Alabama 2022 Regular Session

Alabama Senate Bill SB14 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 SB14
2	2	2 215062-1
3	3	3 By Senator Melson
4	4	4 RFD: Agriculture, Conservation and Forestry
5	5	5 First Read: 11-JAN-22
6	6	6 PFD: 12/07/2021
7	7
8	8	Page 0 1 215062-1:n:10/14/2021:SLU/ma LSA2021-1989
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14	14	7
15	15	8 SYNOPSIS: Existing law provides that an alien, whether
16	16	9 resident or nonresident, may own, hold, or dispose
17	17	10 of real property with the same rights as a native
18	18	11 citizen.
19	19	12 This bill would restrict ownership of
20	20	13 agricultural land to United States citizens and
21	21	14 resident aliens only, subject to certain limited
22	22	15 exceptions.
23	23	16 This bill would further provide a civil
24	24	17 penalty for violation of certain registration
25	25	18 requirements.
26	26	19
27	27	20 A BILL
28	28	21 TO BE ENTITLED
29	29	22 AN ACT
30	30	23
31	31	24 Relating to ownership of agricultural land; to
32	32	25 restrict ownership of agricultural land to United States
33	33	26 citizens and resident aliens only, subject to certain limited
34	34	Page 1 1 exceptions; and to provide a civil penalty for violation of
35	35	2 certain registration requirements.
36	36	3 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
37	37	4 Section 1. As used in this act, the following terms
38	38	5 have the following meanings:
39	39	6 (1) AGRICULTURAL LAND. Land suitable for use in
40	40	7 farming.
41	41	8 (2) FARMING. The cultivation of land for the
42	42	9 production of agricultural crops, the raising of poultry, the
43	43	10 production of eggs, the production of milk, the production of
44	44	11 fruit or other horticultural crops, and grazing or production
45	45	12 of livestock. The term includes the production of timber,
46	46	13 forest products, nursery products, or sod. The term does not
47	47	14 include a contract where a processor or distributor of farm
48	48	15 products or supplies provides spraying, harvesting, or other
49	49	16 farm services.
50	50	17 (3) FOREIGN BUSINESS. A corporation incorporated
51	51	18 under the laws of a foreign country, or a business entity
52	52	19 whether or not incorporated, in which a majority interest is
53	53	20 owned directly or indirectly by nonresident aliens. Legal
54	54	21 entities, including, but not limited to, trusts, holding
55	55	22 companies, multiple corporations, and other business
56	56	23 arrangements, do not affect the determination of ownership or
57	57	24 control of a foreign business.
58	58	25 (4) FOREIGN GOVERNMENT. A government other than the
59	59	26 government of the United States, its states, territories, or
60	60	27 possessions.
61	61	Page 2 1 (5) NONRESIDENT ALIEN. An individual who is not any
62	62	2 of the following:
63	63	3 a. A citizen of the United States.
64	64	4 b. An individual lawfully admitted into the United
65	65	5 States for permanent residence by the United States
66	66	6 Immigration and Naturalization Service. An individual is
67	67	7 lawfully admitted for permanent residence, regardless of
68	68	8 whether the individual's lawful permanent resident status is
69	69	9 conditional.
70	70	10 Section 2. An alien, resident or nonresident, may
71	71	11 take and hold property, real and personal, in this state,
72	72	12 either by purchase, descent, or devise, and may dispose of and
73	73	13 transmit the same by sale, descent, or devise as a native
74	74	14 citizen.
75	75	15 Section 3. (a) Notwithstanding Section 35-5-1, Code
76	76	16 of Alabama 1975, a nonresident alien, foreign business, or
77	77	17 foreign government, or an agent, trustee, or fiduciary
78	78	18 thereof, may not purchase or otherwise acquire agricultural
79	79	19 land in this state. A nonresident alien, foreign business, or
80	80	20 foreign government, or an agent, trustee, or fiduciary
81	81	21 thereof, that owns or holds agricultural land in this state on
82	82	22 the effective date of this act, may continue to own or hold
83	83	23 the land, but shall not purchase or otherwise acquire
84	84	24 additional agricultural land in this state.
85	85	25 (b) The restriction set forth in subsection (a) does
86	86	26 not apply to the following:
87	87	27 (1) Agricultural land acquired by devise or descent.
