HOUSE BILL NO. 1991 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE IRWIN.
4197H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To repeal sections 442.560, 442.566, 442.571, 442.576, 442.581, 442.586, 442.591, and 442.592, RSMo, and to enact in lieu thereof eight new sections relating to foreign ownership of real property, with a penalty provision.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Sections 442.560, 442.566, 442.571, 442.576, 442.581, 442.586, 442.591, 2 and 442.592, RSMo, are repealed and eight new sections enacted in lieu thereof, to be known 3 as sections 442.560, 442.566, 442.571, 442.576, 442.581, 442.586, 442.592, and 442.594, to 4 read as follows: 442.560. Except as provided in sections 442.560 to [442.591] 442.594, persons not 2 citizens of the United States and not residents of the United States or of some territory, 3 trusteeship, or protectorate of the United States, and corporations not created by or under the 4 laws of the United States or of some state, territory, trusteeship, or protectorate of the United 5 States shall be capable of acquiring, by grant, purchase, devise or descent, real estate except 6 agricultural land as defined in section 442.566, or any interest therein, in this state, and of 7 owning, holding, devising, or alienating the same, and shall incur the like duties and liabilities 8 in relation thereto as if they were citizens of the United States and residents of this state. The 9 provisions of sections 442.560 to [442.591] 442.594 shall not apply to agricultural land 10 located in counties which border the state of Oklahoma which was owned by such a person 11 described in this section prior to January 1, 1995. 442.566. As used in sections 442.560 to [442.591] 442.594, unless the context clearly 2 requires otherwise, the following terms mean:
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1991 2
3 (1) "Agricultural land", any tract of land in this state consisting of more than five 4 acres, whether inside or outside the corporate limits of any municipality, which is capable, 5 without substantial modification to the character of the land, of supporting an agricultural 6 enterprise, including but not limited to land used for the production of agricultural crops or 7 fruit or other horticultural products, or for the raising or feeding of animals for the production 8 of livestock or livestock products, poultry or poultry products, or milk or dairy products. 9 Adjacent parcels of land under the same ownership shall be deemed to be a single tract; 10 (2) "Alien", any person who is not a citizen of the United States and who is not a 11 resident of the United States or of some state, territory, trusteeship, or protectorate of the 12 United States; 13 (3) "Director", the director of the Missouri department of agriculture; 14 (4) "Family members" includes all persons within the ninth degree of consanguinity, 15 or the living or surviving spouse of any person within the ninth degree of consanguinity; 16 (5) "Foreign adversary", a foreign government or foreign nongovernmental 17 person who is identified as a foreign adversary under 15 CFR Section 791.4(a), as 18 amended; 19 [(5)] (6) "Foreign business", any business entity, whether or not incorporated, 20 including, but not limited to, companies, corporations, professional corporations, nonprofit 21 corporations, limited liability companies, partnerships, limited partnerships, [and] 22 associations, or the equivalent of any entity listed in this subdivision, in which [a 23 controlling] an interest is owned by aliens or organized under the laws of a foreign 24 country, or both. In determining ownership of a foreign business, legal fictions such as 25 corporate form or trust shall be disregarded; 26 (7) "Foreign terrorist organization", an organization that has been designated 27 or redesignated by the United States Secretary of State to have engaged in terrorist 28 activity as defined under 8 U.S.C. Section 1182(a)(3)(B), as amended, or terrorism as 29 defined in 22 U.S.C. Section 2656f(d)(2), as amended, and for which a Federal Register 30 notice has been made under 8 U.S.C. Section 1189(a)(2)(A)(ii), as amended; 31 (8) "Land", any real property of any classification or subclassification within 32 this state; 33 [(6)] (9) "Residence", the place of general abode; the place of general abode of a 34 person means his principal, actual dwelling place in fact, where he intends to remain 35 permanently or for an indefinite period of time at least[.]; 36 (10) "Specially designated global terrorist", an individual or entity that has been 37 designated by the President of the United States, the United States Secretary of State, or 38 the United States Secretary of the Treasury, for which a Federal Register notice has 39 been made under Executive Order 13224, 31 CFR Part 594. HB 1991 3
442.571. 1. Except as provided in [sections] section 442.586 [and 442.591], 2 beginning August 28, 2026, no alien or foreign business shall acquire by grant, purchase, 3 devise, descent or otherwise agricultural land in this state if the total aggregate alien and 4 foreign ownership of agricultural [acreage] land in this state exceeds one percent of the total 5 aggregate agricultural [acreage] land in this state. A sale or transfer of any agricultural land 6 in this state shall be submitted by such alien or foreign business to the director of the 7 department of agriculture and the attorney general for review in accordance with subsection 8 3 of this section [only if there is no completed Internal Revenue Service Form W-9 signed by 9 the purchaser] at least thirty calendar days prior to when such sale or transfer of such 10 agricultural land is finalized. The attorney general shall review such sale or transfer 11 and, within thirty days of receipt, approve or reject such transaction. If the attorney 12 general does not take action on such sale or transfer within thirty days, the transaction 13 shall be deemed to meet the requirements of this section. Such sale or transfer 14 submitted for review shall be deemed a closed record under chapter 610 until such sale 15 or transfer is finalized. No person may hold agricultural land as an agent, trustee, or other 16 fiduciary for an alien or foreign business in violation of sections 442.560 to [442.592] 17 442.594, provided, however, that no security interest in such agricultural land shall be 18 divested or invalidated by such violation. 