HB 1: Enact Ohio Property Protection Act

As Introduced

136th General Assembly Regular Session 2025-2026

H. B. No. 1

Representatives King, Klopfenstein

Cosponsors: Representatives Barhorst, Bird, Brennan, Claggett, Click, Creech,
Thomas, D., Deeter, Demetriou, Jones, Dovilla, Ferguson, Fischer, Fowler Arthur,
Ghanbari, Gross, Hall, T., Hiner, Holmes, Hoops, Daniels, Thomas, J., John, Miller, K., Ritter, Kishman, Lampton, Lear, Dean, Lorenz, Johnson, Mathews, A.,
Mathews, T., McClain, Miller, M., Mullins, Newman, Oelslager, Pizzulli, Plummer,
Ray, Richardson, Robb Blasdel, Santucci, Rogers, Schmidt, Stewart, Swearingen, Young, Williams, Willis, Workman, Humphrey, Sigrist

A B I L L

To amend sections 319.202, 5301.256, and 5323.02 of 1
the Revised Code to modify the law that 2
prohibits certain governments, businesses, and 3
individuals from acquiring certain real property 4
and to name this act the Ohio Property 5
Protection Act. 6

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 319.202, 5301.256, and 5323.02 of 7
the Revised Code be amended to read as follows: 8
Sec. 319.202. Before the county auditor indorses any real 9
property conveyance or manufactured or mobile home conveyance 10
presented to the auditor pursuant to section 319.20 of the 11
Revised Code or registers any manufactured or mobile home 12
conveyance pursuant to section 4503.061 of the Revised Code, the 13
grantee or the grantee's representative shall submit, either 14

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electronically or three written copies of, a statement, in the 15
form prescribed by the tax commissioner, and other information 16
as the county auditor may require, declaring the value of real 17
property or manufactured or mobile home conveyed, except that, 18
subject to division (C) of this section, when the transfer is 19
exempt under division (G)(3) of section 319.54 of the Revised 20
Code only a statement of the reason for the exemption shall be 21
required. Each statement submitted under this section shall 22
contain the information required under divisions (A) and (B) of 23
this section and, if the statement involves the transfer of 24
protected property, the affirmations required by division (C) of 25
this section. 26
(A) Each statement submitted under this section shall 27
either: 28
(1) Contain an affirmation by the grantee that the grantor 29
has been asked by the grantee or the grantee's representative 30
whether to the best of the grantor's knowledge either the 31
preceding or the current year's taxes on the real property or 32
the current or following year's taxes on the manufactured or 33
mobile home conveyed will be reduced under division (A) of 34
section 323.152 or under section 4503.065 of the Revised Code 35
and that the grantor indicated that to the best of the grantor's 36
knowledge the taxes will not be so reduced; or 37
(2) Be accompanied by a sworn or affirmed instrument 38
stating: 39
(a) To the best of the grantor's knowledge the real 40
property or the manufactured or mobile home that is the subject 41
of the conveyance is eligible for and will receive a reduction 42
in taxes for or payable in the current year under division (A) 43
of section 323.152 or under section 4503.065 of the Revised Code 44

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and that the reduction or reductions will be reflected in the 45
grantee's taxes; 46
(b) The estimated amount of such reductions that will b 47
reflected in the grantee's taxes; 48
(c) That the grantor and the grantee have considered and 49
accounted for the total estimated amount of such reductions to 50
the satisfaction of both the grantee and the grantor. The 51
auditor shall indorse the instrument, return it to the grantee 52
or the grantee's representative, and provide a copy of the 53
indorsed instrument to the grantor or the grantor's 54
representative. 55
(B) Each statement submitted under this section shall 56
either: 57
(1) Contain an affirmation by the grantee that the grantor 58
has been asked by the grantee or the grantee's representative 59
whether to the best of the grantor's knowledge the real property 60
conveyed qualified for the current agricultural use valuation 61
under section 5713.30 of the Revised Code either for the 62
preceding or the current year and that the grantor indicated 63
that to the best of the grantor's knowledge the property 64
conveyed was not so qualified; or 65
(2) Be accompanied by a sworn or affirmed instrument 66
stating: 67
(a) To the best of the grantor's knowledge the real 68
property conveyed was qualified for the current agricultural use 69
valuation under section 5713.30 of the Revised Code either for 70
the preceding or the current year; 71
(b) To the extent that the property will not continue to 72
qualify for the current agricultural use valuation either for 73

