HF 447

2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; modifying certain 
  1.3             restrictions on the ownership of farm land; imposing a 
  1.4             penalty; amending Minnesota Statutes 2002, section 
  1.5             500.221, subdivisions 1, 1a, 2, 5. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 500.221, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [DEFINITIONS.] For purposes of this 
  1.10  section, "agricultural land" means land capable of use in the 
  1.11  production of agricultural crops, livestock or livestock 
  1.12  products, poultry or poultry products, milk or dairy products, 
  1.13  or fruit and other horticultural products but does not include 
  1.14  any land zoned by a local governmental unit for a use other than 
  1.15  and nonconforming with agricultural use.  For the purposes of 
  1.16  this section, "interest in agricultural land" includes any 
  1.17  leasehold interest.  For the purposes of this section, a 
  1.18  "permanent resident alien of the United States" is a natural 
  1.19  person who: 
  1.20     (1) has been lawfully admitted to the United States for 
  1.21  permanent residence and in fact maintains; or 
  1.22     (2) is a holder of a nonimmigrant treaty investment visa 
  1.23  pursuant to United States Code, title 8, section 
  1.24  1101(a)15(E)(ii). 
  1.25     A person who qualifies as a permanent resident alien of the 
  2.1   United States must also maintain that person's principal, actual 
  2.2   dwelling place within the United States for at least six months 
  2.3   out of every consecutive 12-month period without regard to 
  2.4   intent.  For the purposes of this section, "commissioner" means 
  2.5   the commissioner of agriculture.  
  2.6      Sec. 2.  Minnesota Statutes 2002, section 500.221, 
  2.7   subdivision 1a, is amended to read: 
  2.8      Subd. 1a.  [DETERMINATION OF ALIEN STATUS.] An alien who 
  2.9   has been physically absent from the United States for more than 
  2.10  six months out of any 12-month period shall be presumed not to 
  2.11  be a permanent resident alien.  Every permanent resident alien 
  2.12  of the United States who owns has an interest in property 
  2.13  subject to this section shall must: 
  2.14     (1) file a report with the commissioner within 30 days of 
  2.15  the date of purchase or lease; and 
  2.16     (2) annually, at some time during the month of January, 
  2.17  file with the commissioner a statement setting forth the dates 
  2.18  and places of that person's residence in the United States 
  2.19  during the prior calendar year. 
  2.20     The statement shall required under clause (2) must include 
  2.21  an explanation of absences totaling more than six months during 
  2.22  the prior calendar year and any facts which support the 
  2.23  continuation of permanent resident alien status.  Upon receipt 
  2.24  of the statement, the commissioner shall have 30 days to review 
  2.25  the statement and notify the resident alien whether the facts 
  2.26  support continuation of the permanent resident alien status.  
  2.27     Sec. 3.  Minnesota Statutes 2002, section 500.221, 
  2.28  subdivision 2, is amended to read: 
  2.29     Subd. 2.  [ALIENS AND NON-AMERICAN CORPORATIONS.] Except as 
  2.30  hereinafter provided, no natural person shall acquire directly 
  2.31  or indirectly any interest in agricultural land unless the 
  2.32  person is a citizen of the United States or a permanent resident 
  2.33  alien of the United States.  In addition to the restrictions in 
  2.34  section 500.24, no corporation, partnership, limited 
  2.35  partnership, trustee, or other business entity shall directly or 
  2.36  indirectly, acquire or otherwise obtain any interest, whether 
  3.1   legal, beneficial or otherwise, in any title to agricultural 
  3.2   land unless at least 80 percent of each class of stock issued 
  3.3   and outstanding or 80 percent of the ultimate beneficial 
  3.4   interest of the entity is held directly or indirectly by 
  3.5   citizens of the United States or permanent resident aliens.  
  3.6   This section shall not apply:  
  3.7      (1) to agricultural land that may be acquired by devise, 
  3.8   inheritance, as security for indebtedness, by process of law in 
  3.9   the collection of debts, or by any procedure for the enforcement 
  3.10  of a lien or claim thereon, whether created by mortgage or 
  3.11  otherwise.  All agricultural land acquired in the collection of 
  3.12  debts or by the enforcement of a lien or claim shall be disposed 
  3.13  of within three years after acquiring ownership; 
  3.14     (2) to citizens or subjects of a foreign country whose 
  3.15  rights to hold land are secured by treaty; 
  3.16     (3) to lands used for transportation purposes by a common 
  3.17  carrier, as defined in section 218.011, subdivision 10; 
  3.18     (4) to lands or interests in lands acquired for use in 
  3.19  connection with (i) the production of timber and forestry 
  3.20  products by a corporation organized under the laws of Minnesota, 
  3.21  or (ii) mining and mineral processing operations.  Pending the 
  3.22  development of agricultural land for the production of timber 
  3.23  and forestry products or mining purposes the land may not be 
  3.24  used for farming except under lease to a family farm, a family 
  3.25  farm corporation or an authorized farm corporation; 
  3.26     (5) to agricultural land operated for research or 
  3.27  experimental purposes if the ownership of the agricultural land 
  3.28  is incidental to the research or experimental objectives of the 
  3.29  person or business entity and the total acreage owned by the 
  3.30  person or business entity does not exceed the acreage owned on 
  3.31  May 27, 1977; 
  3.32     (6) to the purchase of any tract of 40 acres or less for 
  3.33  facilities incidental to pipeline operation by a company 
  3.34  operating a pipeline as defined in section 116I.01, subdivision 
  3.35  3; or 
  3.36     (7) to agricultural land and land capable of being used as 
  4.1   farmland in vegetable processing operations that is reasonably 
  4.2   necessary to meet the requirements of pollution control law or 
  4.3   rules; or 
  4.4      (8) to agricultural land in the state acquired before July 
  4.5   1, 2008, by a holder of a nonimmigrant treaty investment visa 
  4.6   issued under United States Code, title 8, section 
  4.7   1101(a)15(E)(ii). 
  4.8      Sec. 4.  Minnesota Statutes 2002, section 500.221, 
  4.9   subdivision 5, is amended to read: 
  4.10     Subd. 5.  [PENALTY.] Willful failure to properly file a 
  4.11  report required under subdivision 1a or to properly register any 
  4.12  parcel of land as required by subdivision 4 is a gross 
  4.13  misdemeanor.  Each full month of failure to register is a 
  4.14  separate offense. 
  4.15     Sec. 5.  [REPORT TO THE LEGISLATURE.] 
  4.16     The commissioner of agriculture shall, not later than 
  4.17  February 15, 2008, report to the legislature on the number of 
  4.18  holders of a nonimmigrant treaty investment visa issued under 
  4.19  United States Code, title 8, section 1101(a)15(E)(ii) that have 
  4.20  acquired an interest in agricultural land in the state.  The 
  4.21  report must also indicate the number of acres held by these visa 
  4.22  holders and the general location of the properties. 
  4.23     Sec. 6.  [EXPIRATION.] 
  4.24     The amendments in section 1 expire June 30, 2008. 
  4.25     Sec. 7.  [EFFECTIVE DATE.] 
  4.26     Sections 1 to 6 are effective the day following final 
  4.27  enactment.