OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 226 Bill Analysis
135th General Assembly
Click here for S.B. 226’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. Johnson
Effective date:
Abby Gerty, Research Analyst
SUMMARY
 Modifies a law, enacted by H.B. 33 of the 135th General Assembly, which prohibits
certain foreign countries, businesses, individuals, and organizations from acquiring
agricultural land in Ohio.
 Extends the restrictions to real property located within 25 miles of any installation
under the jurisdiction of the U.S. armed forces, including a military base, camp, or
airport.
 Extends the restrictions to real property located within 25 miles of a critical
infrastructure facility.
 Clarifies that the restrictions apply to both direct and indirect acquisitions of protected
property.
 Broadens the definition of “persons” to which the restrictions apply to include criminal
enterprises, gangs, and cartels.
 Requires the Secretary of State to update the registry of restricted persons at least one
time every six months and to consider potential threats to critical infrastructure,
security, and military defense.
 Specifies that a country listed on the registry is a “foreign adversary,” and that the
restrictions apply to the country’s government; citizens; headquartered businesses;
businesses owned or controlled by such governments, citizens, and headquartered
businesses; and agents, fiduciaries, or trustees of any of the foregoing.
 Applies all restrictions under the bill and current law to acquisitions of protected
property on or after the bill’s effective date.
 Exempts protected property acquired by an agent, fiduciary, or trustee of a restricted
person that is not, themselves, a restricted person and that is not an attempt to
circumvent the bill’s restrictions.
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 Requires the statement filed with the county auditor in connection with the conveyance
of protected property to include affirmations by the buyer and seller as to whether they
are subject to the restrictions prescribed by the bill and, in the case of the seller,
whether the real property that is the subject of the conveyance was acquired before the
bill’s effective date.
 Prohibits the county auditor from indorsing a conveyance of protected property without
the required affirmations but prohibits the auditor from refusing to indorse a
conveyance merely because the buyer or seller are prohibited from acquiring protected
property.
 Requires the county auditor to refer a conveyance of protected property that the buyer
or seller affirms, or the auditor has reason to believe, violates the bill’s restrictions to
county sheriff for investigation.
 Shifts enforcement of the bill’s requirements from the Attorney General to county
sheriffs and county prosecutors.
 Eliminates references in current law to land “escheating to the state.”
 Changes the distribution of the proceeds from a court ordered sale of protected
property.
 Specifies that no person is required to determine or inquire about whether another
person is subject to the bill’s restrictions other than a restricted person or a county
auditor, county sheriff, county prosecutor, or trier of fact acting in that person’s official
capacity as required by the bill.
 Specifies that no title to an interest in real property is invalid or subject to divestment by
reason of a violation by a former owner of the protected property.
 Names the bill the “Ohio Property Protection Act.”
DETAILED ANALYSIS
The bill modifies a law, enacted by H.B. 33 of the 135th General Assembly, which
prohibits certain foreign countries, businesses, individuals, and organizations from acquiring
agricultural land in Ohio. The bill expands the restrictions to other “protected property” that is
located within 25 miles of a military installation or critical infrastructure facility; modifies the
process by which the Ohio Secretary of State (SOS) compiles the registry of persons subject to
those restrictions; applies the restrictions to certain individuals, businesses, and agents
associated with listed countries (referred to by the bill as “foreign adversaries”); shifts
enforcement responsibilities from state to local officials; requires certain affirmations to be
submitted to the county auditor whenever an interest in protected property is conveyed;
changes the manner in which proceeds of property sold by court order are distributed; and
makes other miscellaneous changes to the law.
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Background
H.B. 33 of the 135th General Assembly prohibits persons determined by the SOS to
constitute a threat to the agricultural production of Ohio or the U.S. from acquiring agricultural
land, i.e., land suitable for use in agriculture, including any water, air space, and natural
products and deposits in, on, or over the land. The prohibition applies to persons listed on a
registry compiled by the SOS, and to agents, trustees, and fiduciaries of such persons
(collectively referred to in this analysis as “restricted persons”). Registered persons are not
required to divest of agricultural land acquired before October 3, 2023, but are prohibited from
acquiring additional agricultural land or transferring agricultural land holdings to another
restricted person, unless an exception applies.
