North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2150 Compare Versions

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1		-	Sixty-ninth Legislative Assembly of North Dakota
2		-	In Regular Session Commencing Tuesday, January 7, 2025
3		-	SENATE BILL NO. 2150
4		-	(Senators Thomas, Luick)
5		-	(Representative Beltz)
6		-	AN ACT to amend and reenact subsection 7 of section 10-06.1-01, subsection 3 of section
7		-	10-06.1-12.2, subdivision b of subsection 1 of section 10-06.1-15.2, subdivision d of
	1	+	25.0606.01000
	2	+	Sixty-ninth
	3	+	Legislative Assembly
	4	+	of North Dakota
	5	+	Introduced by
	6	+	Senators Thomas, Luick
	7	+	Representative Beltz
	8	+	A BILL for an Act to amend and reenact subsection 7 of section 10-06.1-01, subsection 3 of
	9	+	section 10-06.1-12.2, subdivision b of subsection 1 of section 10-06.1-15.2, subdivision d of
8	10		subsection 3 of section 10-06.1-17, and subsection 3 of section 10-06.1-17.1 of the North
9	11		Dakota Century Code, relating to corporate or limited liability company farming and ranching.
10	12		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
11		-	SECTION 1. AMENDMENT. Subsection 7 of section 10-06.1-01 of the North Dakota ~~Century Code~~
12		-	is amended and reenacted as follows:
13		-	7.a."Farming or ranching" means raising or producing agricultural crops, fruit, ~~horticultural~~
14		-	products, or livestock or livestock products, or livestock ~~backgrounding, or livestock~~
15		-	finishing.
	13	+	SECTION 1. AMENDMENT. Subsection 7 of section 10-06.1-01 of the North Dakota
	14	+	Century Code is amended and reenacted as follows:
	15	+	7.a."Farming or ranching" means raising or producing agricultural crops, fruit,
	16	+	horticultural products, or livestock or livestock products, or livestock
	17	+	backgrounding, or livestock finishing.
16	18		b.The term does not include:
17	19		(1)Agricultural support services;
18		-	(2)Aquaculture or greenhouse agriculture by a person that has farmland or ~~ranchland~~
19		-	holdings not exceeding forty acres [16.19 hectares];
	20	+	(2)Aquaculture or greenhouse agriculture by a person that has farmland or
	21	+	ranchland holdings not exceeding forty acres [16.19 hectares];
20	22		(3)Beekeeping;
21	23		(4)The production of timber or forest products;
22	24		(5)The growing or processing of marijuana under chapter 19-24.1; or
23		-	(6)A contract under which a processor or distributor of farm or ranch products or
24		-	supplies provides grain, harvesting, or other farm or ranch services.
25		-	SECTION 2. AMENDMENT. Subsection 3 of section 10-06.1-12.2 of the North Dakota ~~Century~~
26		-	Code is amended and reenacted as follows:
	25	+	(6)A contract under which a processor or distributor of farm or ranch products
	26	+	or supplies provides grain, harvesting, or other farm or ranch services.
	27	+	SECTION 2. AMENDMENT. Subsection 3 of section 10-06.1-12.2 of the North Dakota
	28	+	Century Code is amended and reenacted as follows:
27	29		3.a.If an authorized livestock farm corporation:
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	31	+	SENATE BILL NO. 2150
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28	56		(1)All shareholders who are individuals must be citizens of the United States,
29		-	permanent resident aliens of the United States, or an authorized individualperson
30		-	under section 47-10.1-02.
31		-	(2)All shareholders that are persons otherwise eligible under this chapter, and any
32		-	controlling individual or entityorganization of the person, must be organized in the
33		-	United States and one hundred percent of the stock must be owned by citizens of
34		-	the United States, permanent resident aliens of the United States, or an authorized
	57	+	permanent resident aliens of the United States, or an authorized
35	58		individualperson under section 47-10.1-02.
