Staff Reports
While on board with the intent of the legislation, a prominent state-focused activist organization is joining the private sector’s warning that a new anti-China law could harm real estate investment in Florida.
In a press release, the advocacy component of the American Legislative Exchange Council (ALEC Action) added to what’s becoming a chorus of industry caution about a bill (SB 264) that Gov. Ron DeSantis prioritized and signed over the summer.
With some exceptions, the law generally prohibits Chinese nationals and government entities and affiliates from purchasing commercial or agricultural real property in Florida. It also places certain restrictions on nationals from other countries “of concern.” Industry members and groups like ALEC Action fear that the law’s language could be misconstrued and applied too broadly.
ALEC Action’s criticisms echo those of the powerful Associated Industries of Florida (AIF), a business-interest group that authored a letter in August sounding the alarm about the new bill.
In its letter, AIF warned against a broad interpretation of the law as agencies implement it. One major risk, according to AIF, is that it might interfere with investment from publicly traded companies with some, but little, financial backing from the People’s Republic of China. Another concern is that Chinese participation in otherwise U.S.-based funds may bar those funds from investing in Florida properties.
That letter was sent to Melanie Griffin, Secretary of the Department of Business and Professional Regulation. ALEC Action is now repeating that warning to the Florida Real Estate Commission, Department of Agriculture and Consumer Services, and the Department of Economic Opportunity.
In August, Griffin told Florida Politics the rules from implementation of the law will come through the Florida Real Estate Commission.
“Implementing executive agencies … should consider this feedback from the private sector as they promulgate forthcoming rules, while preserving the State of Florida’s intent to combat malign foreign influence in real estate investments,” ALEC Action wrote in a press release.
Like AIF, ALEC Action reiterated its support for the underlying intent of the bill, which it says will “protect Floridians from the undue influence of potential foreign adversaries and [will] ensure vital national security interests are protected.”
Still, the lack of clarity and potential for over broad implementation has merited public warnings about the new law.
Implementation won’t be the only rocky part of the new law. The state is also defending the legislation from a lawsuit.
Four Chinese nationals and a real estate brokerage with Chinese clients filed a suit against the state in May. The Department of Justice has also submitted papers supporting the suit.
