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House Bill 012 — State assets, property, foreign (0)

House Bill 012 — State assets, property, foreign (0)

by
Parrish Miller
January 15, 2025

Bill Description: House Bill 12 would limit what property certain foreign governments or their agents may own in Idaho.

Rating: 0

Does it violate the spirit or the letter of either the U.S. Constitution or the Idaho Constitution? Examples include restrictions on speech, public assembly, the press, privacy, private property, or firearms. Conversely, does it restore or uphold the protections guaranteed in the U.S. Constitution or the Idaho Constitution?

House Bill 12 deals with competing interests of national security and the property and contract rights of Idahoans who may wish to do business with foreign entities. 

Section 55-103, Idaho Code, already prohibits a foreign government or "foreign state-controlled enterprise" from owning agricultural land, forest land, water rights, mining claims, or mineral rights in the state of Idaho. It includes a grandfather clause that allows for continued ownership that started before the code went into effect. 

House Bill 12 would amend this section to define and further limit ownership by a "foreign adversary" or "foreign principle." It specifies China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria, as well as "any other entity deemed by the governor in consultation with the adjutant general to be a foreign adversary."

It makes an exception for de minimis indirect ownership of less than 5% of "registered equities or less than five percent (5%) in the aggregate in multiple classes of registered equities."

The bill would also add a section creating a blanket prohibition on these entities owning or renting any kind of property within certain defined coordinates near military bases or installations. 

Any affected properties or resources owned by these countries or by companies or individuals residing in or acting on their behalf would have to be sold or transferred within 180 days of the passage of this law. Likewise, should any such entity come to own affected properties or resources at a later date, they would be required to register with the Idaho state department within 60 days and dispose of the property within 180 days.

If the foreign entity fails to dispose of the property, it would be sold through judicial foreclosure.

The bill says, "Any current deeds, contracts, rental agreements, or other legal agreements in conflict with this law shall be deemed invalid from the date of adoption unless otherwise provided."

It also provides that "any individual may act as a whistleblower and provide a referral to the office of the attorney general for violations of this section" and allows whistleblowers to receive a reward equal to 30% of the proceeds of the land sale. 

Government has a responsibility to protect its land and people from foreign adversaries. Government also has a duty to respect property rights and allow the free market to work. Striking this balance has become increasingly difficult in an ever more interconnected world and global economy, and this bill tries to find a reasonable equilibrium.

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