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STATE OF WYOMING
HOUSE BILL NO. HB0168
Foreign ownership of Wyoming agricultural lands.
Sponsored by: Representative(s) Banks, Allred, Conrad,
Crago, Western and Winter and Senator(s)
Barlow, Cooper and French
A BILL
for
1 AN ACT relating to property, conveyances and security
2 transactions; prohibiting ownership of agricultural land by
3 nonresident aliens, foreign businesses and foreign
4 governments as specified; providing exceptions; requiring
5 registration of agricultural lands; requiring reports;
6 providing a penalty; providing for the escheat of
7 agricultural lands as specified; providing definitions;
8 requiring rulemaking; specifying applicability; and
9 providing for effective dates.
10
11 Be It Enacted by the Legislature of the State of Wyoming:
12
13 Section 1. W.S. 34-15-201 through 34-15-206 are
14 created to read:
15
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1 ARTICLE 2
2 NONRESIDENT ALIEN AGRICULTURAL LAND OWNERSHIP
3
4 34-15-201. Definitions.
5
6 (a) As used in this article:
7
8 (i) "Agricultural land" means land suitable for
9 an agricultural purpose as defined in W.S.
10 39-13-101(a)(viii) and any interest in land suitable for an
11 agricultural purpose as defined in W.S. 39-13-101(a)(viii);
12
13 (ii) "Farming" means the cultivation of land for
14 the production of agricultural crops, the raising of
15 poultry, the production of eggs, the production of milk,
16 the production of fruit or other horticultural crops,
17 grazing or the production of livestock. "Farming" includes
18 the production of timber, forest products, nursery products
19 or sod. As used in this article, "farming" does not include
20 a contract where a processor or distributor of farm
21 products or supplies provides spraying, harvesting or other
22 farm services;
23
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1 (iii) "Foreign business" means a corporation
2 incorporated under the laws of a foreign country, or a
3 business entity whether or not incorporated, in which a
4 majority interest is owned directly or indirectly by
5 nonresident aliens. Legal entities, including but not
6 limited to trusts, holding companies, multiple corporations
7 and other business arrangements, shall not affect the
8 determination of ownership or control of a foreign
9 business;
10
11 (iv) "Foreign government" means a government
12 other than the government of the United States, its states,
13 territories or possessions;
14
15 (v) "Lessee" means a nonresident alien, foreign
16 business or foreign government, or an agent, trustee or
17 fiduciary thereof acting on behalf of the nonresident
18 alien, foreign business foreign government, or any other
19 trade or business, that is under the lessee's common
20 control as provided in 26 U.S.C. ยง 414;
21
22 (vi) "Nonresident alien" means any person who is
23 not either:
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1
2 (A) A citizen of the United States;
3
4 (B) A person lawfully admitted into the
5 United States for permanent residence. A person is lawfully
6 admitted for permanent residence regardless of whether the
7 person's lawful permanent resident status is conditional.
8
9 34-15-202. Alien rights in real property; restriction
10 on agricultural land holdings; exceptions.
11
12 (a) A nonresident alien, foreign business or foreign
13 government:
14
15 (i) May acquire, by grant, purchase, devise or
16 descent, real property, except as otherwise specified in
17 this section;
18
19 (ii) Shall not acquire agricultural land in
20 Wyoming;
21
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1 (iii) May own, hold, devise or alienate real
2 property the nonresident alien, foreign business or foreign
3 government is entitled to hold;
4
5 (iv) Shall incur the same duties and liabilities
6 associated with the ownership of real property as a citizen
7 and resident of the United States would incur.
8
9 (b) Except as otherwise provided in this article, no
10 nonresident alien, foreign business or foreign government,
11 or an agent, trustee or fiduciary thereof, shall purchase
12 or otherwise acquire agricultural land in this state. A
13 nonresident alien, foreign business or foreign government,
14 or any agent, trustee or fiduciary thereof that owns or
15 holds agricultural land in this state on July 1, 2024, may
16 continue to own or hold the agricultural land, but shall
17 not purchase or otherwise acquire additional agricultural
18 land in this state.
