HOUSE OF REPRESENTATIVES	H.B. NO.	929
THIRTY-SECOND LEGISLATURE, 2023
STATE OF HAWAII

A BILL FOR AN ACT

relating to real estate transfers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the national security of the United States of America and the security of the state of Hawaii are inextricably linked. In the year 2022, the world watched as the national sovereignty of Ukraine was violated by Russia, and for years People's Republic of China has been declaring that Taiwan is in fact not a separate sovereign country. With many areas of the world on heightened alert due to geopolitical aggression of foreign nations, it is imperative that the United States take stock of what influence foreign entities are having within its borders.

The legislature further finds that companies linked to the Chinese Communist Party has been actively purchasing real estate within the United States. In 2022, it was reported that the Chinese manufacturing company Fufeng Group was seeking to purchase land near an air force base in North Dakota. This action prompted fifty-one Republican members of Congress to send a letter to three of President Biden's Cabinet secretaries concerning the national security threat posed by this development.

The legislature also finds that foreign investments in agriculture abroad by China is not a new or recent development. The United States Department of Agriculture in 2018 reported that China's overseas investments in agriculture, forestry, and fishing has increased over tenfold between 2009 and 2016. This exponential increase shows no signs of slowing, and as global tensions grow, it is critical that the United States and Hawaii maintain their national security by limiting the amount of foreign influence within their own borders.

The legislature additionally finds that countries banning foreign citizens from purchasing or holding land within their borders is not an unfamiliar concept. Many countries in Southeast Asia do not allow foreign nationals to purchase and hold land within their borders. Similarly, the People's Republic of China, and other countries based on a socialist-style system of government do not allow the private ownership of real estate.

The purpose of this Act is to prohibit the purchase or receipt of real estate by foreign entities, governments, or individuals, when that land sits near federal land or land deemed critical to either infrastructure or national security, and in certain other situations.

SECTION 2. Chapter 515, Hawaii Revised Statutes is amended by adding two new sections to be appropriately designated and to read as follows:

"§515 - Prohibition on purchase or receipt of real estate by foreign entities. The purchase or receipt of real estate by foreign entities within two miles of any federal lands or land deemed critical to either infrastructure or national security is prohibited."

"§515 - Institution of reciprocal real estate holding prohibitions. There is established within the state of Hawaii a reciprocal prohibition on owning or holding real estate interests for foreign individuals or entities whose country of origin also prohibits foreign individuals from holding private real estate interests."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Prohibition on foreign interests owning real estate; national security.

Description:

Prohibits the ownership of holding of real estate interests in land within two miles of federal land by foreign individuals, entities, or governments. Institutes a reciprocal ban on foreign individuals, entities, or governments where Americans are forbidden from owning real estate abroad.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.