North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S394 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 2
	3	+	S 1
4	4		SENATE BILL 394
5		-	~~Agriculture, Energy, and Environment Committee Substitute Adopted 4/8/25~~
	5	+
6	6
7	7		Short Title: Prohibit Foreign Ownership of NC Land. (Public)
8		-	Sponsors:
9		-	Referred to:
	8	+	Sponsors: Senators Brinson, Hanig, and Moffitt (Primary Sponsors).
	9	+	Referred to: Rules and Operations of the Senate
10	10		March 25, 2025
11		-	S394 -v-2
	11	+	S394 -v-1
12	12		A BILL TO BE ENTITLED 1
13	13		AN ACT TO PROHIBIT THE ACQUISITION OF AGRICULTURAL LANDS OR LANDS 2
14	14		ADJACENT TO MILITARY INSTALLATIONS BY CE RTAIN ADVERSARIAL 3
15	15		ENTITIES; TO PROVIDE FOR THE DIVESTMENT OF THOSE LANDS; AND TO 4
16	16		PROVIDE FOR DOCUMENT ATION AND REGISTRATION OF LAND OWNERSHIP 5
17	17		BY CERTAIN ADVERSARIAL ENTITIES. 6
18	18		The General Assembly of North Carolina enacts: 7
19	19		SECTION 1. Chapter 64 of the General Statutes is amended by adding a new Article 8
20	20		to read: 9
21	21		"Article 4. 10
22	22		"Prohibit Adversarial Foreign Government Acquisition of Certain Lands. 11
23	23		"§ 64-60. Title. 12
24	24		This act shall be known and be cited as the North Carolina Farmland and Military Protection 13
25	25		Act. 14
26	26		"§ 64-61. Purpose. 15
27	27		The General Assembly finds that it is in the public interest for the State to guard its 16
28	28		agricultural land and military installations from the potential of adversarial foreign government 17
29	29		control in order to ensure that the State's farmers are able to produce a safe, abundant, and 18
30	30		affordable supply of food and fiber and to protect our national security for the benefit of the 19
31	31		people of this State and the United States. 20
32	32		"§ 64-62. Definitions. 21
33	33		As used in this Article, the following definitions apply: 22
34	34		(1) Adversarial nation. – One of the following: 23
35	35		a. China. 24
36	36		b. Iran. 25
37	37		c. North Korea. 26
38	38		d. Russia. 27
39	39		(2) Agricultural land. – Any land situated in this State that is used for agricultural 28
40	40		production purposes as defined in G.S. 106-581.1(1) through (4). The term 29
41	41		does not include land situated in this State that is leased for agricultural 30
42	42		research and development purposes or other activities for the purpose of 31
43	43		producing inputs and/or products for farmers or other end-users, provided that 32
44	44		the acreage leased by the lessee does not exceed 250 acres in the aggregate. 33
45	45		(3) De minimis direct interest. – Any ownership of land resulting from ownership 34
46	46		of registered equities in a publicly traded company owning the land and if the 35
47	47		ownership interest in the company is either of the following: 36 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 394-~~Second~~ Edition
	48	+	Page 2 Senate Bill 394-First Edition
49	49		a. Less than five percent (5%) of any class of registered equities or less 1
50	50		than five percent (5%) in the aggregate in multiple classes of registered 2
51	51		equities. 3
52	52		b. A noncontrolling interest in an entity controlled by a company that is 4
53	53		both registered with the United States Securities and Exchange 5
54	54		Commission as an investment adviser under the Investment Advisers 6
55	55		Act of 1940, as amended, and is not a foreign entity. 7
56	56		(4) Foreign government. – Any government other than the federal government or 8
57	57		the government of a state or a political subdivision of a state. 9
58	58		(5) Interest. – Any estate, remainder, or reversion, or any portion of the estate, 10
59	59		remainder, or reversion, or an option pursuant to which one party has a right 11
60		-	to cause the transfer of legal or equitable title to land ~~described in~~ 12
61		-	~~G.S. 64-63(a), including,~~ without limitation, a lease of land ~~described in~~ 13
62		-	~~G.S. 64-63(a): (i) for a term of one year or~~ longer or (ii) renewable by option 14
63		-	~~for terms which, if the options were all~~ exercised, would total one year. 15
	60	+	to cause the transfer of legal or equitable title to agricultural land, including, 12
	61	+	without limitation, a lease of agricultural land (i) for a term of one year or 13
	62	+	longer or (ii) renewable by option for terms which, if the options were all 14
	63	+	exercised, would total one year. 15
64	64		(6) Military installation. – Fort Bragg, Pope Army Airfield, Marine Corps Base 16
65	65		Camp Lejeune, New River Marine Corps Air Station, Cherry Point Marine 17
66	66		Corps Air Station, Military Ocean Terminal at Sunny Point, the United States 18
67	67		Coast Guard Air Station at Elizabeth City, Naval Support Activity Northwest, 19
68	68		Air Route Surveillance Radar (ARSR-4) at Fort Fisher, and Seymour Johnson 20
