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SB 338

State Emergency Response Commission rule relating to Emergency Planning Grant Program

2025 Regular Session Introduced by Jack Woodrum

Bars adversarial foreign governments from buying, leasing, or holding agricultural land or land within 25 miles of NC military bases, effective Jan 1, 2026.

Reported in Com. Sub. for S. B. 336
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Bill Summary · SB 338

SB 338 — NC Farmland and Military Protection Act (First Edition)

Overview / Purpose

SB 338 creates a new Article in Chapter 64 of the North Carolina General Statutes titled the "North Carolina Farmland and Military Protection Act." The stated purpose is to protect the State’s agricultural land and lands near key military installations from acquisition or control by foreign governments that the U.S. Department of Commerce has designated as “adversarial.” The bill aims to preserve domestic food production capacity and protect lands important to state and national security.

Key provisions

  • Adds a new Article (Article 4) to Chapter 64 establishing prohibitions and definitions.
  • Prohibition (G.S. § 64-63):
    • No “adversarial foreign government” may purchase, acquire, lease, or hold any interest in:
    • Agricultural land (as defined in G.S. 106‑581.1(1)–(4)); or
    • Land situated within a 25‑mile radius of specified military installations.
    • Any transfer of an interest in land that violates this provision is declared void.
  • Definitions (G.S. § 64‑62) include:
    • “Adversarial foreign government” — a foreign government or state‑controlled enterprise designated under 15 C.F.R. § 7.4 (as of July 17, 2024) by the U.S. Secretary of Commerce for conduct adverse to U.S. national security.
    • “Agricultural land,” “controlling interest,” “interest,” “military installation,” and “state‑controlled enterprise” — the bill sets statutory definitions and enumerates military installations covered (e.g., Fort Bragg, Camp Lejeune, Cherry Point, Seymour Johnson AFB, Military Ocean Terminal Sunny Point, others).
  • Liability/Inquiry safe harbor:
    • The bill places responsibility for determining applicability of the Article on the adversarial foreign government and the State of North Carolina. Private persons/entities who are not adversarial foreign governments “shall bear no civil or criminal liability” for failing to inquire whether a purchaser is an adversarial foreign government.
  • Appropriation:
    • $50,000 (nonrecurring, 2025–26) is appropriated from the General Fund to the Department of Agriculture and Consumer Services to allocate to the NC Agricultural Development and Farmland Preservation Trust for a farmland inventory.
  • Effective dates:
    • The main prohibitions (Section 1) become effective Jan 1, 2026 and apply only to interests acquired on or after that date.
    • The $50,000 appropriation (Section 3) becomes effective July 1, 2025. Other provisions take effect upon enactment.

Who or what would be affected

  • Directly: foreign governments and state‑controlled enterprises designated under the federal adversarial list; any attempted purchase/lease or holding of agricultural or covered military‑adjacent lands by such entities after Jan 1, 2026.
  • Indirectly: North Carolina farmers, private landowners, real estate purchasers, brokers, lenders, and title companies dealing with agricultural property or land near listed military bases. State agencies involved in land records and agriculture policy may see new duties or inquiries.
  • Military readiness interests: protections extend to a 25‑mile buffer around specified installations.

Procedural / timeline aspects

  • Bill introduced (per filing records) and passed first reading in the Senate (bill information lists March 20, 2025 for first reading).
  • Effective provisions as noted above: most substantive restrictions apply to acquisitions on or after Jan 1, 2026; appropriation effective July 1, 2025.

Potential impacts and implementation considerations

  • Titles and transactions: declaring prohibited transfers void creates a strong deterrent but may create title uncertainty for transactions that later are found to violate the statute.
  • Reliance on federal designation: the statute ties “adversarial” status to the federal Commerce Department designation (15 C.F.R. § 7.4). Practical enforcement, notice and cross‑jurisdictional coordination will matter.
  • Market and investment effects: foreign investors from designated countries would be blocked from certain purchases; may shift demand or raise compliance costs for sellers and intermediaries.
  • Administrative needs: the farmland inventory appropriation is modest ($50,000); agencies may require additional resources/clarity to implement monitoring, recordkeeping, and coordination with federal lists.
  • Legal risk: state restrictions on foreign acquisitions can raise constitutional questions or federal preemption concerns; the bill’s drafting attempts to limit private liability for failure to investigate, but litigation risk over voided transfers or definitions may arise.

Fiscal note

  • One explicit appropriation: $50,000 nonrecurring (2025–26) to support a farmland inventory through the NC Agricultural Development and Farmland Preservation Trust. No broader appropriations specified.

If you’d like, I can:
- Draft a one‑page memo for affected stakeholders (landowners, title companies, county registrars) summarizing compliance steps; or
- Produce a short timeline showing legislative status and key dates for implementation.

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

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