UNOFFICIAL COPY 24 RS HB 575/GA
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AN ACT relating to the acquisition of agricultural land. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
ď˘SECTION 1. A NEW SECTION OF KRS CHAPTER 247 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 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) and (4) of this section, on or after the effective date of this Act, a 14
nonresident alien, foreign business, foreign agent, trustee, or fiduciary who has a 15
legal relationship with or is legally bound to take instruction from or execute 16
decisions for the government of any proscribed country referenced in 22 C.F.R. 17
sec. 126.1, as amended, shall be prohibited from: 18
(a) The purchase, lease, or acquisition of any interest in public or private 19
agricultural land located in the Commonwealth of Kentucky; and 20
(b) Participation in programs administered by the Department of Agriculture, 21
Agricultural Development Board, and Kentucky Agricultural Finance 22
Corporation. 23
(3) Any agricultural land purchased, leased, or acquired by a nonresident alien, 24
foreign business, foreign agent, trustee, or fiduciary who has a legal relationship 25
with or is legally bound to take instruction from or execute decisions for the 26
government of any proscribed country referenced in 22 C.F.R. sec. 126.1, as 27 UNOFFICIAL COPY 24 RS HB 575/GA
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amended, prior to the effective date of this Act may continue to own or hold the 1
agricultural land, but shall not purchase, lease, or acquire any additional 2
agricultural land or interest in agricultural land in this Commonwealth. 3
(4) Nothing in this section shall prohibit: 4
(a) An existing foreign business who has a legal relationship with or is legally 5
bound to take instruction from or execute decisions for the government of 6
any proscribed country referenced in 22 C.F.R. sec. 126.1, as amended, 7
located in the Commonwealth, from purchasing, leasing, or acquiring 8
agricultural land adjacent to the land that the foreign business owns and 9
operates in order to expand the operation of its business; and 10
(b) A nonresident alien, foreign business, foreign agent, trustee, or fiduciary 11
who has a legal relationship with or is legally bound to take instruction 12
from or execute decisions for the government of any proscribed country 13
referenced in 22 C.F.R. sec. 126.1, as amended, from the purchase, lease, or 14
acquisition of up to three hundred fifty (350) acres of agricultural land for 15
agricultural research and development or experimental purposes, including 16
testing, development, or production of any crop production inputs for sale 17
or resale to farmers, including but not limited to seeds, plants, pesticides, 18
soil amendments, biologicals, or fertilizers. 19
(5) Nothing in this section shall exempt a nonresident alien, foreign business, 20
foreign agent, trustee, or fiduciary who has a legal relationship with or is legally 21
bound to take instruction from or execute decisions for the government of any 22
proscribed country referenced in 22 C.F.R. sec. 126.1, as amended, from: 23
(a) The provisions of the Agricultural Foreign Investment Disclosure Act, 7 24
U.S.C. sec. 3501 et. seq., and its accompanying regulations at 7 C.F.R. pt. 25
781 et. seq. or any amendments thereto; and 26
(b) Filing a copy of the required report pursuant to 7 U.S.C. sec. 3501 et. seq 27 UNOFFICIAL COPY 24 RS HB 575/GA
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and its accompanying regulations at 7 C.F.R. pt. 781 et. seq., or 1
amendments thereto, with the Department of Agriculture within the time 2
period specified therein. 3
(6) The Department of Agriculture shall review any report: 4
(a) Received in accordance with subsection (5) of this section; and 5
(b) Voluntarily submitted by a county register of deeds alleging a violation of 6
this section. 7
(7) If the Department of Agriculture has reason to believe that a violation of this 8
section may have occurred, the department shall refer evidence of noncompliance 9
to the Office of the Attorney General, who shall investigate the evidence for 10
violations of this section. The Office of the Attorney General may bring an action 11
pursuant to KRS Chapter 15 to enforce the provisions of this section. 12
(8) (a) If the court finds that agricultural land has been purchased or acquired in 13
violation of this section, then the court shall declare the agricultural land 14
escheated to the state and order the sale of the agricultural land in the 15
manner provided by law for the judicial foreclosure of a mortgage on real 16
estate for default of payment. After the Office of the Attorney General has 17
been reimbursed for all actual costs incurred from the enforcement of this 18
provision, the proceeds of the sale of the agricultural land pursuant to this 19
paragraph through judicial foreclosure shall be disbursed in the following 20
order: 21
1. Payment of delinquent ad valorem taxes; 22
2. Payment to mortgage and other lien holders, in the priority determined 23
by the court; and 24
3. Deposit in the Budget Reserve Trust Fund. 25
(b) If the court finds that agricultural land has been leased in violation of this 26
section, then the court shall rescind the lease and it shall be rendered null 27 UNOFFICIAL COPY 24 RS HB 575/GA
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and void. 1