
23

corporation, organization, trust, or any other legal
24

entity or subsidiary formed for the purpose of owning real
25

property in this State.
26

"Real property" means land, buildings, fixtures, and all

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1
other improvements to land.
2

(b) A prohibited entity may not directly or indirectly
3
own, have a controlling interest in, or acquire by purchase,
4
grant, devise, or descent agricultural land or any interest,
5
except a de minimis indirect interest, in agricultural land in
6
this State. A prohibited entity has a de minimis indirect
7
interest if any ownership is the result of the entity's
8
ownership of registered equities in a publicly traded company
9
owning the land and if the entity's ownership interest in the
10
company is either:
11

(1) less than 5% of any class of registered equities
12

or less than 5% in the aggregate in multiple classes of
13

registered equities; or
14

(2) a noncontrolling interest in an entity controlled
15

by a company that is both registered with the United
16

States Securities and Exchange Commission as an investment
17

adviser under the Investment Advisers Act of 1940 and is
18

not a foreign entity.
19

(c) A prohibited entity that directly or indirectly owns
20
or acquires agricultural land in this State or any interest in
21
agricultural land in this State before the effective date of
22
this Act may continue to own or hold that land or interest but,
23
except as provided in subsection (d), may not purchase or
24
otherwise acquire by grant, devise, or descent any additional
25
agricultural land in this State or any interest in
26
agricultural land in this State on or after the effective date

SB3040
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LRB104 18749 HLH 32192 b
1
of this Act.
2

A prohibited entity that directly or indirectly owns or
3
acquires agricultural land in this State or owns or acquires
4
any interest in agricultural land in this State before the
5
effective date of this Act must register with the Department
6
within 6 months after the effective date of this Act. The
7
Department must establish a form for those registrations that,
8
at a minimum, includes all of the following:
9

(1) the name of the owner of the agricultural land or
10

the owner of the interest in that land;
11

(2) the address of the agricultural land, the property
12

appraiser's parcel identification number, and the
13

property's legal description; and
14

(3) the number of acres of the agricultural land.
15

A prohibited entity that fails to timely file a
16
registration with the Department is subject to a civil penalty
17
of $1,000 for each day that the registration is late. The
18
Department may place a lien against the unregistered
19
agricultural land for the unpaid balance of any penalties
20
assessed under this Section.
21

(d) Notwithstanding the provisions of this Section, a
22
prohibited entity may acquire agricultural land on or after
23
the effective date of this Act by devise or descent, through
24
the enforcement of security interests, or through the
25
collection of debts, provided that the entity sells,
26
transfers, or otherwise divests itself of the agricultural

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LRB104 18749 HLH 32192 b
1
land within 3 years after acquiring the agricultural land.
2

(e) At the time of purchase, a buyer of agricultural land
3
or an interest in agricultural land must provide an affidavit
4
signed under penalty of perjury attesting that the buyer is:
5

(1) not a prohibited entity; and
6

(2) in compliance with the requirements of this
7

Section.
8

(f) The failure to obtain or maintain the affidavit does
9
not affect the title or insurability of the title for the
10
agricultural land or subject the closing agent to civil or
11
criminal liability, unless the closing agent has actual
12
knowledge that the transaction will result in a violation of
13
this Section.
14

(g) The Department may initiate a civil action in the
15
circuit court of the county in which the property is located
16
for the forfeiture of the agricultural land or any interest in
17
that land.
18

(h) The Department shall adopt rules to implement this
19
Section, including rules establishing the form for the
20
affidavit required under subsection (e).

