What This Bill Does
This bill prevents certain foreign entities connected to China from buying, leasing or owning agricultural land in the United States. It requires any covered foreign entities that currently own or lease U.S. agricultural land to sell those interests within two years, with a one-year deadline to sign an intent-to-sell letter.
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Who It Affects
Companies incorporated in China (including Hong Kong and Macau), organizations that work on behalf of the Chinese government, people affiliated with the Chinese Communist Party, entities owned or controlled by these groups, and board members or executives of these organizations.
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Key Provisions
• It is illegal for covered foreign entities to buy or lease any interest in U.S. agricultural land (Sec. 3(a))
• Covered foreign entities that currently own or lease U.S. agricultural land must sign a letter of intent to sell within one year of the law taking effect (Sec. 3(b)(2))
• Covered foreign entities must complete the sale of all U.S. agricultural land interests within two years of the law taking effect (Sec. 3(b)(1))
• The Secretary of Agriculture can fine violators $100 per acre per day that the land is unlawfully owned or leased (Sec. 3(c))
• Criminal violations can result in fines and up to five years in prison, and the government can seize and sell the land at public auction (Sec. 3(d))
• Any noncompete agreements (contracts preventing employees from working for competitors) between covered foreign entities and their employees become unenforceable (Sec. 3(e))
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What Changes
If this bill becomes law, covered foreign entities lose the legal right to hold any interest in U.S. agricultural land. They must divest from current holdings within a set timeline. The Department of Agriculture will establish an office to monitor compliance and collect fines. The government gains the power to seize agricultural land held in violation of this law and sell it publicly.
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Important Definitions
**Agricultural land** includes land used for farming, ranching, timber production, or food processing, plus idle land that was used for these purposes within the previous five years.
**Covered foreign entity** includes corporations incorporated in China, any organization working for the Chinese government, people affiliated with the Chinese Communist Party, entities owned or controlled by these groups, and board members or executives of these organizations.
**Noncompete agreement** is a contract between an employer and employee that stops the employee from working for a competitor, in a certain area, or for similar work after leaving that job.
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Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 684
To prohibit the acquisition and ownership of agricultural land by certain
foreign entities, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 7, 2023
Mr. HAWLEY introduced the following bill; which was read twice and referred
to the Committee on Agriculture, Nutrition, and Forestry
A BILL
To prohibit the acquisition and ownership of agricultural
land by certain foreign entities, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘This Land Is Our
4
Land Act’’.
5
SEC. 2. DEFINITIONS.
6
In this Act:
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(1) AGRICULTURAL LAND.—
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(A) IN GENERAL.—The term ‘‘agricultural
9
land’’ means—
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•S 684 IS
(i) land used for farming, ranching, or
1
timber production;
2
(ii) land used for food processing; and
3
(iii) land that—
4
(I) is currently idle; and
5
(II) was used within the previous
6
5 years for farming, ranching, or tim-
7
ber production.
8
(B) RELATED DEFINITIONS.—In subpara-
9
graph (A):
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(i) FARMING, RANCHING, OR TIMBER
11
PRODUCTION.—The term ‘‘farming, ranch-
12
ing, or timber production’’ includes activi-
13
ties set forth in the Standard Industrial
14
Classification Manual (1987), Division A.
15
(ii) FOOD
PROCESSING.—The term
16
‘‘food processing’’ includes activities set
17
forth in the Standard Industrial Classifica-
18
tion Manual (1987), Division D, Major
19
Group 20.
20
(2) COVERED
FOREIGN
ENTITY.—The term
21
‘‘covered foreign entity’’ means—
22
(A) a corporation that is incorporated in
23
the People’s Republic of China, including the
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•S 684 IS
Special Administrative Regions of China, in-
1
cluding Hong Kong and Macau;
2
(B) a person, business trust, business asso-
3
ciation, company, institution, government agen-
4
cy, university, partnership, limited liability com-
5
pany, corporation, or any other individual or or-
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ganization that can legally enter into contracts,
7
own properties, or pay taxes on behalf of the
8
Government of the People’s Republic of China;
9
(C) an individual or organization affiliated
10
with the Chinese Communist Party;
11
(D) an entity owned or controlled by, or
12
that performs activities on behalf of, an indi-
13
vidual, organization, or person described in sub-
14
paragraph (A), (B), or (C); and
15
(E) an individual that is a member of the
16
board of directors, an executive officer, or a
17
senior official of a corporation or organization
18
described in subparagraph (A), (B), (C), or
19
(D).
