HB 4234: Property: land sales; sale or transfer of agricultural assets or land to foreign entities; prohibit. Amends title & secs. 35 & 36 of 1846 RS 66 (MCL 554.135 & 554.136) & adds secs. 36a & 36b. - Michigan

Substitute (H-3) → Substitute (H-1) - 2 · 8 edits

MODERATE

The bill was renumbered from version H-3 to H-1, and the text was significantly reorganized to clarify rules for foreign ownership of land near military sites. The changes streamline the registration process for existing owners, add specific penalties for late registration, and introduce new enforcement powers for the Attorney General to seize and sell property acquired in violation of the law.

Scope change

The scope of enforcement was expanded by adding new procedures for the Attorney General to initiate court actions and seize property, while the scope of registration requirements was clarified and consolidated.

TECHNICAL

The bill version number was changed from H-3 to H-1, and the page header metadata was updated.

REQUIREMENT

Subsections regarding foreign principals who owned land before the law was passed were renumbered and consolidated to improve clarity.

New penalties were added, including a daily civil fine of up to $1,000 for late registration and the ability for the state to place liens on unregistered property.

ENFORCEMENT

New provisions were added allowing the Attorney General to file lawsuits in circuit court and file notices with county recorders when a foreign principal violates the law.

New provisions were added allowing the court to declare violating property escheated to the state and order its sale, with proceeds distributed to lienholders and the former owner.

New provisions were added allowing the Secretary of State to seek an immediate seizure order if the foreign owner's control of the land poses a clear and present danger to the state.

TIMELINE

A specific deadline of July 1, 2025, was established for foreign principals to register their existing property holdings.

ELIGIBILITY

The rule for people who become foreign principals after buying land was modified to require divestiture within two years of the status change, rather than two years from the original purchase date.

Substitute (H-1) → Substitute (H-3) · 2 edits

MINOR

The bill was renumbered from version H-1 to H-3, and a new provision was added to allow specific entities with national security agreements to purchase up to 350 acres of agricultural land for research or testing purposes. This creates a targeted exception to the general restrictions on foreign ownership of real property near military installations.

Scope change

The bill's scope was expanded to include a specific exemption for entities with national security agreements, allowing them to acquire agricultural land for research and development.

ELIGIBILITY

New provision allows entities with national security agreements to purchase up to 350 acres of agricultural land for research, development, or experimental purposes.

TECHNICAL

The bill was renumbered from Substitute (H-1) to Substitute (H-3), indicating a revision in the legislative process.

As Passed by the House → Substitute (H-1) · 5 edits

MODERATE

The bill was renumbered and reorganized to streamline the rules for foreign ownership of land near military installations. The most significant change is the addition of a registration requirement for foreign principals who already own such land, with penalties for non-compliance. Additionally, the rules for divesting land when a buyer's status changes to 'foreign principal' were updated to clarify the timeline for selling the property.

Scope change

The bill's scope regarding enforcement and compliance was expanded by adding a mandatory registration process and specific penalties for foreign principals holding land near military sites.

TECHNICAL

The bill text was renumbered and reorganized, shifting subsections (2) through (7) to (3) through (11) to improve logical flow and readability.

REQUIREMENT

A new requirement mandates that foreign principals who already own land near military installations must register with the Secretary of State by July 1, 2025.

ENFORCEMENT

New penalties were added, including a daily civil fine of up to $1,000 for late registration and the authority for the Secretary of State to place liens on unregistered properties.

New procedures were added allowing the Attorney General to seize property if it poses a 'clear and present danger' to the state during forfeiture proceedings.

TIMELINE

The deadline for selling property if a buyer becomes a foreign principal was clarified to be within two years of the specific date their status changed, rather than an ambiguous reference to the change itself.

House Introduced Bill → As Passed by the House · 6 edits · May 6, 2025

MODERATE

The bill was rewritten to replace the original text with new provisions restricting foreign ownership of real property near military installations. The new version expands the scope to include all real property (not just agricultural land), clarifies exemptions for diplomatic purposes and national security agreements, and updates enforcement mechanisms to involve the Secretary of State and Attorney General instead of the Department of Agriculture.

Scope change

The bill's scope expanded from prohibiting foreign ownership of agricultural land near military sites to prohibiting ownership of any real property within 20 miles of military installations or key facilities. It also added specific exemptions for diplomatic purposes and entities with national security agreements.

SCOPE

Prohibition expanded from agricultural land to all real property within 20 miles of military installations or key facilities.

ELIGIBILITY

Added an exemption allowing foreign principals with national security agreements to purchase up to 350 acres of agricultural land for research or experimental purposes.

ENFORCEMENT

Enforcement authority shifted from the Department of Agriculture to the Secretary of State for registration and the Attorney General for legal actions.

REQUIREMENT

Registration deadline for existing owners remains July 1, 2025, but the registration form now covers all real property types rather than just agricultural land.

DEFINITION

Added specific definitions for 'foreign country of concern' including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria.

TIMELINE

New provisions require buyers to file an affidavit within 20 miles of military sites to confirm they are not foreign principals.

Property: land sales; sale or transfer of agricultural assets or land to foreign entities; prohibit. Amends title & secs. 35 & 36 of 1846 RS 66 (MCL 554.135 & 554.136) & adds secs. 36a & 36b.

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