21

Section 20.
Purchase of real property on or around
22
military installations or critical infrastructure facilities
23
by foreign principals prohibited.
24

(a) As used in this Section:
25

"Critical infrastructure facility" means any of the

SB3040
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LRB104 18749 HLH 32192 b
1
following, if it employs measures such as fences, barriers, or
2
guard posts that are designed to exclude unauthorized persons:
3

(1) a chemical manufacturing facility;
4

(2) a refinery;
5

(3) an electrical power plant;
6

(4) a water treatment facility or wastewater treatment
7

plant;
8

(5) a liquid natural gas terminal;
9

(6) a telecommunications central switching office;
10

(7) a gas processing plant, including a plant used in
11

the processing, treatment, or fractionation of natural
12

gas; and
13

(8) an airport.
14

"Department" means the Department of Commerce and Economic
15
Opportunity.
16

"Foreign country of concern" has the same meaning as in
17
Section 5.
18

"Foreign principal" means:
19

(1) the government or any official of the government
20

of a foreign country of concern;
21

(2) a political party or member of a political party
22

or any subdivision of a political party in a foreign
23

country of concern;
24

(3) a partnership, association, corporation,
25

organization, or other combination of persons organized
26

under the laws of or having its principal place of

SB3040
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LRB104 18749 HLH 32192 b
1

business in a foreign country of concern, or a subsidiary
2

of such entity;
3

(4) any person who is domiciled in a foreign country
4

of concern and is not a citizen or lawful permanent
5

resident of the United States; or
6

(5) any person, entity, or collection of persons or
7

entities, described in paragraphs (1) through (4) having a
8

controlling interest in a partnership, association,
9

corporation, organization, trust, or any other legal
10

entity or subsidiary formed for the purpose of owning real
11

property in this State.
12

"Military installation" means a base, camp, post, station,
13
yard, or center encompassing at least 10 contiguous acres that
14
is under the jurisdiction of the Department of Defense or its
15
affiliates.
16

(b) A foreign principal may not directly or indirectly
17
own, have a controlling interest in, or acquire by purchase,
18
grant, devise, or descent any interest, except a de minimis
19
indirect interest, in real property on or within 10 miles of
20
any military installation in this State or critical
21
infrastructure facility in this State. A foreign principal has
22
a de minimis indirect interest if the ownership is the result
23
of the foreign principal's ownership of registered equities in
24
a publicly traded company owning the land and if the foreign
25
principal's ownership interest in the company is either:
26

(1) less than 5% of any class of registered equities

SB3040
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LRB104 18749 HLH 32192 b
1

or less than 5% in the aggregate in multiple classes of
2

registered equities; or
3

(2) a noncontrolling interest in an entity controlled
4

by a company that is both registered with the United
5

States Securities and Exchange Commission as an investment
6

adviser under the Investment Advisers Act of 1940 and is
7

not a foreign entity.
8

(c) A foreign principal that directly or indirectly owns
9
or acquires any interest in real property on or within 10 miles
10
of any military installation or critical infrastructure
11
facility in this State before the effective date of this Act
12
may continue to own or hold that real property but, except as
13
provided in subsections (e) and (f), may not purchase or
14
otherwise acquire by grant, devise, or descent any additional
15
real property on or within 10 miles of any military
16
installation or critical infrastructure facility in this
17
State.
18

(d) A foreign principal must register with the Department
19
if the foreign principal owns or acquires real property on or
20
within 10 miles of any military installation or critical
21
infrastructure facility in this State as authorized under
22
subsection (e) or if the foreign principal owned or acquired
23
an interest, other than a de minimis indirect interest, in
24
that property before the effective date of this Act. The
25
Department must establish a form for such registration, which,
26
at a minimum, includes the following:

SB3040
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LRB104 18749 HLH 32192 b
1

(1) the name of the owner of the real property; and
2

(2) the address of the real property, the property
3

appraiser's parcel identification number, and the
4

property's legal description.
5

A foreign principal that fails to timely file a
6
registration with the Department is subject to a civil penalty
7
of $1,000 for each day that the registration is late. A foreign
8
principal must register a property interest owned before the
9
effective date of this Act within 90 days after the effective
10
date of this Act. A foreign principal who owns or acquires real
11
property on or after the effective date of this Act must
12
register the real property within 30 days after the property
13
is owned or acquired. The Department may place a lien against
14
the unregistered real property for the unpaid balance of any
15
penalties assessed under this paragraph.
16