Protected property
The bill restores a provision of H.B. 33, vetoed by the Governor, which prohibits
restricted persons from acquiring real property located within 25 miles of any installation under
the jurisdiction of the U.S. armed forces, such as a military base, camp, or airport. Under
continuing law, “armed forces” includes all of the following:
 The Army, Navy, Air Force, Marine Corps, Coast Guard, or any reserve components of
those forces;
 The national guard of any state;
 The commissioned corps of the U.S. Public Health Service;
 The merchant marine service during wartime;
 The Ohio organized militia when engaged in full-time National Guard duty for a period
exceeding 30 days;
 Other services that may be designated by Congress.1
The bill also extends the same protections to real property located within 25 miles of a
critical infrastructure facility. Under continuing law, a “critical infrastructure facility” includes
certain petroleum or alumina refineries; electric generating facilities; chemical, polymer, or
rubber manufacturing facilities; water intake structures and treatment facilities; natural gas
facilities; telecommunications facilities and associated infrastructure; ports, trucking terminals,
and freight transportation facilities; gas processing plants; railroads; and several other types of
facilities.2
The bill clarifies throughout the law that the restrictions apply to both direct and
indirect acquisitions of protected property.3
1 R.C. 5301.256(A)(7)(b); R.C. 5903.01, not in the bill.
2 R.C. 5301.256(A)(7)(c); R.C. 2911.21, not in the bill.
3 R.C. 5301.256.
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As Introduced
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Registry of restricted persons
The bill also modifies the compilation of the registry of restricted persons by the SOS
and the application of the restrictions in relation to those persons. H.B. 33 requires the SOS to
compile and publish a registry of “persons” – which current law, changed in part by the act,
defines broadly to include individuals, businesses, organizations, legal or commercial entities,
and governments other than the U.S. government, its states, subdivisions, territories, or
possessions – that pose a threat to the agricultural products of Ohio or the U.S. In compiling
this registry, the SOS must consult all of the following:
 The list of governments and other persons determined to be foreign adversaries by the
U.S. Secretary of Commerce;
 The terrorist exclusion list compiled by the U.S. Secretary of State;
 The state sponsors of terrorism determined by the U.S. Secretary of State to have
repeatedly provided support for acts of international terrorism;
 The list of individuals and entities designated by, or in accordance with Executive Order
13224, issued by the U.S. President on September 23, 2001, or Executive Order 13268,
issued on July 2, 2002.
Broaden “persons”
The bill broadens the definition of “persons” which may be included on the SOS’s
registry to include criminal enterprises, gangs, and cartels.4 The bill also broadens the definition
of “business,” which is included in the definition of “persons,” to include both legal and
commercial entities.5
Updating the registry
The bill requires the SOS to update the registry at least one time every six months,
rather than “periodically” under current law. In addition to the agricultural production of the
state and the U.S., the bill requires the SOS to consider potential threats to critical
infrastructure, security, and military defense.6
Inclusion of countries
Under current law, when the SOS lists a country on the registry, the restrictions on
acquiring real property apply only to the government of that country. If the SOS determines
that the restrictions should also apply to certain other persons associated with that country, the
SOS must identify those persons. Conversely, under the bill, when the SOS lists a country on the
4 R.C. 5301.256(A)(3).
5 R.C. 5301.256(A)(4).
6 R.C. 5301.256(H).
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registry, the country is deemed a “foreign adversary” and the restrictions apply automatically to
all of the following:
 The government of the country;
 Citizens of the country, regardless of whether they are dual citizens;
 Businesses headquartered in the country;
 Businesses owned or controlled by any of the foregoing;
 An agent, fiduciary, or trustee of any of the foregoing.
