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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 1
2025-2026
Representatives King, Klopfenstein
Cosponsors: Representatives Barhorst,
Bird, Brennan, Claggett, Click, Creech, Thomas, D., Deeter,
Demetriou, Jones, Dovilla, Ferguson, Fischer, Fowler Arthur,
Ghanbari, Gross, Hall, T., Hiner, Holmes, Hoops, Daniels, Thomas, J.,
John, Miller, K., Ritter, Kishman, Lampton, Lear, Dean, Lorenz,
Johnson, Mathews, A., Mathews, T., McClain, Miller, M., Mullins,
Newman, Oelslager, Pizzulli, Plummer, Ray, Richardson, Robb Blasdel,
Santucci, Rogers, Schmidt, Stewart, Swearingen, Young, Williams,
Willis, Workman, Humphrey, Sigrist
A
BILL
To
amend sections 319.202, 5301.256, and 5323.02 of the Revised Code
to
modify the law that prohibits certain governments, businesses, and
individuals from acquiring certain real property and to name this act
the Ohio Property Protection Act.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 319.202, 5301.256, and 5323.02 of the Revised Code be
amended to read as follows:
Sec.
319.202.
Before
the county auditor indorses any real property conveyance or
manufactured or mobile home conveyance presented to the auditor
pursuant to section 319.20 of the Revised Code or registers any
manufactured or mobile home conveyance pursuant to section 4503.061
of the Revised Code, the grantee or the grantee's representative
shall submit, either electronically or three written copies of, a
statement, in the form prescribed by the tax commissioner, and other
information as the county auditor may require, declaring the value of
real property or manufactured or mobile home conveyed, except that
,
subject to division (C) of this section,
when the transfer is exempt under division (G)(3) of section 319.54
of the Revised Code only a statement of the reason for the exemption
shall be required. Each statement submitted under this section shall
contain the information required under divisions (A) and (B) of this
section
and, if the statement involves the transfer of protected property,
the affirmations required by division (C) of this section
.
(A)
Each statement submitted under this section shall either:
(1)
Contain an affirmation by the grantee that the grantor has been asked
by the grantee or the grantee's representative whether to the best of
the grantor's knowledge either the preceding or the current year's
taxes on the real property or the current or following year's taxes
on the manufactured or mobile home conveyed will be reduced under
division (A) of section 323.152 or under section 4503.065 of the
Revised Code and that the grantor indicated that to the best of the
grantor's knowledge the taxes will not be so reduced; or
(2)
Be accompanied by a sworn or affirmed instrument stating:
(a)
To the best of the grantor's knowledge the real property or the
manufactured or mobile home that is the subject of the conveyance is
eligible for and will receive a reduction in taxes for or payable in
the current year under division (A) of section 323.152 or under
section 4503.065 of the Revised Code and that the reduction or
reductions will be reflected in the grantee's taxes;
(b)
The estimated amount of such reductions that will be reflected in the
grantee's taxes;
(c)
That the grantor and the grantee have considered and accounted for
the total estimated amount of such reductions to the satisfaction of
both the grantee and the grantor. The auditor shall indorse the
instrument, return it to the grantee or the grantee's representative,
and provide a copy of the indorsed instrument to the grantor or the
grantor's representative.
(B)
Each statement submitted under this section shall either:
(1)
Contain an affirmation by the grantee that the grantor has been asked
by the grantee or the grantee's representative whether to the best of
the grantor's knowledge the real property conveyed qualified for the
current agricultural use valuation under section 5713.30 of the
Revised Code either for the preceding or the current year and that
the grantor indicated that to the best of the grantor's knowledge the
property conveyed was not so qualified; or
(2)
Be accompanied by a sworn or affirmed instrument stating:
(a)
To the best of the grantor's knowledge the real property conveyed was
qualified for the current agricultural use valuation under section
5713.30 of the Revised Code either for the preceding or the current
year;
(b)
To the extent that the property will not continue to qualify for the
current agricultural use valuation either for the current or the
succeeding year, that the property will be subject to a recoupment
charge equal to the tax savings in accordance with section 5713.34 of
the Revised Code;
(c)
That the grantor and the grantee have considered and accounted for
the total estimated amount of such recoupment, if any, to the
satisfaction of both the grantee and the grantor. The auditor shall
indorse the instrument, forward it to the grantee or the grantee's
representative, and provide a copy of the indorsed instrument to the
grantor or the grantor's representative.