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the current or the succeeding year, that the property will be 74
subject to a recoupment charge equal to the tax savings in 75
accordance with section 5713.34 of the Revised Code; 76
(c) That the grantor and the grantee have considered and 77
accounted for the total estimated amount of such recoupment, if 78
any, to the satisfaction of both the grantee and the grantor. 79
The auditor shall indorse the instrument, forward it to the 80
grantee or the grantee's representative, and provide a copy of 81
the indorsed instrument to the grantor or the grantor's 82
representative. 83
(C) Each statement submitted under this section involving 84
the transfer of protected property shall contain both of the 85
following: 86
(1) An affirmation by the grantee as to whether the 87
grantee is prohibited from purchasing or otherwise acquiring 88
protected property under section 5301.256 of the Revised Code; 89
(2) An affirmation by the grantor as to whether the 90
grantor is prohibited from purchasing or otherwise acquiring 91
protected property under section 5301.256 of the Revised Code 92
and, if so, whether the protected property that is the subject 93
of the transfer was acquired before the effective date of this 94
amendment, before the date the grantor became subject to 95
division (B) of section 5301.256 of the Revised Code, or 96
pursuant to an exemption under division (D) of that section. 97
(D)(1) The grantor shall pay the fee following: 98
(a) The fee required by division (G)(3) of section 319.54 99
of the Revised Code; and, in 100
(b) In the event the board of county commissioners of the 101
county has levied a real property or a manufactured home 102

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transfer tax pursuant to Chapter 322. of the Revised Code, the 103
amount required by the real property or manufactured home 104
transfer tax so levied. If 105
(2) If the conveyance is exempt from the fee provided for 106
in division (G)(3) of section 319.54 of the Revised Code and the 107
tax, if any, levied pursuant to Chapter 322. of the Revised 108
Code, the reason for such exemption shall be shown on the 109
statement. "Value" means, in the case of any deed or certificate 110
of title not a gift in whole or part, the amount of the full 111
consideration therefor, paid or to be paid for the real estate 112
or manufactured or mobile home described in the deed or title, 113
including the amount of any mortgage or vendor's lien thereon. 114
If property sold under a land installment contract is conveyed 115
by the seller under such contract to a third party and the 116
contract has been of record at least twelve months prior to the 117
date of conveyance, "value" means the unpaid balance owed to the 118
seller under the contract at the time of the conveyance, but the 119
statement shall set forth the amount paid under such contract 120
prior to the date of conveyance. In the case of a gift in whole 121
or part, "value" means the estimated price the real estate or 122
manufactured or mobile home described in the deed or certificate 123
of title would bring in the open market and under the then 124
existing and prevailing market conditions in a sale between a 125
willing seller and a willing buyer, both conversant with the 126
property and with prevailing general price levels. 127
(3) No person shall willfully falsify the value of 128
property conveyed. 129
(D) (E) The auditor shall indorse each conveyance on its 130
face to indicate the amount of the conveyance fee and compliance 131
with this section and if the property is residential rental 132

