Foreign property ownership-critical infrastructure.

24LSO-0419
2024
STATE OF WYOMING
24LSO-0419
ENGROSSED
3.0

SENATE FILE NO. SF0102

Foreign property ownership-critical infrastructure.

Sponsored by: Senator(s) Steinmetz, Biteman, Bouchard, Brennan, Dockstader, Hutchings, Kinskey, McKeown, Pappas and Salazar and Representative(s) Allemand, Banks, Bear, Crago, Haroldson, Jennings, Knapp, Lawley, Neiman, Ottman, Rodriguez-Williams, Singh, Slagle, Smith, Tarver, Trujillo and Ward

A BILL

for

AN ACT relating to property, conveyances and security transactions; prohibiting foreign ownership of real property near critical infrastructure and military installations as specified; authorizing actions for divestiture; requiring specified parties to register property ownership with the secretary of state; specifying penalties; amending the duties of the Wyoming office of homeland security; amending the duties of county clerks; requiring the inclusion of notices of foreign ownership prohibitions and reporting requirements in assessment schedules and tax statements; providing definitions; requiring rulemaking; authorizing positions; providing an appropriation; and providing for effective dates.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 34
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15
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201 through 34
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15
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206 are created to read:

ARTICLE 2
CRITICAL INFRASTRUCTURE AND MILITARY INSTALLATIONS

34
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15
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201.

Definitions.

(a)

As used in this article:

(i)

"Critical infrastructure" means those infrastructure systems and assets in the state of Wyoming that are so vital that their incapacitation or destruction would have a debilitating effect on security, the economy, public health, public safety or any combination thereof;

(ii)

"Critical infrastructure/military installation zone" means the entire area that is located within ten (10) miles of any critical infrastructure or military installation in the state of Wyoming;

(iii)

"Foreign government" means any government other than the United States federal government or any government of a state, territory, district or political subdivision thereof;

(iv)

"Military installation" means a base, camp, post, station, yard or center that is under the jurisdiction of the United States department of defense or under the control of the Wyoming military department;

(v)

"Party" means any natural person, business entity, corporation, company, association, firm, partnership, society, joint
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stock company, trust, estate or any other legal entity;

(vi)

"Prohibited foreign party" means:

(A)

A citizen or resident of a country specified as a foreign adversary in 15 C.F.R. § 7.4;

(B)

A foreign government formed within a country specified as a foreign adversary in 15 C.F.R. § 7.4;

(C)

A party other than a natural person or a government, that is created or organized under the laws of a foreign government within a country specified as a foreign adversary in 15 C.F.R. § 7.4;

(D)

Any party other than a natural person or a government:

(I)

That is created or organized under the laws of any state of the United States; and

(II)

In which a significant interest or substantial control is directly or indirectly held or is capable of being exercised by any one (1) or more of the following:

(1)

A citizen or resident of a country specified as a foreign adversary in 15 C.F.R. § 7.4;

(2)

A foreign government formed within a country specified as a foreign adversary in 15 C.F.R. § 7.4;

(3)

A party other than a natural person or a government, that is created or organized under the laws of a foreign government within a country specified as a foreign adversary in 15 C.F.R. § 7.4.

(E)

An agent, trustee, subsidiary or other fiduciary of a person or entity enumerated in subparagraphs (A) through (D) of this paragraph.

(vii)

"Real property" means all interests in real property, including but not limited to, the fee estate, leasehold interests, easements, rights of way, subsurface interests, airspace interests and mineral interests;

(viii)

"Significant interest" or "substantial control" means:

(A)

An interest of twenty
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five percent (25%) or more held by:

(I)

A party referred to in subparagraph (vi)(D) of this subsection;

(II)

A natural person referred to in subparagraph (vi)(A) of this subsection;

(III)

A party referred to in subparagraph (vi)(C) of this subsection; or

(IV)

A foreign government referred to in subparagraph (vi)(B) of this subsection.

(B)

An interest of twenty
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five percent (25%) or more held whenever the parties, natural persons or governments referred to in paragraph (vi) of this subsection are acting in concert with respect to the interest even though no single natural person, party or government holds an interest of twenty
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five percent (25%) or more; or

(C)

An interest of twenty
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five percent (25%) or more, in the aggregate, held by parties, natural persons or governments referred to in paragraph (vi) of this subsection even though the natural persons, parties or foreign governments may not be acting in concert.

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202.

Ownership of real property on or around critical infrastructure and military installations prohibited; violations; enforcement.

(a)

No prohibited foreign party shall hold or acquire by grant, purchase, devise, descent or otherwise any interest in real property that is located on, within or partially within ten (10) miles of any critical infrastructure or military installation in this state.

