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SB 2026

A BILL for an Act to create and enact a new section to chapter 11-18 and a new section to chapter 54-09 of the North Dakota Century Code, relating to the certification of a foreign grantee's right to own property and the filing of foreign ownership information statements with the secretary of state; to amend and reenact sections 11-11-70, 40-05-26, 47-01-09, and 47-10.1-05 of the North Dakota Century Code, relating to the powers of a board of county commissioners, a board of city commissioners, and a city council regarding development by a foreign country of concern or foreign organization of concern, prohibiting ownership of real property by a foreign country of concern or a foreign organization of concern, and required filings for foreign persons investing in agricultural lands; to repeal section 47-10.1-05 of the North Dakota Century Code, relating to required filings for foreign persons investing in agricultural lands; to provide a penalty; and to provide a contingent effective date.

69th Legislative Assembly (2025-26)

ND SB 2026 bars certain foreign governments/entities from buying real property and blocks development deals, requires deed certifications, and imposes penalties for false filings.

Second reading, failed to pass, yeas 23 nays 24
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WeVote Research Nonpartisan
Bill Summary · SB 2026

SB 2026 — Summary (North Dakota)

Status: Introduced March 7, 2025; Second reading — failed to pass (yeas 23, nays 24). Companion: HB 4124.

Purpose

SB 2026 seeks to limit and regulate real‑property ownership and certain development relationships involving foreign countries and foreign organizations deemed security risks, expand reporting and certification requirements for real‑estate transfers and foreign investors (including agricultural land), and create enforcement mechanisms and penalties for false statements.

Key provisions

  • Prohibitions on development agreements

    • Amends NDCC 11‑11‑70 (counties) and 40‑05‑26 (cities) to bar county or city boards/councils from procuring, authorizing, or approving development agreements, building plans, or development proposals with any individual, foreign government, or entity identified as a “foreign country of concern” or “foreign organization of concern” (references 15 CFR 7.4(a) and the Office of Foreign Assets Control sanctions list through NDCC 47‑01‑09).
    • Exempts certain entities that meet specified conditions (examples in bill: long‑standing registration with Secretary of State, CFIUS approval, active national security agreement), subject to the statute’s language.

  • Prohibition on ownership of real property

    • Amends NDCC 47‑01‑09 to forbid specified foreign governments or foreign business entities of concern from purchasing or otherwise acquiring title to real property in North Dakota after the statutory cutoff date (text references July 31, 2023/2025—the bill ties the prohibition to that effective period).

  • Deed certification and recording procedure (new section to NDCC chapter 11‑18)

    • Requires any grantee (or agent) presenting a deed to a county recorder to include an on‑face certification stating whether the grantee is allowed or prohibited from owning property under NDCC 47‑01‑09.
    • Recorders must refuse to accept/record deeds lacking the required certification.
    • If the deed is certified “prohibited” or the recorder reasonably suspects a false certification, the recorder must send a copy of the recorded deed to the Attorney General and the county state's attorney within 30 days.
    • The state's attorney must review within 90 days and prosecute suspected violations in district court as appropriate.
    • Willful falsification of the certification is a class B misdemeanor.

  • Foreign ownership reporting (new section to NDCC chapter 54‑09)

    • The bill creates a filing requirement with the Secretary of State for foreign ownership information statements (text excerpt indicates such a provision but full filing details are not shown in the provided excerpt).

  • Agricultural land filings / repeal

    • The bill amends and reenacts NDCC 47‑10.1‑05 (required filings for foreign persons investing in agricultural land) and also repeals section 47‑10.1‑05 elsewhere in the bill text — the legislative intent is to revise and consolidate required filings and oversight of foreign agricultural investors (full revised filing mechanics are not fully included in the excerpt).

  • Penalty and timing

    • Provides criminal penalty for willful falsification (class B misdemeanor).
    • The bill includes references to expiration/effective dates (several provisions note expiry or effectiveness through July 31, 2025) and a contingent effective date clause (specific contingency not shown in provided excerpt).

Who is affected

  • Foreign governments, business entities, and organizations identified as “countries of concern” or “organizations of concern,” and their ability to acquire or develop land in North Dakota.
  • Buyers/grantees of North Dakota real property and their title agents/authorized agents.
  • County recorders, city and county governments (planning/development approvals), the Secretary of State (for foreign ownership filings), Attorney General, and county state's attorneys (enforcement).
  • Agricultural land market participants and foreign agricultural investors (additional filing and possible prohibitions).

Practical impacts

  • Enhances state controls and transparency over foreign purchases and development involvement—likely increasing compliance and due‑diligence burdens for transactions involving parties with foreign ties.
  • Creates enforcement pathways (recording refusal, referrals, prosecution) and a misdemeanor penalty for falsified certifications.
  • Could reduce or block certain foreign investments and development contracts identified as national security concerns; may affect marketability of parcels and impose new administrative requirements on recorders and title professionals.

Note: The published bill text excerpt contained inconsistent/partial material (including fragments from other jurisdictions). This summary focuses on the North Dakota provisions shown in the provided document.

Compiled from official sources — confirm details with the bill’s official record.

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