	59	+	(2)All shareholders that are persons otherwise eligible under this chapter, and
	60	+	any controlling individual or entityorganization of the person, must be
	61	+	organized in the United States and one hundred percent of the stock must
	62	+	be owned by citizens of the United States, permanent resident aliens of the
	63	+	United States, or an authorized individualperson under section 47-10.1-02.
36	64		b.If an authorized livestock farm limited liability company:
37		-	(1)All members who are individuals must be citizens of the United States, ~~permanent~~
38		-	resident aliens of the United States, or an authorized ~~individualperson under section~~
39		-	47-10.1-02. ~~S. B. NO. 2150 - PAGE 2~~
	65	+	(1)All members who are individuals must be citizens of the United States,
	66	+	permanent resident aliens of the United States, or an authorized
	67	+	individualperson under section 47-10.1-02.
40	68		(2)All members that are persons otherwise eligible under this chapter, and any
41		-	controlling individual or entityorganization of the person, must be organized ~~in the~~
42		-	United States and one hundred percent of the interests must be ~~owned by citizens~~
43		-	of the United States, permanent resident aliens of the ~~United States, or an~~
44		-	authorized individualperson under section 47-10.1-02.
45		-	SECTION 3. AMENDMENT. Subdivision b of subsection 1 of section 10-06.1-15.2 of the ~~North~~
46		-	Dakota Century Code is amended and reenacted as follows:
	69	+	controlling individual or entityorganization of the person, must be organized
	70	+	in the United States and one hundred percent of the interests must be
	71	+	owned by citizens of the United States, permanent resident aliens of the
	72	+	United States, or an authorized individualperson under section 47-10.1-02.
	73	+	SECTION 3. AMENDMENT. Subdivision b of subsection 1 of section 10-06.1-15.2 of the
	74	+	North Dakota Century Code is amended and reenacted as follows:
47	75		b.With respect to each shareholder or member:
48	76		(1)The name and address of each;
49		-	(2)If a person other than an individual, the state of incorporation, organization, or
50		-	domicile;
	77	+	(2)If a person other than an individual, the state of incorporation, organization,
	78	+	or domicile;
51	79		(3)The number of shares or membership interests or percentage of shares or
52	80		membership interests of each;
53		-	(4)Each person's percentage of total shares entitled to vote or membership ~~interests~~
54		-	entitled to vote; and whether any voting agreement exists;
	81	+	(4)Each person's percentage of total shares entitled to vote or membership
	82	+	interests entitled to vote; and whether any voting agreement exists;
55	83		(5)Each person's percentage of total capital and financial interests;
56		-	(6)As to individuals, a statement of whether each is a citizen or permanent resident
57		-	alien of the United States;
58		-	(7)As to individuals, a statement of whether each will be actively engaged in the
59		-	business of farming or ranching; and
60		-	(8)As to a person other than an individual, a statement of whether the person, and any
61		-	controlling personindividual or organization of the person, is incorporated in the
62		-	United States and one hundred percent of the stock or interests is owned by
63		-	citizens of the United States, permanent aliens of the United States, or individuals
64		-	or persons in compliance withan authorized person under section 47-10.1-02.
65		-	SECTION 4. AMENDMENT. Subdivision d of subsection 3 of section 10-06.1-17 of the North
66		-	Dakota Century Code is amended and reenacted as follows:
	84	+	(6)As to individuals, a statement of whether each is a citizen or permanent
	85	+	resident alien of the United States;
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	118	+	(7)As to individuals, a statement of whether each will be actively engaged in
	119	+	the business of farming or ranching; and
	120	+	(8)As to a person other than an individual, a statement of whether the person,
	121	+	and any controlling personindividual or organization of the person, is
	122	+	incorporated in the United States and one hundred percent of the stock or
	123	+	interests is owned by citizens of the United States, permanent aliens of the
	124	+	United States, or individuals or persons in compliance withan authorized
	125	+	person under section 47-10.1-02.
