,,ii #aaith ,,congress #b;d ,session ,s4 #dcia ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #bg1 #bjbf,mr4 ,booker 7for himself and ,mr4 ,sanders7 introduced the following bill2 which was read twice and referred to the ,committee on ,agriculture1 ,nutrition1 and ,forestry ,a ,,bill ,to ban new corporate ownership of agricultural land1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,farmland for ,farmers ,act of #bjbf4 #b4 ,findings ,congress finds that-- 7#a7 it is the longstanding policy of the ,united ,states to foster and encourage the family farm system of agriculture in the ,united ,states2 7#b7 the maintenance of the family farm system of agriculture is essential to the social and economic wellbeing and national security of the ,united ,states2 7#c7 agricultural land is-- 7,a7 a critical and limited resource of the ,united ,states that provides needed food and fiber for the people of the ,united ,states and others throughout the world2 and 7,b7 a source of wealth1 including generational wealth1 for the people of the ,united ,states2 7#d7 since the #bjjh financial crisis1 corporations and1 in particular1 pension funds1 have increasingly turned to farmland investment2 7#e7 from #bjje to #bjbe-- 7,a7 the number of institutionally owned farm properties rose three-fold2 and 7,b7 the market value of that property increased from less than #b1jjj1jjj1jjj to more than #af1jjj1jjj1jjj2 7#f7 large corporate investors that own farmland-- 7,a7 are more focused on short-term profits than long-term land conservation2 and 7,b7 have less interest than independent family farmers in ensuring that agricultural land is used in a way that most benefits the local community2 7#g7 since #bjje1 farmland prices in the ,united ,states have nearly doubled2 7#h7 higher farmland prices provide an advantage to well-capitalized corporate interests who can often outbid independent family farmers2 7#i7 continued expansion of ownership and control of agricultural land by corporate owners1 especially institutional investors-- 7,a7 threatens the future use of the agricultural land for the benefit of the people of the ,united ,states2 and 7,b7 is detrimental to the welfare and national security of the ,united ,states2 7#aj7 the operational scope and economic impacts of corporate ownership of agricultural land-- 7,a7 is increasingly interstate2 and 7,b7 directly affects the continued well-being and security of millions of residents of rural communities2 and 7#aa7 there is a national public interest in regulating corporate ownership of agricultural land4 #c4 ,definitions ,in this ,act3 7#a7 ,actively engaged in farming 7,a7 ,in general ,the term actively engaged in farming1 with respect to a natural person who is a shareholder in an authorized legal entity1 an officer1 a director1 or an employee of an authorized legal entity1 a member or manager of an authorized legal entity1 a partner in an authorized legal entity1 a beneficiary or trustee of an authorized legal entity1 or any other individual1 means-- 7i7 regularly and frequently making or taking an important part in making management decisions substantially contributing to or affecting the operation of a farm or forest2 or 7ii7 performing physical work1 which significantly contributes to cultivation1 stewardship1 crop or livestock production1 or food production4 7,b7 ,exclusion ,the term actively engaged in farming does not include solely providing capital4 7#b7 ,agricultural land ,the term agricultural land means land located in a ,state that-- 7,a7 is cropland1 grassland1 rangeland1 pasture1 forestland or other agricultural land on which agricultural or forest-related products or livestock are produced2 or 7,b7 if the land is idle as of the date of transfer of an ownership interest in the land1 was used within the #aj-year period preceding the date of that transfer for production of agricultural or forest-related products or livestock4 7#c7 ,authorized farmer or rancher cooperative ,the term authorized farmer or rancher cooperative means a farmer-controlled or rancher-controlled entity-- 7,a7 with bylaws requiring #a vote per member2 7,b7 from which benefits are derived and distributed equitably by each of the farmer or rancher owners2 7,c7 the members of which are actively engaged in farming2 and 7,d7 that is not a subsidiary of1 or owned in any part by1 a multilayer subsidiary entity4 7#d7 ,authorized legal entity ,the term authorized legal entity means a legal entity that meets each of the following requirements3 7,a7 ,the