§ 3:3616 — Civil penalties; actions

§3616. Civil penalties; actions
A.(1) A prohibited foreign actor that violates the provisions of this Part shall be
subject to a civil penalty of fifty thousand dollars and forfeiture if such entity does not divest
itself of agricultural land acquired in violation of this Part within one year after judgment is
entered in this action.
(2) Any civil penalty collected pursuant to this Section shall be paid to the attorney
general to offset costs associated with enforcement of provisions contained in this Section.
B. A party to the contract to purchase, lease, or otherwise acquire immovable
property may rescind the contract prior to the transfer of the immovable property if the party
determines that a foreign adversary has an ownership interest that violates the provisions of
this Part.
C. The attorney general may bring an action for injunctive relief in the name of the
state against the foreign adversary or prohibited foreign actor to restrain and enjoin the sale
or lease prior to the transfer of the immovable property or to restrain or enjoin the lease. The
attorney general shall serve the petition for injunctive relief upon the parties to the
transaction. Upon receipt of the petition, a party may rescind the contract to purchase, lease,
or otherwise acquire immovable property pursuant to Subsection B of this Section. The
attorney general shall file a notice of lis pendens in the mortgage records of the parish in
which the property is located no later than three business days after instituting the
proceeding. The institution of the action and the filing of the notice of lis pendens shall have
no effect on persons obtaining rights in the immovable property prior to the filing of the
notice of the pending action.
D.(1) The attorney general may serve an investigative demand or subpoena for
deposition testimony to any person who is believed to have information, documentary
material, or physical evidence relevant to the alleged or suspected attempt to enter into,
conspiracy to enter into, or entering into a contract to purchase, lease, or otherwise acquire
immovable property in this state if all of the following exist:
(a) The attorney general has evidence that a foreign adversary or a prohibited foreign
actor is attempting to enter into, conspiring to enter into, or has entered into a contract to
purchase, lease, or otherwise acquire immovable property in this state.
(b) The attorney general believes it to be in the public interest that an investigation
should be made to ascertain whether a foreign adversary or a prohibited foreign actor in fact
is attempting to enter into, conspiring to enter into, or has entered into a contract to purchase,
lease, or otherwise acquire immovable property in this state.
(2)(a) Such investigative demand or subpoena for deposition testimony shall contain
a description of the attempt to enter into, conspiracy to enter into, or entering into a contract
to purchase, lease, or otherwise acquire immovable property in this state under investigation
and shall require such person to furnish, under oath or otherwise, a report in writing setting
forth the relevant facts and circumstances of which the person has knowledge, or to produce
relevant documentary material or physical evidence for examination, at such reasonable time
and place as may be stated in the investigative demand that is the subject matter of the
investigation. Nonpublic personal information may be excluded from the report, deposition,
or other testimony.
(b) Any subpoena for deposition testimony issued pursuant to this Section shall
include a notice informing the prospective deponent of the deponent's right to counsel at the
deposition with an opportunity for cross-examination, and the deposition shall be conducted
at the deponent's principal place of business, deponent's place of residence, deponent's
domicile, or, if agreeable to the deponent, at some other place convenient to the attorney
general and the deponent's attorney.
(c) Any such deposition shall be held at a reasonable time as may be stated in the
investigative subpoena. At any time before the return date specified in the investigative
demand or before the noticed deposition, or within twenty days after the demand or
deposition notice has been served, whichever is shorter, a petition stating good cause for a
protective order to extend the return date, or to modify or set aside the demand or deposition
notice, may be filed in the district court having civil jurisdiction in the parish where the
person served with the demand resides, is domiciled, or has his principal place of business
located.
(d) If no protective order from the court is secured and the written request by the
attorney general is not complied with by the return date thereof, the attorney general may
apply to the court for an order compelling compliance with the investigative demand or
deposition notice.
(e) If any person fails or refuses to file any statement, report, documentary material,
