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EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
SECOND REGULAR SESSION
SENATE BILL NO. 1248
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR GREGORY (15).
5077S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 442.566, RSMo, and to enact in lieu thereof two new sections relating to
prohibiting the acquisition and ownership of real property by certain foreign interests,
with penalty provisions.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 442.566, RSMo, is repealed and two new 1
sections enacted in lieu thereof, to be known as sections 2
442.566 and 442.568, to read as follows:3
442.566. As used in sections 442.560 to 442.591, 1
unless the context clearly requires otherwise, the following 2
terms mean: 3
(1) "Agricultural land", any tract of land in this 4
state consisting of more than five acres, whether inside or 5
outside the corporate limits of any municipality, which is 6
capable, without substantial modification to the character 7
of the land, of supporting an agricultural enterprise, 8
including but not limited to land used for the production of 9
agricultural crops or fruit or other horticultural products, 10
or for the raising or feeding of animals for the production 11
of livestock or livestock products, poultry or poultry 12
products, or milk or dairy products. Adjacent parcels of 13
land under the same ownership shall be deemed to be a single 14
tract; 15
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(2) "Alien", any person who is not a citizen of the 16
United States and who is not a resident of the United States 17
or of some state, territory, trusteeship, or protectorate of 18
the United States; 19
(3) "Company", a sole proprietorship, organization, 20
association, corporation, partnership, joint venture, 21
limited partnership, limited liability partnership, or 22
limited liability company, including a wholly-owned 23
subsidiary, majority-owned subsidiary, parent company, or 24
affiliate of those entities or business associations, that 25
exists to make a profit; 26
(4) "Designated country", any of the following: 27
(a) A country identified by the United States Director 28
of National Intelligence as a country that poses a risk to 29
the national security of the United States in at least one 30
of the three most recent annual threat assessments of the 31
U.S. intelligence community issued pursuant to Section 108B, 32
federal National Security Act of 1947 (50 U.S.C. Section 33
3043b); or 34
(b) A country designated by the governor pursuant to 35
section 442.568; 36
(5) "Director", the director of the Missouri 37
department of agriculture; 38
(6) "Domiciled", having established a place as an 39
individual's true, fixed, and permanent home and principal 40
residence to which the individual intends to return whenever 41
absent; 42
[(4)] (7) "Family members" includes all persons within 43
the ninth degree of consanguinity, or the living or 44
surviving spouse of any person within the ninth degree of 45
consanguinity; 46
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[(5)] (8) "Foreign business", any business entity 47
whether or not incorporated, including but not limited to 48
corporations, partnerships, limited partnerships, and 49
associations, in which a controlling interest is owned by 50
aliens. In determining ownership of a foreign business, 51
legal fictions such as corporate form or trust shall be 52
disregarded; 53
(9) "Organization", a business trust, real estate 54
investment trust, joint stock company, cooperative, 55
association, bank, insurance company, credit union, savings 56
and loan association, or other organization, regardless of 57
whether the organization is for-profit, nonprofit, domestic, 58
or foreign; 59
(10) "Real property", includes the following: 60
(a) Agricultural land; 61
(b) An improvement located on agricultural land; 62
(c) Commercial property; 63
(d) Industrial property; 64
(e) Groundwater; 65
(f) Residential property; 66
(g) A mine or quarry; 67
(h) A mineral in place; 68
(i) Standing timber; or 69
(j) Water rights; 70
[(6)] (11) "Residence", the place of general abode; 71
the place of general abode of a person means his principal, 72
actual dwelling place in fact, where he intends to remain 73
permanently or for an indefinite period of time at least; 74
(12) "Transnational criminal organization", two or 75
more persons: 76
(a) Who are citizens of or domiciled in a designated 77
country; 78
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(b) With an identifiable leadership who operate 79
internationally; and 80
(c) Who continuously or regularly associate to engage 81
in corruption, violence, or the commission of other criminal 82
activities. 83
442.568. 1. The following may not purchase or 1
otherwise acquire an interest in real property in this state: 2
(1) A governmental entity of a designated country; 3
(2) A company or organization that is: 4
(a) Headquartered in a designated country; 5
(b) Directly or indirectly held or controlled by the 6
government of a designated country; 7
(c) Owned by or the majority of stock or other 8
ownership interest of which is held or controlled by 9
individuals described by subdivision (4) of this subsection; 10
or 11
(d) Designated by the governor under subsection 2 of 12
this section; 13
(3) A company or organization that is owned by or the 14
majority of stock or other ownership interest of which is 15
held or controlled by a company or organization described by 16
subdivision (2) of this subsection; or 17
(4) An individual who: 18
(a) Is domiciled in a designated country, except that 19
an individual who is lawfully present and residing in the 20
United States at the time the individual purchases or 21
acquires the interest may purchase or acquire an interest in 22
a residential property that is intended for use as an 23
