SB581 SFA Weld 3-1 #1

Curia 7824

Senator Weld moved to amend the bill on page 15, after line 21, by adding thereto a new article, designated article 39, to read as follows:

ARTICLE 39. CERTAIN RESTRICTIONS ON OWNERSHIP OF AGRICULTURAL LAND.

§19-39-1. Definitions.

For purposes of this article:

"Agricultural land" means land suitable for use in farming.

“Farming” means the cultivation of land for the production of agricultural crops, the raising of poultry, the production of eggs, the production of milk, the production of fruit or other horticultural crops, grazing, or the production of livestock. Farming includes the production of timber, forest products, nursery products, or sod. Farming does not include a contract where a processor or distributor of farm products or supplies provides spraying, harvesting, or other farm services.

“Foreign business” means a corporation incorporated under the laws of a foreign country, or a business entity whether or not incorporated, in which a majority interest is owned directly or indirectly by nonresident aliens. Legal entities, including, but not limited to, trusts, holding companies, multiple corporations, and other business arrangements do not affect the determination of ownership or control of a foreign business.

“Foreign government” means a government other than the government of the United States, its states, territories, or possessions.

“Nonresident alien” means an individual who is neither a citizen of the United States nor

a person lawfully admitted into the United States for permanent residence by the United States immigration and naturalization service: Provided, That an individual is lawfully admitted for permanent residence regardless of whether the individual’s lawful permanent resident status is conditional.

§19-39-2. Right to acquire nonagricultural land.

A nonresident alien, foreign business, or foreign government may acquire by grant, purchase, devise, or descent, real property, except agricultural land or any interest in agricultural land in this state, and may own, hold, devise, or alienate the real property, and shall incur the same duties and liabilities in relation to the real property as a citizen and resident of the United States.

§19-39-3. Restriction on agricultural land holdings.

(a) A nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof shall not purchase or otherwise acquire agricultural land in this state. A nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, which owns or holds agricultural land in this state on July 1, 2023, may continue to own or hold the land, but shall not purchase or otherwise acquire additional agricultural land in this state.

(b) A person or entity who acquires agricultural land in violation of this section or who fails to convert the land to purposes other than farming within three years, remains in violation of this section for as long as the person or entity holds an interest in the land.

(1) Agricultural land acquired by devise or descent;

(2) A bona fide encumbrance on agricultural land taken for purposes of security; and

(3) Agricultural land acquired by a process of law in the collection of debts, by a deed in lieu of foreclosure, pursuant to a forfeiture of a contract for deed, or by any procedure for the enforcement of a lien or claim on the land, whether created by mortgage or otherwise: Provided, That agricultural land so acquired shall be sold or otherwise disposed of within three years after the title is transferred. Pending the sale or disposition, the land shall not be used for any purpose other than farming, and the land shall not be used for farming except under lease to an individual, trust, corporation, partnership, or other business entity not subject to any other restrictions. Agricultural land which has been acquired pursuant to this subdivision shall not be acquired or used by the nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof for agricultural research or experimental purposes.

(d) A nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary of the alien, business, or government shall not acquire or hold agricultural land in an amount greater than 160 acres: Provided, That a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof who lawfully owns over 160 acres on July 1, 2023, may continue to own or hold the land, but shall not purchase or otherwise acquire additional agricultural land in this state except as provided for in subsection (c) of this section. Pending the development of the agricultural land for purposes other than farming, the land shall not be used for farming except under lease to an individual, trust, corporation, partnership, or other business entity not subject to any other restriction on the increase in agricultural land holdings imposed in this article.

(e) A nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof shall not transfer title to or interest in agricultural land to a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof except as provided for in subsection (c) of this section.

§19-39-4. Development of agricultural land acquired for nonfarming purposes.

Development of the agricultural land which is not subject to the restrictions of this article, because the land or interest in the land was acquired for an immediate or pending use other than farming, shall be converted to a purpose other than farming within three years following the acquisition of the agricultural land or the acquisition of the interest in the agricultural land.

§19-39-5. Agricultural land acquired by devise or descent.

A nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof which acquires agricultural land or an interest in agricultural land, by devise or descent after July 1, 2023, shall divest itself of all right, title, and interest in the land within three years from the date of acquiring the land or interest. This section shall not require divestment of agricultural land or an interest in agricultural land acquired by devise or descent from a nonresident alien if the land or an interest in the land was acquired by any nonresident alien prior to July 1, 2023.

§19-39-6. Change of status; divestment.

