0569S.02C
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SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 217
AN ACT
To repeal sections 442.566, 442.571, 442.576, and
442.591, RSMo, and to enact in lieu thereof four new
sections relating to foreign ownership of
agricultural land, with an emergency clause.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 442.566, 442.571, 442.576, and
442.591, RSMo, are repealed and four new sections enacted in
lieu thereof, to be known as sections 442.566, 442.571, 442.576,
and 442.591, to read as follows:
442.566. As used in sections 442. 560 to 442.591,
unless the context clearly requires otherwise, the following
terms mean:
(1) "Agricultural land", any tract of land in this
state consisting of more than five acres, whether inside or
outside the corporate limits of any municipali ty, which is
capable, without substantial modification to the character
of the land, of supporting an agricultural enterprise,
including but not limited to land used for the production of
agricultural crops or fruit or other horticultural products,
or for the raising or feeding of animals for the production
of livestock or livestock products, poultry or poultry
products, or milk or dairy products. Adjacent parcels of
land under the same ownership shall be deemed to be a single
tract;
(2) "Alien", any person who is not a citizen of the
United States and who is not a resident of the United States
or of some state, territory, trusteeship, or protectorate of
the United States;
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(3) "Director", the director of the Missouri
department of agriculture;
(4) "Family members" includes all persons within the
ninth degree of consanguinity, or the living or surviving
spouse of any person within the ninth degree of
consanguinity;
(5) "Foreign business", any business entity whether or
not incorporated, including but not limited to companies,
corporations, professional corporations, nonprofit
corporations, limited liability companies, partnerships,
limited partnerships, [and] associations, or the equivalent
of any entity listed in t his subdivision, in which a
controlling interest is owned by aliens or organized under
the laws of a foreign country, or both . In determining
ownership of a foreign business, legal fictions such as
corporate form or trust shall be disregarded;
(6) "Residence", the place of general abode; the place
of general abode of a person means his principal, actual
dwelling place in fact, where he intends to remain
permanently or for an indefinite period of time at least.
442.571. 1. Except as provided in sections 442.586
and 442.591, [no alien or foreign business shall acquire by
grant, purchase, devise, descent or otherwise agricultural
land in this state if the total aggregate alien and foreign
ownership of agricultural acreage in this state exceeds one
percent of the total aggregate agricultural acreage in this
state. A sale or transfer of any agricultural land in this
state shall be submitted to the director of the department
of agriculture for review in accordance with subse ction 3 of
this section only if there is no completed Internal Revenue
Service Form W-9 signed by the purchaser ] beginning on the
effective date of this act, no alien, foreign business, or
foreign government shall acquire by grant, purchase, devise,
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descent, or otherwise any agricultural land in this state.
Any alien, foreign business, or foreign government who
acquired any agricultural land in this state prior to the
effective date of this act shall not grant, sell, or
otherwise transfer such agr icultural land to any other
alien, foreign business, or foreign government on or after
the effective date of this act . No person may hold
agricultural land as an agent, trustee, or other fiduciary
for an alien [or], foreign business, or foreign government
in violation of sections 442.560 to 442.592, provided,
however, that no security interest in such agricultural land
shall be divested or invalidated by such violation.
2. Any alien [or], foreign business, or foreign
government who acquires agricultural land in violation of
sections 442.560 to 442.592 remains in violation of sections
442.560 to 442.592 for as long as [he or she] the alien,
foreign business, or foreign government holds an interest in
the land, provided, however, that no sec urity interest in
such agricultural land shall be divested or invalidated by
such violation.
3. Subject to the provisions of subsection 1 of this
section, [such] all proposed [acquisitions] transfers on or
after the effective date of this act by grant, purchase,
devise, descent, or otherwise of any interest in
agricultural land held by any alien, foreign business, or
foreign government in this state shall be submitted at least
thirty calendar days prior to when such transfers of such
agricultural land are finalized to the department of
agriculture to determine whether such [acquisition] transfer
of agricultural land , or if land usage changes, is conveyed
in accordance with the [one percent restriction on the total
aggregate] prohibition on alien and foreign ownership of
agricultural land in this state under this act. Such sale
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or transfer submitted for review shall be deemed a closed
record under chapter 610 until such sale is finalized . The
department shall establish by rule the requ irements for
submission and approval of requests under this subsection.
