UNOFFICIAL COPY 24 RS BR 496
Page 1 of 7
XXXX 2/14/2024 2:51 PM Jacketed
AN ACT relating to the acquisition of agricultural land. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 247 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in Section 1 to 5 of this Act: 5
(a) "Agricultural land" has the same meaning as in 7 U.S.C. sec. 3508; 6
(b) "Fiduciary" has the same meaning as in KRS 131.010; 7
(c) "Foreign agent" has the same meaning as in 18 U.S.C. sec. 1839; 8
(d) "Foreign business" has the same meaning as in 26 C.F.R. sec. 301.7701-5; 9
(e) "Nonresident alien" has the same meaning as in 26 C.F.R. sec. 1.871-2; 10
and 11
(f) "Trustee" has the same meaning as in KRS 218A.405. 12
(2) Notwithstanding any other provision of law to the contrary, except as provided in 13
subsections (3) to (7) of this section, on or after the effective date of this Act, a 14
nonresident alien, foreign business, foreign agent, trustee, or fiduciary associated 15
with the government of any proscribed country referenced in 22 C.F.R. sec. 16
126.1, as amended, shall be prohibited from: 17
(a) The purchase, lease, or acquisition of any interest in public or private 18
agricultural land located in the Commonwealth of Kentucky; and 19
(b) Participation in programs administered by the Department of Agriculture, 20
Agricultural Development Board, and Kentucky Agricultural Finance 21
Corporation. 22
(3) Any nonresident alien, foreign business, foreign agent, trustee, or fiduciary 23
associated with the government of any proscribed country referenced in 22 24
C.F.R. sec. 126.1, as amended, wishing to purchase, lease, or acquire agricultural 25
land shall submit an application for appeal to the Kentucky Foreign Investment 26
Review Board, pursuant to Section 2 of this Act, and may be granted conditional 27 UNOFFICIAL COPY 24 RS BR 496
Page 2 of 7
XXXX 2/14/2024 2:51 PM Jacketed
approval from the Kentucky Foreign Investment Review Board prior to the 1
purchase, lease, or acquisition of the agricultural land. 2
(4) Any agricultural land purchased, leased, or acquired by a nonresident alien, 3
foreign business, foreign agent, trustee, or fiduciary associated with the 4
government of any proscribed country referenced in 22 C.F.R. sec. 126.1, as 5
amended, prior to the effective date of this Act shall be exempt from the 6
provisions in Sections 1 to 5 of this Act. 7
(5) On or after the effective date of this Act, a transfer of ownership or possession of 8
the agricultural land exempt under subsection (4) of this section to a nonresident 9
alien, foreign business, foreign agent, trustee, or fiduciary associated with the 10
government of any proscribed country referenced in 22 C.F.R. sec. 126.1, as 11
amended, shall require prior approval from the Kentucky Foreign Investment 12
Review Board, pursuant to Section 2 of this Act. 13
(6) Nothing in Sections 1 to 5 of this Act shall prohibit: 14
(a) An existing foreign business associated with the government of any 15
proscribed country referenced in 22 C.F.R. sec. 126.1, as amended, located 16
in the Commonwealth, from purchasing, leasing, or acquiring agricultural 17
land adjacent to the land that the foreign business owns and operates in 18
order to expand the operation of its business; and 19
(b) A nonresident alien, foreign business, foreign agent, trustee, or fiduciary 20
associated with the government of any proscribed country referenced in 22 21
C.F.R. sec. 126.1, as amended, from the purchase, lease, or acquisition of 22
up to three hundred fifty (350) acres of agricultural land for agricultural 23
research and development or experimental purposes, including testing, 24
development, or production of any crop production inputs for sale or resale 25
to farmers, including but not limited to seeds, plants, pesticides, soil 26
amendments, biologicals, or fertilizers. 27 UNOFFICIAL COPY 24 RS BR 496
Page 3 of 7
XXXX 2/14/2024 2:51 PM Jacketed
SECTION 2. A NEW SECTION OF KRS CHAPTER 247 IS CREATED TO 1
READ AS FOLLOWS: 2
(1) There is hereby established the Kentucky Foreign Investment Review Board 3
which shall be attached to the Department of Agriculture for administrative 4
purposes. 5
(2) The Kentucky Foreign Investment Review Board shall consist of the following 6
five (5) members: 7
(a) The Commissioner of Agriculture or his or her designee, who shall serve as 8
chair of the board; 9
(b) The Secretary of the Cabinet for Economic Development or his or her 10
designee; 11
(c) The Secretary of State or his or her designee; 12
(d) The Executive Director of the Kentucky Office of Homeland Security or his 13
or her designee; and 14
(e) A citizen member who shall be appointed jointly by the President of the 15
Senate and the Speaker of the House of Representatives. 16
(3) The citizen member appointed under subsection (2)(e) of this section shall have 17
expertise in real estate and shall serve: 18
(a) A two (2) year term and may be reappointed; and 19
(b) Until his or her successor is duly appointed by the President of the Senate 20
and the Speaker of the House of Representatives. 21
(4) Members of the board shall serve without compensation with exception to the 22
citizen member who shall be entitled to reimbursement by the department for 23
actual expenses incurred while carrying out the duties of the board. 24
(5) The board shall meet monthly or upon the call of the chair to: 25
(a) Assess foreign investments and interests in agricultural land in the 26
Commonwealth by a nonresident alien, foreign business, foreign agent, 27 UNOFFICIAL COPY 24 RS BR 496
Page 4 of 7
XXXX 2/14/2024 2:51 PM Jacketed
trustee, or fiduciary associated with the government of any proscribed 1
country referenced in 22 C.F.R. sec. 126.1, as amended, in order to consider 2
the public interests in maintaining national security and agricultural 3
