Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
SENATE BILL NO. 2150
(Senators Thomas, Luick)
(Representative Beltz)
AN ACT to amend and reenact subsection 7 of section 10-06.1-01, subsection 3 of section
10-06.1-12.2, subdivision b of subsection 1 of section 10-06.1-15.2, subdivision d of
subsection 3 of section 10-06.1-17, and subsection 3 of section 10-06.1-17.1 of the North
Dakota Century Code, relating to corporate or limited liability company farming and ranching.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Subsection 7 of section 10-06.1-01 of the North Dakota Century Code
is amended and reenacted as follows:
7.a."Farming or ranching" means raising or producing agricultural crops, fruit, horticultural
products, or livestock or livestock products, or livestock backgrounding, or livestock
finishing.
b.The term does not include:
(1)Agricultural support services;
(2)Aquaculture or greenhouse agriculture by a person that has farmland or ranchland
holdings not exceeding forty acres [16.19 hectares];
(3)Beekeeping;
(4)The production of timber or forest products;
(5)The growing or processing of marijuana under chapter 19-24.1; or
(6)A contract under which a processor or distributor of farm or ranch products or
supplies provides grain, harvesting, or other farm or ranch services.
SECTION 2. AMENDMENT. Subsection 3 of section 10-06.1-12.2 of the North Dakota Century
Code is amended and reenacted as follows:
3.a.If an authorized livestock farm corporation:
(1)All shareholders who are individuals must be citizens of the United States,
permanent resident aliens of the United States, or an authorized individualperson
under section 47-10.1-02.
(2)All shareholders that are persons otherwise eligible under this chapter, and any
controlling individual or entityorganization of the person, must be organized in the
United States and one hundred percent of the stock must be owned by citizens of
the United States, permanent resident aliens of the United States, or an authorized
individualperson under section 47-10.1-02.
b.If an authorized livestock farm limited liability company:
(1)All members who are individuals must be citizens of the United States, permanent
resident aliens of the United States, or an authorized individualperson under section
47-10.1-02. S. B. NO. 2150 - PAGE 2
(2)All members that are persons otherwise eligible under this chapter, and any
controlling individual or entityorganization of the person, must be organized in the
United States and one hundred percent of the interests must be owned by citizens
of the United States, permanent resident aliens of the United States, or an
authorized individualperson under section 47-10.1-02.
SECTION 3. AMENDMENT. Subdivision b of subsection 1 of section 10-06.1-15.2 of the North
Dakota Century Code is amended and reenacted as follows:
b.With respect to each shareholder or member:
(1)The name and address of each;
(2)If a person other than an individual, the state of incorporation, organization, or
domicile;
(3)The number of shares or membership interests or percentage of shares or
membership interests of each;
(4)Each person's percentage of total shares entitled to vote or membership interests
entitled to vote; and whether any voting agreement exists;
(5)Each person's percentage of total capital and financial interests;
(6)As to individuals, a statement of whether each is a citizen or permanent resident
alien of the United States;
(7)As to individuals, a statement of whether each will be actively engaged in the
business of farming or ranching; and
(8)As to a person other than an individual, a statement of whether the person, and any
controlling personindividual or organization of the person, is incorporated in the
United States and one hundred percent of the stock or interests is owned by
citizens of the United States, permanent aliens of the United States, or individuals
or persons in compliance withan authorized person under section 47-10.1-02.
SECTION 4. AMENDMENT. Subdivision d of subsection 3 of section 10-06.1-17 of the North
Dakota Century Code is amended and reenacted as follows:
d.With respect to each farming or ranching limited liability company:
(1)A statement of the aggregate number of membership interests the limited liability
company has authority to issue, itemized by classes and series, if any, within a
classas designated under the operating agreement.
(2)A statement of the aggregate number of issued membership interests, itemized by
classes and series, if any, within a classas designated under the operating
agreement.
