Alabama Property Protection Act

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The Alabama Property Protection Act (Act of Alabama 2023-332, formerly House Bill 379 / HB379) is an Alabama state law passed during the 2023 Alabama legislative session which bars "foreign principals" from China, Iran, North Korea, or Russia from acquiring agricultural or forest property, or any real property within 10 miles of a military base or critical infrastructure facility.

The bill was introduced to the Alabama State House of Representatives for a first reading on April 25 by Majority Leader Scott Stadthagen (R-District 9) with 25 co-sponsors. That original version "would prohibit Chinese citizens, the Chinese government, or Chinese entities from acquiring title to real property in the state." It was referred to the Alabama House Urban and Rural Development Committee where it received a favorable report and got a 2nd reading on May 3.

During the third reading on May 9, Representative Thomas Jackson (D-District 68) noted that the Chinese-owned Golden Dragon Copper plant in Wilcox County, which was recruited to the state with $200 million and employs hundreds of people would be unable to expand under the proposed law. Likewise, Representatives Napoleon Bracy (D-District 98) and Sam Jones (D-District 99) noted that a Chinese company had acquired and expanded Continental Aerospace Technologies in Mobile, creating hundreds of jobs. He told Stadthagen that, "We don't handle foreign policy. That is not what we do here. You don't know the facts because you have never spent any time recruiting industries."

An amendment introduced by Representative Ben Robbins (R-District 33) was adopted unanimously. The new language made an exception for existing businesses expanding onto contiguous parcels. It also protected title insurers, agents and settlement providers from liability; and stipulated that Taiwan was not part of China for the purposes of the law. The amended bill passed the House by a vote of 73 to 23.

On May 11 the bill was read for the first time in the Alabama State Senate, and was referred to the Alabama Senate Committee on Agriculture, Conservation, and Forestry, which scheduled a public hearing for May 17.

During that hearing, a large number of Chinese immigrants, some representing the Central Alabama Association of Chinese Americans, protested the bill as discriminatory to individuals and damaging to economic activities which benefit the state. The committee ended up adopting a substitute bill which added language limiting the prohibition to agricultural and forest property or property within 10 miles of critical infrastructure facilities; and also narrowing the prohibited group to, "individuals domiciled in certain foreign countries, certain foreign governments, or governmental entities, and any person, country, or government identified on a sanctions list of the Office of Foreign Assets Control."

The following day, the substitute bill got a 3rd reading in the Senate, at which time another amendment removed the language applying to individuals unless they were "foreign principals" as defined in the act. The Senate approved the modified bill on a 26 to 7 roll call vote on May 18 and returned it to the House, where the changes were approved on May 24 on an 80 to 18 vote. Governor Kay Ivey signed the bill into law on May 31.

Context

Similar bills were debated in Montana, North Dakota, Utah, Florida, Texas, Virginia and other states in 2023, amid fears stoked by the passage of a Chinese balloon over the United States in January. Florida's SB264 prohibited state entities from contracting with or granting economic incentives to any "foreign country of concern," prohibited "foreign principles of any country of concern" from owning agricultural land or land within 10 miles of a military installation of critical infrastructure. Previously-owned land is not seized under the law, but the owners are required to register with the state. Governor Rod DeSantis signed it into law on May 8. A lawsuit was filed before the end of the month arguing that the law was unconstitutionally discriminatory and violated the U.S. Fair Housing Act. In Texas, Senate Bill 147 died in the House without passing despite support from Governor Greg Abbott.

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