integrity within the Commonwealth; 4
(b) Grant conditional approvals or deny applications for appeal for foreign 5
investments and interests in agricultural land by a nonresident alien, 6
foreign business, foreign agent, trustee, or fiduciary associated with the 7
government of any proscribed country referenced in 22 C.F.R. sec. 126.1, as 8
amended; and 9
(c) Evaluate any need for imposed restrictions for any investments and interests 10
in agricultural land by a nonresident alien, foreign business, foreign agent, 11
trustee, or fiduciary associated with the government of any proscribed 12
country referenced in 22 C.F.R. sec. 126.1, as amended. 13
(6) Three (3) members of the board shall constitute a quorum. An application for 14
appeal for foreign investments and interests in agricultural land shall be 15
conditionally approved or denied by a vote of the simple majority of the full 16
committee. 17
(7) The board may promulgate administrative regulations in accordance with KRS 18
Chapter 13A to establish: 19
(a) An appeal application process for foreign investments and interests in 20
agricultural land; and 21
(b) Guidelines for conditional approval, proposed restrictions, or any other 22
criteria necessary to carry out the provisions of Sections 1 to 5 of this Act. 23
SECTION 3. A NEW SECTION OF KRS CHAPTER 247 IS CREATED TO 24
READ AS FOLLOWS: 25
(1) Any nonresident alien, foreign business, foreign agent, trustee, or fiduciary 26
associated with the government of any proscribed country as referenced in 22 27 UNOFFICIAL COPY 24 RS BR 496
Page 5 of 7
XXXX 2/14/2024 2:51 PM Jacketed
C.F.R. sec. 126.1, as amended, wishing to purchase, lease, or acquire agricultural 1
land, in the Commonwealth, on or after the effective date of this Act, may submit 2
an application for appeal to the Kentucky Foreign Investment Review Board for 3
conditional approval. 4
(2) Within thirty (30) days upon receipt of an application for appeal, the Kentucky 5
Foreign Investment Review Board shall grant a conditional approval or deny an 6
appeal application for a foreign investment or interest in agricultural land. 7
(3) Any applicant who is denied an appeal to purchase, lease, or acquire agricultural 8
land by the Kentucky Foreign Investment Review Board may request an 9
administrative hearing pursuant to KRS Chapter 13B within thirty (30) days of 10
notification of the denial and may appeal the final decision to Franklin Circuit 11
Court or the Circuit Court of the county in which the agricultural land is located. 12
SECTION 4. A NEW SECTION OF KRS CHAPTER 247 IS CREATED TO 13
READ AS FOLLOWS: 14
(1) On or after the effective date of this Act, any deed that conveys agricultural land 15
and recorded with a county clerk shall include, as an exhibit to the deed, an 16
affidavit executed by the person or entity coming into title attesting that the 17
purchase or acquisition complies with the requirements of Sections 1 to 5 of this 18
Act and that no program assistance or funding source under subsection (2)(b) of 19
Section 1 of this Act is being used in the sale or transfer of agricultural land. 20
(2) A county clerk shall not accept and record any deed that conveys agricultural 21
land without an affidavit as required by subsection (1) of this section. On or after 22
the effective date of this Act, a county clerk shall submit a monthly report of all 23
agricultural land foreign investment affidavits received by the county clerk under 24
this section that were filed during the preceding month to the Kentucky Foreign 25
Investment Review Board. 26
(3) The Kentucky Foreign Investment Review Board shall submit a monthly report, 27 UNOFFICIAL COPY 24 RS BR 496
Page 6 of 7
XXXX 2/14/2024 2:51 PM Jacketed
containing county clerk reports of agricultural land foreign investment affidavits 1
filed during the preceding month, to the Committee on Foreign Investment in the 2
United States via the United States Department of the Treasury. 3
(4) Nothing in this section shall exempt a nonresident alien, foreign business, 4
foreign agent, trustee, or fiduciary associated with the government of any 5
proscribed country referenced in 22 C.F.R. sec. 126.1, as amended, from the 6
provisions of the Agricultural Foreign Investment Disclosure Act, 7 U.S.C. sec. 7
3501 et seq., and its accompanying regulations at 7 C.F.R. pt. 781 et. seq. or any 8
amendments thereto. 9
SECTION 5. A NEW SECTION OF KRS CHAPTER 247 IS CREATED TO 10
READ AS FOLLOWS: 11
(1) A nonresident alien, foreign business, foreign agent, trustee, or fiduciary 12
associated with the government of any proscribed country referenced in 22 13
C.F.R. sec. 126.1, as amended, who purchases, leases, or acquires agricultural 14
land on or after the effective date of this Act, and has received denial of 15
application for appeal from the Kentucky Foreign Investment Review Board, 16
shall divest itself of all right, title, and interest in the agricultural land within one 17
(1) year from the date of acquiring the agricultural land or interest or notice of 18
the violation. 19
(2) (a) If the court finds that agricultural land has been purchased or acquired in 20
violation of Sections 1 to 5 of this Act, then the court shall declare the 21
agricultural land escheated to the state and order the sale of the 22
agricultural land in the manner provided by law for the foreclosure of a 23
mortgage on real estate for default of payment. The proceeds of the sale 24
shall first be used to pay court costs, and the remaining funds, if any, shall 25
be deposited in the general fund. 26
(b) If the court finds that agricultural land has been leased in violation of 27 UNOFFICIAL COPY 24 RS BR 496
Page 7 of 7
XXXX 2/14/2024 2:51 PM Jacketed
Sections 1 to 5 of this Act, then the court shall rescind the lease and it shall 1
be rendered null and void. 2