Provides relative to expropriation by private entities

House Bill 180 enacts a new provision in Louisiana's Civil Code by adding R.S. 9:2717.1.1, which establishes definitions applicable to expropriation proceedings involving private entities. The statute creates two key definitions: "foreign adversary" refers to any individual or government that the United States Department of the Treasury, Office of Foreign Assets Control, has identified as a foreign adversary in 15 CFR 7.4(a) and included in its maintained database. "Agent of a foreign adversary" means any juridical person over which a foreign adversary has the power to direct or control management or policies, whether through ownership of securities, contractual arrangements, or other means. The statute establishes a presumption that any person or entity holding fifty percent or more of voting interests or entitled to fifty percent or more of profits possesses this requisite power to direct the entity's management or policies.

This legislation impacts private entities engaged in expropriation activities, property owners potentially subject to expropriation by such entities, and any businesses that may have foreign investment or control structures. The definitions serve to identify which private expropriating entities fall within the scope of foreign adversary control, creating a framework that distinguishes between domestic private expropriators and those subject to direction by foreign adversaries. Property owners and their attorneys will need to consider these definitions when evaluating the nature and legitimacy of expropriation claims brought by private parties, and private entities seeking expropriation authority will need to ensure they do not fall under the foreign adversary or agent classification.

The statute operates within Louisiana's broader expropriation framework, which historically has been constrained by constitutional limitations on private expropriation. Louisiana law generally restricts expropriation by private entities to narrow circumstances, primarily utility companies and common carriers. This new provision interacts with the existing expropriation statutes by providing definitional clarity for purposes of determining whether a private entity purporting to exercise expropriation authority is controlled by a foreign adversary. The definitions reference the United States Code of Federal Regulations and federal Treasury Department databases, thereby integrating federal national security and international relations determinations into Louisiana property law. The provision's reference to Civil Code Article 24's definition of juridical persons ensures consistency with Louisiana's legal classification system for legal entities.