(b)

A prohibited foreign party who holds or acquires any interest in real property in violation of subsection (a) of this section shall divest of the real property interest within four (4) months of receiving notice from the Wyoming office of homeland security that the prohibited foreign party holds real property in violation of subsection (a) of this section. When the prohibited foreign party voluntarily divests of the real property interest, either before or after receiving notice from the Wyoming office of homeland security or when the prohibited foreign party's interest is involuntarily divested under subsection (c) or subsection (d) of this section, the proceeds of any sale from the real property interest, together with the proceeds of any sales of personal property on or within the real property, shall be held in escrow by the office of state lands and investments until satisfactory arrangements are made by the prohibited foreign party to compromise, satisfy and pay any litigation claims and lien holders associated with the divestiture of the interests.

(c)

If the prohibited foreign party does not divest of the real property interest within the time required by subsection (b) of this section, the attorney general shall commence an action for divestiture in a court of appropriate jurisdiction to enforce this section. If the court determines that the real property interest is held in violation of this section, the court shall order that the real property be sold at auction.

(d)

The proceeds of any sale at auction of real property ordered by a court under subsection (c) of this section shall be disbursed for litigation claims and to lien holders, in the order of priority, except for liens which under the terms of any sale are to remain on the real property. Any remaining proceeds shall be forfeited to the state.

(e)

When pursuing an action for divestiture under subsection (c) of this section, the attorney general shall promptly record a copy of the following with the county clerk in the county where the real property is located:

(i)

Upon commencement, notice of the pendency of an action brought under this section;

(ii)

Any court order for the sale of the real property under this section.

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15
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203.

Registration; penalties.

(a)

A prohibited foreign party that holds or acquires real property in the state of Wyoming on or after July 1, 2024 shall register the ownership of the real property with the secretary of state in accordance with the following:

(i)

The registration shall be in a form and manner prescribed by the secretary of state;

(ii)

The registration shall contain the following:

(A)

The name and complete legal address of the party filing the registration;

(B)

The name and complete legal address of every party holding an interest in the real property;

(C)

A description of each party's interest in the real property;

(D)

The location and current use of the real property; and

(E)

Any other information prescribed by the secretary of state.

(iii)

The initial registration shall be made not more than sixty (60) days after July 1, 2024 or not more than sixty (60) days after acquisition of the real property, whichever is later;

(iv)

The registration shall be updated annually on or before March 31 of each year.

(b)

The secretary of state shall promptly provide a copy of all registration information collected pursuant to subsection (a) of this section to the Wyoming office of homeland security.

(c)

A prohibited foreign party who fails to register, timely register or update registration annually as required by subsection (a) of this section shall be liable for a civil penalty of five thousand dollars ($5,000.00) for each day the prohibited foreign party is not in compliance with subsection (a) of this section.

(d)

The secretary of state may refer any suspected violation of this article to the appropriate prosecuting authority or law enforcement agency.

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204.

Designation of critical infrastructure/military installation zones; county clerk reporting; investigations; subpoena power.

(a)

The Wyoming office of homeland security shall designate the critical infrastructure/military installation zones where prohibited foreign parties shall not hold or acquire real property under W.S. 34
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15
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202(a). Not later than July 1, 2025 and each July 1 thereafter, the office shall review the designation of critical infrastructure/military installation zones to determine whether any designations should be modified.

(b)

Not later than July 1 of each year, the Wyoming office of homeland security shall provide each county clerk sufficient information about designated critical infrastructure/military installation zones for the county clerk to determine whether conveyances involve real property located on, within or partially within a critical infrastructure/military installation zone.

(c)

The county clerk shall promptly report each conveyance that involves real property located on, within or partially within a critical infrastructure/military installation zone to the Wyoming office of homeland security as required by W.S. 34
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1
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143(b).

(d)

Upon receiving a report from a county clerk under subsection (c) of this section or registration information from the secretary of state under W.S. 34
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15
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203, the Wyoming office of homeland security shall, upon reasonable suspicion and to the extent possible, investigate the conveyance to determine if the conveyance violates this article. If the office suspects or determines that a prohibited foreign party holds real property in violation of this article, the office shall report the suspected violation or violation to the attorney general.

(e)

Upon receiving notice from the Wyoming office of homeland security pursuant to subsection (d) of this section or upon receiving information that leads the attorney general to believe that a violation of this article may exist, the attorney general shall issue subpoenas requiring the appearance of witnesses, production of relevant records and giving of relevant testimony to determine whether a prohibited foreign party holds real property in violation of this article.

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205.

Validity of title.

Title to real property shall not be invalid or subject to divestiture due to a violation of this article by any former owner or by another person holding or owning a former interest in the real property.

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206.

Criminal penalties.

A prohibited foreign party who knowingly acquires real property after July 1, 2024 in violation of W.S. 34
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15
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202(a) shall upon conviction be guilty of a felony punishable by imprisonment for not more than two (2) years, a fine of not more than fifteen thousand dollars ($15,000.00), or both.

Section 2.

W.S. 16
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4
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203(b)(iv)(A), 19
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13
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105(c) by creating new paragraphs (viii) and (ix), 34
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1
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143, 39
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13
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103(b)(viii) and 39
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13
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107(b)(i)(C) are amended to read:

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4
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203.

Right of inspection; grounds for denial; access of news media; order permitting or restricting disclosure; exceptions.