legal entity is not a subsidiary of1 or owned in any part by1 a multilayered subsidiary entity4 7,b7 ,the shareholders1 partners1 members1 or beneficial owners of the legal entity do not exceed #be4 7,c7 ,the shareholders1 partners1 members1 or beneficial owners of the legal entity are all natural persons who are actively engaged in farming4 7#e7 ,beneficial owner ,the term beneficial owner1 with respect to a legal entity1 means any person who1 directly or indirectly1 through any contract1 arrangement1 understanding1 relationship1 or otherwise1 has or shares-- 7,a7 voting power1 including the power to vote for1 or to direct the voting of1 the legal entity2 or 7,b7 investment power1 including the power to dispose1 or to direct the disposition1 of an interest in the legal entity4 7#f7 ,corporation ,the term corporation means-- 7,a7 a domestic corporation organized pursuant to the laws of a ,state2 and 7,b7 a foreign corporation4 7#g7 ,fiduciary capacity ,the term fiduciary capacity means an undertaking to act as executor1 administrator1 personal representative1 guardian1 conservator1 or receiver4 7#h7 ,indirect ,the term indirect means to act1 or attempt to accomplish an act1 through an interest in a business association1 through #a or more affiliates or intermediaries1 or by any method other than a direct approach1 including by any circuitous or oblique method4 7#i7 ,institution of higher education ,the term institution of higher education has the meaning given the term in section #aja7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja7;a774 7#aj7 ,legal entity ,the term legal entity means any corporation1 business trust1 estate1 trust1 partnership1 limited liability company1 association1 joint venture1 public corporation1 cooperative1 pension or investment fund1 or any other legal or commercial entity organized or created under the laws of any ,state or country4 7#aa7 ,multilayer subsidiary entity ,the term multilayer subsidiary entity means-- 7,a7 a privately held or publicly traded legal entity that exists within a hierarchy of legal entities that includes #b or more levels of subsidiary entities2 7,b7 a privately held or publicly traded legal entity that has as its parent or subsidiary a management or holding company2 or 7,c7 a privately held or publicly traded legal entity that engages in intramarket transfers using special purpose vehicles4 7#ab7 ,natural person ,the term natural person means a human being4 7#ac7 ,ownership interest 7,a7 ,in general ,the term ownership interest1 with respect to agricultural land1 means all interest acquired1 transferred1 or held in the agricultural land4 7,b7 ,exclusions ,the term ownership interest1 with respect to agricultural land1 does not include-- 7i7 security interests2 7ii7 contingent future interests2 7iii7 noncontingent future interests that do not become possessory on the termination of the present possessory estate2 7iv7 surface or subsurface easements and rights-of-way used for a purpose unrelated to agricultural production2 and 7v7 an interest solely in mineral rights4 7#ad7 ,pension or investment fund ,the term pension or investment fund means-- 7,a7 a pension or employee welfare benefit fund 7however organized72 7,b7 a mutual fund2 7,c7 a life insurance company separate account2 7,d7 a common trust of a bank or other trustee established for the investment and reinvestment of money contributed to the common trust2 7,e7 a real estate investment trust2 and 7,f7 an investment company 7as defined in section #c7;a7 of the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a-#c7;a7774 7#ae7 ,secretary ,the term ,secretary means the ,secretary of ,agriculture4 7#af7 ,state ,the term ,state means-- 7,a7 each of the #ej ,states2 7,b7 the ,district of ,columbia2 7,c7 the ,commonwealth of ,puerto ,rico2 7,d7 the ,united ,states ,virgin ,islands2 and 7,e7 any territory or insular possession subject to the jurisdiction of the ,united ,states4 7#ag7 ,trust 7,a7 ,in general ,the term trust1 with respect to property1 means a fiduciary relationship that subjects the person by whom the property is held to equitable duties to deal with the property for the benefit of another person1 which arises as a result of a manifestation of an intention to create the fiduciary relationship4 7,b7 ,inclusions ,the term trust includes a legal entity holding property as trustee1 agent1 escrow agent1 attorney-in-fact1 or in any similar capacity4 7,c7 ,exclusions ,the term trust does not include-- 7i7 a person acting in a fiduciary capacity2 