Authorizes the state to expropriate property owned by certain foreign adversaries. (8/1/26)
Authorizes the state to expropriate property owned by certain foreign adversaries. (8/1/26)
Senate Bill 395 enacts a new statute, Louisiana Revised Statutes 19:2.3, that mandates state expropriation of real property owned by China as a sovereign nation, the Chinese Communist Party, any corporation incorporated in China, or any citizen of China. The statute directs that such taking shall be deemed an exercise of Louisiana's state governmental powers and shall be considered necessary for a public purpose under Article I, Section 4 of the Louisiana Constitution. The law becomes effective August 1, 2026, and creates a mandatory expropriation framework triggered solely by the foreign ownership status of the property.
The practical effect of this legislation extends to any property holder within these specified categories operating within Louisiana's jurisdiction. Property owners who are Chinese citizens, entities incorporated in China, or the Chinese government or Communist Party would have their real property automatically subject to state seizure under this statutory authority. State agencies responsible for property management and disposition would gain the authority and obligation to take possession of such properties. Businesses, individuals, and governmental entities that currently maintain property interests in Louisiana under these ownership categories would lose those interests upon the statute's effective date. The legislation bypasses traditional due process considerations typically associated with eminent domain proceedings by establishing a categorical rule rather than requiring case-by-case determinations of public necessity.
This statute operates within Louisiana's expropriation framework established in Title 19 of the Louisiana Revised Statutes, which traditionally governs the taking of private property for public use. The bill specifically invokes Article I, Section 4 of the Louisiana Constitution, which addresses the state's power of eminent domain and the requirement that property takings serve a public purpose. The statute deems the public purpose requirement satisfied categorically for all properties matching the specified ownership criteria, eliminating the need for individualized public purpose findings. This legislation raises constitutional questions regarding due process protections, the Fifth Amendment's takings clause and just compensation requirements, the Commerce Clause as applied to foreign commerce, and federal treaty obligations, as the expropriation applies to property of a foreign nation and its agents.
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