1 Short Title. This act may be known as and cited to as the "New Hampshire Real Property Security Act."

2 New Subdivision; New Hampshire Real Property Security Act. Amend RSA 477 by inserting after section 22-f the following new subdivision:

New Hampshire Real Property Security Act

477:22-g Purpose Statement. The general court finds that nationals of the People's Republic of China (PRC), excluding U.S. citizens, pose a presumptive risk of hostile action through asymmetric warfare perpetrated by the Chinese Communist government against the United States of America and an existential threat to New Hampshire and its citizenry, including through espionage, intellectual property theft, technology transfer, and chemical, biological, and cyber terrorism and warfare via ownership or control of real property. These nationals pose a hostile risk to critical infrastructure, supply chains, agriculture, and the lives and livelihoods of Granite Staters. This act aims to protect national security while providing due process. Pursuant to the state's sovereign police powers under the Tenth Amendment to the United States Constitution, New Hampshire asserts authority to regulate real property ownership and control to protect against foreign adversary threats, including asymmetric warfare by the People's Republic of China, without federal preemption, as this act addresses local public safety, economic security, and infrastructure protection within the state's borders.

477:22-h Definitions. In this subdivision:

I. "PRC national" (PRC) means any citizen or agent of the People's Republic of China who is not a U.S. citizen, including but not limited to those with direct, compromising ties such as employment by PRC state-owned enterprises, membership in the Chinese Communist Party, financial links to the PRC government, pledged allegiance to PRC leaders, or acting on orders originating from the PRC government.

II. "Real property" means property consisting of land, buildings, crops, or other resources still attached to or within the land or improvements or fixtures permanently attached to the land or a structure on it.

III. "Controlling interest" means ownership, lease, occupancy, or any form of control over real property.

477:22-i Ownership or Controlling Interest; Prohibitions.

I. No PRC national, as defined in RSA 477:22-h, I, shall acquire or maintain a controlling interest in real property in New Hampshire.

II. No entity shall facilitate the acquisition or control of real property by a PRC national, including through partnerships, grants, or collaborations affiliated with the PRC government.

III. For PRC nationals holding controlling interests as of the date this section becomes law, a 90-day window from the effective date of this act is provided for voluntary divestment through sale, during which the PRC national(s) may retain proceeds from sale. Continued controlling interest by PRC nationals after this period shall create a presumption of hostile intent, triggering immediate default of property to state control for investigation and remediation of any threats present in conjunction with relevant federal authorities and resources, after which the state shall auction the property.

477:22-j Civil Penalties.

I. Upon a judicial or administrative finding that a PRC national engaged in prohibited conduct under RSA 477:22-i, a civil penalty of 25 percent of the greater of the fair market value or actual price paid for the property per violation shall be assessed.

II. Civil penalties imposed under this section shall be in addition to, and not in lieu of, any forfeiture or seizure of property under RSA 477:22-l.

477:22-k Criminal Penalties.

I. Acquisition of property in violation of RSA 477:22-i is a:

(a) Class A misdemeanor, when committed by an entity defined in RSA 477:22-h, I; or

(b) Class A misdemeanor, when committed by a licensed real estate agent who knowingly facilitates or participates in a transaction that violates RSA 477:22-i.

II. The attorney general's office may refer a violation of this section for prosecution to the county attorney's office in the county in which the subject property is located.

III. The attorney general's office may pursue a forfeiture action according to RSA 477:22-l against a person or entity convicted of an offense under paragraph I of this section.

IV. The New Hampshire department of homeland security shall facilitate deportation proceedings at the direction of U.S. Department of Homeland Security Immigration and Customs Enforcement.

V. Criminal penalties imposed under this section shall be in addition to, and not in lieu of, any forfeiture or seizure of property under RSA 477:22-l.

477:22-l Forfeiture of Real Property.

I. The department of justice may bring a civil forfeiture action under this section against a person or entity who has acquired or maintained a controlling interest in real property in violation of this subdivision. A criminal conviction shall not be required to initiate or complete forfeiture proceedings.

II. Real property that is subject under RSA 477:22-i may be seized by the state and forfeited as provided in this section. Property seized under this section may be held by the state to secure it prior to forfeiture proceedings.

III. The state may seize the subject property by filing in the registry of deeds in the county where the property is located a notice of attachment stating that the state has attached the identified property pursuant to this section.

IV. The state shall have a lien on any property subject to forfeiture under this section upon seizure of property. Upon forfeiture, the state's title to the property relates back to the date of seizure.