(C)
Each
statement submitted under this section involving the transfer of
protected property shall contain both of the following:
(1)
An affirmation by the grantee as to whether the grantee is prohibited
from purchasing or otherwise acquiring protected property under
section 5301.256 of the Revised Code;
(2)
An affirmation by the grantor as to whether the grantor is prohibited
from purchasing or otherwise acquiring protected property under
section 5301.256 of the Revised Code and, if so, whether the
protected property that is the subject of the transfer was acquired
before the effective date of this amendment, before the date the
grantor became subject to division (B) of section 5301.256 of the
Revised Code, or pursuant to an exemption under division (D) of that
section.
(D)(1)
The
grantor shall pay the
fee
following:
(a)
The fee
required
by division (G)(3) of section 319.54 of the Revised Code;
and, in
(b)
In
the
event the board of county commissioners of the county has levied a
real property or a manufactured home transfer tax pursuant to Chapter
322. of the Revised Code, the amount required by the real property or
manufactured home transfer tax so levied.
If
(2)
If
the
conveyance is exempt from the fee provided for in division (G)(3) of
section 319.54 of the Revised Code and the tax, if any, levied
pursuant to Chapter 322. of the Revised Code, the reason for such
exemption shall be shown on the statement.
"Value"
means, in the case of any deed or certificate of title not a gift in
whole or part, the amount of the full consideration therefor, paid or
to be paid for the real estate or manufactured or mobile home
described in the deed or title, including the amount of any mortgage
or vendor's lien thereon. If property sold under a land installment
contract is conveyed by the seller under such contract to a third
party and the contract has been of record at least twelve months
prior to the date of conveyance, "value" means the unpaid
balance owed to the seller under the contract at the time of the
conveyance, but the statement shall set forth the amount paid under
such contract prior to the date of conveyance. In the case of a gift
in whole or part, "value" means the estimated price the
real estate or manufactured or mobile home described in the deed or
certificate of title would bring in the open market and under the
then existing and prevailing market conditions in a sale between a
willing seller and a willing buyer, both conversant with the property
and with prevailing general price levels.
(3)
No
person shall willfully falsify the value of property conveyed.
(D)
(E)
The
auditor shall indorse each conveyance on its face to indicate the
amount of the conveyance fee and compliance with this section and if
the property is residential rental property include a statement that
the grantee shall file with the county auditor the information
required under division (A) or (C) of section 5323.02 of the Revised
Code. The auditor shall retain the original copy of the statement of
value, forward to the tax commissioner one copy on which shall be
noted the most recent assessed value of the property, and furnish one
copy to the grantee or the grantee's representative.
(E)
(F)(1)
The auditor shall not indorse a conveyance of protected property if
the statement submitted under this section does not include both of
the affirmations required by division (C) of this section.
(2)
The auditor shall refer information about a conveyance of protected
property to the county sheriff for investigation and enforcement
under division (G) of section 5301.256 of the Revised Code if either
of the following apply:
(a)
The grantee affirms, or the auditor has reason to believe, that the
grantee is prohibited from purchasing or otherwise acquiring
protected property under section 5301.256 of the Revised Code.
(b)
The grantor affirms, or the auditor has reason to believe, that the
grantor has acquired protected property in violation of section
5301.256 of the Revised Code.
(G)
The auditor shall not refuse to indorse a conveyance for either of
the reasons specified in division (F)(2) of this section.
(H)
In
order to achieve uniform administration and collection of the
transfer fee required by division (G)(3) of section 319.54 of the
Revised Code, the tax commissioner shall adopt
and
promulgate
rules
for the administration and enforcement of the levy and collection of
such fee.
