ND HB1388

Amends North Dakota Century Code Section 10-06.1-12 to establish requirements for domestic corporations and limited liability companies to own real estate and engage in farming or ranching operations.

Corporations or limited liability companies must not have more than 15 shareholders or members, all of whom must be related by kinship or affinity (parent, child, grandparent, grandchild, sibling, cousin, spouse of related person, etc.).

Shareholders or members must be individuals, trusts for benefit of related individuals, or estates of deceased related persons; all individual shareholders or members must be U.S. citizens or permanent resident aliens.

Officers, directors, governors, and managers must be actively engaged shareholders or members operating the farm or ranch, with at least one individual residing on or operating the property.

At least 65 percent of gross income averaged over the previous five years must be derived from farming or ranching operations, and nonfarm income from rent, royalties, dividends, interest, and annuities cannot exceed 20 percent of gross income.