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property include a statement that the grantee shall file with 133
the county auditor the information required under division (A) 134
or (C) of section 5323.02 of the Revised Code. The auditor shall 135
retain the original copy of the statement of value, forward to 136
the tax commissioner one copy on which shall be noted the most 137
recent assessed value of the property, and furnish one copy to 138
the grantee or the grantee's representative. 139
(E) (F)(1) The auditor shall not indorse a conveyance of 140
protected property if the statement submitted under this section 141
does not include both of the affirmations required by division 142
(C) of this section. 143
(2) The auditor shall refer information about a conveyance 144
of protected property to the county sheriff for investigation 145
and enforcement under division (G) of section 5301.256 of the 146
Revised Code if either of the following apply: 147
(a) The grantee affirms, or the auditor has reason to 148
believe, that the grantee is prohibited from purchasing or 149
otherwise acquiring protected property under section 5301.256 of 150
the Revised Code. 151
(b) The grantor affirms, or the auditor has reason to 152
believe, that the grantor has acquired protected property in 153
violation of section 5301.256 of the Revised Code. 154
(G) The auditor shall not refuse to indorse a conveyance 155
for either of the reasons specified in division (F)(2) of this 156
section. 157
(H) In order to achieve uniform administration and 158
collection of the transfer fee required by division (G)(3) of 159
section 319.54 of the Revised Code, the tax commissioner shall 160
adopt and promulgate rules for the administration and 161

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enforcement of the levy and collection of such fee. 162

(F) (I) As used in this section, "residential : 163
(1) "Agricultural land" and "protected property" have the 164
same meanings as in section 5301.256 of the Revised Code. 165
(2) "Residential rental property" has the same meaning as 166
in section 5323.01 of the Revised Code. 167

(3)(a) "Value" means, in the case of any deed or certificate of title not a gift in whole or part, the amount of the full consideration therefor, paid or to be paid for the real estate or manufactured or mobile home described in the deed or title, including the amount of any mortgage or vendor's lien thereon.

(b) If property sold under a land installment contract is conveyed by the seller under such contract to a third party and the contract has been of record at least twelve months prior to the date of conveyance, "value" means the unpaid balance owed to the seller under the contract at the time of the conveyance, but the statement shall set forth the amount paid under such contract prior to the date of conveyance.

(c) In the case of a gift in whole or part, "value" means the estimated price the real estate or manufactured or mobile home described in the deed or certificate of title would bring in the open market and under the then existing and prevailing market conditions in a sale between a willing seller and a willing buyer, both conversant with the property and with prevailing general price levels.

Sec. 5301.256. (A) As used in this section: 188 (1) "Agriculture" has the same meaning as in section 1.61

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of the Revised Code. 190

(2) "Agricultural land" means land suitable for use in 191
agriculture and includes water on and upon and air space over 192
and above the land and natural products and deposits that are 193
unsevered from the land. 194
(3) "Person" includes all of the following: 195
(a) Individuals; 196
(b) Firmsindividuals, businesses, countries, criminal 197
enterprises, gangs, cartels, organizations, and governments. 198
(4) "Business" includes firms, companies, business trusts, 199
estates, trusts, sole proprietorships, partnerships, general 200
partnerships, limited liability companies, associations, 201
corporations, and any other legal, business, or commercial 202
entities; 203
(c) Governments . 204
(5) "Government" means a government other than the 205
government of the United States, its states, subdivisions, 206
territories, or possessions; 207
(d) Legal or commercial entities, organizations, joint 208
ventures, and nonprofits. 209
(6) "Real property" means land and improvements to land 210
and includes water on and upon and air space over and above the 211
land and natural products and deposits that are unsevered from 212
the land. 213
(7) "Protected property" means real property in this state 214
that is any of the following: 215
(a) Agricultural land; 216

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(b) Located within a twenty-five mile radius of any 217
installation under the jurisdiction of the armed forces, as 218
defined in section 5903.01 of the Revised Code, such as a 219
military base, a camp, or an airport; 220

(c) Located within a twenty-five mile radius of a critical infrastructure facility, as defined in section 2911.21 of the Revised Code.

(8) "Control" means the authority, by contract or by law, to direct the affairs and day-to-day operations of a business without the consent of any other person.

(9) "Own" means possession of more than fifty per cent of the stock, equity, or other ownership interest of a business. (10) "Foreign adversary" means a country listed on the registry published by the secretary of state under division (H) of this section.