V. Within 30 days of the seizure of any real property under paragraph II, the attorney general shall file a petition in the superior court of the county in which the property was seized, requesting forfeiture of the property. The court shall issue an order of notice requiring the state to send by certified mail a copy of the petition to all owners of the property, including those with partial

ownership or controlling interests, and to other persons appearing to have an interest in the property. If no such petition is filed within 30 days of the seizure of the property, the property shall be returned to its owners.

VI. The court may order forfeiture of the property seized under paragraph II if the state establishes, by a preponderance of the evidence, that:

(a) The ownership or controlling interest in the property was acquired or maintained in violation of this section; and

(b) The person or entity holding the interest knew or should have known of the violation.

VII. If forfeiture is granted, the attorney general shall provide for the disposition of the forfeited property in any manner not prohibited by law, including retention of the property for official use by law enforcement or other public agencies, or by sale at public auction. The attorney general shall pay the reasonable expenses of the seizure, forfeiture proceeding, and sale of property from the proceeds of any public auction of forfeited items or from any penalty obtained under this chapter. All outstanding recorded liens on any property forfeited shall be paid in full within a reasonable time following the court proceedings.

VIII. If enforcement results in seizure and auction of property, proceeds shall be split 60 percent to the general fund and 40 percent to the locality where the property is located.

IX. In cases of shared or partial ownership, only the ownership interest attributable to the PRC national may be subject to seizure forfeiture. The state shall bear the burden of proving the extent of the PRC nationals interest by a preponderance of the evidence. Non-PRC co-owners shall retain their respective interests, and any proceeds from sale or auction shall be distributed proportionally after deduction of expenses and satisfaction of liens. The attorney general may offer the forfeited interest for sale to existing co-owners at fair market value at public auction.

477:22-m Bounty Provision. Any person or organization that provides material information leading to the successful seizure and sale or auction of real property under RSA 477:22-i shall receive a bounty of not less than 5 percent and not more than 10 percent of the net proceeds recovered by the state from such sale or auction. The bounty shall be paid from the net proceeds recovered by the state from such sale or auction. The bounty shall be paid from the general fund following the conclusion of the forfeiture process. Eligibility for the bounty shall not require a criminal conviction and shall be determined administratively by the attorney general.

477:22-n Severability.

If any provision of this subdivision is declared unconstitutional or the applicability thereof to any person or circumstance is held invalid, the constitutionality of the remainder of the subdivision and the applicability thereof to other persons and circumstances shall not be affected thereby.

3 Effective Date. This act shall take effect January 1, 2027.

1 Short Title. This act may be known as and cited to as the "New Hampshire Real Property Security Act."

2 New Subdivision; New Hampshire Real Property Security Act. Amend RSA 477 by inserting after section 22-f the following new subdivision:

New Hampshire Real Property Security Act

477:22-g Purpose Statement. The general court finds that nationals of the People's Republic of China (PRC), excluding U.S. citizens, pose a presumptive risk of hostile action through asymmetric warfare perpetrated by the Chinese Communist government against the United States of America and an existential threat to New Hampshire and its citizenry, including through espionage, intellectual property theft, technology transfer, and chemical, biological, and cyber terrorism and warfare via ownership or control of real property. These nationals pose a hostile risk to critical infrastructure, supply chains, agriculture, and the lives and livelihoods of Granite Staters. This act aims to protect national security while providing due process. Pursuant to the state's sovereign police powers under the Tenth Amendment to the United States Constitution, New Hampshire asserts authority to regulate real property ownership and control to protect against foreign adversary threats, including asymmetric warfare by the People's Republic of China, without federal preemption, as this act addresses local public safety, economic security, and infrastructure protection within the state's borders.

477:22-h Definitions. In this subdivision:

I. "PRC national" (PRC) means any citizen or agent of the People's Republic of China who is not a U.S. citizen, including but not limited to those with direct, compromising ties such as employment by PRC state-owned enterprises, membership in the Chinese Communist Party, financial links to the PRC government, pledged allegiance to PRC leaders, or acting on orders originating from the PRC government.

II. "Real property" means property consisting of land, buildings, crops, or other resources still attached to or within the land or improvements or fixtures permanently attached to the land or a structure on it.

III. "Controlling interest" means ownership, lease, occupancy, or any form of control over real property.

477:22-i Ownership or Controlling Interest; Prohibitions.

I. No PRC national, as defined in RSA 477:22-h, I, shall acquire or maintain a controlling interest in real property in New Hampshire.

II. No entity shall facilitate the acquisition or control of real property by a PRC national, including through partnerships, grants, or collaborations affiliated with the PRC government.

III. For PRC nationals holding controlling interests as of the date this section becomes law, a 90-day window from the effective date of this act is provided for voluntary divestment through sale, during which the PRC national(s) may retain proceeds from sale. Continued controlling interest by PRC nationals after this period shall create a presumption of hostile intent, triggering immediate default of property to state control for investigation and remediation of any threats present in conjunction with relevant federal authorities and resources, after which the state shall auction the property.

