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For Immediate Release
Wednesday, February 28, 2024

Contact
Sarah Bascom, sarah@bascomllc.com
Kristen Grissom, kgrissom@bascomllc.com

 

AIF: SB 814 Language is Key to Protecting Florida from Chinese Land Buying While Maintaining State’s Competitive Edge in Economic Growth Over Texas

Tallahassee, Fla.— The Associated Industries of Florida  (AIF) today released the following statement attributed to its President & CEO Brewster Bevis applauding legislative support for key language in Senate Bill 814 , relating to Real Property Ownership, which further tightens restrictions on Chinese land buying in Florida while maintaining the state’s edge in economic development over other states like Texas.

“As we have seen in the news, China continues to aggressively target U.S. activities, whether it is through tracking our technology or stealing our medical research. That’s why Governor DeSantis was 100% right to sign Senate Bill 264 into law last year. Now, this legislative session, the Florida Legislature is working to further tighten the Foreign Land Buying law in an important way. Senate Bill 814 has key language around the definition of ‘controlling interest,’ which would outlaw any foreign investment that is able to direct the actions of an investor in the state.

“With this key language, the national security focus of the Foreign Land Buying law is preserved, while allowing minority, passive investment – some of which has been on the sidelines during the rulemaking process here and could easily move to other states, like Texas, without this added clarity. We want our real estate market in Florida to be fair and predictable, and Senate Bill 814 will tighten last session’s legislation while keeping it the toughest on China in the country and continuing to grow our burgeoning economy.”

Specifically, Senate Bill 814:

  • Defines controlling interest: “‘Controlling interest’ means the possession of the power to direct or cause the direction of the management or policies of an entity that owns the parcel of real property, whether through ownership of securities, by contract, or otherwise. The term does not include a de minimus indirect interest.”
  • Defines de minimus indirect interest: “‘De minimus indirect interest’ means a foreign principal’s ownership of a business entity’s registered equities in a publicly traded company, if the foreign principal’s ownership interest in the company is either: (a) Less than 5 percent of any class of registered equities or less than 5 percent in the aggregate in multiple classes of registered equities; or (b) A noncontrolling interest in an entity controlled by a company that is both registered with the United States Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended, and is not a foreign entity.”

Known as “The Voice of Florida Business” in the Sunshine State, Associated Industries of Florida (AIF) has represented the principles of prosperity and free enterprise before the three branches of state government since 1920. A voluntary association of diversified businesses, AIF was created to foster an economic climate in Florida conducive to the growth, development, and welfare of industry and business and the people of the state.

For more information on AIF, please visit AIF.com and follow @VoiceofFLBiz.

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