(F)
(I)
As
used in this section
,
"residential
:
(1)
"Agricultural land" and "protected property" have
the same meanings as in section 5301.256 of the Revised Code.
(2)
"Residential
rental
property" has the same meaning as in section 5323.01 of the
Revised Code.
(3)(a)
"Value" means, in the case of any deed or certificate of
title not a gift in whole or part, the amount of the full
consideration therefor, paid or to be paid for the real estate or
manufactured or mobile home described in the deed or title, including
the amount of any mortgage or vendor's lien thereon.
(b)
If property sold under a land installment contract is conveyed by the
seller under such contract to a third party and the contract has been
of record at least twelve months prior to the date of conveyance,
"value" means the unpaid balance owed to the seller under
the contract at the time of the conveyance, but the statement shall
set forth the amount paid under such contract prior to the date of
conveyance.
(c)
In the case of a gift in whole or part, "value" means the
estimated price the real estate or manufactured or mobile home
described in the deed or certificate of title would bring in the open
market and under the then existing and prevailing market conditions
in a sale between a willing seller and a willing buyer, both
conversant with the property and with prevailing general price
levels.
Sec.
5301.256.
(A)
As used in this section:
(1)
"Agriculture" has the same meaning as in section 1.61 of
the Revised Code.
(2)
"Agricultural land" means land suitable for use in
agriculture and includes water on and upon and air space over and
above the land and natural products and deposits that are unsevered
from the land.
(3)
"Person" includes
all
of the following:
(a)
Individuals;
(b)
Firms
individuals,
businesses, countries, criminal enterprises, gangs, cartels,
organizations, and governments.
(4)
"Business" includes firms
,
companies, business trusts, estates, trusts, sole proprietorships,
partnerships, general partnerships, limited liability companies,
associations, corporations, and any other
legal,
business
,
or commercial
entities
;
(c)
Governments
.
(5)
"Government" means a government
other
than the government of the United States, its states, subdivisions,
territories, or possessions
;
(d)
Legal or commercial entities, organizations, joint ventures, and
nonprofits
.
(6)
"Real property" means land and improvements to land and
includes water on and upon and air space over and above the land and
natural products and deposits that are unsevered from the land.
(7)
"Protected property" means real property in this state that
is any of the following:
(a)
Agricultural land;
(b)
Located within a twenty-five mile radius of any installation under
the jurisdiction of the armed forces, as defined in section 5903.01
of the Revised Code, such as a military base, a camp, or an airport;
(c)
Located within a twenty-five mile radius of a critical infrastructure
facility, as defined in section 2911.21 of the Revised Code.
(8)
"Control" means the authority, by contract or by law, to
direct the affairs and day-to-day operations of a business without
the consent of any other person.
(9)
"Own" means possession of more than fifty per cent of the
stock, equity, or other ownership interest of a business.
(10)
"Foreign adversary" means a country listed on the registry
published by the secretary of state under division (H) of this
section.
(B)(1)
(B)
On
or after the effective date of this
section,
no person listed in the registry published by the secretary of state
under division (G) of this section, and no agent, trustee, or
fiduciary of such a person
amendment
,
none
of the following persons
shall
,
directly or indirectly,
purchase or otherwise acquire
agricultural land in this state
protected property:
(1)
A person listed on the registry published by the secretary of state
under division (H) of this section;
(2)
A government of a foreign adversary;
(3)
An individual who is a citizen of a foreign adversary, regardless of
whether that same individual is also a citizen or national of one or
more other countries, other than the United States, that are not
foreign adversaries;
(4)
A business that is headquartered in a foreign adversary;
(5)
A business that is directly or indirectly owned or controlled by one
or more persons described in divisions (B)(1) to (4) of this section,
or an agent, fiduciary, or trustee of such persons;
(6)
Except as otherwise provided in division (D)(3) of this section, an
agent, fiduciary, or trustee of a person described in divisions
(B)(1) to (5) of this section
.
