Missouri HB 1571: Changes the laws regarding the foreign ownership of agricultural land

Bill Text

SECOND REGULAR SESSION
HOUSE BILL NO. 1571
102ND GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE BOYD.
4299H.01I DANA RADEMAN MILLER, Chief Clerk
AN ACT
To repeal section 442.571, RSMo, and to enact in lieu thereof one new section relating to
foreign ownership of agricultural land.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Section 442.571, RSMo, is repealed and one new section enacted in lieu
2 thereof, to be known as section 442.571, to read as follows:
442.571. 1. Except as provided in sections 442.586 and 442.591, [no alien or foreign
2 businessshallacquirebygrant,purchase,devise,descentorotherwiseagriculturallandinthis
3 state if the total aggregate alien and foreign ownership of agricultural acreage in this state
4 exceeds one percent of the total aggregate agricultural acreage in this state. A sale or transfer
5 of any agricultural land in this state shall be submitted to the director of the department of
6 agriculture for review in accordance with subsection 3 of this section only if there is no
7 completed Internal Revenue Service Form W-9 signed by the purchaser] beginning August
8 28, 2024, no alien or foreign business shall acquire by grant, purchase, devise, descent,
9 or otherwise any agricultural land in this state. Any alien or foreign business who
10 acquiredanyagriculturallandinthisstatepriortoAugust28,2024,shallnotgrant,sell,
11 or otherwise transfer such agricultural land to any other alien or foreign business on or
12 after August 28, 2024. No person may hold agricultural land as an agent, trustee, or other
13 fiduciary for an alien or foreign business in violation of sections 442.560 to 442.592,
14 provided, however, that no security interest in such agricultural land shall be divested or
15 invalidated by such violation.
16 2. Any alien or foreign business who acquires agricultural land in violation of
17 sections442.560to442.592remainsinviolationofsections442.560to442.592foraslongas
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.

18 [heorshe]thealienorforeignbusinessholdsaninterestintheland,provided,however,that
19 nosecurityinterestinsuchagriculturallandshallbedivestedorinvalidatedbysuchviolation.
20 3. Subject to the provisions of subsection 1 of this section, [such] all proposed
21 [acquisitions] transfers on or after August 28, 2024, by grant, purchase, devise, descent, or
22 otherwise of any interest in agricultural land held by any alien or foreign business in this
23 state shall be submitted to the department of agriculture to determine whether such
24 [acquisition] transfer of agricultural land is conveyed in accordance with the [one percent
25 restriction on the total aggregate] prohibition on alien and foreign ownership of agricultural
26 land in this state under this section. The department shall establish by rule the requirements
27 for submission and approval of requests under this subsection.
28 4. (1) A foreign business that holds any interest in agricultural land shall divest
29 such interest in such agricultural land before August 28, 2029.
30 (2) The department of agriculture shall:
31 (a) Compile a list of agricultural land in which a foreign business holds an
32 interest;
33 (b) Notify each such foreign business before January 1, 2025, that such foreign
34 business is required under this section to divest any interest in agricultural land before
35 August 28, 2029, and that failure to divest such interest shall be reported as a violation
36 under section 442.576;
37 (c) Track the divesting of all interests in agricultural land listed under this
38 subsection; and
39 (d) On August 28, 2029, report any failure to divest such interest as a violation
40 under section 442.576.
41 (3) This subsection shall not be construed to require any foreign business to
42 divest such interest in agricultural land for less than fair market value.
43 (4) No foreign business holding an interest in agricultural land that appears on
44 the department's list compiled under subdivision (2) of this subsection shall be reported
45 foraviolationunder442.576unlesssuchforeignbusinessfailstodivestandcontinuesto
46 hold such interest on August 28, 2029.
47 5. Any rule or portion of a rule, as that term is defined in section 536.010, that is
48 created under the authority delegated in this section shall become effective only if it complies
49 with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028.
50 This section and chapter 536 are nonseverable and if any of the powers vested with the
51 general assembly pursuant to chapter 536 to review, to delay the effective date, or to
52 disapprove and annul a rule are subsequently held unconstitutional, then the grant of
HB 1571 2

53 rulemakingauthorityandanyruleproposedoradoptedafterAugust28,2014,shallbeinvalid
54 and vo