S. 2258: Protecting Our Farms and Homes from China Act

The Protecting Our Farms and Homes from China Act is a legislative proposal aimed at restricting the ability of certain foreign entities, specifically those connected to China, from acquiring agricultural land and residential real estate within the United States.

Key Provisions

1. Definitions: The bill defines "agricultural land" and "covered foreign entities." Agricultural land includes land used for farming, ranching, and food processing, and a covered foreign entity is identified primarily as any entity associated with the People's Republic of China.
2. Prohibition on Acquisition: The bill makes it illegal for covered foreign entities to acquire or lease agricultural land in the U.S.
3. Divestment Requirement: Covered foreign entities that already own or lease agricultural land must divest their interests within one year of the bill's enactment. They must also sign a letter of intent to divest within 180 days of enactment.
4. Penalties: There are financial penalties for non-compliance, including a fine of $100 per acre per day for any continued ownership or leasing against the law, as well as possible criminal charges leading to imprisonment for up to five years.
5. Noncompete Agreements: Any noncompete agreements with employees of covered foreign entities regarding agricultural land will be deemed null and void.
6. Residential Real Estate Purchase Restrictions: The bill also restricts covered foreign entities from purchasing residential real estate in the U.S. for a designated period of up to two years, with an option for the President to extend this prohibition.
7. Divestment of Residential Properties: Similar to agricultural land, covered foreign entities must divest any owned residential real estate within one year of the bill's enactment, facing fines of $1,000 per day for violations.
8. Enforcement and Reporting: The bill grants the Secretary of Agriculture and the Secretary of Commerce the authority to issue regulations, monitor compliance, and submit impact reports to Congress. The Attorney General is given powers to enforce the law through various legal measures.

Implementation Timeline

• The Secretary of Agriculture and Secretary of Commerce must issue implementation regulations within 180 days of enactment.
• Letters of intent for divestment must be signed 180 days after the bill is enacted.
• Entities must complete the divestment process within a year of enactment.
• A report on the impact of the residential real estate prohibition must be submitted to Congress within 540 days post-enactment.

Relevant Companies

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