(2)
(C)
A
person
,
agent, trustee or fiduciary
subject to division
(B)(1)
(B)
of
this section that
directly
or indirectly
owns
or holds
agricultural
land in this state as described in division (B)(1) of this section
protected
property
before
the effective date of this
section
amendment,
may
continue to own or hold the
agricultural
land
protected
property
,
but shall not purchase or otherwise acquire
,
directly or indirectly,
additional
agricultural
land in this state that is subject to the restriction in division
(B)(1) of this section
protected
property,
unless
an exception described in division
(C)
(D)
of
this section applies.
(C)
(D)
The
restriction
on acquiring agricultural land
restrictions
set
forth in division
(B)(1)
(B)
of
this section
does
do
not
apply to any of the following:
(1)
Agricultural
land
Protected
property
acquired
by devise or descent.
However
Except
as otherwise provided in division (C) of this section
,
a person
listed
in the registry published by the secretary of state under division
(G)
subject
to division (B)
of
this section
,
or an agent, trustee, or fiduciary thereof,
that
directly or indirectly
acquires
the
agricultural land
protected
property
,
or
an
a
direct or indirect
interest
in
agricultural
land,
protected
property
by devise or descent
on
or after the effective date of this section
shall
divest
itself
of
all right, title, and interest in the
agricultural
land
protected
property, whether direct or indirect,
within
two years
from
after
the
date of acquisition.
(2)
Agricultural
land
Protected
property
that
is acquired
,
directly or indirectly,
by a process of law in the collection of debts, by a deed in lieu of
foreclosure, pursuant to a forfeiture of a contract for deed, or by
any procedure for the enforcement of a lien or claim on the
agricultural
land
protected
property
,
whether created by mortgage or otherwise.
Agricultural
land
Except
as otherwise provided in division (C) of this section, protected
property
so
acquired shall be sold or otherwise disposed of within two years
after title is transferred.
Agricultural
If
the protected property is agricultural
land,
pending
the
sale
or disposition,
the
land
shall
not be used for any purpose other than agriculture, and the land
shall not be used for agriculture under lease to an individual,
trust, corporation, partnership, or other business entity subject to
the restrictions under division
(B)(1)
(B)
of
this section.
(D)
(3)
Protected property directly or indirectly acquired by agent,
fiduciary, or trustee of a person described in divisions (B)(1) to
(5) of this section acting in the agent's, fiduciary's, or trustee's
personal capacity, if both of the following apply:
(a)
The agent, fiduciary, or trustee is not a person described in
divisions (B)(1) to (5) of this section;
(b)
The agent, fiduciary, or trustee is not purchasing or otherwise
acquiring the property to circumvent the restrictions prescribed by
this section.
(4)
Protected property directly or indirectly acquired by an individual
who is a United States citizen or national, unless that individual is
purchasing or otherwise acquiring the property as an agent,
fiduciary, or trustee of a person described in divisions (B)(1) to
(5) of this section.
(E)
A
person
listed
in the registry published by the secretary of state under
subject
to
division
(G)
(B)
of
this section
,
or an agent, trustee, or fiduciary of such a person,
shall not
directly or indirectly
transfer title to or
an
interest
in
agricultural
land
protected
property
to
another person
listed
in that registry, or an agent, trustee, or fiduciary thereof
subject
to that division
,
except
by devise or descent
unless
an exception described in division (D) of this section applies
.
(E)
(F)
A
person
or
an agent, trustee, or fiduciary
that
directly
or indirectly
purchases
or otherwise acquires
agricultural land in this state described in division (B)(1) of this
section, other than by devise or descent, after the effective date of
this section
protected property
,
and that
is
subsequently
added
to the registry published by the secretary of state under
becomes
subject to
division
(G)
(B)
of
this section,
shall
divest itself of all right, title, and interest in the agricultural
land within two years from the date the person is added to the
registry
may
continue to own or hold the protected property but shall not purchase
or otherwise acquire, directly or indirectly, additional protected
property unless an exception described in division (D) of this
section applies
.