19
20 (c) A person who acquires agricultural land in
21 violation of this article or who fails to convert any land
22 to the purpose other than farming within five (5) years, as
23 provided for in this article, remains in violation of this
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1 article for as long as the person holds an interest in the
2 agricultural land.
3
4 (d) The restriction on the purchase or acquisition of
5 agricultural land by a nonresident alien, foreign business
6 or foreign government or any agent, trustee or fiduciary
7 thereof pursuant to subsection (b) of this section shall
8 not apply to the following:
9
10 (i) Agricultural land acquired by devise or
11 descent;
12
13 (ii) A bona fide encumbrance on agricultural
14 land taken for purposes of security;
15
16 (iii) Agricultural land acquired by a process of
17 law in the collection of debts, by a deed in lieu of
18 foreclosure, pursuant to a forfeiture of a contract for
19 deed or by any procedure for the enforcement of a lien or
20 claim on the agricultural land. Agricultural land acquired
21 under this paragraph shall be sold or otherwise disposed of
22 not later than two (2) years after title is transferred.
23 Pending the sale or disposition of the agricultural land,
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1 the agricultural land shall not be used for any purpose
2 other than farming except under lease to a person, trust,
3 corporation, partnership or other business entity not
4 subject to the restriction on agricultural land holdings
5 pursuant to subsection (b) of this section. Agricultural
6 land that has been acquired pursuant to this paragraph
7 shall not be acquired or utilized by the nonresident alien,
8 foreign business, foreign government or any agent, trustee
9 or fiduciary thereof under paragraphs (iv) or (v) of this
10 subsection;
11
12 (iv) Agricultural land acquired for research or
13 experimental purposes. Agricultural land is used for
14 research or experimental purposes if one (1) or more of the
15 following conditions apply:
16
17 (A) Research or experimental activities are
18 undertaken on the agricultural land, and commercial sales
19 of products produced from farming the agricultural land do
20 not occur or are incidental to the research or experimental
21 purposes. Commercial sales shall be considered incidental
22 to the research or experimental purposes when the sales are
23 less than twenty-five percent (25%) of the gross sales of
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1 the primary product of the research or experimental
2 purposes;
3
4 (B) The agricultural land is used for the
5 primary purpose of testing, developing or producing seeds
6 or plants for sale or resale to farmers as seed stock.
7 Grain or seeds that are not sold as seed stock is an
8 incidental sale and shall be less than twenty-five percent
9 (25%) of the gross sales of the primary product of the
10 research or experimental activities;
11
12 (C) The agricultural land is used for the
13 primary purpose of testing, developing or producing animals
14 for sale or resale to farmers as breeding stock when the
15 following conditions are satisfied:
16
17 (I) The nonresident alien, foreign
18 business or foreign government or any agent, trustee or
19 fiduciary of the alien, business or government shall not
20 hold the agricultural land other than under a lease
21 contract and the term of the lease shall be for not more
22 than ten (10) years and the lease shall not be renewed;
23
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1 (II) No term or condition of sale,
2 including resale, of seed stock or breeding stock shall
3 relate to the direct or indirect control by the lessee of
4 the breeding stock or breeding stock progeny subsequent to
5 the sale;
6
7 (III) The lessee shall hold not more
8 than six hundred forty (640) acres of agricultural land;
9
10 (IV) The lessee shall deliver a copy
11 of the lease to the secretary of state. The secretary of
12 state shall notify the lessee of receipt of the copy of the
13 lease.
14
15 (D) The agricultural land is used to sell
16 test animals. For a three (3) year period beginning on the
17 date that the lease takes effect, the gross sales for any
18 year shall not be greater than five hundred thousand
19 dollars ($500,000.00). After the three (3) year period
20 ends, the gross sales for any year shall not be greater
21 than twenty-five percent (25%) of the gross sales for that
22 year of the breeding stock or five hundred thousand dollars
23 ($500,000.00), whichever is less.