individual's residence homestead; 24
(b) Is a citizen of a designated country who is 25
domiciled outside of the United States in a country: 26
a. Other than a designated country; and 27
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b. For which the individual has not completed the 28
naturalization process for becoming a citizen of that 29
country; 30
(c) Is a citizen of a designated country who is 31
unlawfully present in the United States; 32
(d) Is: 33
a. A citizen of a country other than the United 34
States; and 35
b. Acting as an agent or on behalf of a designated 36
country; or 37
(e) Is a member of the ruling political party or any 38
subdivision of the ruling political party in a designated 39
country. 40
2. (1) The governor, after consultation with the 41
director of the department of public safety, may, for 42
purposes of subsection 1 of this section: 43
(a) Determine whether the purchase or acquisition of 44
an interest in real property in this state by an individual 45
company, organization, or other entity poses a risk to the 46
national security of the public; and 47
(b) Based on a determination made under paragraph (a) 48
of this subdivision: 49
a. Designate a country or a transnational criminal 50
organization or other entity as subject to this section; or 51
b. Remove a designation made pursuant to subparagraph 52
a of this paragraph. 53
(2) The designation or removal of the designation made 54
pursuant to this subsection applies only to the purchase or 55
acquisition of an interest in real property that occurs on 56
or after the date the governor designates or removes the 57
designation. 58
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3. (1) The attorney general shall establish 59
procedures to examine a purchase or acquisition of an 60
interest in real property and determine whether an 61
investigation of a possible violation of this section is 62
warranted. 63
(2) If the attorney general determines that an 64
investigation of a purchase or acquisition of an interest in 65
real property is warranted under this section, the attorney 66
general shall investigate the purchase or acquisition of an 67
interest in real property and determine whether a violation 68
of this section occurred. 69
(3) If the attorney general determines that a 70
violation of this section occurred, the attorney general may: 71
(a) Bring an in rem action against real property to 72
enforce this section in a circuit court in the county where 73
all or part of the real property that is the subject of the 74
violation is located; and 75
(b) Refer the matter to the appropriate local, state, 76
or federal law enforcement agency. 77
(4) The attorney general shall record notice of an 78
action brought under subdivision (3) of this subsection in 79
the real property records of each county where any part of 80
the real property subject to the action is located. 81
(5) Except for an acquisition of a leasehold interest, 82
a purchase or acquisition of an interest in real property in 83
violation of this section is not void because of the 84
violation, and the validity or enforceability by any person 85
of a purchase contract for or the conveyance of an interest 86
in the real property is not otherwise affected by the 87
violation. 88
4. (1) If the circuit court finds that the real 89
property subject to an action brought pursuant to this 90
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section was purchased or an interest in the real property 91
was otherwise acquired in violation of this section, the 92
court shall: 93
(a) Enter an order that: 94
a. States the court's finding; 95
b. Orders the divestment of the individual's or 96
entity's interest in the real property; and 97
c. Appoints a receiver to: 98
(i) Divest the individual's or entity's interest in 99
the real property through sale, termination of a leasehold, 100
or other disposition of the interest; and 101
(ii) Manage and control the real property pending the 102
sale or other disposition of the interest in the real 103
property; and 104
(b) Refer the matter to the appropriate prosecuting 105
attorney for criminal prosecution of any appropriate 106
criminal offense in connection with the transaction. 107
(2) On appointment and qualification, a receiver 108
appointed under this section has the powers and duties of a 109
receiver pursuant to chapter 515. 110
(3) Proceeds from the sale or other disposition of an 111
interest in real property under an order described by 112
subdivision (1) of this subsection shall be applied first to 113
satisfy any existing liens on the property and then to pay 114
the reasonable costs incurred by the state in enforcing this 115
section. The remaining proceeds shall be remitted to the 116
individual or entity that purchased or otherwise acquired 117
the interest in violation of this section. 118
5. (1) A person commits the offense of unlawful 119
purchase of real property by an alien if the person: 120
(a) Is an individual described by subdivision (4) of 121
subsection 1 of this section; and 122
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(b) Intentionally or knowingly purchases or otherwise 123
acquires an interest in real property in this state in 124
violation of this section. 125
(2) The offense of unlawful purchase of real property 126
by an alien is a class E felony. 127
6. (1) The attorney general may bring an action in 128
the name of the state against a company, organization, or 129
other entity that violates this section. 130
(2) A company, organization, or other entity that a 131
court determines in an action brought pursuant to this 132
section to have violated this section is liable to the state 133
for a civil penalty equal to the greater of: 134
(a) Two hundred fifty thousand dollars; or 135
(b) Fifty percent of the market value of the interest 136
in real property that is the subject of the violation. 137
✓