Michigan House Bill HB4134

Michigan 2023-2024 Regular Session

• Introduced: 2/22/23
• Refer: 2/22/23

Caption

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

Impact

Should this bill be enacted, it would impact several areas of state law, particularly those concerning property ownership rights for non-citizens. By placing restrictions on foreign ownership of farmland, the bill aims to protect local interests and ensure that agricultural resources remain within the control of Michigan residents. This legislative action might lead to significant changes in how agricultural transactions are conducted, especially by international stakeholders, and may also affect existing investment strategies for foreign entities in Michigan.

Summary

House Bill 4134 seeks to amend the 1846 RS 66 legislation regarding real estate, particularly focusing on prohibiting the sale or transfer of farmland to foreign entities. The bill introduces a new section, 36a, which explicitly disallows foreign governments, state-sponsored enterprises, or individuals acting on their behalf from purchasing farmland in Michigan. This restriction aims to address growing concerns over foreign investment in local agricultural land and its implications for state sovereignty and food security. Existing foreign owners of farmland as of October 1, 2023, are permitted to retain ownership but cannot acquire additional land.

Contention

There are notable points of contention surrounding HB 4134, primarily regarding the implications of restricting foreign investment. Proponents of the bill argue that such measures are necessary to safeguard local agricultural integrity and enhance food security, reflecting a growing trend across various states to limit foreign ownership in vital sectors. Conversely, opponents may argue that such a ban could deter beneficial foreign investments, which could provide much-needed capital and innovation to the agricultural sector, possibly leading to an adverse effect on local economies dependent on such investments.