69	69		Air Force Base, in its own right and as the responsible entity for the Dare 21
70	70		County Bombing Range, and any facility located within the State that is 22
71	71		subject to the installations' oversight and control. 23
72	72		(7) Party. – Any individual, corporation, company, association, firm, partnership, 24
73	73		society, joint-stock company, trust, estate, or any other legal entity. 25
74	74		(8) Prohibited foreign party. – Any of the following: 26
75	75		a. A citizen or resident of an adversarial nation. 27
76	76		b. A foreign government formed within an adversarial nation. 28
77	77		c. A party other than an individual or government that is created or 29
78	78		organized under the laws of a foreign government within an 30
79	79		adversarial nation. 31
80	80		d. A party other than an individual or a government that meets all of the 32
81	81		following criteria: 33
82	82		1. Is created or organized under the laws of any state. 34
83	83		2. A significant interest or substantial control is directly or 35
84	84		indirectly held or is capable of being exercised by one or more 36
85	85		of the following: 37
86	86		I. An individual referred to in sub-subdivision a. of this 38
87	87		subdivision. 39
88	88		II. A foreign government referred to in sub-subdivision b. 40
89	89		of this subdivision. 41
90	90		III. A party referred to in sub-subdivision c. of this 42
91	91		subdivision. 43
92	92		IV. A combination of the individuals, parties, or 44
93	93		governments referred to in this sub-sub-subdivision. 45
94	94		e. An agent, trustee, or other fiduciary of a person or entity enumerated 46
95	95		in this subdivision. 47
96	96		f. This definition does not apply to an entity that meets either of the 48
97	97		following criteria: 49
98	98		1. The entity has received a determination from the Committee of 50
99	99		Foreign Investment in the United States (CFIUS) that there are 51 General Assembly Of North Carolina Session 2025
100		-	Senate Bill 394-~~Second~~ Edition Page 3
	100	+	Senate Bill 394-First Edition Page 3
101	101		no unresolved national security concerns with respect to the 1
102	102		entity in connection to a matter submitted to CFIUS and which 2
103	103		CFIUS concluded all action pursuant to § 721 of the Defense 3
104	104		Production Act of 1950, as amended. 4
105	105		2. The entity has a national security agreement with CFIUS and 5
106	106		maintains the validity of such national security agreement. 6
107	107		(9) Residence. – A person's principal dwelling place where that person intends to 7
108	108		remain permanently for an indefinite period of time. 8
109	109		(10) Resident alien. – A person who is not a citizen of the United States and is a 9
110	110		resident of one of the following: 10
111	111		a. A state of the United States. 11
112	112		b. A territory of the United States. 12
113	113		c. A trusteeship of the United States. 13
114	114		d. A protectorate of the United States. 14
115	115		(11) Significant interest or substantial control. – One of the following: 15
116	116		a. An interest of thirty-three percent (33%) or more held by one or more 16
117	117		of the following: 17
118	118		1. An individual referred to in sub-subdivision (8)a. of this 18
119	119		section. 19
120	120		2. A single government referred to in sub-subdivision (8)b. of this 20
121	121		section. 21
122	122		3. A party referred to in sub-subdivision (8)c. of this section. 22
123	123		4. A party referred to in sub-subdivision (8)d. of this section. 23
124	124		b. An interest of thirty-three percent (33%) or more held whenever the 24
125	125		parties, individuals, or governments referred to in sub-subdivision 25
126	126		(2)a. of this section are acting in concert with respect to the interest 26
127	127		even though no single individual, party, or government holds an 27
128	128		interest of thirty-three percent (33%) or more. 28
129	129		c. An interest of fifty percent (50%) or more, in the aggregate, held by 29
130	130		parties, individuals, or governments referred to in sub-subdivision 30
131	131		(2)a. of this section even though the individuals, parties, or 31
132	132		governments may not be acting in concert. 32
133	133		"§ 64-63. Prohibited foreign party acquisition of certain lands prohibited. 33
134	134		(a) Notwithstanding any provision of law to the contrary, no prohibited foreign party 34
135	135		shall purchase, acquire, lease, or hold any interest in the following: 35
136	136		(1) Agricultural land. 36
137	137		(2) Land situated within a 25-mile radius of a military installation. 37
138	138		(3) Land situated underneath special use airspace, designated by the Federal 38
139	139		Aviation Administration (FAA) as defined in the Aeronautical Information 39
140	140		Manual published by the FAA. 40
141	141		(b) Except as provided in this section, a prohibited foreign party shall not acquire by 41