or 7ii7 a revocable trust4 7#ah7 ,unauthorized legal entity ,the term unauthorized legal entity means a legal entity that is not an authorized legal entity4 #d4 ,restrictions on agricultural land holdings and exceptions 7a7 ,in general ,except as provided in subsection 7b71 an unauthorized legal entity shall not1 directly or indirectly1 acquire or otherwise hold an ownership interest in any agricultural land4 7b7 ,exceptions 7#a7 ,in general ,subsection 7a7 shall not apply to the following3 7,a7 ,a bona fide encumbrance taken for purposes of security4 7,b7 ,agricultural land acquired for research or experimental purposes4 7,c7 ,agricultural land acquired and operated-- 7i7 by or for a public institution of higher education for research1 experimental1 demonstration1 or test purposes2 or 7ii7 by or for a nonprofit corporation organized specifically for research1 experimental1 demonstration1 or test purposes in support of or in conjunction with an institution of higher education4 7,d7 ,agricultural land acquired by a legal entity for immediate use in non-agricultural purposes1 subject to the condition that the land remain in use for non-agricultural purposes4 7,e7 ,agricultural land acquired by a legal entity by process of law in the collection of debts1 pursuant to a contract for deed executed prior to the date of enactment of this ,act1 or by any procedure for the enforcement of a lien or claim on the agricultural land1 whether created by mortgage or otherwise1 if all agricultural land acquired is disposed of not later than #e years after the date on which the legal entity acquires the title to the agricultural land4 7,f7 ,agricultural land acquired or owned by a municipal corporation4 7,g7 ,agricultural land acquired or owned by a nonprofit legal entity that-- 7i7 is organized under the laws of any ,state as a nonprofit legal entity2 and 7ii7 qualifies as tax exempt under section #eja of the ,internal ,revenue ,code of #aihf4 7,h7 ,agricultural land that is acquired or owned by a legal entity in a fiduciary capacity4 7,i7 ,agricultural land that is acquired or owned by a legal entity formed by owners of heirs' property 7as defined in section #gfa4b7;b7 of title #g1 ,code of ,federal ,regulations 7or a successor regulation774 7,j7 ,agricultural land that is acquired or owned by an authorized farmer or rancher cooperative4 7,k7 ,agricultural land owned by a legal entity on the date of enactment of this ,act1 subject to the condition that the legal entity owning the land on that date of enactment continues to own the agricultural land4 7#b7 ,research or experimental purposes ,for purposes of paragraph 7#a77;,b71 agricultural land is acquired for research or experimental purposes if the agricultural land is used in accordance with any of the following3 7,a7 ,research and experimental activities 7i7 ,in general ,research and experimental activities are carried out on the agricultural land and commercial sales of products produced from farming the agricultural land do not occur or are incidental to those research or experimental activities4 7ii7 ,incidental sales ,for purposes of clause 7i71 commercial sales are sales that are incidental to the research or experimental purposes of the legal entity when the sales are less than #be percent of the gross sales of the primary product of the research and experimental activities carried out on the agricultural land4 7,b7 ,public seed varieties 7i7 ,in general ,the agricultural land is used for the primary purpose of testing1 developing1 or producing public seed varieties or plants for sale or resale to farmers as seed stock and commercial sales of other products produced from farming the agricultural land do not occur or are incidental4 7ii7 ,incidental sales ,for purposes of clause 7i71 commercial sales described in that clause are incidental if the sales are less than #be percent of the gross sales of the primary product of the testing1 development1 or production of public seed varieties or plants for sale or resale to farmers as seed stock carried out on the agricultural land4 7#c7 ,land acquired by law ,for purposes of paragraph 7#a77;,e7-- 7,a7 the #e-year period described in that paragraph shall be a covenant running with the title to the agricultural land against any grantee1 assignee1 or successor of the legal entity2 and 7,b7 any agricultural land acquired shall not be used for farming during the #e-year period described in that paragraph1 except under a lease to an authorized legal entity in accordance with