(B)(1) (B) On or after the effective date of this section, no person listed in the registry published by the secretary of state under division (G) of this section, and no agent, trustee, or fiduciary of such a personamendment, none of the following persons shall, directly or indirectly, purchase or otherwise acquire agricultural land in this state protected property:

(1) A person listed on the registry published by the secretary of state under division (H) of this section; (2) A government of a foreign adversary;

(3) An individual who is a citizen of a foreign adversary, regardless of whether that same individual is also a citizen or national of one or more other countries, other than the United States, that are not foreign adversaries;

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(4) A business that is headquartered in a foreign 245
adversary; 246
(5) A business that is directly or indirectly owned or 247
controlled by one or more persons described in divisions (B)(1) 248
to (4) of this section, or an agent, fiduciary, or trustee of 249
such persons; 250
(6) Except as otherwise provided in division (D)(3) of 251
this section, an agent, fiduciary, or trustee of a person 252
described in divisions (B)(1) to (5) of this section. 253
(2) (C) A person, agent, trustee or fiduciary subject to 254
division (B)(1) (B) of this section that directly or indirectly 255
owns or holds agricultural land in this state as described in 256
division (B)(1) of this section protected property before the 257
effective date of this section amendment, may continue to own or 258
hold the agricultural landprotected property, but shall not 259
purchase or otherwise acquire, directly or indirectly, 260
additional agricultural land in this state that is subject to 261
the restriction in division (B)(1) of this section protected 262
property, unless an exception described in division (C) (D) of 263
this section applies. 264
(C) (D) The restriction on acquiring agricultural land 265
restrictions set forth in division (B)(1) (B) of this section 266
does do not apply to any of the following: 267
(1) Agricultural land Protected property acquired by 268
devise or descent. HoweverExcept as otherwise provided in 269
division (C) of this section, a person listed in the registry 270
published by the secretary of state under division (G) subject 271
to division (B) of this section, or an agent, trustee, or 272
fiduciary thereof, that directly or indirectly acquires the 273

H. B. No. 1 As Introduced

agricultural landprotected property, or an a direct or indirect 274
interest in agricultural land,protected property by devise or 275
descent on or after the effective date of this section shall 276
divest itself of all right, title, and interest in the 277
agricultural land protected property, whether direct or 278
indirect, within two years from after the date of acquisition. 279
(2) Agricultural land Protected property that is acquired, 280
directly or indirectly, by a process of law in the collection of 281
debts, by a deed in lieu of foreclosure, pursuant to a 282
forfeiture of a contract for deed, or by any procedure for the 283
enforcement of a lien or claim on the agricultural landprotected 284
property, whether created by mortgage or otherwise. Agricultural 285
land Except as otherwise provided in division (C) of this 286
section, protected property so acquired shall be sold or 287
otherwise disposed of within two years after title is 288
transferred. Agricultural If the protected property is 289
agricultural land, pending the sale or disposition, the land 290
shall not be used for any purpose other than agriculture, and 291
the land shall not be used for agriculture under lease to an 292
individual, trust, corporation, partnership, or other business 293
entity subject to the restrictions under division (B)(1) (B) of 294
this section. 295
(D) (3) Protected property directly or indirectly acquired 29
by agent, fiduciary, or trustee of a person described in 29
divisions (B)(1) to (5) of this section acting in the agent's, 298
fiduciary's, or trustee's personal capacity, if both of the 29
following apply: 300
(a) The agent, fiduciary, or trustee is not a person 30
described in divisions (B)(1) to (5) of this section; 302
(b) The agent, fiduciary, or trustee is not purchasing or 303

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otherwise acquiring the property to circumvent the restrictions prescribed by this section.

(4) Protected property directly or indirectly acquired by an individual who is a United States citizen or national, unless that individual is purchasing or otherwise acquiring the property as an agent, fiduciary, or trustee of a person described in divisions (B)(1) to (5) of this section.

(E) A person listed in the registry published by the secretary of state under subject to division (G) (B) of this section, or an agent, trustee, or fiduciary of such a person, shall not directly or indirectly transfer title to or an interest in agricultural land protected property to another person listed in that registry, or an agent, trustee, or fiduciary thereofsubject to that division, except by devise or descentunless an exception described in division (D) of this section applies.