142		-	grant, purchase, devise, descent, or otherwise, any interest, other than a de ~~minimis~~ direct ~~interest,~~ 42
143		-	in land described in subsection (a) of this section in this State regardless of how the ~~prohibited~~ 43
144		-	foreign party intends to use the land. A party may not hold land as an agent, trustee, ~~or other~~ 44
145		-	fiduciary for a prohibited foreign party in violation of this section. A prohibited foreign ~~party that~~ 45
146		-	acquires land in violation of this section remains in violation as long as the prohibited ~~foreign~~ 46
147		-	party holds an interest in the land. A prohibited foreign party who is a resident alien of ~~the United~~ 47
148		-	States shall have the right to acquire and hold land described in subsection (a) of this ~~section in~~ 48
149		-	the State upon the same terms as a citizen of the United States during the continuance ~~of the~~ 49
150		-	party's residence in this State. 50 General Assembly Of North Carolina Session 2025
151		-	Page 4 Senate Bill 394-~~Second~~ Edition
	142	+	grant, purchase, devise, descent, or otherwise, any interest, other than a de minimus direct 42
	143	+	interest, in land described in subsection (a) of this section in this State regardless of how the 43
	144	+	prohibited foreign party intends to use the land. A party may not hold land as an agent, trustee, 44
	145	+	or other fiduciary for a prohibited foreign party in violation of this section. A prohibited foreign 45
	146	+	party that acquires land in violation of this section remains in violation as long as the prohibited 46
	147	+	foreign party holds an interest in the land. A prohibited foreign party who is a resident alien of 47
	148	+	the United States shall have the right to acquire and hold land described in subsection (a) of this 48
	149	+	section in the State upon the same terms as a citizen of the United States during the continuance 49
	150	+	of the party's residence in this State. 50 General Assembly Of North Carolina Session 2025
	151	+	Page 4 Senate Bill 394-First Edition
152	152		(c) A prohibited foreign party that has acquired any interest in land described in 1
153	153		subsection (a) of this section in this State prior to the effective date of this section may continue 2
154	154		to own or hold that interest, but may not acquire by grant, purchase, devise, descent, or otherwise, 3
155	155		any additional interest in land described in subsection (a) of this section in this State and must 4
156	156		register with the Secretary of State and the Attorney General. The Secretary of State and the 5
157	157		Attorney General shall establish a registration form for the purposes of this subsection and the 6
158	158		form shall include at least the following: 7
159	159		(1) The name of the owner of the land or the owner of the interest in the land. 8
160	160		(2) The address of the land, the parcel identification number, and the property's 9
161	161		legal description. 10
162	162		(3) The number of acres of the land. 11
163	163		(4) The mailing address of the owner of the land. 12
164	164		(d) A prohibited foreign party that fails to timely file a registration with the Secretary of 13
165	165		State and the Attorney General is subject to a civil penalty of not less than one thousand dollars 14
166	166		($1,000) for each day that the registration is late, the clear proceeds of which shall be remitted to 15
167	167		the Civil Fines and Forfeitures Fund, in accordance with G.S. 115C-457.2. The unpaid balance 16
168	168		of any penalties assessed under this subsection shall constitute a lien against the land. 17
169	169		(e) A prohibited foreign party that acquires land described in subsection (a) of this section 18
170	170		on or after the effective date of this section, by devise or descent, through the enforcement of 19
171		-	security interests, or through the collection of debts, other than a de ~~minimis~~ direct interest, shall 20
	171	+	security interests, or through the collection of debts, other than a de minimus direct interest, shall 20
172	172		sell, transfer, or otherwise divest itself of the land within three years after acquiring the land. 21
173	173		(f) At the time of purchase, a buyer of any interest in land described in subsection (a) of 22
174	174		this section shall provide an affidavit signed under penalty of perjury attesting that the buyer is 23
175	175		(i) not a prohibited foreign party and (ii) in compliance with the requirements of this section. The 24
176	176		failure to obtain or maintain the affidavit shall not affect the title or insurability of the title for 25
177	177		the land or subject any nonparty to the purchase to civil or criminal liability, unless a nonparty 26
178	178		to the purchase has actual knowledge that the transaction will result in a violation of this section. 27