4. Any rule or portion of a rule, as that term is
defined in section 536.010, that is created under the
authority delegated in this section shall become effective
only if it complies with and is subject to all of the
provisions of chapter 536 and, if applicable, section
536.028. This section and chapter 536 are nonseverable and
if any of the powers vested with the general assembly
pursuant to chapter 536 to review, to del ay the effective
date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking
authority and any rule proposed or adopted after August 28,
2014, shall be invalid and void.
442.576. 1. If the director finds that an alien [or],
foreign business, or foreign government or an agent,
trustee, or other fiduciary therefor has acquired
agricultural land in Missouri [in violation of sections
442.560 to 442.592] after the effective date of this a ct, or
the land ceases to be used for nonagricultural purposes
under section 442.591, he or she shall report the violation
to the attorney general.
2. The attorney general shall institute an action in
the circuit court of Cole County or the circu it court in any
county in which agricultural land owned by the alien or
foreign business, agent, trustee or other fiduciary, alleged
to have violated sections 442.560 to 442.592, is located.
3. The attorney general shall file a notice of the
pendency of the action with the recorder of deeds of each
county in which any portion of such agricultural lands is
located. If the court finds that the lands in question have
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been acquired in violation of sections 442.560 to 442.592,
it shall enter an or der so declaring and shall file a copy
of the order with the recorder of deeds of each county in
which any portion of the agricultural lands is located. The
court shall order the owner to divest himself of the
agricultural land. The owner must comply with the order
within two years. The two-year limitation period shall be a
covenant running with the title to the land against any
alien grantee or assignee. Provided, however, an
incorporated foreign business must divest itself of
agricultural land within the minimum time required by
Article XI, Section 5, of the Missouri Constitution. Any
agricultural lands not divested within the time prescribed
shall be ordered sold by the court at a public sale in the
manner prescribed by law for the forec losure of a mortgage
on real estate for default in payment.
442.591. 1. As used in this section, the following
terms mean:
(1) "Foreign adversary", any foreign government or
person identified as a foreign adversary in 15 CFR 791. 4;
(2) "Nonfarming", includes, but is not limited to, the
conducting and active operation of research or
experimentation for the purpose of developing or improving
any type of agricultural practice, tool, device, or
implement, or animal health re search, animal nutrition
research, raising genetic traits that are used for human or
animal research, or animals raised for exhibition.
2. The restrictions set forth in sections 442.560 to
442.592 shall not apply to agricultural land or any intere st
therein acquired by an alien or foreign business for
immediate or potential use in nonfarming purposes. An alien
or foreign business may hold such agricultural land in such
acreage as may be necessary to its nonfarm business
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operation; provided, h owever, that pending the development
of agricultural land for nonfarm purposes, such land may not
be used for farming except under lease to a family farm
unit; a family farm corporation defined in section 350.010;
an alien or foreign business which has filed with the
director under sections 442.560 to 442.592; or except when
controlled through ownership, options, leaseholds or other
agreements by a corporation which has entered into an
agreement with the United States of America pursuant to the
New Community Act of 1968 (Title IV of the Housing and Urban
Development Act of 1969, 42 U.S.C. 3901 -3914), as amended,
or a subsidiary or assignee of such a corporation.
3. Beginning on the effective date of this act, no
foreign adversary shall own agricultural land in this state
for nonfarming purposes.
Section B. Because of the dangers of foreign ownership
of agricultural land, section A of this act is deemed
necessary for the immediate preservation of the public
health, welfare, peace, and safety, and is hereby declared
to be an emergency act within the meaning of the
constitution, and section A of this act shall be in full
force and effect upon its passage and approval.