(1) Any person may notify the Department of Agriculture or the Attorney General of a violation or potential violation of the Foreign-owned Real Estate National Security Act.

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(2) The Department of Agriculture shall investigate violations of the Foreign-owned Real Estate National Security Act. If the Director of Agriculture has reasonable suspicion to believe that a violation of the act has occurred, the director shall refer the suspected violation to the Attorney General or outside counsel retained by the Department of Agriculture for enforcement.

(3) The Attorney General or retained outside counsel, upon a referral by the Director of Agriculture or upon the receipt of any information from any person that gives the Attorney General or retained counsel reasonable suspicion to believe that a violation of the Foreign-owned Real Estate National Security Act has occurred, may issue subpoenas requiring the appearance of witnesses, the production of documents, and the giving of relevant testimony. Service of any subpoena shall be made in the same manner as a subpoena issued by any court in this state.

(4)(a) After investigation, if the Attorney General or retained outside counsel believes that a violation of the Foreign-owned Real Estate National Security Act has occurred, the Attorney General or retained outside counsel shall notify any restricted entity believed to be committing such violation that such entity may voluntarily divest any interest in real estate that is the subject of the violation.

(b) The restricted entity shall indicate to the Attorney General or retained outside counsel whether such entity is voluntarily divesting any interest in real estate that is the subject of the violation within thirty days of receiving the notice under subdivision (4)(a) of this section.

(c) If the restricted entity indicates that it is voluntarily divesting any interest in real estate that is the subject of the violation, the restricted entity shall be entitled to a grace period of one hundred eighty days to voluntarily divest the interest.

(d) The grace period of one hundred eighty days shall begin upon the end of the thirty-day period under subdivision (4)(b) of this section.

(e) The restricted entity shall not sell or otherwise transfer the real estate to a person or entity prohibited under the act. A restricted entity who violates this subdivision shall be subject to a civil penalty not to exceed fifty thousand dollars per parcel of real estate sold or otherwise transferred to a person or entity prohibited under the act.

(5) The Attorney General or retained outside counsel shall commence an action in either the district court in the county in which all or part of the real estate is located or in the district court of Lancaster County if:

(a) The restricted entity fails to indicate to the Attorney General or retained outside counsel that the entity is voluntarily divesting any interest in real estate that is the subject of the violation within the thirty-day period under subdivision (4)(b) of this section; or

(b) The restricted entity fails to voluntarily divest any interest in the real estate that is the subject of the violation within the grace period of one hundred eighty days.

(6) Upon commencement of an action under this section, the Attorney General or retained counsel shall:

(a) Promptly record a notice of the pendency of the action in records with the register of deeds in each county in which all or part of the real estate is located; and

(b) Serve a copy of the petition by service of process in the same manner as in civil cases as follows on:

(i) The owner of the real estate if the owner’s address is known;

(ii) Any secured party who has registered or filed a lien, mortgage, or trust deed against the real estate or filed a financing statement against the real estate as provided by law if the identity of the secured party can be ascertained by the entity filing the petition by making a good faith effort to ascertain the identity of the secured party;

(iii) Any other bona fide lienholder or secured party or other person holding an interest in the real estate if such party is known; and

(iv) Any person residing on the real estate subject to divestment at the time the petition is filed.

(7) The court shall have power to hear and determine the questions presented in such case and to declare such real estate to be divested. The burden is on the state to prove by clear and convincing evidence that the real estate is subject to divestment under the Foreign-owned Real Estate National Security Act. If the court finds that the real estate that is the subject of an action commenced under the act was purchased, acquired, taken, or held in violation of the act, the court shall enter an order that:

(a) States the findings of the court;

(b) Orders the divestment of the interest in the real estate of the person or entity that violated the act;

(c) Notifies the Governor that the title to such real estate is ordered divested by the decree of the court;

(d) Orders the Attorney General or retained outside counsel to promptly record a copy of such divestment order with the register of deeds of each county in which all or part of the real estate is located;

(e) Appoints a receiver subject to sections 25-1081 to 25-1092 to manage and control the real estate through the final disposition of the real estate; and

(f) Authorizes the proceeds of the divestment to be disbursed in the following order:

(i) The payment of any taxes and assessments due;

(ii) The payment of court costs related to the action or actions commenced under the Foreign-owned Real Estate National Security Act;

(iii) The payment of authorized costs of the sale, including all approved fees and pending sale expenses and expenses of the referee;

(iv) Reimbursement of investigation and litigation costs and expenses, in an amount approved by the court, to the Attorney General or retained outside counsel;

(v) Payment to bona fide lienholders of the real estate, in order of lien priority, except for liens which under the terms of the divestment are to remain on the real estate; and

(vi) Remittance of any remaining proceeds to the State Treasurer for distribution in accordance with Article VII, § 5, of the Constitution of Nebraska.

(8) If the interest is a lease, easement, or interest other than fee title, the court shall have power to declare such interest terminated.

(9) If the respondent fails to answer or appear for the action commenced pursuant to this section, the court may enter default judgment.