179	179		The Real Estate Commission shall establish the form for the affidavit required under this 28
180	180		subsection. 29
181		-	(g) If a prohibited foreign party does not divest itself of the land ~~described in subsection~~ 30
182		-	~~(a) of this section as required~~ under subsection (e) of this section, the Attorney General shall 31
183		-	~~commence an action in superior~~ court in the county where the land is situated. If the court finds 32
184		-	~~that the land is held in violation~~ of this section, the court shall order that the land be sold pursuant 33
185		-	~~to Article 29A of Chapter 1 of~~ the General Statutes. Proceeds of the sale shall be disbursed to 34
186		-	~~any lienholders, in order of~~ priority, except for liens not subject to the order of foreclosure. Any 35
187		-	~~remaining funds after~~ deduction of reasonable costs to the State associated with the action and 36
188		-	~~sale shall be paid to the~~ owner. The Attorney General shall promptly record the following in the 37
189		-	~~register of deeds of the~~ county where the land is situated: 38
	181	+	(g) If a prohibited foreign party does not divest itself of the agricultural land as required 30
	182	+	under subsection (e) of this section, the Attorney General shall commence an action in superior 31
	183	+	court in the county where the land is situated. If the court finds that the land is held in violation 32
	184	+	of this section, the court shall order that the land be sold pursuant to Article 29A of Chapter 1 of 33
	185	+	the General Statutes. Proceeds of the sale shall be disbursed to any lien holders, in order of 34
	186	+	priority, except for liens not subject to the order of foreclosure. Any remaining funds after 35
	187	+	deduction of reasonable costs to the State associated with the action and sale shall be paid to the 36
	188	+	owner. The Attorney General shall promptly record the following in the register of deeds of the 37
	189	+	county where the land is situated: 38
190	190		(1) Upon commencement, notice of the pendency of an action brought under this 39
191	191		subsection. 40
192	192		(2) The order for the sale of the land entered by the court under this subsection. 41
193	193		(h) A person in violation of this section shall be guilty of a Class 2 misdemeanor. It is an 42
194	194		affirmative defense to prosecution under this subsection that a prohibited foreign party is a 43
195	195		resident alien of this State. 44
196		-	(i) Title to land ~~described in subsection (a) of this section~~ is not invalid or subject to 45
197		-	~~divestiture due to a violation of~~ this section by any former owner or any other person holding or 46
198		-	~~owning a former interest in the~~ land ~~described in subsection (a) of this section~~. 47
199		-	(j) A person who knowingly sells an interest in land ~~described~~ in ~~subsection (a)~~ of this 48
200		-	~~section in violation of this~~ section shall be guilty of a Class 2 misdemeanor." 49
	196	+	(i) Title to agricultural land is not invalid or subject to divestiture due to a violation of 45
	197	+	this section by any former owner or any other person holding or owning a former interest in the 46
	198	+	agricultural land. 47
	199	+	(j) A person who knowingly sells an interest in agricultural land in violation of this 48
	200	+	section shall be guilty of a Class 2 misdemeanor." 49
201	201		SECTION 2. Article 2 of Chapter 161 of the General Statutes is amended by adding 50
202	202		a new section to read: 51 General Assembly Of North Carolina Session 2025
203		-	Senate Bill 394-~~Second~~ Edition Page 5
	203	+	Senate Bill 394-First Edition Page 5
204	204		"§ 161-14.04. Citizenship and residential status of parties to a deed or conveyance. 1
205	205		Prior to recording a deed or other document that conveys an ownership interest in land, the 2
206	206		register of deeds shall require that the parties listed as grantor and grantee on the instrument 3
207	207		provide information sufficient to establish their current citizenship, residential status, or for 4
208	208		non-individual entities, the state or nation where the entity is organized under. The register of 5
209	209		deeds shall index the citizenship and residential status collected pursuant to this section as a part 6
210	210		of the index required under G.S. 161-22." 7
211	211		SECTION 3. If any section or provision of this act is declared unconstitutional or 8
212	212		invalid by the courts, it does not affect the validity of this act as a whole or any part other than 9
213	213		the part so declared to be unconstitutional or invalid. 10
214		-	SECTION 4. This act becomes effective on December 1, 2025. Section 1 of this act 11
215		-	applies to offenses committed on or after that date. 12
	214	+	SECTION 4. This act becomes effective on December 1, 2025. 11