(E) (F) A person or an agent, trustee, or fiduciary that directly or indirectly purchases or otherwise acquires agricultural land in this state described in division (B)(1) of this section, other than by devise or descent, after the effective date of this section protected property, and that is subsequently added to the registry published by the secretary of state under becomes subject to division (G) (B) of this section, shall divest itself of all right, title, and interest in the agricultural land within two years from the date the person is added to the registrymay continue to own or hold the protected property but shall not purchase or otherwise acquire, directly or indirectly, additional protected property unless an exception described in division (D) of this section applies.

(F)(1) (G)(1) If the secretary of state a county auditor

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finds or has reason to believe that a person listed on the registry published under division (G) of this section, or an agent, trustee, or fiduciary thereof, subject to division (B) of this section has acquired, or holds title to, or interest in, agricultural land protected property in this state in violation of this section, the secretary of state auditor shall report the violation to the attorney generalnotify the county sheriff of each county in which the protected property is located. The county sheriff shall investigate the allegation. If the protected property is located in more than one county, the county sheriffs of those counties may investigate the allegation collaboratively.

(2) Upon receipt of the report from the secretary of state, the attorney general concluding the investigation, if the county sheriff determines that a violation has occurred, the county sheriff shall refer the violation to the county prosecutor. Upon receiving such a referral, the county prosecutor shall initiate commence an action in the court of common pleas of any the county in which the agricultural land is located seeking relief in accordance with this section. If the agricultural land protected property is located in more than one county, or adjoining tracts of agricultural land are located in more than one county, rather than commencing a separate action in each such county, the county prosecutors may commence one consolidated action in the county in which the majority of the agricultural land territory of the protected property is located shall have . In a consolidated action, the court of common pleas of the county in which the majority of the territory of the protected property is located has territorial jurisdiction over agricultural land all protected property that is the subject of the action. The attorney general may initiate an action in the

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court of common pleas of more than one county, if necessary, in 365
which case, the court of common pleas in that county shall have 366
jurisdiction over the action in matters as it relates to the 367
portion of the agricultural land that is located in that county. 368
(3) The attorney general Once the action is commenced, the 369
county prosecutor shall file a notice of the pendency of the 370
action with the county recorder of each county in which any of 371
the agricultural land protected property subject to the action 372
is located. 373
(4) If the court finds that the agricultural land 374
protected property in question has been acquired or held in 375
violation of this section, it shall do all of the following: 376
(a) Enter an order so declaring; 377
(b) File a copy of the order with the county recorder of 378
each county in which any portion of the agricultural land 379
protected property is located; 380

(c) Declare the agricultural land escheated to the state;

(d) Order that the escheated agricultural land protected property be sold pursuant to Chapter 2329. of the Revised Code in the same manner as a foreclosure on a mortgage, except that there shall be no opportunity for redemption under section 2329.33 of the Revised Code.

(5) Upon receiving an order under division (F)(4) (G)(4) 387
of this section, the clerk of the court shall notify the 388
governor that the title to the agricultural land protected 389
property is vested in the state to be sold by decree of the 390
court. After the sale, the proceeds of the sale shall be paid as 391
follows: 392

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(a) The proceeds shall first be used First, to pay court 393
costs related to the action or actions initiated pursuant to 394
division (F)(2) of this section; 395

(b) The remaining proceeds, if any, shall be paid Second, to bona fide lien holders, in their order of priority, except for liens that under the terms of the sale are to remain on the property;

(c) Third, to the person whose agricultural land 400
escheated, but only in an amount not exceeding the actual cost 401
paid by the person for that agricultural land; 402

(c) The proceeds remaining after payments have been made pursuant to divisions (F)(5)(a) and (b) of this section shall be paid to the general fund of each county in which the agricultural land protected property is located, proportionally, based on the percentage of the territory located in each county.

(G) (H)(1) The secretary of state shall compile and periodically update at least one time every six months a registry of foreign adversaries and other persons that, based on the best information available to the secretary of state, constitute a threat to the agricultural production, critical infrastructure, security, or military defense of this state, or the United States, if permitted to acquire agricultural land described in division (B)(1) of this section.

(2) The registry shall be published on the secretary of state's web site.

