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                            CHAPTER 315-S.F.No. 2760 
                  An act relating to agriculture; providing an exception 
                  to alien ownership of agricultural land for production 
                  of timber and forestry products; amending Minnesota 
                  Statutes 1994, section 500.221, subdivision 2. 
           Section 1.  Minnesota Statutes 1994, section 500.221, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ALIENS AND NON-AMERICAN CORPORATIONS.] Except as 
        hereinafter provided, no natural person shall acquire directly 
        or indirectly any interest in agricultural land unless the 
        person is a citizen of the United States or a permanent resident 
        alien of the United States.  In addition to the restrictions in 
        section 500.24, no corporation, partnership, limited 
        partnership, trustee, or other business entity shall directly or 
        indirectly, acquire or otherwise obtain any interest, whether 
        legal, beneficial or otherwise, in any title to agricultural 
        land unless at least 80 percent of each class of stock issued 
        and outstanding or 80 percent of the ultimate beneficial 
        interest of the entity is held directly or indirectly by 
        citizens of the United States or permanent resident aliens.  
        This section shall not apply:  
           (1) to agricultural land that may be acquired by devise, 
        inheritance, as security for indebtedness, by process of law in 
        the collection of debts, or by any procedure for the enforcement 
        of a lien or claim thereon, whether created by mortgage or 
        otherwise.  All agricultural land acquired in the collection of 
        debts or by the enforcement of a lien or claim shall be disposed 
        of within three years after acquiring ownership; 
           (2) to citizens or subjects of a foreign country whose 
        rights to hold land are secured by treaty; 
           (3) to lands used for transportation purposes by a common 
        carrier, as defined in section 218.011, subdivision 2; 
           (4) to lands or interests in lands acquired for use in 
        connection with (i) the production of timber and forestry 
        products by a corporation organized under the laws of Minnesota, 
        or (ii) mining and mineral processing operations.  Pending the 
        development of agricultural land for the production of timber 
        and forestry products or mining purposes the land may not be 
        used for farming except under lease to a family farm, a family 
        farm corporation or an authorized farm corporation; 
           (5) to agricultural land operated for research or 
        experimental purposes if the ownership of the agricultural land 
        is incidental to the research or experimental objectives of the 
        person or business entity and the total acreage owned by the 
        person or business entity does not exceed the acreage owned on 
        May 27, 1977; 
           (6) to the purchase of any tract of 40 acres or less for 
        facilities incidental to pipeline operation by a company 
        operating a pipeline as defined in section 116I.01, subdivision 
        3; or 
           (7) to agricultural land and land capable of being used as 
        farmland in vegetable processing operations that is reasonably 
        necessary to meet the requirements of pollution control law or 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment. 
           Presented to the governor March 14, 1996 
           Signed by the governor March 15, 1996, 11:19 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes