EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE COMMITTEE SUBSTITUTE FOR
SENATE BILL NO. 217
103RD GENERAL ASSEMBLY
0569S.02C KRISTINA MARTIN, Secretary
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 1
442.591, RSMo, are repealed and four new sections enacted in 2
lieu thereof, to be known as sections 442.566, 442.571, 442.576, 3
and 442.591, to read as follows:4
442.566. As used in sections 442.560 to 442.591, 1
unless the context clearly requires otherwise, the following 2
terms mean: 3
(1) "Agricultural land", any tract of land in this 4
state consisting of more than five acres, whether inside or 5
outside the corporate limits of any municipality, which is 6
capable, without substantial modification to the character 7
of the land, of supporti ng an agricultural enterprise, 8
including but not limited to land used for the production of 9
agricultural crops or fruit or other horticultural products, 10
or for the raising or feeding of animals for the production 11
of livestock or livestock products, pou ltry or poultry 12
products, or milk or dairy products. Adjacent parcels of 13
land under the same ownership shall be deemed to be a single 14
tract; 15 SCS SB 217 2
(2) "Alien", any person who is not a citizen of the 16
United States and who is not a resident of the Unite d States 17
or of some state, territory, trusteeship, or protectorate of 18
the United States; 19
(3) "Director", the director of the Missouri 20
department of agriculture; 21
(4) "Family members" includes all persons within the 22
ninth degree of consanguin ity, or the living or surviving 23
spouse of any person within the ninth degree of 24
consanguinity; 25
(5) "Foreign business", any business entity whether or 26
not incorporated, including but not limited to companies, 27
corporations, professional corporation s, nonprofit 28
corporations, limited liability companies, partnerships, 29
limited partnerships, [and] associations, or the equivalent 30
of any entity listed in this subdivision, in which a 31
controlling interest is owned by aliens or organized under 32
the laws of a foreign country, or both . In determining 33
ownership of a foreign business, legal fictions such as 34
corporate form or trust shall be disregarded; 35
(6) "Residence", the place of general abode; the place 36
of general abode of a person means his prin cipal, actual 37
dwelling place in fact, where he intends to remain 38
permanently or for an indefinite period of time at least. 39
442.571. 1. Except as provided in sections 442.586 1
and 442.591, [no alien or foreign business shall acquire b y 2
grant, purchase, devise, descent or otherwise agricultural 3
land in this state if the total aggregate alien and foreign 4
ownership of agricultural acreage in this state exceeds one 5
percent of the total aggregate agricultural acreage in this 6
state. A sale or transfer of any agricultural land in this 7
state shall be submitted to the director of the department 8 SCS SB 217 3
of agriculture for review in accordance with subsection 3 of 9
this section only if there is no completed Internal Revenue 10
Service Form W-9 signed by the purchaser] beginning on the 11
effective date of this act, no alien, foreign business, or 12
foreign government shall acquire by grant, purchase, devise, 13
descent, or otherwise any agricultural land in this state. 14
Any alien, foreign business, or for eign government who 15
acquired any agricultural land in this state prior to the 16
effective date of this act shall not grant, sell, or 17
otherwise transfer such agricultural land to any other 18
alien, foreign business, or foreign government on or after 19
the effective date of this act . No person may hold 20
agricultural land as an agent, trustee, or other fiduciary 21
for an alien [or], foreign business, or foreign government 22
in violation of sections 442.560 to 442.592, provided, 23
however, that no security interes t in such agricultural land 24
shall be divested or invalidated by such violation. 25
2. Any alien [or], foreign business, or foreign 26
government who acquires agricultural land in violation of 27
sections 442.560 to 442.592 remains in violation of sections 28
442.560 to 442.592 for as long as [he or she] the alien, 29
foreign business, or foreign government holds an interest in 30
the land, provided, however, that no security interest in 31
such agricultural land shall be divested or invalidated by 32
such violation. 33
3. Subject to the provisions of subsection 1 of this 34
section, [such] all proposed [acquisitions] transfers on or 35
after the effective date of this act by grant, purchase, 36
devise, descent, or otherwise of any interest in 37
agricultural land held by any alien, foreign business, or 38
foreign government in this state shall be submitted at least 39
thirty calendar days prior to when such transfers of such 40 SCS SB 217 4
agricultural land are finalized to the department of 41
agriculture to determine whether such [acquisition] transfer 42
of agricultural land , or if land usage changes, is conveyed 43
in accordance with the [one percent restriction on the total 44