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2 (e) A nonresident alien, foreign business or foreign
3 government, or any agent, trustee or fiduciary thereof,
4 that lawfully owns more than three hundred twenty (320)
5 acres may continue to own or hold the agricultural land but
6 shall not purchase or otherwise acquire additional
7 agricultural land in this state except by devise or descent
8 from a nonresident alien. Pending the development of
9 agricultural land for a purpose other than farming, the
10 land shall not be used for farming except under lease to a
11 person, trust, corporation, partnership or other business
12 entity not subject to the restriction on agricultural land
13 holdings imposed by subsection (b) of this section.
14
15 (f) No nonresident alien, foreign business or foreign
16 government, or any agent, trustee or fiduciary thereof
17 shall transfer title to or interest in agricultural land to
18 a nonresident alien, foreign business or foreign
19 government, or any agent, trustee or fiduciary thereof
20 except by devise or descent.
21
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1 34-15-203. Development of agricultural land acquired
2 for nonfarming purposes; agricultural land acquired by
3 devise or descent; change of status; divestment.
4
5 (a) A nonresident alien, foreign business or foreign
6 government, or any agent, trustee or fiduciary thereof that
7 acquires agricultural land for an immediate or pending
8 purpose other than farming pursuant to W.S. 34-15-202(e)
9 shall convert the agricultural land to any purpose other
10 than farming not later than five (5) years after date of
11 the acquisition of the agricultural land.
12
13 (b) Except as otherwise provided in this subsection,
14 a nonresident alien, foreign business or foreign
15 government, or any agent, trustee or fiduciary thereof that
16 acquires agricultural land by devise or descent shall
17 divest itself of all rights, title and interest in the
18 agricultural land not later than two (2) years from the
19 date the agricultural land was acquired. This section shall
20 not require divestment of agricultural land that was
21 acquired by devise or descent from a nonresident alien if
22 the agricultural land was acquired by any nonresident alien
23 before July 1, 2024.
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1
2 (c) A business or person that purchases or otherwise
3 acquires agricultural land in this state except by devise
4 or descent and whose status changes so that it becomes a
5 foreign business or nonresident alien subject to this
6 article shall divest itself of all right, title and
7 interest in the agricultural land not later than two (2)
8 years from the date that the business or person's status
9 changed.
10
11 34-15-204. Registration.
12
13 (a) A nonresident alien, foreign business or foreign
14 government, or any agent, trustee or fiduciary thereof that
15 owns agricultural land within this state shall annually
16 register the agricultural land with the secretary of state
17 in accordance with this section.
18
19 (b) The registration shall be made not later than
20 sixty (60) days after any agricultural land was acquired or
21 September 1 of each year, whichever is later. The
22 registration shall be in the form and manner prescribed by
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1 rule of the secretary of state and shall contain the
2 following:
3
4 (i) The name of the owner of the agricultural
5 land;
6
7 (ii) The location and number of acres of the
8 agricultural land;
9
10 (iii) The name of any principal for whom the
11 agricultural land was purchased, if the owner of the
12 agricultural land or owner of the interest in agricultural
13 land is an agent, trustee or fiduciary of a nonresident
14 alien, foreign business or foreign government.
15
16 34-15-205. Reports.
17
18 (a) A nonresident alien, foreign business or foreign
19 government, or any agent, trustee or fiduciary thereof that
20 owns or holds agricultural land not subject to the
21 restrictions of W.S. 34-15-202(b) because the land was
22 acquired for a purpose other than farming, shall file a
23 report with the secretary of state no later than March 31
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1 of each year that the nonresident alien, foreign business
2 or foreign government holds or owns the agricultural land.
3 The report shall be in the form and manner prescribed by
4 the secretary of state and shall contain the following:
5
6 (i) The name of the owner of the agricultural
7 land;
8
9 (ii) The name of any principal for whom the
10 agricultural land was purchased if the owner of the
11 agricultural land is an agent, trustee or fiduciary of a
12 nonresident alien, foreign business or foreign government;
13
14 (iii) The location and number of acres of the
15 agricultural land;
16
17 (iv) The date the agricultural land was
18 acquired;
19
20 (v) The immediate or pending purpose other than
21 farming for which the agricultural land was acquired and
22 the status of the land's development for the purpose other
23 than farming;
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