88	88	Page 3 1 (2) A bona fide encumbrance on agricultural land
89	89	2 taken for purposes of security.
90	90	3 (3) Agricultural land acquired by a process of law
91	91	4 in the collection of debts, by a deed in lieu of foreclosure,
92	92	5 pursuant to a forfeiture of a contract for deed, or by any
93	93	6 procedure for the enforcement of a lien or claim on the land,
94	94	7 whether created by mortgage or otherwise. However,
95	95	8 agricultural land so acquired shall be sold or otherwise
96	96	9 disposed of within two years after title is transferred.
97	97	10 Pending the sale or disposition, the land shall not be used
98	98	11 for any purpose other than farming, and the land shall not be
99	99	12 used for farming except under lease to an individual, trust,
100	100	13 corporation, partnership, or other business entity.
101	101	14 (c) A person who acquires agricultural land in
102	102	15 violation of this act, remains in violation for as long as the
103	103	16 person holds an interest in the land.
104	104	17 Section 4. A nonresident alien, foreign business, or
105	105	18 foreign government, or an agent, trustee, or fiduciary
106	106	19 thereof, that acquires agricultural land or an interest in
107	107	20 agricultural land, by devise or descent after the effective
108	108	21 date of this act, shall divest itself of all right, title, and
109	109	22 interest in the land within two years following the date of
110	110	23 acquiring the land or interest.
111	111	24 Section 5. A person or business that purchases or
112	112	25 otherwise acquires agricultural land in this state, except by
113	113	26 devise or descent, following the date of this act, and whose
114	114	27 status changes so that it becomes a foreign business or
115	115	Page 4 1 nonresident alien subject to this act, shall divest itself of
116	116	2 all right, title, and interest in the land within two years
117	117	3 following the date that its status changed.
118	118	4 Section 6. A nonresident alien, foreign business, or
119	119	5 foreign government, or an agent, trustee, or fiduciary
120	120	6 thereof, that owns an interest in agricultural land shall
121	121	7 register with the Secretary of State. The registration shall
122	122	8 be made not later than 60 days after the effective date of
123	123	9 this act or not later than 60 days after acquiring the land or
124	124	10 the interest in land, whichever time is later. The
125	125	11 registration shall be in the form and manner prescribed by the
126	126	12 Secretary of State and shall contain the name of the owner and
127	127	13 the location and number of acres of the agricultural land by
128	128	14 municipality and county. If the owner of the agricultural land
129	129	15 or owner of the interest in agricultural land is an agent,
130	130	16 trustee, or fiduciary of a nonresident alien, foreign
131	131	17 business, or foreign government, the registration shall also
132	132	18 include the name of any principal for whom that land, or
133	133	19 interest in that land, was purchased as agent.
134	134	20 Section 7. (a) If a court of competent jurisdiction
135	135	21 finds that the land in question has been acquired in violation
136	136	22 of this act, the court shall declare the land escheated to the
137	137	23 state. When escheat is decreed by the court, the clerk of
138	138	24 court shall notify the Governor that the title to the real
139	139	25 estate is vested in the state by decree of the court.
140	140	26 (b) Any real estate, the title to which is acquired
141	141	27 by the state under this act, shall be sold in the manner
142	142	Page 5 1 provided by law for the foreclosure of a mortgage on real
143	143	2 estate for default of payment. The proceeds of the sale shall
144	144	3 be used to pay court costs, and the remaining funds, if any,
145	145	4 shall be paid to the person divested of the property, but only
146	146	5 in an amount not exceeding the actual cost paid by the person
147	147	6 for that property. Proceeds remaining after the payment of
148	148	7 court costs and the payment to the person divested of the
149	149	8 property shall become a part of the funds of the county or
150	150	9 counties in which the land is located, in proportion to the
151	151	10 part of the land in each county.
152	152	11 Section 8. A civil penalty of not more than two
153	153	12 thousand dollars ($2,000) shall be imposed for each offense
154	154	13 upon a nonresident alien, foreign business, or foreign
155	155	14 government, or an agent, trustee, or other fiduciary thereof,
156	156	15 who fails to timely file the registration as required by
157	157	16 Section 6.
158	158	17 Section 9. This act shall become effective on the
159	159	18 first day of the third month following its passage and
160	160	19 approval by the Governor, or its otherwise becoming law.
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