this ,act4 #e4 ,compliance 7a7 ,certifying affidavit ,for any acquisition of an ownership interest in agricultural land by a legal entity after the date of enactment of this ,act1 at the time of acquisition1 the legal entity purchasing the agricultural land shall sign1 and submit to the ,secretary1 an affidavit1 under penalty of perjury1 certifying compliance with this ,act4 7b7 ,federal tax return affidavit ,beginning with the first taxable year after the date of enactment of this ,act1 any legal entity with an ownership interest in agricultural land shall file an affidavit along with the ,federal tax return submitted by the legal entity1 under penalty of perjury1 certifying compliance with this ,act4 7c7 ,,usda programs and ,farm ,credit ,system ,any legal entity applying to participate in any program of the ,department of ,agriculture or the ,farm ,credit ,system after the date of enactment of this ,act shall provide documentation that demonstrates compliance with this ,act as a condition of eligibility for the program4 7d7 ,ineligibility ,any unauthorized legal entity that holds an ownership interest in agricultural land described in section #d7;b77#a77,k7 shall not be eligible to participate in any program of the ,department of ,agriculture or the ,farm ,credit ,system after the date of enactment of this ,act4 7e7 ,reports to ,congress ,each calendar year1 the ,secretary shall submit to ,congress1 and make publicly available on the website of the ,department of ,agriculture1 a report on violations of this ,act discovered through affidavits received under subsections 7a7 and 7b7 and documentation received under subsection 7c74 #f4 ,enforcement 7a7 ,referral ,if the ,secretary determines that a legal entity has acquired1 or holds title to or interest in1 agricultural land in violation of this ,act1 the ,secretary shall report that violation to the ,attorney ,general for enforcement in accordance with subsection 7b74 7b7 ,enforcement by ,attorney ,general 7#a7 ,in general ,on receipt of a referral of a violation of this ,act reported by the ,secretary pursuant to subsection 7a71 the ,attorney ,general-- 7,a7 shall conduct an investigation relating to that referral2 and 7,b7 may initiate an action in the district court of the ,united ,states with jurisdiction over the county in which the applicable agricultural land is located to require divestiture of the agricultural land by the legal entity4 7#b7 ,notice2 order 7,a7 ,in general ,the ,attorney ,general shall file notice of the pendency of an action brought under paragraph 7#a77;,b7 with the recorder of deeds of each county in which the applicable agricultural land is located4 7,b7 ,order required ,if the applicable district court of the ,united ,states finds that the agricultural land subject to an action brought under paragraph 7#a77;,b7 was acquired1 or held1 in violation of this ,act1 the court shall-- 7i7 enter an order declaring that violation2 and 7ii7 file a copy of the order with the recorder of deeds in each county in which any portion of the agricultural land is located4 7#c7 ,divestment of agricultural land 7,a7 ,in general ,on issuance of an order described in paragraph 7#b77;,b71 the unauthorized legal entity owning or having an ownership interest in the agricultural land subject to that order shall have a period of #a year from the date on which the order was issued to divest the agricultural land4 7,b7 ,covenant ,the #a-year period described in subparagraph 7,a7 shall be deemed to be a covenant running with the title to the agricultural land against any legal entity1 grantee1 assignee1 or successor4 7,c7 ,violation ,any agricultural land not divested in accordance with subparagraph 7,a7 shall be sold at public sale in the manner prescribed by law for the foreclosure of a mortgage by action4 7#d7 ,enjoinment ,any prospective or threatened violation of this ,act may be enjoined through an action brought by the ,attorney ,general in a manner provided by law4 7#e7 ,penalties 7,a7 ,civil penalties 7i7 ,in general ,any natural person or legal entity that violates this ,act may be assessed a civil penalty by the ,secretary in an amount that is not more than #b times the fair market value of the agricultural land at issue for each violation4 7ii7 ,multiple violations ,each violation of this ,act shall constitute a separate offense4 7iii7 ,notice ,no penalty shall be assessed on any natural person or legal entity unless the natural person or legal entity is given notice and opportunity for a hearing with