How one state offers a blueprint in protecting against the CCP
As a number of states are set to begin their legislative sessions next month, legislators should not miss the opportunity to prioritize bills that protect critical assets and address the threat posed by the Chinese Communist Party. State policymakers are key to any comprehensive and effective plan to shore up American defenses against foreign adversaries, and several states have already passed targeted bills that give state governments more tools and better options to respond to the CCP.
Florida, in particular, has shown great success in enacting laws across a number of fronts to protect the state and should serve as a model for other states to follow. In several cases, Florida has already advanced some of the model legislation that the Protecting America Initiative seeks to enact across the country. Here are a few of those examples.
Real Estate and Farmland Purchase Ban
In 2023, Florida enacted SB 264 in order to restrict the ownership of real estate by foreign nationals. Specifically, the bill prohibits:
Foreign principals from owning or acquiring agricultural land.
Foreign principals from owning or acquiring any real property close to military installations or critical infrastructure.
“China, Chinese Communist Party or other Chinese political party officials or members, Chinese business organizations, and persons domiciled in China, but who are not U.S. citizens” from purchasing or acquiring any real property.
Although the bill restricts Chinese-related entities and persons (as defined above) from owning real property, the restrictions on agricultural land and real property in proximity to sensitive locations more broadly applies to “foreign countries of concern,” such as Cuba, Iran, North Korea, and Russia. To date, Florida is one of only 19 states to have passed a law specific to protecting farmland from foreign ownership.
Higher Education Protections on Research
Florida also enacted SB 846 in 2023 to protect public colleges and universities in the state from the influence of foreign countries of concern, including China, Russia, and Iran, among others. The bill’s two-pronged approach (1) restricts public colleges and universities from soliciting or accepting gifts from foreign countries of concern and (2) prohibits public colleges and universities from participating in “any agreement or partnership with an educational institution or other entity that is based in or controlled by a foreign country of concern” without the express authorization of the Board of Governors or the State Board of Education. As Florida Governor Ron DeSantis explained, the state took action to stop the CCP and its agents from engaging in “higher education subterfuge.”
State Pension Divestment
In May, Governor DeSantis signed into law HB 7071, which requires the Florida State Board of Administration (SBA) – which oversees the state’s public employee pension fund – to divest any direct holdings in a Chinese company and conduct a review of current direct holdings that may include Chinese securities, with a divestment plan due by September 1, 2024, and all divestment completed one year later. In short order, the Florida Retirement System (FRS) Pension plan went from an estimated $277 million in estimated exposure to Chinese companies down to a reported $174 million.
Disclosure of Chinese Gifts and Contacts
The CCP is presently at work in states across the country to increase its influence and leverage with state government officials. While the specific goals of this strategy may vary from official to official, the general plan is clear – China is attempting to assert control over state government employees. That is why the Protecting America Initiative’s model legislative agenda prioritizes bills that “block Chinese influence and require disclosure in lobbying.” In Florida, they took the first step toward this goal by passing HB 7017. The bill requires any state agent to disclose gifts or grants received from foreign sources. These important transparency requirements apply to state employees, to college professors, to agricultural officials and cover any gifts from the CCP.
Still More to Be Done …
There is still much work to do in Florida and every other state. As we work to identify and implement a comprehensive legislative agenda in state capitals across the country, the Protecting America Initiative will always highlight the important work that has already been done. Often, the most persuasive arguments for action are the successful examples set by other states. Florida has taken major strides to pass a comprehensive statutory shield against the influence of the CCP and should serve as an example for others.