SECTION 5. AMENDMENT. Subsection 3 of section 10-06.1-17.1 of the North Dakota Century
Code is amended and reenacted as follows:
3.An annual report of the authorized livestock farm corporation or the authorized livestock farm
limited liability company must include the following information with respect to the preceding
calendar year:
a.The name of the authorized livestock farm corporation or authorized livestock farm
limited liability company. S. B. NO. 2150 - PAGE 3
b.The name of the registered agent of the authorized livestock farm corporation or
authorized livestock farm limited liability company as provided in chapter 10-01.1 and, if a
noncommercial registered agent, the address of the registered office of the authorized
livestock farm corporation or authorized livestock farm limited liability company in this
state.
c.With respect to each authorized livestock farm corporation:
(1)A statement of the aggregate number of shares the authorized livestock farm
corporation has authority to issue, itemized by classes, par value of shares, shares
without par value, and series, if any, within a class.
(2)A statement of the aggregate number of issued shares, itemized by classes, par
value of shares, shares without par value, and series, if any, within a class.
d.With respect to each authorized livestock farm limited liability company:
(1)A statement of the aggregate number of membership interests the authorized
livestock farm limited liability company has authority to issue, itemized by classes
and series, if any, within a classas designated under the operating agreement.
(2)A statement of the aggregate number of issued membership interests, itemized by
classes and series, if any, within a classas designated under the operating
agreement.
e.With respect to each shareholder or member:
(1)The name and address of each;
(2)If a person other than an individual, the state of incorporation, organization, or
domicile;
(3)The number of shares or membership interests or percentage of shares or
membership interests of each;
(4)Each person's percentage of total shares entitled to vote, or membership interests
entitled to vote, and whether any voting agreement exists;
(5)Each person's percentage of total capital and financial interests;
(6)As to individuals, a statement of whether each is a citizen or permanent resident
alien of the United States;
(7)As to individuals, a statement of whether each will be actively engaged in the
business of farming or ranching; and
(8)As to personsa person other than an individual, a statement of whether the person,
and any controlling personindividual or organization of the person, is incorporated or
organized in the United States and one hundred percent of the stock or interests is
owned by citizens of the United States, permanent resident aliens of the United
States, or individuals or persons in compliance withan authorized person under
section 47-10.1-02.
f.With respect to management:
(1)If an authorized livestock farm corporation, the names and addresses of the officers
and members of the board of directors, and a statement whether each actively is
actively engaged in the operation of the corporation; or S. B. NO. 2150 - PAGE 4
(2)If an authorized livestock farm limited liability company, the names and addresses of
the managers and members of the board of governors, and a statement whether
each actively is actively engaged in the operation of the limited liability company.
g.A statement that the authorized livestock farm corporation or authorized livestock farm
limited liability company does not own, lease, or hold any interest in more than one
hundred sixty acres [64.75 hectares] of farmland or ranchland.
h.A statement providing the farmland or ranchland description and listing the acreage
[hectarage] and location listed by section, township, range, and county of all farmland or
ranchland in which the authorized livestock farm corporation or authorized livestock farm
limited liability company has an ownership, leasehold, or other interest.
i.A statement that no shareholders or members hold a direct or indirect interest in other
authorized livestock farm corporations or authorized livestock farm limited liability
companies that in combination with the corporation or limited liability company own,
lease, or hold any interest in more than six hundred forty acres [259 hectares] of
farmland or ranchland. The interest disclosed under this subdivision does not include the
number of acres [hectares] of farmland or ranchland directly owned or leased by
shareholders or members who are individuals, farming or ranching corporations, farming
or ranching limited liability companies, or partnerships that meet the requirements of
subsection 2 of section 10-06.1-02.
j.A statement that the authorized livestock farm corporation or authorized livestock farm
limited liability company does not engage in the production of crops or the grazing of
livestock on farmland or ranchland.
k.The first date of livestock operations.
l.A statement of the percentage of the annual average gross income of the authorized
livestock farm corporation or authorized livestock farm limited liability company which has
been derived from authorized livestock farm operations over the previous five years or for
each year of existence if less than five years.
m.A statement of the percentage of gross income of the authorized livestock farm
corporation or authorized livestock farm limited liability company derived from nonfarm
rent, nonfarm royalties, dividends, interest, and annuities during the period covered by
the report. S. B. NO. 2150 - PAGE 5
____________________________ ____________________________
President of the Senate Speaker of the House
____________________________ ____________________________
Secretary of the Senate Chief Clerk of the House
This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
Dakota and is known on the records of that body as Senate Bill No. 2150.
Senate Vote:Yeas 41 Nays 4 Absent 2
House Vote: Yeas 91 Nays 0 Absent 3
____________________________
Secretary of the Senate
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State