	126	+	SECTION 4. AMENDMENT. Subdivision d of subsection 3 of section 10-06.1-17 of the
	127	+	North Dakota Century Code is amended and reenacted as follows:
67	128		d.With respect to each farming or ranching limited liability company:
68		-	(1)A statement of the aggregate number of membership interests the limited ~~liability~~
69		-	company has authority to issue, itemized by classes and series, if ~~any, within a~~
70		-	classas designated under the operating agreement.
71		-	(2)A statement of the aggregate number of issued membership interests, ~~itemized by~~
72		-	classes and series, if any, within a classas designated under the ~~operating~~
73		-	agreement.
74		-	SECTION 5. AMENDMENT. Subsection 3 of section 10-06.1-17.1 of the North Dakota ~~Century~~
75		-	Code is amended and reenacted as follows:
76		-	3.An annual report of the authorized livestock farm corporation or the authorized ~~livestock farm~~
77		-	limited liability company must include the following information with ~~respect to the preceding~~
78		-	calendar year:
79		-	a.The name of the authorized livestock farm corporation or authorized livestock ~~farm~~
80		-	limited liability company. ~~S. B. NO. 2150 - PAGE 3~~
	129	+	(1)A statement of the aggregate number of membership interests the limited
	130	+	liability company has authority to issue, itemized by classes and series, if
	131	+	any, within a classas designated under the operating agreement.
	132	+	(2)A statement of the aggregate number of issued membership interests,
	133	+	itemized by classes and series, if any, within a classas designated under the
	134	+	operating agreement.
	135	+	SECTION 5. AMENDMENT. Subsection 3 of section 10-06.1-17.1 of the North Dakota
	136	+	Century Code is amended and reenacted as follows:
	137	+	3.An annual report of the authorized livestock farm corporation or the authorized
	138	+	livestock farm limited liability company must include the following information with
	139	+	respect to the preceding calendar year:
	140	+	a.The name of the authorized livestock farm corporation or authorized livestock
	141	+	farm limited liability company.
81	142		b.The name of the registered agent of the authorized livestock farm corporation or
82		-	authorized livestock farm limited liability company as provided in chapter 10-01.1 ~~and, if a~~
83		-	noncommercial registered agent, the address of the registered office of ~~the authorized~~
84		-	livestock farm corporation or authorized livestock farm limited ~~liability company in this~~
85		-	state.
	143	+	authorized livestock farm limited liability company as provided in chapter 10-01.1
	144	+	and, if a noncommercial registered agent, the address of the registered office of
	145	+	the authorized livestock farm corporation or authorized livestock farm limited
	146	+	liability company in this state.
86	147		c.With respect to each authorized livestock farm corporation:
87		-	(1)A statement of the aggregate number of shares the authorized livestock farm
88		-	corporation has authority to issue, itemized by classes, par value of shares, shares
89		-	without par value, and series, if any, within a class.
90		-	(2)A statement of the aggregate number of issued shares, itemized by classes, par
91		-	value of shares, shares without par value, and series, if any, within a class.
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	180	+	(1)A statement of the aggregate number of shares the authorized livestock
	181	+	farm corporation has authority to issue, itemized by classes, par value of
	182	+	shares, shares without par value, and series, if any, within a class.
	183	+	(2)A statement of the aggregate number of issued shares, itemized by classes,
	184	+	par value of shares, shares without par value, and series, if any, within a
	185	+	class.
92	186		d.With respect to each authorized livestock farm limited liability company:
93		-	(1)A statement of the aggregate number of membership interests the authorized
94		-	livestock farm limited liability company has authority to issue, itemized by classes
95		-	and series, if any, within a classas designated under the operating agreement.
96		-	(2)A statement of the aggregate number of issued membership interests, itemized by
97		-	classes and series, if any, within a classas designated under the operating
98		-	agreement.
	187	+	(1)A statement of the aggregate number of membership interests the
	188	+	authorized livestock farm limited liability company has authority to issue,
	189	+	itemized by classes and series, if any, within a classas designated under the
	190	+	operating agreement.