aggregate] prohibition on alien and foreign ownership of 45
agricultural land in this state under this act. Such sale 46
or transfer submitted for review shall be deemed a closed 47
record under chapter 610 until such sale is finalized . The 48
department shall establish by rule the requirements for 49
submission and approval of requests under this subsection. 50
4. Any rule or portion of a rule, as that term is 51
defined in section 536.010, that is created under the 52
authority delegated in this section shall become effective 53
only if it complies with and is subject to all of the 54
provisions of chapter 536 and, if applicable, secti on 55
536.028. This section and chapter 536 are nonseverable and 56
if any of the powers vested with the general assembly 57
pursuant to chapter 536 to review, to delay the effective 58
date, or to disapprove and annul a rule are subsequently 59
held unconstitutional, then the grant of rulemaking 60
authority and any rule proposed or adopted after August 28, 61
2014, shall be invalid and void. 62
442.576. 1. If the director finds that an alien [or], 1
foreign business, or foreign government or an agent, 2
trustee, or other fiduciary therefor has acquired 3
agricultural land in Missouri [in violation of sections 4
442.560 to 442.592] after the effective date of this act , or 5
the land ceases to be used for nonagricultural purposes 6
under section 442.591, he o r she shall report the violation 7
to the attorney general. 8
2. The attorney general shall institute an action in 9
the circuit court of Cole County or the circuit court in any 10 SCS SB 217 5
county in which agricultural land owned by the alien or 11
foreign business, agent, trustee or other fiduciary, alleged 12
to have violated sections 442.560 to 442.592, is located. 13
3. The attorney general shall file a notice of the 14
pendency of the action with the recorder of deeds of each 15
county in which any portion of such a gricultural lands is 16
located. If the court finds that the lands in question have 17
been acquired in violation of sections 442.560 to 442.592, 18
it shall enter an order so declaring and shall file a copy 19
of the order with the recorder of deeds of each coun ty in 20
which any portion of the agricultural lands is located. The 21
court shall order the owner to divest himself of the 22
agricultural land. The owner must comply with the order 23
within two years. The two-year limitation period shall be a 24
covenant running with the title to the land against any 25
alien grantee or assignee. Provided, however, an 26
incorporated foreign business must divest itself of 27
agricultural land within the minimum time required by 28
Article XI, Section 5, of the Missouri Constitution. Any 29
agricultural lands not divested within the time prescribed 30
shall be ordered sold by the court at a public sale in the 31
manner prescribed by law for the foreclosure of a mortgage 32
on real estate for default in payment. 33
442.591. 1. As used in this section, the following 1
terms mean: 2
(1) "Foreign adversary", any foreign government or 3
person identified as a foreign adversary in 15 CFR 791.4; 4
(2) "Nonfarming", includes, but is not limited to, the 5
conducting and active op eration of research or 6
experimentation for the purpose of developing or improving 7
any type of agricultural practice, tool, device, or 8
implement, or animal health research, animal nutrition 9 SCS SB 217 6
research, raising genetic traits that are used for human or 10
animal research, or animals raised for exhibition. 11
2. The restrictions set forth in sections 442.560 to 12
442.592 shall not apply to agricultural land or any interest 13
therein acquired by an alien or foreign business for 14
immediate or potential use in n onfarming purposes. An alien 15
or foreign business may hold such agricultural land in such 16
acreage as may be necessary to its nonfarm business 17
operation; provided, however, that pending the development 18
of agricultural land for nonfarm purposes, such lan d may not 19
be used for farming except under lease to a family farm 20
unit; a family farm corporation defined in section 350.010; 21
an alien or foreign business which has filed with the 22
director under sections 442.560 to 442.592; or except when 23
controlled through ownership, options, leaseholds or other 24
agreements by a corporation which has entered into an 25
agreement with the United States of America pursuant to the 26
New Community Act of 1968 (Title IV of the Housing and Urban 27
Development Act of 1969, 42 U. S.C. 3901-3914), as amended, 28
or a subsidiary or assignee of such a corporation. 29
3. Beginning on the effective date of this act, no 30
foreign adversary shall own agricultural land in this state 31
for nonfarming purposes. 32
Section B. Because of the dangers of foreign ownership 1
of agricultural land, section A of this act is deemed 2
necessary for the immediate preservation of the public 3
health, welfare, peace, and safety, and is hereby declared 4
to be an emergency act within the meanin g of the 5
constitution, and section A of this act shall be in full 6
force and effect upon its passage and approval. 7