(3) The secretary of state shall consult all of the 418
following in compiling the registry: 419
(1)(a) The list of persons determined to be foreign 420
adversaries by the secretary of commerce of the United States 421

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under 15 C.F.R. 7.4to have engaged in a long-term pattern or 422
serious instances of conduct significantly adverse to the 423
national security of the United States or the security and 424
safety of United States persons and, therefore, to constitute 425
foreign adversaries for the purposes of Executive Order 13873, 426
issued by the president of the United States on May 15, 2019; 427

$\nleftarrow$ (b) The terrorist exclusion list compiled by the secretary of state of the United States in consultation with the attorney general of the United States under 8 U.S.C. 1182;

(3)(c) The list of countries determined by the secretary of state of the United States that have repeatedly provided support for acts of international terrorism under 50 U.S.C. 4813(c) and 22 U.S.C. 2780(d);

(4)(d) The list of individual and entities designated by, or in accordance with Executive Order 13224, issued by the president of the United States on September 23, 20212001, or Executive Order 13268, issued by the president of the United States on July 2, 2002.

(H) (4) The secretary of state shall not include on the 440
registry any person that does not appear on at least one of the 441
federal lists described in division (H)(3) of this section. 442
(I)(1) No person is required to determine or inquire 443
whether another person is or may be subject to division (B) of 444
this section unless the person is either: 445
(a) Subject to division (B) of this section; 446
(b) A county auditor, county sheriff, county prosecutor, 447
or trier of fact of a court of common pleas acting in the 448
person's official capacity as provided in this section or 449
section 319.302 of the Revised Code; 450

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(2) A person that is not subject to division (B) of this section bears no liability under this section.

(3) No title to an interest in real property is invalid or subject to divestment by reason of a violation of this section by any former owner or other person holding or owning a former interest in such real property.

(J) The purpose of establishing the restrictions as set forth in this section is to recognize that the state has a substantial and compelling interest in protecting its agricultural production, critical infrastructure, security, and military defense.

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Sec. 5323.02. (A) An owner of residential rental property shall file with the county auditor of the county in which the property is located the following information:

(1) The name, address, and telephone number of the owner; (2) If the residential rental property is owned by a trust, business trust, estate, partnership, limited partnership, limited liability company, association, corporation, or any other business entity, the name, address, and telephone number of the following:

(a) A trustee, in the case of a trust or business trust; 471
(b) The executor or administrator, in the case of an 472
estate; 473
(c) A general partner, in the case of a partnership or a 474
limited partnership; 475
(d) A member, manager, or officer, in the case of a 476
limited liability company; 477

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(e) An associate, in the case of an association; 478
(f) An officer, in the case of a corporation; 479
(g) A member, manager, or officer, in the case of any 480
other business entity. 481
(3) The street address and permanent parcel number of the 482
residential rental property. 483
(B) The information required under division (A) of this 484
section shall be filed and maintained on the tax list or the 485
real property record. 486
(C) An owner of residential rental property shall update 487
the information required under division (A) of this section 488
within sixty days after any change in the information occurs. 489
(D) The county auditor shall provide an owner of 490
residential rental property located in a county that has a 491
population of more than two hundred thousand according to the 492
most recent decennial census with notice pursuant to division 493
(B) of section 323.131 of the Revised Code of the requirement to 494
file the information required under division (A) of this section 495
and the requirement to update that information under division 496
(C) of this section. 497
(E) The owner of residential real property shall comply 498
with the requirements under divisions (A) and (C) of this 499
section within sixty days after receiving the notice provided 500
under division (D) of this section, division (D)(E) of section 501
319.202, or division (B) of section 323.131 of the Revised Code. 502
(F) Any agent designated by the owner to manage the 503
property on the owner's behalf may file or update any 504
information, or do anything otherwise required by this section, 505

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on the owner's behalf. 506

Section 2. That existing sections 319.202, 5301.256, and 507
5323.02 of the Revised Code are hereby repealed. 508
Section 3. This act shall be known as the Ohio Property 509
Protection Act. 510