A person or entity which purchases or otherwise acquires agricultural land in this state except by devise or descent after July 1, 2023, and whose status changes so that it becomes a foreign business or nonresident alien subject to this article shall divest itself of all right, title, and interest in the land within three years from the date that its status changed.

§19-39-7. Registration.

A nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof which owns an interest in agricultural land within this state on or after July 1, 2023, shall register the agricultural land with the Commissioner of Agriculture. The registration shall be made within 60 days after July 1, 2023, or within 60 days after acquiring the land or the interest in the land, whichever time is the later. The registration shall be in the form and manner prescribed by the commissioner and shall contain the name of the owner and the location and number of acres of the agricultural land by county. If the owner of the agricultural land or owner of the interest in agricultural land is an agent, trustee, or fiduciary of a nonresident alien, foreign business, or foreign government, the registration shall also include the name of any principal for whom that land, or interest in that land, was purchased through an agent.

§19-39-8. Reports.

A nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof who acquires agricultural land not subject to the restrictions of section three of this article because the land was acquired for an immediate or pending use other than farming, shall file a report with the Commissioner of Agriculture before July 1 of each year. The report shall be in the form and manner prescribed by the commissioner and shall contain the following:

(1) The name of the owner of the agricultural land or owner of the interest in the agricultural land;

(2) If the owner of the agricultural land or interest in the agricultural land is an agent, trustee, or fiduciary of a nonresident alien, foreign business, or foreign government, the name of any principal for whom that land or interest in that land was acquired as agent;

(3) The location and number of acres of the agricultural land by city and county;

(4) The date the agricultural land or interest in the agricultural land was acquired;

(5) The immediate or pending use other than farming for which the agricultural land or interest in the agricultural land was acquired and the status of the land’s development for the purpose other than farming; and

(6) The present use of the agricultural land.

§19-39-9. Enforcement.

(a) If the Commissioner of Agriculture finds that a nonresident alien, foreign business, foreign government, or an agent, trustee, or other fiduciary thereof has acquired or holds title to or interest in agricultural land in this state in violation of §19-39-3 of this code, has failed to timely register as required under §19-39-7 of this code, or has failed to timely report as required under §19-39-8 of this code, the Commissioner of Agriculture shall report the violation to the Attorney General.

(b) Upon receipt of the report from the Commissioner of Agriculture, the Attorney General may, following a review of the report and any further applicable facts, initiate an action in the circuit court of any county in which the land is located.

(c) If the circuit court finds that the land in question has been acquired or held in violation of §19-39-3 of this code, or has not been properly registered as required under §19-39-7 of this code, or has not been appropriately reported as required under §19-39-8 of this code, it shall enter an order finding a violation exists and shall file a copy of the order with the circuit clerk of the county in which any portion of the land is located. The circuit court shall also cause a copy of the order to be recorded with the county clerk in any county in which a portion of the land is located.

§19-39-10. Escheat.

If the circuit court finds that the agricultural land in question has been acquired in violation of this article or that the land has not been converted to a purpose other than farming within three years as required by §19-39-4 of this code, the circuit court shall enter an order declaring the land escheated to the state, and that title to the land shall be vested in the state in the name of the State Commissioner of Delinquent and Nonentered Lands by decree of the circuit court. Any real estate, acquired by the state under this section, shall be sold as soon as practicably possible in the same manner in which delinquent properties are sold pursuant to §11A-3-45 of this code. The circuit court order shall set forth the minimum bid for which the property will be sold. The proceeds of the sale shall be used to pay court costs, including the cost of appraisal should one be performed, the costs associated with the Auditor’s sale, and any outstanding penalties imposed pursuant to §19-39-11 of this code. The remaining funds, if any, shall be paid to the person or entity divested of the property but only in an amount not exceeding the actual cost paid by the person or entity for the purchase or acquisition of that property. Proceeds remaining after the payment of court costs, costs associated with the auditor’s sale, and the payment to the person or entity divested of the property shall be deposited into the general revenue fund of the county or counties in which the land is located in proportion to the part of the land in each county.

§19-39-11. Penalty for failure to timely file.

A civil penalty of not more than $2,000 shall be imposed for each offense upon a nonresident alien, foreign business, or foreign government, or an agent, trustee, or other fiduciary thereof, who fails to timely file the registration as required under §19-39-7 of this code or has failed to timely report as required under §19-39-8 of this code. Any penalty collected pursuant to this section shall be used by the Commissioner of Agriculture for the benefit of the Cedar Lakes Camp and Conference Center.

Adopted

Rejected