(F)(1)
(G)(1)
If
the
secretary of state
a
county auditor
finds
or has reason to believe
that a person
listed on the registry published under division (G) of this section
,
or
an
agent,
trustee, or fiduciary
thereof,
subject
to division (B) of this section
has
acquired, or holds title to, or interest in,
agricultural
land
protected
property
in
this state in violation of this section, the
secretary
of state
auditor
shall
report
the violation to the attorney general
notify
the county sheriff of each county in which the protected property is
located. The county sheriff shall investigate the allegation. If the
protected property is located in more than one county, the county
sheriffs of those counties may investigate the allegation
collaboratively
.
(2)
Upon
receipt
of the report from the secretary of state, the attorney general
concluding
the investigation, if the county sheriff determines that a violation
has occurred, the county sheriff shall refer the violation to the
county prosecutor. Upon receiving such a referral, the county
prosecutor
shall
initiate
commence
an
action in the court of common pleas of
any
the
county
in which the agricultural land is located seeking relief in
accordance with this section
.
If the
agricultural
land
protected
property
is
located in more than one county,
or adjoining tracts of agricultural land are located in more than one
county,
rather
than commencing a separate action in each such county, the county
prosecutors may commence one consolidated action in
the
county in which the majority of the
agricultural
land
territory
of the protected property
is
located
shall have
.
In a consolidated action, the court of common pleas of the county in
which the majority of the territory of the protected property is
located has
territorial
jurisdiction over
agricultural
land
all
protected property
that
is the subject of the action.
The
attorney general may initiate an action in the court of common pleas
of more than one county, if necessary, in which case, the court of
common pleas in that county shall have jurisdiction over the action
in matters as it relates to the portion of the agricultural land that
is located in that county.
(3)
The
attorney general
Once
the action is commenced, the county prosecutor
shall
file a notice of the pendency of the action with the county recorder
of each county in which
any
of
the
agricultural
land
protected
property subject to the action
is
located.
(4)
If the court finds that the
agricultural
land
protected
property
in
question has been acquired or held in violation of this section, it
shall do all of the following:
(a)
Enter an order so declaring;
(b)
File a copy of the order with the county recorder of each county in
which
any
portion of
the
agricultural
land
protected
property
is
located;
(c)
Declare
the agricultural land escheated to the state;
(d)
Order
that the
escheated
agricultural land
protected
property
be
sold pursuant to Chapter 2329. of the Revised Code in the same manner
as a foreclosure on a mortgage, except that there shall be no
opportunity for redemption under section 2329.33 of the Revised Code.
(5)
Upon receiving an order under division
(F)(4)
(G)(4)
of
this section, the clerk of the court shall notify the governor that
the
title
to the agricultural land
protected
property
is
vested
in the state
to
be sold
by
decree of the court. After the sale, the proceeds
of
the sale
shall
be paid as follows:
(a)
The
proceeds shall first be used
First,
to
pay court costs related to the action or actions
initiated pursuant to division (F)(2) of this section
;
(b)
The
remaining proceeds, if any, shall be paid
Second,
to bona fide lien holders, in their order of priority, except for
liens that under the terms of the sale are to remain on the property;
(c)
Third,
to
the person whose agricultural land escheated, but only in an amount
not exceeding the actual cost paid by the person for that
agricultural land;
(c)
The proceeds remaining after payments have been made pursuant to
divisions (F)(5)(a) and (b) of this section shall be paid
to
the general fund of each county in which the
agricultural
land
protected
property
is
located, proportionally, based on the percentage of the territory
located in each county.
(G)
(H)(1)
The
secretary of state shall compile and
periodically
update
at
least one time every six months
a
registry of
foreign
adversaries and other
persons
that, based on the best information available to the secretary of
state, constitute a threat to the agricultural production
,
critical infrastructure, security, or military defense
of this state, or the United States
,
if permitted to acquire agricultural land described in division
(B)(1) of this section
.
