SB 394 — Prohibit Foreign Ownership of NC Land.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 21 SENATE BILL 394 Agriculture, Energy, and Environment Committee Substitute Adopted 4/8/25 Short Title:

Senators Brinson, Hanig, and Moffitt (Primary Sponsors).

Rules and Operations of the Senate March 25, 2025 A BILL TO BE ENTITLED AN ACT TO PROHIBIT THE ACQUISITION OF AGRICULTURAL LANDS OR LANDS ADJACENT TO MILITARY INSTALLATIONS BY CERTAIN ADVERSARIAL ENTITIES;

*S394-v-2**S394-v-1* General Assembly Of North Carolina Session 2025 a.

– Any estate, remainder, or reversion, or any portion of the estate, remainder, or reversion, or an option pursuant to which one party has a right to cause the transfer of legal or equitable title to agricultural land, including, without limitation, a lease of agricultural land described(i) infor G.S.a term of one year or longer or (ii) renewable by option for terms which, if the options were all exercised, would total one year.

64-63(a), including, without limitation, a lease of land described in G.S.

64-63(a):

(i) for a term of one year or longer or (ii) renewable by option for terms which, if the options were all exercised, would total one year.

The entityhas received a determination from the Committee of Foreign Investment in the United States (CFIUS) that there are Page 2 Senate Bill 394-Second394-First Edition General Assembly Of North Carolina Session 2025 no unresolved national security concerns with respect to the entityin connection to a matter submitted to CFIUS and which CFIUS concluded all action pursuant to § 721 of the Defense Production Act of 1950, as amended.

(b) Except as provided in this section, a prohibited foreign party shall not acquire by grant,purchase,devise,descent,orotherwise,anyinterest,otherthanademinimisdirectinterest,grant, purchase, devise, descent, or otherwise, any interest, other than a de minimus direct interest, in land described in subsection (a) of this section in this State regardless of how the prohibited foreign party intends to use the land.

A party may not hold land as an agent, trustee, or other fiduciaryforfiduciary for a prohibited foreign partyinparty in violation of this section.

A prohibited foreign partythatparty that acquires land in violation of this section remains in violation as long as the prohibited foreign party holds an interest in the land.

A prohibited foreign partywhoparty who is a resident alien of the United States shall have the right to acquire and hold land described in subsection (a) of this section in the State upon the same terms as a citizen of the United States during the continuance of the party's residence in this State.

Senate Bill 394-Second394-First Edition Page 3 General Assembly Of North Carolina Session 2025 (c) A prohibited foreign party that has acquired any interest in land described in subsection (a) of this section in this State prior to the effective date of this section may continue to ownorhold that interest, but maynot acquirebygrant, purchase, devise,descent,or otherwise, any additional interest in land described in subsection (a) of this section in this State and must register with the Secretary of State and the Attorney General.

(e) Aprohibitedforeignpartythatacquireslanddescribedinsubsection(a)ofthissectionAprohibitedforeignpartythat acquireslanddescribedinsubsection(a)ofthissection on or after the effective date of this section, by devise or descent, through the enforcement of security interests, or through the collection of debts, other than a de minimisminimus direct interest, shall sell, transfer, or otherwise divest itself of the land within three years after acquiring the land.

(g) If a prohibited foreign party does not divest itself of the landagricultural describedland in subsection (a) of this section as required under subsection (e) of this section, the Attorney General shall commence an action in superior court in the county where the land is situated.

Proceeds of the sale shall be disbursed to any lienholders,lien holders, in order of priority, except for liens not subject to the order of foreclosure.

(i) Title to agricultural land described in subsection (a) of this section is not invalid or subject to divestiture due to a violation of this section by any former owner or any other person holding or owning a former interest in the landagricultural describedland. in subsection (a) of this section.

(j) A person who knowingly sells an interest in landagricultural describedland in subsection (a) of this section in violation of this section shall be guilty of a Class 2 misdemeanor." SECTION 2.

Page 4 Senate Bill 394-Second394-First Edition General Assembly Of North Carolina Session 2025 "§ 161-14.04.

SectionSenate 1Bill of394-First thisEdition actPage applies5 to offenses committed on or after that date.

Senate Bill 394-Second Edition Page 5