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SECOND REGULAR SESSION
HOUSE BILL NO. 2277
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE JOBE.
5813H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o 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2 and 442.592, RSMo, are repealed and eight new sections enacted in lieu thereof, to be known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:
EXPLANA TION — 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.
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) "Foreig n adversary", a for eign government or for eign nongovernmental
17 person who is identified as a for eign 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, profes sional corporations, nonpr ofit
21 corporations, limited liability companies, partnerships, limited partnerships, [ and ]
2 2 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 for eign
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) "Forei gn terr orist organization", an organization that has been designated
27 or r edesignated by the United States Secr etary of State to have engaged in terro rist
28 activity as defined under 8 U.S.C. Section 1 182(a)(3)(B), as amended, or terr orism 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 1 189(a)(2)(A)(ii), as amended;
31 (8) "Land", any real pr operty 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 terr orist", an individual or entity that has been
37 designated by the Pr esident of the United States, the United States Secr etary of State, or
38 the United States Secr etary of the T reas ury , for which a Federal Register notice has
39 been made under Executive Order 13224, 31 CFR Part 594.
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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 fore ign 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 rev iew such sale or transfer
11 and, within thirty days of rec eipt, appr ove or rejec t 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 re quir ements of this section. Such sale or transfer
14 submitted for review shall be deemed a closed r ecord 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 for eign 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 agricultur e. The attorney general shall revie w each submission that the
31 attorney general rec eives 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 divestitur e under section 442.576.
35 (3) The department of agricultur e and the attorney general shall establish by rule
36 the requirements for submission and approval of requests under this subsection.
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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 ef fective 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 ef fective 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 ] fro m 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
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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 or ganized
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 or ganized
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 for eign 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;
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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 or ganized;
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 or ganized 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 effectiv e unless it has been promulgated pursuant to the provisions of
48 section 536.024 ] The department of agricultur e in cooperation with the attorney
49 general's office may pr omulgate all necessary rules and r egulations for the
5 0 administration of this section. Any rule or portion of a rule, as that term is defined
51 in section 536.010, that is creat ed under the authority delegated in this section shall
52 become effective only if it complies with and is subject to all of the provi sions 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 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently
56 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed 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
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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 or ganized;
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 of such an interest is not an individual or a government, the
77 nation in which the holder is created or or ganized and the principal place of business of the
78 holder;
79 (4) The type of interest in the agricultural land that is acquired or transferred by the
80 foreign person;
81 (5) A legal description of the agricultural land including the county in which the land
82 is located and the total acreage involved;
83 (6) The purchase price paid or received for , or any other consideration given or
84 received for , the interest;
85 (7) In any case in which the foreign person transfers the interest, the legal name and
86 the address of the person to whom the interest is transferred, and
87 (a) In any case in which the transferee is an individual, the citizenship of the
88 transferee; and
89 (b) In any case in which the transferee is not an individual or a government, the nation
90 in which the transferee is created or or ganized and the principal place of business of the
91 transferee;
92 (8) A declaration of the type of agricultural activity engaged in by the reporting
93 foreign person;
94 (9) In the case where any foreign person acquires an interest in agricultural land [ for
95 the purposes outlined in section 442.591 ], a declaration of intent as to the intended use of the
96 land.
97 [5. The director may promulgate rules and regulations pertaining to the form and
98 content of reports required by this section; the procedures for filing such reports; and the
99 analysis and distribution of findings and determinations based on the reports required by this
100 section.
101 6. ] 4. (1) The director , in consultation with the attorney general, shall:
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102 (a) Analyze the information obtained under this section and determine the effects of
103 foreign persons acquiring, transferring and holding agricultural land, particularly the ef fects
104 of such acquisitions, transfers and holdings on family farms and rural communities; and
105 (b) T ransmit to the governor and each house of the general assembly a report on the
106 director's findings and conclusions regarding each analysis and determination made under
107 paragraph (a) above;
108 (2) An analysis and determination shall be made, and a report on the [ director's ]
109 findings and conclusions regarding such analysis and determination transmitted[ :
110 (a) W ith respect to information obtained by the director under this section during the
111 six-month period following September 28, 1979, within nine months after such date;
112 (b) W ith respect to information obtained by the director under this section during the
113 twelve-month period following September 28, 1979, within fifteen months after such date;
114 and
115 (c) W ith respect to each calendar year following the twelve-month period referred to
116 in paragraph (b), ] within ninety days after the end of such calendar year .
117 [ 7. ] 5. Any foreign person who fails to file a report required under the provisions of
118 this section is liable to the state in civil penalty . The civil penalty shall be determined by the
119 circuit court in an amount not to exceed twenty-five percent of the fair market value of the
120 interest in agricultural land with respect to which the violations occurred on the date of the
121 assessment of the penalty . The attorney general shall recover the amount of any civil penalty
122 assessed in a civil action in the circuit court in the county in which any part of the land
123 involved is located.
442.594. 1. Except as pr ovided in section 442.586, beginning August 28, 2026, no
2 for eign adversary , for eign terr orist organization, or specially designated global terro rist
3 shall possess or acquir e, by grant, purch ase, devise, descent, or otherwise, land in this
4 state.
5 2. The attorney general shall institute an action in the cir cuit court of Cole
6 County or the circui t court in any county in which land possessed or acquired by a
7 for eign adversary , for eign terr orist organization, or specially designated global
8 terr orist, in violation of subsection 1 of this section, is located.
9 3. The attorney general shall file a notice of the pendency of the action with the
10 r ecorder of deeds of each county in which any portion of such land is located. If the
11 court finds that the land in question has been acquired in violation of subsection 1 of this
12 section, it shall enter an order so declaring and shall file a copy of the order with the
13 r ecorder of deeds of each county in which any portion of the of the land is located. The
14 court shall order the owner to divest himself or herself fr om ownership of the land. The
15 owner shall comply with the order within two years. The two-year limitation period
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16 shall be a covenant running with the title to the land against any alien grantee or
17 assignee. Any lands not divested within the time pr escribed shall be order ed sold by the
18 court at a public sale in the manner prescrib ed by law for the for eclosure of a mortgage
19 on r eal estate for default in payment.
20 4. Any violations under this section shall be reported to the attorney general of
21 Missouri and shall adher e to req uirements of the USA P A TRIOT Act of 2001, Pub. L.
22 107-56, as amended. The attorney general shall revi ew each submission that the
23 attorney general recei ves under this section and investigate such acquisition of land if
24 the attorney general believes such acquisition violates this section.
[ 442.591. The restrictions set forth in sections 442.560 to 442.592
2 shall not apply to agricultural land or any interest therein acquired by an alien
3 or foreign business for immediate or potential use in nonfarming purposes. An
4 alien or foreign business may hold such agricultural land in such acreage as
5 may be necessary to its nonfarm business operation; provided, however , that
6 pending the development of agricultural land for nonfarm purposes, such land
7 may not be used for farming except under lease to a family farm unit; a family
8 farm corporation defined in section 350.010; an alien or foreign business
9 which has filed with the director under sections 442.560 to 442.592; or except
10 when controlled through ownership, options, leaseholds or other agreements
11 by a corporation which has entered into an agreement with the United States of
12 America pursuant to the New Community Act of 1968 (T itle IV of the Housing
13 and Urban Development Act of 1969, 42 U.S.C. 3901-3914), as amended, or a
14 subsidiary or assignee of such a corporation. ]
✔
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