§ 49:1507 — Ownership of digital asset mining business by prohibited foreign-party- controlled

Louisiana § 49:1507

• Jurisdiction: Louisiana
• Title 49: State Administration

Text

§1507. Ownership of digital asset mining business by prohibited foreign-party- controlled
business; prohibited
A.(1) No prohibited foreign party shall acquire or hold by grant, purchase, devise,
descent, or otherwise any interest in a digital asset mining business in this state.
(2) No person shall acquire or hold a digital asset mining business as an agent,
trustee, or other fiduciary of a prohibited foreign-party-controlled business.
B.(1) A prohibited foreign-party-controlled business in operation before August 1,
2024, shall have three hundred sixty-five calendar days from August 1, 2024, for the
prohibited foreign party to divest all interest in the digital asset mining business.
(2) If a prohibited foreign party fails to divest all interest in the digital asset mining
business in accordance with Paragraph (1) of this Subsection, the attorney general may
commence an action in a court of competent jurisdiction as provided in Subsection D of this
Section.
C. Upon request of a person or upon receipt of information that leads the attorney
general to believe that a violation of this Section may exist, the attorney general may conduct
an investigation that includes any of the following:
(1) Receiving sworn statements.
(2) Issuing subpoenas to compel the testimony of witnesses.
(3) Issuing subpoenas duces tecum for the production of records and other
documents.
D.(1) If, as a result of an investigation, the attorney general concludes that a violation
of this Section has occurred, the attorney general may order a prohibited foreign party to
divest all interest in the digital asset mining business within three hundred sixty-five calendar
days of the order.
(2)(a) If the prohibited foreign party fails to divest all interest in the digital asset
mining business within three hundred sixty-five calendar days, the attorney general may
commence an action in a court of competent jurisdiction over the digital asset mining
business.
(b) Prior to bringing an action pursuant to this Section, the attorney general shall
provide written notice to the holder of each mortgage, lien, privilege, UCC-9 security
interest, or other encumbrance of the subject property which is filed in the public records or
is perfected. Such notice shall be provided in the same manner as provided in R.S. 40:2608
or R.S. 14:90.1.
(3)(a) If the court finds that a violation of this Section has occurred, the court shall
order the digital asset mining business to be sold at a judicial sale in accordance with the
procedural requirements of Code of Civil Procedure Article 2331 et seq.
(b) The proceeds of the sale pursuant to this Paragraph shall be disbursed to the
lienholders in order of priority. Prior recorded or perfected encumbrances shall have priority
over any subsequently awarded remedies, penalties, or damages authorized pursuant to
Subparagraphs (4)(a) and (c) and Paragraph (5) of this Subsection.
(c) If the assets of the digital asset mining business include immovable property, the
procedures provided for in R.S. 9:2717.1 related to notice and sale of immovable property
shall be followed.
(4) The attorney general may pursue other remedies authorized by law in an action
brought pursuant to the provisions of this Subsection, including but not limited to any of the
following:
(a) A civil penalty not to exceed one million dollars or twenty-five percent of the fair
market value on the date of the assessment of the civil penalty of the prohibited foreign
party's interest in the digital asset mining business for the failure to divest of all interest in
the digital asset mining business within three hundred sixty-five calendar days as required
by this Section.
(b) Court costs associated with the civil action.
(c) Judicial interest on the amount of a judgment accruing from the date that the
lawsuit is filed by the attorney general pursuant to Paragraph (2) of this Subsection.
(d) Reasonable attorney fees.
(5) In addition to the remedies provided in Paragraph (4) of this Subsection, the
attorney general may pursue damages against a digital asset mining business if the digital
asset mining business is held in violation of this Section by the court, is ordered to pay a civil
penalty as provided in Paragraph (4) of this Subsection, and fails to pay the civil penalty
imposed.
(6) The approval of a digital asset mining business by a local government or the
receipt by a digital asset mining business of a permit or other authorization from the state to
operate shall not be a defense to a cause of action brought pursuant to this Section.
E. No mortgage, lien, privilege, or other security interest recognized under the laws
of this state and no ownership interest in indivision, lease, servitude, usufruct, right of use,
bond for deed, or other real right shall be affected by a divestiture or disposition pursuant to
this Section.
F. No attorney, title insurer, title insurance producer, title insurance agency producer,
lender, mortgage loan servicer, notary public, real estate agent, real estate broker, seller, or
lessor shall have a duty to make any investigation as to whether a party to a transaction
involving immovable property is a prohibited foreign party, nor shall any such person be
liable for failing to identify that a party to a transaction involving immovable property is a
prohibited foreign party.
G. If a prohibited foreign party acquires immovable property despite the prohibitions
provided in this Section, the property shall only be subject to divestiture or disposition during
the period in which the prohibited foreign party owns the property. Rights in immovable
property shall not be void or voidable because the property or right held in the property was
previously held by a prohibited foreign party.

Legislative History

Acts 2024, No. 700, §1.