(e) Notwithstanding the provisions of this Section, a
17
foreign principal who is a natural person may purchase one
18
residential real property that is up to 2 acres in size if all
19
of the following apply:
20

(1) the parcel is not on or within 5 miles of any
21

military installation in this State;
22

(2) the person has a current verified United States
23

visa that is not limited to authorizing tourist-based
24

travel or official documentation confirming that the
25

person has been granted asylum in the United States, and
26

that visa or documentation authorizes the person to be

SB3040
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LRB104 18749 HLH 32192 b
1

legally present within this State; and
2

(3) The purchase is in the name of the person who holds
3

the visa or official documentation described in paragraph
4

(2).
5

(f) Notwithstanding the provisions of this Section, a
6
foreign principal may acquire real property or any interest
7
therein which is on or within 10 miles of any military
8
installation or critical infrastructure facility in this State
9
on or after the effective date of this Act, by devise or
10
descent, through the enforcement of security interests, or
11
through the collection of debts, provided that the foreign
12
principal sells, transfers, or otherwise divests itself of
13
such real property within 3 years after acquiring the real
14
property.
15

(g) At the time of purchase, a buyer of the real property
16
that is on or within 10 miles of any military installation or
17
critical infrastructure facility in this State must provide an
18
affidavit signed under penalty of perjury attesting that the
19
buyer is:
20

(1) not a foreign principal or not a foreign principal
21

prohibited from purchasing the subject real property; and
22

(2) in compliance with the requirements of this
23

Section.
24

The failure to obtain or maintain the affidavit does not
25
affect the title or insurability of the title for the real
26
property or subject the closing agent to civil or criminal

SB3040
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LRB104 18749 HLH 32192 b
1
liability, unless the closing agent has actual knowledge that
2
the transaction will result in a violation of this Section.
3

(h) The Department shall adopt rules to implement this
4
Section, including rules establishing the form for the
5
affidavit required under this Section.
6

(i) The Department may initiate a civil action in the
7
circuit court of the county in which the property is located
8
for the forfeiture of the real property or any interest in the
9
property.

10

Section 25.
Purchase or acquisition of real property by
11
the People's Republic of China prohibited.
12

(a) The following persons or entities may not directly or
13
indirectly own, have a controlling interest in, or acquire by
14
purchase, grant, devise, or descent any interest, except a de
15
minimis indirect interest, in real property in this State:
16

(1) The People's Republic of China, the Chinese
17

Communist Party, or any official or member of the People's
18

Republic of China or the Chinese Communist Party.
19

(2) Any other political party or member of a political
20

party or a subdivision of a political party in the
21

People's Republic of China.
22

(3) A partnership, an association, a corporation, an
23

organization, or any other combination of persons
24

organized under the laws of or having its principal place
25

of business in the People's Republic of China, or a

SB3040
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LRB104 18749 HLH 32192 b
1

subsidiary of one of those entities.
2

(4) Any person who is domiciled in the People's
3

Republic of China and who is not a citizen or lawful
4

permanent resident of the United States.
5

(5) Any person, entity, or collection of persons or
6

entities described in paragraphs (1) through (4) having a
7

controlling interest in a partnership, association,
8

corporation, organization, trust, or any other legal
9

entity or subsidiary formed for the purpose of owning real
10

property in this State.
11

(b) A person or entity has a de minimis indirect interest
12
if any ownership is the result of the person's or entity's
13
ownership of registered equities in a publicly traded company
14
owning the land and if the person's or entity's ownership
15
interest in the company is either:
16