respect to the violation4 7iv7 ,failure to pay 7,i7 ,in general ,on failure to pay the penalty assessed under clause 7i71 the ,secretary may request the ,attorney ,general institute a civil action in a district court of the ,united ,states for any district in which the natural person or legal entity is found1 resides1 or transacts business to collect the penalty4 7,,ii7 ,deference ,in any action commenced under subclause 7,i71 the applicable district court of the ,united ,states shall sustain the issuance of a penalty by the ,secretary under clause 7i7 if supported by substantial evidence4 7,b7 ,criminal penalties 7i7 ,in general ,any natural person who knowingly violates this ,act as a shareholder1 partner1 member1 or beneficial owner of an unauthorized legal entity with an ownership interest in the agricultural land at issue shall be imprisoned for not more than #e years1 fined in accordance with section #cega of title #ah1 ,united ,states ,code1 or both4 7ii7 ,multiple violations ,each violation of this ,act shall constitute a separate offense4 7c7 ,enforcement by ,state attorneys general 7#a7 ,in general ,if the attorney general of a ,state has reason to believe that an interest of the residents of the ,state has been1 or is1 threatened or adversely affected by the engagement of an unauthorized legal entity in a practice that violates this ,act1 or a regulation promulgated pursuant to this ,act1 the attorney general of the ,state may1 as parens patriae1 bring a civil action on behalf of the residents of the ,state in an appropriate district court of the ,united ,states-- 7,a7 to enjoin that practice2 7,b7 to compel divestiture of the agricultural land2 7,c7 to obtain damages1 restitution1 or other compensation on behalf of the residents of the ,state2 7,d7 to obtain such other relief as the court considers appropriate2 or 7,e7 to obtain a civil penalty in an amount determined under paragraph 7#b74 7#b7 ,civil penalties 7,a7 ,calculation ,subject to subparagraph 7,b71 for purposes of imposing a civil penalty under paragraph 7#a77;,e7 with respect to an unauthorized legal entity that violates this ,act1 the amount determined under this paragraph is the amount obtained by multiplying-- 7i7 the number of days that the unauthorized legal entity is not in compliance with this ,act2 and 7ii7 an amount not greater than #c1jjj1 as determined by the appropriate district court of the ,united ,states4 7,b7 ,maximum total liability ,the total amount of civil penalties that may be imposed with respect to an unauthorized legal entity that violates this ,act shall not exceed the greater of #a1jjj1jjj and the fair market value of the ownership interest in agricultural land involved in the applicable action for all civil actions brought against that unauthorized legal entity under paragraph 7#a7 for that violation4 7#c7 ,investigatory powers ,nothing in this paragraph prevents the attorney general of a ,state from exercising the powers conferred on the attorney general by the laws of the ,state to conduct investigations1 to administer oaths or affirmations1 or to compel the attendance of witnesses or the production of documentary or other evidence4 7#d7 ,actions by other ,state officials ,in addition to civil actions brought by ,state attorneys general under paragraph 7#a71 any other officer of a ,state who is authorized by the ,state may bring a civil action under that paragraph1 subject to the same requirements and limitations that apply under that paragraph to civil actions brought by the attorney general in the ,state4 7#e7 ,savings provision ,nothing in this subsection prohibits an attorney general or other authorized official of a ,state from initiating or continuing any proceeding in a court of the ,state for a violation of any civil or criminal law of the ,state4 #g4 ,state authority 7a7 ,in general ,pursuant to its powers under the ,commerce ,clause of section #h of article ,i of the ,constitution of the ,united ,states1 ,congress hereby authorizes ,states to regulate legal entities that are permitted to own agricultural land within the ,state in a manner that is at least as restrictive as the manner described in this ,act4 7b7 ,inclusions ,regulation under subsection 7a7 may include more restrictive requirements1 including restrictions that provide more stringent definitions of actively engaged in farming1 notwithstanding whether the requirements are more burdensome for owners of agricultural land in a certain ,state1 who are residing in other ,states1 to satisfy4