	191	+	(2)A statement of the aggregate number of issued membership interests,
	192	+	itemized by classes and series, if any, within a classas designated under the
	193	+	operating agreement.
99	194		e.With respect to each shareholder or member:
100	195		(1)The name and address of each;
101		-	(2)If a person other than an individual, the state of incorporation, organization, or
102		-	domicile;
	196	+	(2)If a person other than an individual, the state of incorporation, organization,
	197	+	or domicile;
103	198		(3)The number of shares or membership interests or percentage of shares or
104	199		membership interests of each;
105		-	(4)Each person's percentage of total shares entitled to vote, or membership ~~interests~~
106		-	entitled to vote, and whether any voting agreement exists;
	200	+	(4)Each person's percentage of total shares entitled to vote, or membership
	201	+	interests entitled to vote, and whether any voting agreement exists;
107	202		(5)Each person's percentage of total capital and financial interests;
108		-	(6)As to individuals, a statement of whether each is a citizen or permanent resident
109		-	alien of the United States;
110		-	(7)As to individuals, a statement of whether each will be actively engaged in the
111		-	business of farming or ranching; and
112		-	(8)As to personsa person other than an individual, a statement of whether the person,
113		-	and any controlling personindividual or organization of the person, is incorporated or
114		-	organized in the United States and one hundred percent of the stock or interests is
115		-	owned by citizens of the United States, permanent resident aliens of the United
116		-	States, or individuals or persons in compliance withan authorized person under
117		-	section 47-10.1-02.
	203	+	(6)As to individuals, a statement of whether each is a citizen or permanent
	204	+	resident alien of the United States;
	205	+	(7)As to individuals, a statement of whether each will be actively engaged in
	206	+	the business of farming or ranching; and
	207	+	(8)As to personsa person other than an individual, a statement of whether the
	208	+	person, and any controlling personindividual or organization of the person,
	209	+	is incorporated or organized in the United States and one hundred percent
	210	+	of the stock or interests is owned by citizens of the United States,
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	244	+	permanent resident aliens of the United States, or individuals or persons in
	245	+	compliance withan authorized person under section 47-10.1-02.
118	246		f.With respect to management:
119		-	(1)If an authorized livestock farm corporation, the names and addresses of the officers
120		-	and members of the board of directors, and a statement whether each actively is
121		-	actively engaged in the operation of the corporation; or S. B. NO. 2150 - PAGE 4
122		-	(2)If an authorized livestock farm limited liability company, the names and addresses of
123		-	the managers and members of the board of governors, and a statement whether
124		-	each actively is actively engaged in the operation of the limited liability company.
125		-	g.A statement that the authorized livestock farm corporation or authorized livestock farm
126		-	limited liability company does not own, lease, or hold any interest in more than one
127		-	hundred sixty acres [64.75 hectares] of farmland or ranchland.
128		-	h.A statement providing the farmland or ranchland description and listing the acreage
129		-	[hectarage] and location listed by section, township, range, and county of all farmland or
130		-	ranchland in which the authorized livestock farm corporation or authorized livestock farm
131		-	limited liability company has an ownership, leasehold, or other interest.
132		-	i.A statement that no shareholders or members hold a direct or indirect interest in other
133		-	authorized livestock farm corporations or authorized livestock farm limited liability
134		-	companies that in combination with the corporation or limited liability company own,
135		-	lease, or hold any interest in more than six hundred forty acres [259 hectares] of
136		-	farmland or ranchland. The interest disclosed under this subdivision does not include the
137		-	number of acres [hectares] of farmland or ranchland directly owned or leased by
138		-	shareholders or members who are individuals, farming or ranching corporations, farming
139		-	or ranching limited liability companies, or partnerships that meet the requirements of
140		-	subsection 2 of section 10-06.1-02.