or physical evidence, or obey any investigative subpoena or demand issued by the attorney
general, except as permitted by a protective order issued by an appropriate court, the attorney
general may apply to the district court having civil jurisdiction in the parish where the person
served with the demand or subpoena resides, is domiciled, or has his principal place of
business located for a rule to show cause why an order compelling compliance should not
be issued.
(f) Any disobedience of an order compelling compliance under this Section by any
courts shall be punished as a contempt of court.
E. Service of any demand, subpoena, or petition shall be made in the manner
provided by law.
F. Any immovable property acquired by a foreign adversary or a prohibited foreign
actor is subject to divestiture or civil forfeiture to the state.
G. In the enforcement of this Part, the attorney general may use all other procedures
and authority for investigation, supervision, and conduct of actions on behalf of the state as
provided by law.
H. A court petitioned by the attorney general may issue such additional orders or
render judgments against the foreign adversary or the prohibited foreign actor as may be
necessary to protect the public. Such orders shall include but not be limited to the following:
(1) Revocation, forfeiture, or suspension of any license, charter, franchise, certificate,
or other evidence of authority of any person to do business in the state.
(2) Appointment of a receiver.
(3) Dissolution of domestic corporations or associations.
(4) Suspension or termination of the right of foreign corporations or associations to
do business in this state.
(5) Restitution to compensate any person who did not knowingly enter into a
transaction with the foreign adversary or a prohibited foreign actor for any loss, expenses,
court costs, or attorney fees which may have been incurred because of the sale being void or
enjoined.
(6) Civil forfeiture of any immovable property acquired by the foreign adversary or
the prohibited foreign actor in accordance with the provisions of this Section.
I.(1) If, after examining the evidence, the attorney general concludes that a violation
of this Part occurred, the attorney general may order the foreign adversary or prohibited
foreign actor to divest himself of all interests in the land within ninety days after service of
the order upon the foreign adversary or prohibited foreign actor.
(2) The order of divestiture, as described in Paragraph (1) of this Subsection, shall
be served personally or by certified mail.
J.(1) If the holder of the interest that is ordered to be divested disputes the
determination of the attorney general that a violation of this Part occurred, the holder may
submit a written request for a judicial determination to the attorney general.
(2) The written request, as described in Paragraph (1) of this Subsection, shall be
delivered to the attorney general within sixty days after service of the order of divestiture.
If no written request is received within this time, the determination of the attorney general
shall become final.
(3) A foreign adversary, prohibited foreign actor, or any holder of interest may seek
judicial review after the attorney general's final determination.
(4) Any appeal from the final determination of the attorney general shall be in
accordance with the Administrative Procedure Act.
K.(1) If the foreign adversary or prohibited foreign actor fails to divest himself of all
interests pursuant to Paragraph (I)(1) of this Section or if a holder of the interest submits a
written request pursuant to Subsection J of this Section, the attorney general may bring an
action to divest the interest.
(2) The attorney general may initiate a civil action pursuant to this Section in either
the parish of East Baton Rouge or a parish where a portion of the immovable property is
located.
(3) The attorney general shall record in the public mortgage records of the parish
clerk of court of each parish in which any portion of the immovable property is located a
notice of pendency of the action pursuant to Book VII, Title II, Chapter 4 of the Code of
Civil Procedure.
L. If the holder of the interest in immovable property has submitted a written request
pursuant to Subsection J of this Section, the court shall conduct an evidentiary hearing to
determine, by a preponderance of the evidence, if a violation of this Part occurred, prior to
taking any other action. If the court determines that there has been no violation, the court
shall dismiss the action and expunge the notice of pending action.
M. If a court of competent jurisdiction determines that a violation of this Part
occurred, the court shall order that such immovable property be sold by the sheriff in the
parish where the immovable property is located in the same manner as a judicial sale in
accordance with the requirements of Book IV, Title II, Chapter 2 of the Code of Civil
Procedure.

Legislative History

Acts 2024, No. 420, §1.