Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 15, 2023

S. 576

Introduced by Senators Massey, Garrett, Peeler, Climer, Cash, Bennett, Turner, Gustafson, Rice, Verdin, Young, Kimbrell, Corbin, Cromer, McElveen and Campsen

 

S. Printed 03/15/23--S.                                                                          [SEC 3/16/2023 4:40 PM]

Read the first time February 28, 2023

 

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The committee on Senate Judiciary

To who was referred a Bill (S. 576) to amend the South Carolina Code of Laws by amending Section 27-13-30, relating to limitation on alien land ownership, so as to provide that corporations controlled, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

 

    Amend the bill, as and if amended, SECTION 1, by striking Section 27-13-30(A)(1), (2), (3), and (4) and inserting:

       (1) "Alien" means a person who is not a citizen of the United States.

       (2) "Corporation controlled by a foreign adversary" means a legal entity engaged in commerce that:

           (a) is wholly owned by a foreign adversary;

           (b) has a foreign adversary as a dominant shareholder, directly or indirectly;

           (c) is wholly owned by a citizen of a foreign adversary; or

           (d) has one or a number of citizens of a foreign adversary whose cumulative ownership is as a dominant shareholder.

       (3) "Foreign adversary" means any foreign government or nongovernment person determined by the United States Secretary of Commerce to have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or the security and safety of United States citizens.

       (4) "Dominant shareholder" means the single owner of ten percent or more of a legal entity engaged in commerce's stock, securities, or other indicia of ownership; or multiple owners of twenty percent or more of a legal entity engaged in commerce's stock, securities, or other indicia of ownership.

       (5) "Interest" means any estate, remainder, or reversion, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to acquire, receive, access, enjoy, or control legal or equitable title to real property.

Amend the bill further, SECTION 1, by striking Section 27-13-30(B) and (C) and inserting:

    (B) Subject to the provisions contained in subsection (C), no alien or corporation controlled by aliens, either in his or its own right or as trustee, cestui que trust or agent, shall own or control within the limits of this State more than five hundred thousand acres of land.  Nothing in this  subsection shall apply to lands owned or controlled by any such person or corporation nor to lands mortgaged to such a person or corporation on March 9, 1896, nor shall this section apply to lands conveyed by an alien to a corporation controlled by such alien.

    (C) No corporation controlled by a foreign adversary may acquire any interest in real property within the limits of this State.

    (D) The provisions of subsection (C) do not apply to a citizen of a foreign adversary who:

       (1) also is a citizen of the United States; or

       (2) resides in the United States, and

           (a) possesses a valid green card as a lawful permanent resident, and

           (b) acquires no more than:

               (i) five acres for residential or recreational use, or

               (ii) five tax parcel properties that do not exceed in the cumulative twenty-five acres for commercial use as a landlord or property manager.

Renumber sections to conform.

Amend title to conform.

 

LUKE RANKIN for Committee.

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill limits the amount of property an alien or a corporation controlled by aliens can own in the state to 1,000 acres.  Currently, the amount of property an alien or a corporation controlled by aliens can own in the state is limited to 500,000 acres.  This limit will not apply to any land purchased prior to June 30, 2023.

 

Additionally, no corporation controlled by a foreign adversary, as defined by this bill, may acquire any interest in real property within the state. 

 

The Department of Commerce anticipates it will need to evaluate the ownership and control of companies seeking to invest in the state.  Assuming Commerce evaluates one company per month, at an average cost of $12,500, this bill will increase Other Fund expenditures for Commerce by $150,000 beginning in FY 2023-24. 

 

State Revenue

This bill reduces the amount of property an alien or a corporation controlled by aliens can own in the state from 500,000 to 1,000 acres.  Additionally, no corporation controlled by a foreign adversary, as defined by this bill, may acquire any interest in real property within the state.  This limit will not apply to any land purchased prior to June 30, 2023.

 

Commerce anticipates this bill may impact economic development for the state for both future projects and existing companies.  This bill may limit the potential growth of many existing companies and influence the decision of several prospective projects considering locating in the state. 

 

Local Expenditure

RFA contacted all counties to determine the potential expenditure impact this bill may have on local governments.  We received a response from the counties of Dorchester and Kershaw.  Both counties anticipate this bill will have no expenditure impact.  Based on these responses, RFA anticipates this bill will have no expenditure impact on local governments.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 27-13-30, RELATING TO LIMITATION ON ALIEN LAND OWNERSHIP, SO AS TO PROVIDE THAT CORPORATIONs CONTROLLED BY a foreign adversary CANNOT acquire an interest in real property in this state; to define necessary terms; and to reduce the amount of real property that an alien or corporation may acquire an interest in from five hundred thousand acres to one thousand acres.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 27-13-30 of the S.C. Code is amended to read:

 

    Section 27-13-30.  (A) For the purposes of this section:

       (1) "Corporation controlled by a foreign adversary" means a legal entity engaged in commerce that:

           (a) is wholly owned by a foreign adversary;

           (b) has a foreign adversary as a dominant shareholder, directly or indirectly;

           (c) is wholly owned by a citizen of a foreign adversary; or

           (d) has a citizen of a foreign adversary as a dominant shareholder.

       (2) "Foreign adversary" means any foreign government or nongovernment person determined by the United States Secretary of Commerce to have engaged in a long-term pattern or serious instances of conduct significantly adverse to the national security of the United States or the security and safety of United States citizens.

       (3) "Dominant shareholder" means the owner of ten percent or more of a legal entity engaged in commerce's stock, securities, or other indicia of ownership.

       (4) "Interest" means any estate, remainder, or reversion, or portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause legal or equitable title to real property.

    (B) Subject to the provisions contained in subsection (C), no No alien or corporation controlled by aliens, either in his or its own right or as trustee, cestui que trust or agent, shall own or control within the limits of this State more than five hundredone thousand acres of land.  Nothing in this section subsection shall apply to lands owned or controlled by any such person or corporation nor to lands mortgaged to such a person or corporation on March 9, 1896or before June 30, 2023, nor shall this section apply to lands conveyed by an alien to a corporation controlled by such alien.

    (C) No corporation controlled by a foreign adversary may acquire any interest in real property within the limits of this State.

 

SECTION 2.  If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

 

SECTION 3.  This act takes effect upon approval by the Governor.

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