Florida Governor Ron DeSantis signed into law Florida Senate Bill SB 264, titled "Interests of Foreign Countries," on May 8, 2023. The law, effective from July 1, 2023, unless delayed by litigation, imposes significant restrictions on land ownership by "foreign principals" from specified "foreign countries of concern," including China, Venezuela, Syria, Russia, Iran, North Korea, and Cuba. The key provisions of the law are:

• Restrictions on Land Ownership:

  • Foreign principals from the designated countries are prohibited from owning or acquiring agricultural land in Florida.
  • Ownership or acquisition of real property within 10 miles of military installations or critical infrastructure facilities is also prohibited.
  • U.S. citizens and lawful permanent residents are exempt from these restrictions.

• Ownership Limits and Requirements:

  • A foreign principal cannot directly or indirectly own, control, or acquire significant interests in agricultural land.
  • The same ownership limitations apply to real property near military installations or critical infrastructure.
  • A de minimus indirect interest exception exists (ownership of less than 5% of an entity).
  • Buyers must provide an affidavit confirming they are not foreign principals.

• Exemptions and Penalties:

  • Agricultural land owned before July 1, 2023, is exempt, but post-effective date ownership requires registration.
  • Failure to register on time incurs a daily civil penalty of $1,000.
  • Noncompliance leads to civil and criminal penalties, including forfeiture.

• Specific Limits on Chinese Ownership:

  • Prohibits China, Chinese Communist Party members, Chinese organizations, and non-U.S. citizens domiciled in China from buying Florida real property.
  • Limited exception for one residential property up to two acres, not near military installations, for Chinese nationals with valid U.S. visas.

• Criticisms and Legal Challenge:

  • Critics argue the law may lead to racial profiling and discrimination.
  • Lawsuit filed on May 22, 2023, challenges the law on constitutional and discriminatory grounds.
  • Plaintiffs represented by organizations including ACLU and AALDEF.

The law has sparked debate, with Governor DeSantis framing it as a response to China, while critics express concerns about discrimination and potential violations of the Fair Housing Act. A legal challenge has been initiated against the law.