Bill > SB1176

This bill, SB 1176, aims to restrict foreign actors from acquiring agricultural land in California by adding a new chapter to the Civil Code. It defines "agricultural land" as per federal law, and "controlling interest" as owning 51% or more of an entity or a lesser percentage if the foreign actor actually directs the business affairs. A "prohibited foreign actor" is defined as a business, government, or their agents from countries designated as nonmarket economies or those identified as national security risks by the Director of National Intelligence. Starting January 1, 2027, these prohibited foreign actors will be barred from purchasing, acquiring, leasing, or holding a controlling interest in California's agricultural land, with exceptions for land already held before that date, land used for agricultural research, and federally recognized tribes. Any land transferred in violation of these provisions will be subject to divestiture, meaning the Attorney General can order the sale of the land, with proceeds distributed according to a specific hierarchy, and the prohibited foreign actor may only receive back their original investment. The bill also outlines a process for judicial review if a prohibited foreign actor disputes the Attorney General's divestiture order. Importantly, these provisions will only become effective if the Legislature appropriates funds for their implementation.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB1176