(1) less than 5% of any class of registered equities
17

or less than 5% in the aggregate in multiple classes of
18

registered equities; or
19

(2) a noncontrolling interest in an entity controlled
20

by a company that is both registered with the United
21

States Securities and Exchange Commission as an investment
22

adviser under the Investment Advisers Act of 1940 and is
23

not a foreign entity.
24

(c) A natural person described in subsection (a) may
25
purchase one residential real property that is up to 2 acres in
26
size if all of the following apply:

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LRB104 18749 HLH 32192 b
1

(1) The parcel is not on or within 5 miles of any
2

military installation in this State.
3

(2) The person has a current verified United States
4

visa that is not limited to authorizing tourist-based
5

travel or official documentation confirming that the
6

person has been granted asylum in the United States, and
7

such visa or documentation authorizes the person to be
8

legally present within this State.
9

(3) The purchase is in the name of the person who holds
10

the visa or official documentation described in paragraph
11

(2).
12

(d) A person or entity described in subsection (a) that
13
directly or indirectly owns or acquires any interest in real
14
property in this State before the effective date of this Act
15
may continue to own or hold such real property but, except as
16
provided in subsection (g), may not purchase or otherwise
17
acquire by grant, devise, or descent any additional real
18
property in this State.
19

(e) A person or entity described in subsection (a) must
20
register with the Department if the person or entity owns or
21
acquires more than a de minimis indirect interest in real
22
property in this State. The Department must establish a form
23
for such registration, which, at a minimum, must include the
24
following:
25

(1) The name of the owner of the real property.
26

(2) The address of the real property, the property

SB3040
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LRB104 18749 HLH 32192 b
1

appraiser's parcel identification number, and the
2

property's legal description.
3

(f) A person or entity that fails to timely file a
4
registration with the Department is subject to a civil penalty
5
of $1,000 for each day that the registration is late. The
6
Department may place a lien against the unregistered real
7
property for the unpaid balance of any penalties assessed
8
under this subsection.
9

(g) Notwithstanding subsection (a), a person or an entity
10
described in subsection (a) may acquire real property in this
11
State on or after the effective date of this Act, by devise or
12
descent, through the enforcement of security interests, or
13
through the collection of debts, provided that the person or
14
entity sells, transfers, or otherwise divests itself of that
15
real property within 3 years after acquiring the real
16
property.
17

(h) At the time of purchase, a buyer of real property in
18
this State must provide an affidavit signed under penalty of
19
perjury attesting that the buyer is:
20

(1) not a person or entity described in subsection (a)
21

or that the buyer is a person described in subsection (a)
22

but is authorized to purchase the subject property; and
23

(2) in compliance with the requirements of this
24

Section.
25

The failure to obtain or maintain the affidavit does not
26
affect the title or insurability of the title for the real

SB3040
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LRB104 18749 HLH 32192 b
1
property or subject the closing agent to civil or criminal
2
liability, unless the closing agent has actual knowledge that
3
the transaction will result in a violation of this Section.
4

(i) If any real property is owned or acquired in violation
5
of this Section, the real property may be forfeited to the
6
State.
7

(j) The Department shall adopt rules to implement this
8
Section.

9

Section 900.
The Property Owned By Noncitizens Act is
10
amended by changing Section 7 as follows:

11

(765 ILCS 60/7)

(from Ch. 6, par. 7)
12

Sec. 7.
Real property held by noncitizens.
Except as
13
provided in the Foreign Countries of Concern Act, all

All

14
noncitizens may acquire, hold, and dispose of real and
15
personal property in the same manner and to the same extent as
16
natural born citizens of the United States, and the personal
17
estate of a noncitizen dying intestate shall be distributed in
18
the same manner as the estates of natural born citizens, and
19
all persons interested in such estate shall be entitled to
20
proper distributive shares thereof under the laws of this
21
state, whether they are noncitizens or not.
22

This amendatory Act of 1992 does not apply to the
23
Agricultural Foreign Investment Disclosure Act.
24
(Source: P.A. 102-1030, eff. 5-27-22.)

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