Under the bill, a business is “owned” by any person that possesses more than half of the
stock, equity, or other ownership interest of that business. A business is “controlled” by any
persons with contractual or legal authority to direct the affairs and day-to-day operations of the
business without the consent of any other person.7
Exemptions
Protected property acquired before the bill’s effective date is expressly exempt from the
bill’s restrictions. The same exemption applies to agricultural land under current law, but it is
based on the 90-day effective date for H.B. 33; October 3, 2023. As a result, the bill would
extend the exemption to agricultural land acquired between October 3, 2023, and the bill’s
effective date.8
The bill also adds a new exemption for protected property acquired by an agent,
fiduciary, or trustee of a restricted person if both of the following apply:
 The agent, fiduciary, or trustee is not themselves a restricted person;
 The agent, fiduciary, or trustee is not acquiring the property to circumvent the bill’s
restrictions.9
Conveyance procedures
Under continuing law, whenever real property or a manufactured or mobile home is
transferred, the buyer is required to file a statement with the county auditor attesting to the
property’s value and acknowledging that certain information related to the property’s eligibility
for the homestead exemption or current agricultural use valuation (CAUV) status has been
considered as part of the transfer. The statement must be accompanied by any required
property transfer tax.
The bill requires statements involving the transfer of protected property to include
affirmations from the buyer and seller as to whether they are prohibited from acquiring
7 R.C. 5301.256(A), (B), and (H).
8 R.C. 5301.256(C).
9 R.C. 5301.256(D)(3).
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protected property in Ohio under the bill. Additionally, the seller must submit an affirmation as
to whether the seller acquired the protected property that is the subject of the transfer before
the bill’s effective date. The bill prohibits the county auditor from indorsing a conveyance of
protected property if the affirmations are not submitted. The auditor cannot refuse to indorse a
conveyance merely because the seller is prohibited from holding the real property that is the
subject of the transfer.
If the affirmations indicate or the auditor has reason to believe that either the buyer or
the seller are prohibited from acquiring protected property, or that the protected property that
is the subject of the transfer was acquired by the seller in violation of the bill, the auditor must
refer the transfer to the county sheriff for investigation.10
Local enforcement
Under current law, if the SOS finds that a restricted person has illegally acquired
agricultural land, the SOS must report the violation to the Attorney General. Upon receiving a
report, the Attorney General is required to initiate an action in the court of common pleas in
the county where the land is located. If the land is located in more than one county, the
Attorney General may either initiate a single action in the county in which the majority of the
land is located or initiate separate actions in each such county.
The bill retains a similar process, but transfers it to local government officials. It requires
the county auditor to report suspected violations of the bill to the county sheriff of each county
in which the protected property is located for investigation and enforcement. The county
sheriff is required to investigate the alleged violation and may issue subpoenas to compel
witnesses to appear to provide testimony or produce records. If the protected property is
located in more than one county, the bill allows the county sheriffs of those counties to
conduct the investigation collaboratively.
If the county sheriff, upon concluding the investigation, determines that a violation has
occurred, the sheriff must refer the violation to the county prosecutor. The county prosecutor
must then commence an action in the court of common pleas of the county. As under current
law, if the protected property is located in more than one county, the county prosecutors of
those counties may elect to pursue the violation as a consolidated action in the court of
common pleas of the county in which the majority of the protected property is located.
Court ordered sale
Current law requires a court of common pleas, upon finding that agricultural land has
been acquired or held in violation of state law, to enter and record a court order declaring the
land escheated to the state and ordering it to be sold at public auction in the same manner as a
foreclosure on a mortgage. The bill applies the same process to all protected property, but
eliminates reference to the property “escheating to the state” and, instead, merely requires
that the property be “sold by decree of the court.”
10 R.C. 319.202.
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Furthermore, the bill changes the manner in which the proceeds of the sale are
distributed. Under current law, such proceeds are distributed as follows:
 First to pay for the court costs and other expenses related to the action;
 Second, to the property owner, but only up to the amount paid for the property;
 Third, to the general fund of each county in which the property is located in proportion
to the percentage of the territory located in each such county.
The bill replaces the payment of proceeds to the property owner with a payment to
bona fide lien holders, in their order of priority, except for liens that are to remain on the
property under