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 BILL NO. 250 103RD GENERAL ASSEMBLY INTRODUCED BY SENATOR BRATTIN. 1419S.01I KRISTINA MARTIN, Secretary AN ACT To repeal sections 173.275, 442.566, 442.571, 442.576, and 442.591, RSMo, and to enact in lieu thereof seven new sections relating to foreign ownership of property, with an emergency clause. Be it enacted by the General Assembly of the State of Missouri, as follows: Section A. Sections 173.275, 442.566, 442.571, 442.576, 1 and 442.591, RSMo, are repealed and seven new sections enacted 2 in lieu thereof, to be known as sections 33.860, 173.275, 3 262.970, 442.566, 442.571, 442.576, and 442.591, to read as 4 follows:5 33.860. 1. No state department or agency shall 1 implement any program which confers a state public bene fit 2 on or relating to any foreign -owned property. 3 2. As used in this section, the term "state public 4 benefit" shall include any grant, contract, loan, or tax 5 credit provided by a department or agency of state 6 government. 7 173.275. 1. As used in this section, the following 1 terms shall mean: 2 (1) "Foreign government", any government other than 3 the government of the United States or any state or 4 political subdivision of the United States; 5 (2) "Foreign legal entity", any legal entity created 6 under the laws of: 7 (a) A foreign government; or 8 SB 250 2 (b) The United States, or any state of the United 9 States, if a majority of the ownership of the stock of such 10 legal entity is directly or indirectly owned, legally or 11 beneficially, by one or more foreign governments, foreign 12 persons, or legal entities created under the laws of a 13 foreign government, or if a majority of the membership of 14 any such entity is composed of foreign persons or legal 15 entities created under th e laws of a foreign government. 16 The term "foreign legal entity" shall include agents of such 17 entities; 18 (3) "Foreign person", any individual who is not a 19 citizen or national of the United States, or any trust 20 territory or protectorate of the Unit ed States. The term 21 "foreign person" shall include agents of such persons; 22 (4) "Gift", any endowment, gift, grant, contract, 23 award, or property of any kind [; 24 (5) "Institution of higher education" or 25 "institution", the University of Missouri , Lincoln 26 University, the state colleges, community colleges and 27 teachers' colleges]. 28 2. [Every institution of higher education shall 29 disclose to the department of higher education and workforce 30 development the amount, terms, restrictions, condit ions, and 31 requirements attached to or made a part of any gift from any 32 foreign government, foreign legal entity, or foreign person 33 which has a value of one hundred thousand dollars or more, 34 made to such institution of higher education in any fiscal 35 year if any term, restriction, condition or requirement 36 attached to or made a part of any such gift is a violation 37 of, or would cause the institution of higher education to be 38 in violation of, any federal or state law relating to 39 SB 250 3 discrimination on the b asis of race, creed, color, sex, age, 40 marital status, ethnic background, or religion. If any 41 foreign government, foreign entity, or foreign person makes 42 more than one gift to any institution of higher education in 43 any fiscal year of such institution, such institution shall 44 make the report required by this subsection if the aggregate 45 value of all gifts from any one foreign government, foreign 46 legal entity, or foreign person is one hundred thousand 47 dollars or more in such fiscal year. 48 3. The information to be furnished to the department 49 of higher education and workforce development shall be 50 forwarded to the department no later than thirty days after 51 the final day of the fiscal year of each institution of 52 higher education, and shall include: 53 (1) The amount of each gift and the date on which it 54 was received by the institution; 55 (2) When a gift is conditional, a matching gift, or 56 designated for a particular purpose, the full details of the 57 conditions, matching provisions or designa tion; 58 (3) In the case of a gift by a foreign government, the 59 name of such government; 60 (4) In the case of a gift by a foreign legal entity or 61 foreign person, the name of the foreign country in which 62 such foreign legal entity or foreign person is principally 63 located or has his principal residence; 64 (5) The purpose for which the gift will be used; and 65 (6) The name of the foreign legal entity which made 66 the gift if the gift: 67 (a) Contains conditions or restrictions regarding the 68 control of curricula, employment or termination of faculty 69 members, admission of students, or student fees and tuition; 70 or 71 SB 250 4 (b) Is contingent upon the agreement of the 72 institution to take specific public positions or actions, or 73 to award honorary degrees. 74 4. All information disclosed and furnished to the 75 department of higher education and workforce development 76 under this section shall be deemed a public record under 77 sections 610.010 to 610.030 and shall be made available by 78 the department to the general public for inspection, review 79 and copying during the department's normal business hours. ] 80 (1) Notwithstanding any provision of law to the contrary, a 81 public institution of higher education shall not accept any 82 gift from a foreign gov ernment, foreign legal entity, or 83 foreign person. 