19 2. Any alien or foreign business who acquires agricultural land in violation of 20 sections 442.560 to [442.592] 442.594 remains in violation of sections 442.560 to [442.592] 21 442.594 for as long as [he or she] such alien or foreign business holds an interest in the land, 22 provided, however, that no security interest in such agricultural land shall be divested or 23 invalidated by such violation. 24 3. (1) Subject to the provisions of subsection 1 of this section, such proposed 25 acquisitions by grant, purchase, devise, descent, or otherwise of agricultural land in this state 26 shall be submitted to the department of agriculture and the attorney general to determine 27 whether such acquisition of agricultural land is conveyed in accordance with the one percent 28 restriction on the total aggregate alien and foreign ownership of agricultural land in this state. 29 Such submission shall be accomplished in the form and manner established by the 30 department of agriculture. The attorney general shall review each submission that the 31 attorney general receives under this subsection and investigate such acquisition of 32 agricultural land if the attorney general believes such acquisition violates this section. 33 (2) All land acquired in violation of this section is subject to a court action and 34 divestiture under section 442.576. 35 (3) The department of agriculture and the attorney general shall establish by rule 36 the requirements for submission and approval of requests under this subsection. HB 1991 4
37 4. Any rule or portion of a rule, as that term is defined in section 536.010, that is 38 created under the authority delegated in this section shall become effective only if it complies 39 with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028. 40 This section and chapter 536 are nonseverable and if any of the powers vested with the 41 general assembly pursuant to chapter 536 to review, to delay the effective date, or to 42 disapprove and annul a rule are subsequently held unconstitutional, then the grant of 43 rulemaking authority and any rule proposed or adopted after August 28, 2014, shall be invalid 44 and void. 442.576. 1. If the [director] attorney general finds that an alien or foreign business 2 or an agent, trustee, or other fiduciary therefor has acquired [agricultural] land in Missouri in 3 violation of sections 442.560 to [442.592] 442.594, or the land ceases to be used for 4 nonagricultural purposes [under section 442.591], he or she shall [report the violation to the 5 attorney general. 6 2. The attorney general shall] institute an action in the circuit court of Cole County or 7 the circuit court in any county in which [agricultural] land owned by the alien or foreign 8 business, agent, trustee or other fiduciary, alleged to have violated sections 442.560 to 9 [442.592] 442.594, is located. 10 [3.] 2. The attorney general shall file a notice of the pendency of the action with the 11 recorder of deeds of each county in which any portion of such [agricultural] lands is located. 12 If the court finds that the lands in question have been acquired in violation of sections 13 442.560 to [442.592] 442.594, it shall enter an order so declaring and shall file a copy of the 14 order with the recorder of deeds of each county in which any portion of the [agricultural] 15 lands is located. The court shall order the owner to divest [himself] from ownership of the 16 [agricultural] land. The owner must comply with the order within two years. The two-year 17 limitation period shall be a covenant running with the title to the land against any alien 18 grantee or assignee. [Provided, however, an incorporated foreign business must divest itself 19 of agricultural land within the minimum time required by Article XI, Section 5, of the 20 Missouri Constitution. ] Any [agricultural] lands not divested within the time prescribed shall 21 be ordered sold by the court at a public sale in the manner prescribed by law for the 22 foreclosure of a mortgage on real estate for default in payment. 442.581. Any person who obtains a lease on agricultural land for a term of ten years 2 or longer or a lease renewable at his option for terms which might total ten years has acquired 3 agricultural land within the meaning of sections 442.560 to [442.591] 442.594. 442.586. Sections 442.560 to [442.591] 442.594 shall not apply to agricultural land 2 now owned in this state by aliens or foreign businesses so long as it is held by the present 3 owners or their direct descendants including any trust for the benefit of either and any legal 4 person owned or controlled by either including but not limited to corporations, limited HB 1991 5
5 liability corporations, partnerships, and limited liability partnerships, nor to any alien who is 6 or shall take up bona fide residence in the United States; and any alien who is or shall become 7 a bona fide resident of the United States shall have the right to acquire and hold agricultural 8 lands in this state upon the same terms as citizens of the United States during the continuance 9 of such bona fide residence in the United States; except, that if any resident alien shall cease 10 to be a bona fide resident of the United States, such alien shall have two years from the time 11 he ceased to be a bona fide resident in which to divest himself of such agricultural lands. Any 12 agricultural lands not divested within the time prescribed shall be ordered sold by the court at 13 a public sale in the manner prescribed by law for the foreclosure of a mortgage on real estate 14 for default in payment. 442.592. 