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.

HB-4234, As Passed House, May 6, 2025 SUBSTITUTE FOR HOUSE BILL NO.

The prohibition under this subsection does not apply to a foreign principal that acquires real property within 20 miles of any military installation or key facility for a diplomatic purpose that is recognized, acknowledged, or allowed by THS H01453'25 (H-1)(H-3)_HB4234_APH_1 9va8mcdz92tq 1 the government of the United States.

(2) AIf foreignan principalentity that directlyis orprohibited indirectlyfrom ownspurchasing or acquiresotherwise anacquiring interest in real property withinunder 20this milessection ofhas anya militarynational installationsecurity oragreement keywith facilitythe inCommittee thison stateForeign beforeInvestment thein effective date of the amendatoryUnited actStates thatand addedcontinues thisto sectionmaintain maythe continuenational tosecurity ownagreement, or hold the realentity propertymay butpurchase, shalllease, not purchase or otherwise acquire anya additionalmaximum realof property350 locatedacres within 20 miles of anyagricultural militaryland installationfor oreither keyof facilitythe infollowing thispurposes: state.

(3)(a) AAgricultural foreignresearch principaland thatdevelopment. directly or indirectly owns or acquires any interest in real property within 20 miles of any military installation or key facility before the effective date of the amendatory act that added this section shall register with the secretary of state not later than July 1, 2025.

(b) Experimental purposes, including testing, development, or production of crop production inputs for sale or resale to farmers, including, but not limited to, any of the following:

(i) Seeds.

(ii) Plants.

(iii) Pesticides.

(iv) Soil amendments.

(v) Biologicals.

(vi) Fertilizers.

(3) A foreign principal that directly or indirectly owns or acquires an interest in real property within 20 miles of any military installation or key facility in this state before the effective date of the amendatory act that added this section may continue to own or hold the real property but shall not purchase or otherwise acquire any additional real property located within 20 miles of any military installation or key facility in this state.

(4) A foreign principal that directly or indirectly owns or acquires any interest in real property within 20 miles of any military installation or key facility before the effective date of the amendatory act that added this section shall register with the THS H01453'25 (H-3)_HB4234_APH_1 dz92tq 1 secretary of state not later than July 1, 2025.

(4)(5) A foreign principal that does not register with the secretary of state under subsection (3)(4) by July 1, 2025, is responsible for a state civil infraction and may be ordered to pay a civil fine of not more than $1,000.00 for each day the registration is late.

(5)(6) If a foreign principal acquires real property within 20 THS H01453'25 (H-1) 9va8mc 1 miles of any military installation or key facility on or after the effective date of the amendatory act that added this section by devise or descent, through the enforcement of security interests, or through the collection of debts, the foreign principal shall sell, transfer, or otherwise divest itself of the real property not later than 2 years after acquiring the real property.

(6)(7) A person that purchases or otherwise acquires real property within 20 miles of any military installation or key facility in this state after the effective date of the amendatory act that added this section, and whose status changes so that the person becomes a foreign principal shall divest itself of all right, title, and interest in the real property not later than 2 THS H01453'25 (H-3)_HB4234_APH_1 dz92tq 1 years after the date of the change in status.

(7)(8) If a foreign principal acquires or holds real property within 20 miles of any military installation or key facility in violation of this section, the secretary of state shall report the violation to the attorney general.

(8)(9) On receipt of the report under subsection (7),(8), the attorney general shall do both of the following:

(9)(10) If an easement, covenant, condition, or restriction is properly created and recorded and does not otherwise violate this act, a circuit court action under subsection (8)(9) does not extinguish or otherwise eliminate the easement, covenant, condition, or restriction.

THS(11) H01453'25 (H-1) 9va8mc 1 (10) In any action initiated under subsection (8),(9), if the court finds that the foreign principal violated this section, the court shall do any of the following, as applicable:

(ii) Declare the real property escheated to this state and THS H01453'25 (H-3)_HB4234_APH_1 dz92tq 1 order the sale of the real property in the same manner as provided by law for the foreclosure of a mortgage on real estate for default of payment.

(11)(12) A foreign principal that purchases or acquires any THS H01453'25 (H-1) 9va8mc 1 interest in real property within 20 miles of any military installation or key facility in violation of this section is guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00, or both.

(12) A person that knowingly sells any interest in real property within 20 miles of any military installation or key facility to a foreign principal in violation of this section is guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00, or both.

(14) No title to land is invalid or subject to divestiture due THS H01453'25 (H-3)_HB4234_APH_1 dz92tq 1 to a violation of this section by any former owner or other person holding or owing a former interest in the land.

(a) "Foreign"Agricultural countryland" ofmeans concern"that meansterm anyas defined under section 2 of the following:Michigan family farm development act, 1982 PA 220, MCL 285.252.

(b) "Foreign country of concern" means any of the following:

(viii) An agency or other entity under the significant control THS H01453'25 (H-1) 9va8mc 1 of a country described in subparagraphs (i) to (vii).

(b)(c) "Foreign principal" means any of the following:

(c)(d) "Key facility" means that term as defined under section 552c of the Michigan penal code, 1931 PA 328, MCL 750.552c.

(d)(e) "Military installation" means that term as defined in 10 THS H01453'25 (H-3)_HB4234_APH_1 dz92tq 1 USC 2801(c)(4) and includes an armory as that term is defined in section 105 of the Michigan military act, 1967 PA 150, MCL 32.505.

(e)(f) "Real property" means land, buildings, fixtures, and all other improvements to land.

THS H01453'25 (H-1) 9va8mc 1 (3) As used in this section:

THS H01453'25 (H-3)_HB4234_APH_1 dz92tq 1 (ii) A political party, member of a political party, or any subdivision of a political party in a foreign country of concern.

This amendatory act does not take effect THS H01453'25 (H-1) 9va8mc unless House Bill No.

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