84 (2) This subsection shall not be construed to prohibit 85 a public institution of higher education from accepting 86 tuition payments from students from foreign countries. 87 262.970. 1. No alien or foreign business shall build 1 an electricity generating facility on agricultural zoned 2 land, as described in section 262.805, owned by such alien 3 or foreign business in the state after August 28, 2025. 4 2. For purposes of this section, "electricity 5 generating facility" means a facility used to convert 6 energy, including but not limited to solar and wind power, 7 to produce electricity which consists of one or more power 8 generating modules connected to a network of one or more 9 connection points. 10 442.566. 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, w hether inside or 5 outside the corporate limits of any municipality, which is 6 SB 250 5 capable, without substantial modification to the character 7 of the land, of supporting 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, poultry 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 (2) "Alien", any person who is not a citizen of the 16 United States and who is not a resident of the United 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 consanguinity, 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 corporations, 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 fiction s 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 principal, actual 37 SB 250 6 dwelling place in fact, where he intends to remain 38 permanently or for an indef inite 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 by 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 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 section, no alien, foreign busine ss, 12 or foreign government shall acquire by grant, purchase, 13 devise, descent, or otherwise any agricultural land in this 14 state. Any alien, foreign business, or foreign government 15 who acquired any agricultural land in this state prior to 16 the effective date of this section 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 section . No person may hold 20 agricultural land as an agent, trus tee, 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 interest 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 fo reign government holds an interest in 30 SB 250 7 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 section 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 subm itted at least 39 thirty calendar days prior to when such transfers of such 40 agricultural land are finalized to the department of 41 agriculture to determine whether such [acquisition] transfer 42 of agricultural land is conveyed in accordance with the [one 43 percent restriction on the total aggregate ] prohibition on 44 alien and foreign ownership of agricultural land in this 45 state under this section. Such sale or transfer submitted 46 for review shall be deemed a closed record under chapter 610 47 until such sale is finalized. The department shall 48 establish by rule the requirements for submission and 49 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, section 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 SB 250 8 442.576. 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 5 section, or the land ceases to be used for nonagricultural 6 purposes under section 442.591, he or she shall report the 7 violation to the attorney general. 8 2. The attorney general shall in stitute an action in 9 the circuit court of Cole County or the circuit court in any 10 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 loca ted. 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 agricultural 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 county 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 co urt at a public sale in the 31 SB 250 9 manner prescribed by law for the foreclosure of a mortgage 32 on real estate for default in payment. 33 442.591. The restrictions set forth in sections 1 442.560 to 442.592 shall not apply to agricultural land or 2 any interest therein acquired by an alien or foreign 3 business for immediate or potential use in nonfarming 4 purposes. An alien or foreign business may hold such 5 agricultural land in such acreage as may be necessary to its 6 nonfarm business operation; p rovided, however, that pending 7 the development of agricultural land for nonfarm purposes, 8 such land may not be used for farming except under lease to 9 a family farm unit; a family farm corporation defined in 10 section 350.010; an alien or foreign business which has 11 filed with the director under sections 442.560 to 442.592; 12 or except when controlled through ownership, options, 13 leaseholds or other agreements by a corporation which has 14 entered into an agreement with the United States of America 15 pursuant to the New Community Act of 1968 (Title IV of the 16 Housing and Urban Development Act of 1969, 42 U.S.C. 3901 - 17 3914), as amended, or a subsidiary or assignee of such a 18 corporation. As used in this section, the term "nonfarming" 19 includes, but is not limit ed to, the conducting and active 20 operation of research or experimentation for the purpose of 21 developing or improving any type of agricultural practice, 22 tool, device, or implement or animal health research, animal 23 nutrition research, raising genetic tra its that are used for 24 human or animal research, or animals raised for exhibition. 25 Section B. Because of the danger 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 meaning of the 5 SB 250 10 constitution, and section A of this act shall be in full 6 force and effect upon its passage and approval. 7