477:22-j Civil Penalties.

I. Upon a judicial or administrative finding that a PRC national engaged in prohibited conduct under RSA 477:22-i, a civil penalty of 25 percent of the greater of the fair market value or actual price paid for the property per violation shall be assessed.

II. Civil penalties imposed under this section shall be in addition to, and not in lieu of, any forfeiture or seizure of property under RSA 477:22-l.

477:22-k Criminal Penalties.

I. Acquisition of property in violation of RSA 477:22-i is a:

(a) Class A misdemeanor, when committed by an entity defined in RSA 477:22-h, I; or

(b) Class A misdemeanor, when committed by a licensed real estate agent who knowingly facilitates or participates in a transaction that violates RSA 477:22-i.

II. The attorney general's office may refer a violation of this section for prosecution to the county attorney's office in the county in which the subject property is located.

III. The attorney general's office may pursue a forfeiture action according to RSA 477:22-l against a person or entity convicted of an offense under paragraph I of this section.

IV. The New Hampshire department of homeland security shall facilitate deportation proceedings at the direction of U.S. Department of Homeland Security Immigration and Customs Enforcement.

V. Criminal penalties imposed under this section shall be in addition to, and not in lieu of, any forfeiture or seizure of property under RSA 477:22-l.

477:22-l Forfeiture of Real Property.

I. The department of justice may bring a civil forfeiture action under this section against a person or entity who has acquired or maintained a controlling interest in real property in violation of this subdivision. A criminal conviction shall not be required to initiate or complete forfeiture proceedings.

II. Real property that is subject under RSA 477:22-i may be seized by the state and forfeited as provided in this section. Property seized under this section may be held by the state to secure it prior to forfeiture proceedings.

III. The state may seize the subject property by filing in the registry of deeds in the county where the property is located a notice of attachment stating that the state has attached the identified property pursuant to this section.

IV. The state shall have a lien on any property subject to forfeiture under this section upon seizure of property. Upon forfeiture, the state's title to the property relates back to the date of seizure.

V. Within 30 days of the seizure of any real property under paragraph II, the attorney general shall file a petition in the superior court of the county in which the property was seized, requesting forfeiture of the property. The court shall issue an order of notice requiring the state to send by certified mail a copy of the petition to all owners of the property, including those with partial

ownership or controlling interests, and to other persons appearing to have an interest in the property. If no such petition is filed within 30 days of the seizure of the property, the property shall be returned to its owners.

VI. The court may order forfeiture of the property seized under paragraph II if the state establishes, by a preponderance of the evidence, that:

(a) The ownership or controlling interest in the property was acquired or maintained in violation of this section; and

(b) The person or entity holding the interest knew or should have known of the violation.

VII. If forfeiture is granted, the attorney general shall provide for the disposition of the forfeited property in any manner not prohibited by law, including retention of the property for official use by law enforcement or other public agencies, or by sale at public auction. The attorney general shall pay the reasonable expenses of the seizure, forfeiture proceeding, and sale of property from the proceeds of any public auction of forfeited items or from any penalty obtained under this chapter. All outstanding recorded liens on any property forfeited shall be paid in full within a reasonable time following the court proceedings.

VIII. If enforcement results in seizure and auction of property, proceeds shall be split 60 percent to the general fund and 40 percent to the locality where the property is located.

IX. In cases of shared or partial ownership, only the ownership interest attributable to the PRC national may be subject to seizure forfeiture. The state shall bear the burden of proving the extent of the PRC nationals interest by a preponderance of the evidence. Non-PRC co-owners shall retain their respective interests, and any proceeds from sale or auction shall be distributed proportionally after deduction of expenses and satisfaction of liens. The attorney general may offer the forfeited interest for sale to existing co-owners at fair market value at public auction.

477:22-m Bounty Provision. Any person or organization that provides material information leading to the successful seizure and sale or auction of real property under RSA 477:22-i shall receive a bounty of not less than 5 percent and not more than 10 percent of the net proceeds recovered by the state from such sale or auction. The bounty shall be paid from the net proceeds recovered by the state from such sale or auction. The bounty shall be paid from the general fund following the conclusion of the forfeiture process. Eligibility for the bounty shall not require a criminal conviction and shall be determined administratively by the attorney general.

477:22-n Severability.

If any provision of this subdivision is declared unconstitutional or the applicability thereof to any person or circumstance is held invalid, the constitutionality of the remainder of the subdivision and the applicability thereof to other persons and circumstances shall not be affected thereby.

3 Effective Date. This act shall take effect January 1, 2027.