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SB 10

Revise non-recourse litigation funding agreement regulations

136th Legislature (2025-2026) Introduced by George Lang and 1 co-sponsor

Prohibits foreign governments, state-sponsored enterprises, and their agents from buying or acquiring farmland in Michigan, with grandfathering and a treaty carve-out.

Referred to committee
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Bill Summary · SB 10

SB 10 — Property: land sales; prohibition on certain foreign purchases of farmland (MCL 554.135, 554.136; adds 554.136a)

Status: Referred to Committee on Government Operations (introduced Aug 15, 2025)
Subject: Property — land sales

Main purpose

SB 10 creates a new, targeted prohibition on the purchase or acquisition of farmland in Michigan by foreign governments, state‑sponsored enterprises, and individuals acting on their behalf. It amends existing statutes governing alien ownership of land (MCL 554.135 & 554.136) and adds a new section (proposed MCL 554.136a) that restricts certain foreign‑controlled entities from expanding farmland holdings in the state.

Key provisions

  • Adds a new Section 36a (proposed MCL 554.136a) providing that, beginning on the act’s effective date, a:
    • foreign government;
    • state‑sponsored enterprise; or
    • individual operating on behalf of a foreign government or state‑sponsored enterprise shall not purchase or otherwise acquire farmland in Michigan.
  • Grandfathering for pre‑existing owners: entities that already own or hold farmland in Michigan before October 1, 2023 may continue to own or hold that farmland but are prohibited from purchasing or acquiring additional farmland after enactment.
  • Treaty exception: the prohibition does not apply to acquisitions made under a United States treaty.
  • Conforming edits to MCL 554.135 and 554.136: language is added (“Except as otherwise provided in section 36a”) clarifying that alien ownership and conveyance provisions remain but are subject to the new restriction.
  • Definitions included in Section 36a:
    • “Controlling interest” = direct or indirect ownership of 50% or more.
    • “Farmland” = land zoned for agricultural use capable of producing crops or sustaining livestock, poultry, timber, dairy, orchard/fruit production, ranching, or hemp production.
    • “Foreign government” excludes the U.S. federal government, Michigan state government, and local governments of the U.S.
    • “Primary interest” and “state‑sponsored enterprise” describe entities where a foreign government has a primary or controlling interest or which serve geopolitical aims of a foreign government.

Who would be affected

  • Directly affected: foreign national governments, state‑sponsored enterprises, and persons acting on their behalf seeking to buy farmland in Michigan.
  • Indirectly affected: Michigan farmland sellers, agricultural businesses, real estate market participants, and local governments that regulate land use.
  • Entities that owned farmland prior to Oct 1, 2023 keep current holdings but cannot expand them under the bill’s terms.

Procedural/timeline notes

  • Introduced Aug 15, 2025 and referred to the Committee on Government Operations. If the committee advances the bill, next steps would typically include hearings, possible amendments, committee vote, and then floor consideration in the chamber of origin before transmission to the second chamber and (if passed) the governor.

Considerations / potential implications

  • Limits foreign state‑controlled investment in Michigan agriculture; proponents may cite national security, food security, or local control concerns.
  • The carve‑out for treaty‑based acquisitions preserves federal treaty obligations but could raise issues about federal preemption or constitutional commerce/treaty authority depending on enforcement.
  • The bill focuses on state‑controlled foreign actors (state‑sponsored enterprises) rather than all foreign private investors; the definition of “primary interest” and enforcement mechanisms will be important in practice but are not detailed beyond the statutory definitions.

If you want, I can:
- Draft a one‑page stakeholder memo on how this would affect a specific class of buyers (e.g., foreign‑owned agricultural companies), or
- Outline likely legal issues and litigation risks (preemption, equal protection, due process) that could arise if this becomes law.

Compiled from official sources — confirm details with the bill’s official record.

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