(2)
The
registry shall be published on the secretary of state's web site.
(3)
The
secretary of state shall consult all of the following in compiling
the registry:
(1)
(a)
The list of persons determined
to
be foreign adversaries
by
the secretary of commerce of the United States
under
15 C.F.R. 7.4
to
have engaged in a long-term pattern or serious instances of conduct
significantly adverse to the national security of the United States
or the security and safety of United States persons and, therefore,
to constitute foreign adversaries for the purposes of Executive Order
13873, issued by the president of the United States on May 15, 2019
;
(2)
(b)
The terrorist exclusion list compiled by the secretary of state of
the United States in consultation with the attorney general of the
United States under 8 U.S.C. 1182;
(3)
(c)
The list of countries determined by the secretary of state of the
United States that have repeatedly provided support for acts of
international terrorism under 50 U.S.C. 4813(c) and 22 U.S.C.
2780(d);
(4)
(d)
The list of individual and entities designated by, or in accordance
with Executive Order 13224, issued by the president of the United
States on September 23,
2021
2001
,
or Executive Order 13268, issued by the president of the United
States on July 2, 2002.
(H)
(4)
The secretary of state shall not include on the registry any person
that does not appear on at least one of the federal lists described
in division (H)(3) of this section.
(I)(1)
No person is required to determine or inquire whether another person
is or may be subject to division (B) of this section unless the
person is either:
(a)
Subject to division (B) of this section;
(b)
A county auditor, county sheriff, county prosecutor, or trier of fact
of a court of common pleas acting in the person's official capacity
as provided in this section or section 319.302 of the Revised Code;
(2)
A person that is not subject to division (B) of this section bears no
liability under this section.
(3)
No title to an interest in real property is invalid or subject to
divestment by reason of a violation of this section by any former
owner or other person holding or owning a former interest in such
real property.
(J)
The
purpose of establishing the restrictions as set forth in this section
is to recognize that the state has a substantial and compelling
interest in protecting its agricultural production
,
critical infrastructure, security, and military defense
.
Sec.
5323.02.
(A)
An owner of residential rental property shall file with the county
auditor of the county in which the property is located the following
information:
(1)
The name, address, and telephone number of the owner;
(2)
If the residential rental property is owned by a trust, business
trust, estate, partnership, limited partnership, limited liability
company, association, corporation, or any other business entity, the
name, address, and telephone number of the following:
(a)
A trustee, in the case of a trust or business trust;
(b)
The executor or administrator, in the case of an estate;
(c)
A general partner, in the case of a partnership or a limited
partnership;
(d)
A member, manager, or officer, in the case of a limited liability
company;
(e)
An associate, in the case of an association;
(f)
An officer, in the case of a corporation;
(g)
A member, manager, or officer, in the case of any other business
entity.
(3)
The street address and permanent parcel number of the residential
rental property.
(B)
The information required under division (A) of this section shall be
filed and maintained on the tax list or the real property record.
(C)
An owner of residential rental property shall update the information
required under division (A) of this section within sixty days after
any change in the information occurs.
(D)
The county auditor shall provide an owner of residential rental
property located in a county that has a population of more than two
hundred thousand according to the most recent decennial census with
notice pursuant to division (B) of section 323.131 of the Revised
Code of the requirement to file the information required under
division (A) of this section and the requirement to update that
information under division (C) of this section.
(E)
The owner of residential real property shall comply with the
requirements under divisions (A) and (C) of this section within sixty
days after receiving the notice provided under division (D) of this
section, division
(D)
(E)
of section 319.202, or division (B) of section 323.131 of the Revised
Code.
(F)
Any agent designated by the owner to manage the property on the
owner's behalf may file or update any information, or do anything
otherwise required by this section, on the owner's behalf.
Section
2.
That
existing sections 319.202, 5301.256, and 5323.02 of the Revised Code
are hereby repealed.
Section
3.
This
act shall be known as the Ohio Property Protection Act.