All Roll Calls
Yes: 132 • No: 4
North DakotaSB 21502025 Regular SessionSenateWALLET
AN ACT to amend and reenact subsection 7 of section 10-06.1-01, subsection 3 of section 10-06.1-12.2, subdivision b of subsection 1 of section 10-06.1-15.2, subdivision d of subsection 3 of section 10-06.1-17, and subsection 3 of section 10-06.1-17.1 of the North Dakota Century Code, relating to corporate or limited liability company farming and ranching.
Sponsored By: Paul J. Thomas (Republican)
Became Law
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 3 costs, 1 mixed.
Land and income rules for livestock farms
Annual reports must state the entity does not own, lease, or hold interests in more than 160 acres of farmland or ranchland. You must list every parcel you own or lease, with acreage and location by section, township, range, and county. You must also state that no owner’s interests in other authorized livestock farm entities, combined with yours, exceed 640 acres; do not count acres directly owned or leased by qualifying individuals, qualifying farm corporations or LLCs, or qualifying partnerships under subsection 2 of section 10-06.1-02. Reports must state the entity does not produce crops or graze livestock on the land, and list the first date of livestock operations. Include the percentage of average annual gross income from authorized livestock operations for the past five years (or each year of existence) and the percentage of gross income from nonfarm rent, royalties, dividends, interest, and annuities.
More reporting for livestock farm corporations and LLCs
Annual reports must list each shareholder or member’s name and address, and for company owners, the state of organization. Reports must show each owner’s number and percent of shares or interests, voting power and any voting agreements, and percent of capital. Individuals must state if they are U.S. citizens or permanent residents and if they will be actively engaged in farming or ranching. Company owners must state they are U.S.-organized and that 100% of their ownership is by qualifying U.S. persons. You must also list officers or managers and board members with addresses, and say whether each is actively engaged in the operation. Include the registered agent’s name, and if it is a noncommercial agent, the registered office address. Corporations must report authorized and issued shares by class, par value, and any series; LLCs must report authorized and issued membership interests by class and series.
US-only owners for livestock farm entities
Authorized livestock farm corporations and LLCs must be owned only by people and entities tied to the United States. Each individual owner must be a U.S. citizen, a U.S. permanent resident, or another authorized person under section 47-10.1-02. If an owner is a company or other entity, it must be organized in the U.S., and 100% of its ownership must be by qualifying U.S. persons. This closes the door to foreign or foreign-organized owners.
What counts as farming or ranching
The law defines farming or ranching to include crops, fruit, horticulture, livestock and livestock products, plus livestock backgrounding and finishing. It excludes agricultural support services; small aquaculture or greenhouse operations by people with 40 acres or less; beekeeping; timber or forest products; marijuana under chapter 19-24.1; and some processor or distributor service contracts. These rules decide who falls under North Dakota’s farm corporation and LLC limits.
Sponsors & Cosponsors
Sponsor
Paul J. Thomas
Republican • Senate
Cosponsors
Mike Beltz
Republican • House
Larry Luick
Republican • Senate
Roll Call Votes
House vote • 3/11/2025
Second reading, passed, yeas 91 nays 0
Yes: 91 • No: 0
Senate vote • 1/30/2025
Second reading, passed, yeas 41 nays 4
Yes: 41 • No: 4
Actions Timeline
Filed with Secretary Of State 03/18
3/20/2025HouseSigned by Governor 03/18
3/18/2025SenateSent to Governor
3/17/2025SenateSigned by President
3/17/2025SenateSigned by Speaker
3/14/2025HouseReturned to Senate
3/12/2025SenateSecond reading, passed, yeas 91 nays 0
3/11/2025HouseReported back, do pass, place on calendar 14 0 0
3/7/2025HouseCommittee Hearing 08:30
3/7/2025HouseIntroduced, first reading, referred Agriculture Committee
2/18/2025HouseReceived from Senate
1/31/2025HouseSecond reading, passed, yeas 41 nays 4
1/30/2025SenateAmendment failed
1/30/2025SenateAmendment proposed on floor
1/30/2025SenateReported back, do pass, place on calendar 6 0 0
1/29/2025SenateCommittee Hearing 02:20
1/23/2025SenateCommittee Hearing 09:00
1/23/2025SenateIntroduced, first reading, referred Agriculture and Veterans Affairs Committee
1/7/2025Senate
Bill Text
Enrollment
INTRODUCED
Prepared by the Legislative Council staff for Senator Mathern
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