141		-	j.A statement that the authorized livestock farm corporation or authorized livestock farm
142		-	limited liability company does not engage in the production of crops or the grazing of
143		-	livestock on farmland or ranchland.
	247	+	(1)If an authorized livestock farm corporation, the names and addresses of the
	248	+	officers and members of the board of directors, and a statement whether
	249	+	each actively is actively engaged in the operation of the corporation; or
	250	+	(2)If an authorized livestock farm limited liability company, the names and
	251	+	addresses of the managers and members of the board of governors, and a
	252	+	statement whether each actively is actively engaged in the operation of the
	253	+	limited liability company.
	254	+	g.A statement that the authorized livestock farm corporation or authorized livestock
	255	+	farm limited liability company does not own, lease, or hold any interest in more
	256	+	than one hundred sixty acres [64.75 hectares] of farmland or ranchland.
	257	+	h.A statement providing the farmland or ranchland description and listing the
	258	+	acreage [hectarage] and location listed by section, township, range, and county
	259	+	of all farmland or ranchland in which the authorized livestock farm corporation or
	260	+	authorized livestock farm limited liability company has an ownership, leasehold,
	261	+	or other interest.
	262	+	i.A statement that no shareholders or members hold a direct or indirect interest in
	263	+	other authorized livestock farm corporations or authorized livestock farm limited
	264	+	liability companies that in combination with the corporation or limited liability
	265	+	company own, lease, or hold any interest in more than six hundred forty acres
	266	+	[259 hectares] of farmland or ranchland. The interest disclosed under this
	267	+	subdivision does not include the number of acres [hectares] of farmland or
	268	+	ranchland directly owned or leased by shareholders or members who are
	269	+	individuals, farming or ranching corporations, farming or ranching limited liability
	270	+	companies, or partnerships that meet the requirements of subsection 2 of section
	271	+	10-06.1-02.
	272	+	j.A statement that the authorized livestock farm corporation or authorized livestock
	273	+	farm limited liability company does not engage in the production of crops or the
	274	+	grazing of livestock on farmland or ranchland.
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144	308		k.The first date of livestock operations.
145		-	l.A statement of the percentage of the annual average gross income of the ~~authorized~~
146		-	livestock farm corporation or authorized livestock farm limited liability ~~company which has~~
147		-	been derived from authorized livestock farm operations over ~~the previous five years or for~~
148		-	each year of existence if less than five years.
	309	+	l.A statement of the percentage of the annual average gross income of the
	310	+	authorized livestock farm corporation or authorized livestock farm limited liability
	311	+	company which has been derived from authorized livestock farm operations over
	312	+	the previous five years or for each year of existence if less than five years.
149	313		m.A statement of the percentage of gross income of the authorized livestock farm
150		-	corporation or authorized livestock farm limited liability company derived from nonfarm
151		-	rent, nonfarm royalties, dividends, interest, and annuities during the period covered by
152		-	the report. S. B. NO. 2150 - PAGE 5
153		-	____________________________ ____________________________
154		-	President of the Senate Speaker of the House
155		-	____________________________ ____________________________
156		-	Secretary of the Senate Chief Clerk of the House
157		-	This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
158		-	Dakota and is known on the records of that body as Senate Bill No. 2150.
159		-	Senate Vote:Yeas 41 Nays 4 Absent 2
160		-	House Vote: Yeas 91 Nays 0 Absent 3
161		-	____________________________
162		-	Secretary of the Senate
163		-	Received by the Governor at ________M. on _____________________________________, 2025.
164		-	Approved at ________M. on __________________________________________________, 2025.
165		-	____________________________
166		-	Governor
167		-	Filed in this office this ___________day of _______________________________________, 2025,
168		-	at ________ o’clock ________M.
169		-	____________________________
170		-	Secretary of State
	314	+	corporation or authorized livestock farm limited liability company derived from
	315	+	nonfarm rent, nonfarm royalties, dividends, interest, and annuities during the
	316	+	period covered by the report.
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