HB 4233: Property: land sales; prohibition for foreign entity to purchase farmland in Michigan; provide for. Amends title & secs. 35 & 36 of 1846 RS 66 (MCL 554.135 & 554.136) & adds sec. 36a. - Michigan

Substitute (H-4) → Substitute (H-3) - 2 · 5 edits

MODERATE

The bill was renumbered from version H-4 to H-3, indicating a revision in the legislative process. The substantive policy changes involve a complete rewrite of the agricultural land ownership rules. The previous version allowed entities with specific national security agreements to purchase up to 350 acres for research or testing purposes. The new version removes this exception and instead mandates that any foreign principal who acquires land must divest it within two years of their status change. Additionally, the new version adds a registration requirement for existing foreign owners and establishes a clear legal process for the attorney general to sue violators in court.

Scope change

The scope of restrictions on foreign ownership was narrowed by removing the specific exemption for entities with national security agreements, while simultaneously expanding the enforcement mechanisms to include mandatory registration and explicit court actions.

ELIGIBILITY

Deleted the provision allowing entities with national security agreements to purchase up to 350 acres of agricultural land for research or experimental purposes.

REQUIREMENT

Added a mandatory divestiture rule requiring foreign principals to sell their agricultural land within two years of their status changing to foreign.

Added a new registration requirement for foreign principals to file ownership details with the secretary of state within 60 days.

ENFORCEMENT

Created a specific legal pathway for the attorney general to file lawsuits in circuit court against foreign principals violating the ownership restrictions.

Added provisions protecting valid easements and covenants from being automatically extinguished during court actions against violators.

Substitute (H-3) → Substitute (H-4) · 4 edits

MODERATE

The bill was renumbered from H-3 to H-4 and updated with new tracking codes. The most significant policy change is the addition of a new exemption allowing entities with a national security agreement to purchase up to 350 acres of agricultural land for research, experimental purposes, or the production of crop inputs like seeds and fertilizers. This creates a specific carve-out for certain foreign entities that previously might have been restricted from owning such land.

Scope change

The bill's scope has expanded to include a specific exemption for foreign entities holding national security agreements, permitting them to acquire up to 350 acres for agricultural research and input production.

ELIGIBILITY

Added an exemption allowing entities with a national security agreement to purchase or lease up to 350 acres of agricultural land for research, experimental purposes, or producing crop inputs like seeds and fertilizers.

TECHNICAL

Updated the bill version identifier from H-3 to H-4 and changed the tracking code from c6a0bi to gtdx0i.

DEFINITION

Added new subsections defining 'biologicals' and 'fertilizers' as specific types of crop production inputs eligible for the new exemption.

REQUIREMENT

Removed the original text of subsections (3) and (4) before inserting the new exemption language, effectively replacing the old structure with the new eligibility criteria.

As Passed by the House → Substitute (H-3) · 4 edits

MODERATE

The bill was revised to replace specific exemptions for foreign entities with a new requirement for existing foreign owners to register their land and divest it within two years of becoming a foreign principal. The changes also update the enforcement process to allow the attorney general to file notices of pendency in circuit court actions.

Scope change

The bill now applies to foreign principals who acquire land after the effective date of the amendment and to those who change status to foreign principal after acquiring land, replacing previous exceptions for national security agreements.

ELIGIBILITY

Removed an exemption allowing entities with US national security agreements to purchase up to 350 acres of agricultural land for research or experimental purposes.

REQUIREMENT

Added a requirement for foreign principals to register their agricultural land with the secretary of state within 60 days of the law's effective date or acquisition, whichever is later.

TIMELINE

Added a mandate for foreign principals to divest all rights to agricultural land within two years of their status changing to foreign principal.

ENFORCEMENT

Modified the enforcement mechanism to require the attorney general to file a notice of pendency with the register of deeds in counties where the land is located.

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

MODERATE

The bill was amended to tighten restrictions on foreign ownership of Michigan agricultural land by changing the prohibited party from a generic 'foreign person' to a specific 'foreign principal' and adding exemptions for national security agreements. The text also expanded the list of specific countries and entities considered 'foreign countries of concern' and updated the penalty for non-compliance to include a civil fine.

Scope change

The bill's scope was narrowed to apply specifically to 'foreign principals' rather than all foreign persons, while simultaneously expanding the definition of which foreign entities are subject to these restrictions.

ELIGIBILITY

The restriction on purchasing agricultural land now applies only to 'foreign principals' instead of all 'foreign persons'.

EXEMPTIONS

A new exemption was added allowing entities with a national security agreement with the Committee on Foreign Investment in the United States to purchase up to 350 acres for research or experimental purposes.

DEFINITION

The definition of 'foreign principal' was expanded to explicitly include political parties and subdivisions of political parties in foreign countries of concern.

The definition of 'foreign country of concern' was updated to include the Venezuelan regime of Nicol?s Maduro.

ENFORCEMENT

The penalty for failing to register agricultural land ownership was changed from a vague court order to a specific civil fine of up to $2,000 for each violation.

The court's remedy for a violation now includes ordering the sale of the land and distributing proceeds in a specific priority order (court costs, lienholders, fines, then the divested owner).

Property: land sales; prohibition for foreign entity to purchase farmland in Michigan; provide for. Amends title & secs. 35 & 36 of 1846 RS 66 (MCL 554.135 & 554.136) & adds sec. 36a.

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