An Act to establish the Committee on Foreign Investment in the United States – South Dakota and revise provisions related to the foreign ownership or control of agricultural land.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That   43-2A-1 be AMENDED:

43-2A-1. For purposes of this chapter, the term Terms used in this chapter mean:

(1) "agricultural land" means"Agricultural land," land capable of use in the production of agricultural crops, timber, livestock or livestock products, poultry or poultry products, milk or dairy products, or fruit and other horticultural products but does not include any royalty interest, any oil, gas, or other mineral interest, or any lease, right‑of‑way, option, or easement relating thereto, or any land zoned by a local governmental unit for a use other than and nonconforming with agricultural use;

(2) "Applicant," a foreign person, foreign entity, or ultimate beneficial owner who purchases or leases agricultural land;

(3) "Benefit," something that:

(a) Constitutes a business advantage to an applicant;

(b) Enhances the value of an asset, action, or process owned or controlled by an applicant; or

(c) Confers a right or obligation on the part of an ultimate beneficial owner;

(4) "CFIUS," the Committee on Foreign Investment in the United States;

(5) "Critical infrastructure facility," as defined in   22-1-2;

(6) "Foreign entity," any partnership organized under the laws of a foreign state if its principal place of business is outside of the United States, or any partnership, corporation, or any other business form, regardless of its principal place of business, if its ownership is comprised of five percent or more of foreign persons;

(7) "Foreign government," a government not of the United States or its constituencies;

(8) "Foreign person," any of the following:

(a) A natural foreign person or natural foreign national;

(b) A foreign entity, including any foreign partnership, foreign association, foreign cooperative corporation, foreign limited liability company, foreign private equity vehicle, foreign venture capital vehicle, foreign special purpose acquisition company, or foreign corporation;

(c) Foreign government; and

(d) Any entity over which control is exercised or exercisable, whether directly or indirectly, by a foreign national, foreign entity, or foreign government; and

(9) "Ultimate beneficial owner," a person or entity that ultimately owns or controls a foreign entity or that derives a benefit associated with ownership or control of a foreign entity.

Section 2. That   43-2A-2 be AMENDED:

43-2A-2. No alien, who is not a resident of this state, of some state or territory of the United States or of the District of Columbia;, and no foreign person foreign government shall hereafter may acquire agricultural lands land, or any interest therein in agricultural land, exceeding one hundred sixty acres unless the nonresident alien or foreign person obtains an approval letter pursuant to section 13 of this Act and then such acquisition may not exceed one hundred sixty acres, except such as may beagricultural land that is acquired by devise or inheritance, and such as may beheld as security for indebtedness. The provisions of this section do not apply to citizens, foreign governments, or subjects of a foreign country whose right to hold land are secured by treaty.

Section 3. That   43-2A-6 be AMENDED:

43-2A-6. All agricultural landsAgricultural land acquired or held in violation of    43-2A-2 and 43-2A-3 shall bethis chapter is forfeited to the state. Any lease of agricultural land in violation of this chapter is terminated. Nothing in this chapter limits the lessor's adequate relief available under law or equity against a lessee who violates this chapter. The attorney general shall enforce such forfeiture. However, no such forfeiture may be adjudged unless the action to enforce is brought within three twenty years after such property has been acquired or held by such alien a foreign person. No title to land is invalid or liable to forfeiture by reason of the alienage of any former owner or person interested therein.

The Committee on Foreign Investment in the United States – South Dakota may review an agricultural land transaction after the transaction is closed if any owner or investor in the agricultural land has taken on a second citizenship other than a United States citizenship.

Section 4. That   43-2A-8 be AMENDED:

43-2A-8. The restrictions of this chapter   43A-2A-1 to 43A-2A-7, inclusive do not apply to agricultural land owned by a corporation for immediate or potential use in nonfarming purposes. A corporation may hold such agricultural land in such acreage as may be necessary to its nonfarm business operations. However, pending the development of agricultural land for nonfarm purposes, such land may not be used for farming except under lease to a family farm unit, a family farm corporation, or an authorized farm corporation.

All real property owned or held by the State of South Dakota by and through the South Dakota State Cement Plant Commission as of December 28, 2000, is owned or held by it and its successors in title for immediate or potential use for nonfarming purposes and the real property is necessary for nonfarming business operations.

Section 5. That chapter 43-2A be amended with a NEW SECTION:

The Committee on Foreign Investment in the United States – South Dakota consists of five members as follows:

(1) The secretary of the Department of Agriculture and Natural Resources;

(2) The director of the South Dakota Office of Homeland Security;

(3) A designee of the Governor, who shall serve as chairperson;

(4) An individual who owns at least one hundred sixty acres of agricultural land in the state and who, in the opinion of the Governor, has expertise in the agriculture industry; and

(5) An individual who, in the opinion of the Governor, has expertise in national or state security.

The Governor shall appoint the two members listed in subdivisions (4) and (5) to two-year terms. The appointed members serve at the pleasure of the Governor.

No member may receive salary solely for serving on the committee. A member shall receive per diem at the rate provided by law and be reimbursed for necessary travel and other expenses incurred while performing or on official committee business.