(b)

The custodian may deny the right of inspection of the following records, unless otherwise provided by law, on the ground that disclosure to the applicant would be contrary to the public interest:

(vi)

To the extent that the inspection would jeopardize the security of any structure owned, leased or operated by a governmental entity, facilitate the planning of a terrorist attack or endanger the life or physical safety of an individual, including:

(A)

Vulnerability assessments, specific tactics, emergency procedures
, designations and disseminations of information regarding critical infrastructure/military installation zones
or security procedures contained in plans or procedures designed to prevent or respond to terrorist attacks or other security threats;

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105.

Homeland security program.

(c)

The director is the administrative head of the Wyoming office of homeland security. In addition to the duties described in W.S. 19
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13
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104(d) the director:

(viii)

Shall, in conjunction with the attorney general, enforce the prohibition on ownership of real property by prohibited foreign parties under W.S. 34
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15
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202(a);

(ix)

Shall designate the critical infrastructure/military installation zones where prohibited foreign parties shall not hold or acquire real property and provide information about critical infrastructure/military installation zones to county clerks in accordance with W.S. 34
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204. The custodian of public records may deny the inspection of designations and disseminations of information regarding critical infrastructure/military installation zones required by this paragraph, pursuant to W.S. 16
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4
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203(b)(vi)(A), unless otherwise approved by the attorney general.

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143.

Information to be furnished to department of revenue, state board of equalization and office of homeland security.

(a)

The county clerk shall place the recording data on the statement of consideration paid and deliver the statement to the county assessor. The county assessor shall furnish information from the statements of consideration to the state board of equalization and department of revenue as the board or department shall require, and when disclosed under W.S. 34
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1
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142(g) and 39
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13
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109(b)(i), any person or his agent wishing to review or contest his property tax assessment or valuation and the county board of equalization. The county assessor may furnish information from the statements of consideration to a county assessor in another county in this state to be used as provided by law.

(b)

County clerks shall promptly report all conveyances that involve any real property located on, within or partially within a critical infrastructure/military installation zone to the Wyoming office of homeland security in accordance with W.S. 34
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15
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204(c).

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13
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103.

Imposition.

(b)

Basis of tax. The following shall apply:

(viii)

Every assessment schedule sent to a taxpayer shall contain the property's estimated fair market value for the current and previous year, or, productive value in the case of agricultural property. The schedule shall also contain the assessment ratio as provided by paragraph (b)(iii) of this section for the taxable property, the amount of taxes assessed on the taxable property from the previous year, and an estimate of the taxes which will be due and payable for the current year based on the previous year's mill levies.
The schedule shall also contain information stating that prohibited foreign parties are prohibited from holding or acquiring real property on, within or partially within ten (10) miles of any critical infrastructure or military installation in this state as provided by W.S. 34
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15
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202 and describing the requirement to register all prohibited foreign party ownership of real property with the secretary of state as provided by W.S. 34
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203.
The schedule shall contain a statement of the process to contest assessments as prescribed by W.S. 39
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13
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109(b)(i);

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107.

Compliance; collection procedures.

(b)

The following provisions shall apply to the payment of taxes, distraint of property and deferral:

(i)

The following shall apply to the payment of taxes due:

(C)

Annually, on or before October 10 the county treasurer shall send a written statement to each taxpayer by mail at his last known address or, if offered by the county and upon request of the taxpayer, by electronic transmission of the total tax due, itemized as to property description, assessed value and mill levies. The notice shall contain information, including contact information, of any property tax relief program authorized by state law.
The notice shall contain information stating that prohibited foreign parties are prohibited from holding or acquiring real property on, within or partially within ten (10) miles of any critical infrastructure or military installation in this state as provided by W.S. 34
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15
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202 and describing the requirement to register all prohibited foreign party ownership of real property with the secretary of state as provided by W.S. 34
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203.

Failure to send notice, or to demand payment of taxes, does not invalidate any taxes due;

Section 3.

The office of homeland security and the secretary of state shall promulgate all rules necessary to implement the provisions of this act.

Section 4.

(a)

The office of homeland security is authorized up to two (2) full
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time positions for the period beginning with the effective date of this act and ending June 30, 2026 for the purpose of hiring employees for the office of homeland security to implement and execute the requirements of sections 1 and 2 of this act. It is the intent of the legislature that the office of homeland security include these positions in its standard budget request for the immediately succeeding fiscal biennium.

(b)

There is appropriated three hundred thousand dollars ($300,000.00) from the general fund to the office of homeland security for the period beginning with the effective date of this act and ending June 30, 2026 to be expended only for purposes of funding the positions authorized in subsection (a) of this section for purposes of implementing and executing the requirements of sections 1 and 2 of this act. This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2026. It is the intent of the legislature that this appropriation be included in the standard budget request of the office of homeland security for the immediately succeeding fiscal biennium.

Section 5.

(a)

Except as otherwise provided by subsection (b) of this section, this act is effective July 1, 2024.

(b)

Sections 3 through 5 of this act are effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

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SF0102