20
(3) NONCOMPETE
AGREEMENT.—The term
21
‘‘noncompete agreement’’ means an agreement en-
22
tered into between an employer and an employee
23
that restricts that employee from performing, after
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•S 684 IS
the employment relationship between the employer
1
and the employee terminates, any of the following:
2
(A) Any work for another employer for a
3
specified period of time.
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(B) Any work in a specified geographical
5
area.
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(C) Any work for another employer that is
7
similar to that employee’s work for the em-
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ployer that is a party to that agreement.
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(4) SECRETARY.—The term ‘‘Secretary’’ means
10
the Secretary of Agriculture.
11
(5) STATE.—The term ‘‘State’’ means each of
12
the several States of the United States.
13
(6)
TERRITORY.—The
term
‘‘territory’’
14
means—
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(A) the District of Columbia;
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(B) the Commonwealth of Puerto Rico;
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(C) the United States Virgin Islands;
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(D) Guam;
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(E) the Commonwealth of the Northern
20
Mariana Islands; and
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(F) American Samoa.
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(7) UNITED
STATES
AGRICULTURAL
LAND.—
23
The term ‘‘United States agricultural land’’ means
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agricultural land located in a State or territory.
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•S 684 IS
SEC. 3. PROHIBITION OF ACQUISITION, LEASING, OR OWN-
1
ERSHIP OF UNITED STATES AGRICULTURAL
2
LAND BY COVERED FOREIGN ENTITIES.
3
(a) PROHIBITION
OF ACQUISITION
OF AGRICUL-
4
TURAL LAND.—It shall be unlawful for a covered foreign
5
entity—
6
(1) to acquire any interest in United States ag-
7
ricultural land; or
8
(2) to lease any interest in United States agri-
9
cultural land.
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(b) DIVESTMENT REQUIREMENT.—
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(1) IN GENERAL.—Not later than 2 years after
12
the date of enactment of this Act, a covered foreign
13
entity that owns or leases an interest in United
14
States agricultural land shall divest itself from any
15
ownership or lease interests in United States agri-
16
cultural land.
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(2) LETTERS OF INTENT.—Not later than 1
18
year after the date of enactment of this Act, a cov-
19
ered foreign entity that owns or leases an interest in
20
United States agricultural land shall sign a letter of
21
intent to divest itself from any ownership or lease in-
22
terests in United States agricultural land.
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(c) PENALTY.—The Secretary shall fine a covered
24
foreign entity that owns or leases an interest in United
25
States agricultural land in violation of subsection (a) or
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•S 684 IS
(b) in an amount equal to $100 per acre per day that
1
the covered entity owns or leases the interest in violation
2
of subsection (a) or (b).
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(d) CRIMINAL ENFORCEMENT.—
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(1) PENALTIES.—A covered foreign entity that
5
violates subsection (a) or (b) shall be fined under
6
title 18, United States Code, imprisoned for not
7
more than 5 years, or both.
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(2) FORFEITURE.—
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(A) IN GENERAL.—In an action brought
10
by the Attorney General, any United States ag-
11
ricultural land owned in violation of subsection
12
(a) or (b) shall be subject to forfeiture to the
13
United States in accordance with chapter 46 of
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title 18, United States Code.
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(B) PUBLIC
AUCTION
OF
FORFEITED
16
LAND.—Notwithstanding section 981(e) of title
17
18, United States Code, the Attorney General
18
shall sell through a public auction any United
19
States agricultural land that is forfeited to the
20
United States under this paragraph.
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(e) NULLIFICATION
OF
AGREEMENTS.—Notwith-
22
standing any other provision of law, any noncompete
23
agreement entered into between a covered foreign entity
24
that owns or leases an interest in United States agricul-
25
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•S 684 IS
tural land and an employee of the covered foreign entity
1
shall have no force or effect.
2
(f) IMPLEMENTATION.—
3
(1) IN
GENERAL.—Not later than 180 days
4
after the date of enactment of this Act, the Sec-
5
retary, in coordination with the Attorney General,
6
shall issue guidance and regulations to implement
7
this Act.
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(2) OFFICE.—Not later than 180 days after the
9
date of enactment of this Act, the Secretary shall es-
10
tablish an office within the Department of Agri-
11
culture for the purpose of—
12
(A) monitoring compliance with this Act;
13
and
14
(B) imposing fines under subsection (c).
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(g) INVESTIGATIVE ACTIONS.—The Secretary may
16
carry out such actions as the Secretary determines to be
17
necessary to monitor compliance with this Act.
18
Æ
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