1. For the purposes of this section, the term "foreign person" means: 2 (1) An individual who is not a citizen of the United States and who has not been 3 lawfully admitted to the United States for permanent residence under the Immigration and 4 Nationality Act or who has not been made a citizen by an act of Congress; 5 (2) An entity, other than an individual or a government, that is created or organized 6 under the laws of a nation other than the United States, or that has its principal place of 7 business in a foreign nation; 8 (3) An entity, other than an individual or a government, that is created or organized 9 under the laws of the United States or of some state, territory, trusteeship or protectorate of 10 the United States and that, as defined in regulations to be prescribed by the director, is 11 [substantially] controlled by individuals referred to in subdivision (1) of this subsection, 12 entities referred to in subdivision (2) of this subsection, governments of foreign nations, or 13 any combination of such individuals, entities, or governments; [and] 14 (4) A foreign business, as defined in section 442.566; and 15 (5) A government of a foreign nation. 16 2. [Any foreign person who holds any interest (including leaseholds of ten or more 17 years and beneficial interests in the agricultural land under contracts of sale or similar 18 arrangements), other than a security interest, in agricultural land on September 28, 1979, shall 19 submit, or have a designated agent submit, a report to the director of agriculture not later than 20 sixty days after September 28, 1979; provided, however, that no reporting requirement 21 attaches to any holding by an alien or a foreign person or a foreign business of an interest in 22 agricultural land for the extraction, refining, processing or transportation of oil, gas, coal or 23 lignite. Such report shall be submitted in such manner as the director shall prescribe by 24 regulation and shall contain: 25 (1) The legal name and address of the foreign person; 26 (2) In any case in which the foreign person is an individual, the citizenship of the 27 foreign person; HB 1991 6
28 (3) In any case in which the foreign person is not an individual or a government: 29 (a) The nation in which the foreign person is created or organized; 30 (b) The principal place of business of the foreign person; 31 (c) The legal name and address of each person who holds a substantial interest (as 32 defined in regulations to be prescribed by the director) in the foreign person and, in any case 33 in which the holder of such an interest is an individual, the citizenship of the holder and, in 34 any case in which the holder of such an interest is not an individual or a government, the 35 nation in which the holder is created or organized and the principal place of business of the 36 holder; 37 (4) The type of interest in the agricultural land that is held by the foreign person; 38 (5) A legal description of the agricultural land, including the county in which the land 39 is located and the total acreage involved; 40 (6) The date of acquisition of the interest and the purchase price paid for, or any other 41 consideration given for, the interest; 42 (7) A declaration of the type of agricultural activity engaged in by the reporting 43 foreign person; 44 (8) In the case where any foreign person holds an interest in agricultural land for the 45 purposes outlined in section 442.591, a declaration of intent as to the intended use of the land. 46 3. No rule or portion of a rule promulgated under the authority of sections 442.560 to 47 442.591 shall become effective unless it has been promulgated pursuant to the provisions of 48 section 536.024] The department of agriculture in cooperation with the attorney 49 general's office may promulgate all necessary rules and regulations for the 50 administration of this section. Any rule or portion of a rule, as that term is defined 51 in section 536.010, that is created under the authority delegated in this section shall 52 become effective only if it complies with and is subject to all of the provisions of chapter 53 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable 54 and if any of the powers vested with the general assembly pursuant to chapter 536 to 55 review, to delay the effective date, or to disapprove and annul a rule are subsequently 56 held unconstitutional, then the grant of rulemaking authority and any rule proposed or 57 adopted after August 28, 2026, shall be invalid and void. 58 [4.] 3. Any foreign person who acquires or transfers any interest (including leaseholds 59 of ten years or more and beneficial interests in the agricultural land under contracts of sale or 60 similar arrangements), other than a security interest, in agricultural land shall submit, or have 61 a designated agent submit, a report to the director and the attorney general not later than 62 thirty days after the date of such acquisition or transfer; provided, however, that no reporting 63 requirement attaches to an acquisition or transfer by an alien or a foreign person or a foreign 64 business of an interest in agricultural land for the extraction, refining, processing, or HB 1991 7
65 transportation of oil, gas, coal or lignite. Such report shall be submitted in such manner as the 66 director shall prescribe by regulation and shall contain: 67 (1) The legal name and address of the foreign person; 68 (2) In any case in which the foreign person is an individual, the citizenship of the 69 foreign person; 70 (3) In any case in which the foreign person is not an individual or a government: 71 (a) The nation in which the foreign person is created or organized; 72 (b) The principal place of business of the foreign person; 73 (c) The legal name and address of each person who holds a substantial interest (as 74 defined in regulations to be prescribed by the director) in the foreign person and, in any case 75 in which the holder of such an interest is an individual, the citizenship of the holder and, in 76 any case in which the holder