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Oklahoma Legislature· HB 1308Second Reading referred to Rules

An act relating to foreign ownership of property, the official text

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1                   STATE OF OKLAHOMA

2   1st Session of the 60th Legislature (2025)

3 HOUSE BILL 1308   By: Humphrey

4

5

6                   AS INTRODUCED

7   An Act relating to foreign ownership of property;

    defining terms; prohibiting real property ownership

8   by certain parties; providing certain exemptions;

    requiring divestment of violating property; requiring

9   Attorney General to bring suit for violation;

    providing for judicial foreclosure of property;

10  providing certain documents to be recorded in the

    county records office; providing for felony

11  punishment and fines; providing affirmative defense

    to prosecution; providing when title to real property

12  is not invalid or subject to divestiture; prohibiting

    agricultural land ownership by certain parties;

13  providing certain exemptions; requiring divestment of

    violating property; requiring the Office of

14  Agricultural Intelligence upon discovery of a

    violation to report such violation to the Attorney

15  General; allowing the Attorney General to issue

    certain subpoenas; authorizing the Attorney General

16  to commence legal actions upon certain

    determinations; providing for judicial foreclosure of

17  property; providing certain documents to be recorded

    in the office of the county clerk; providing when

18  title to agricultural land is not invalid or subject

    to divestiture; providing for felony punishment and

19  fines; providing affirmative defense to prosecution;

    requiring inclusion of certain affidavit with

20  recording of a deed; directing Attorney General to

    promulgate certain affidavit forms; creating within

21  the Oklahoma Department of Agriculture, Food, and

    Forestry the Office of Agricultural Intelligence;

22  stating authorized duties; requiring the Office

    operate under the direction of the Secretary of the

23  Oklahoma Department of Agriculture, Food, and

    Forestry; repealing 60 O.S. 2021, Sections 121, as

24  last amended by Section 1, Chapter 373, O.S.L. 2024,

    Req. No. 10080                                         Page 1
1   122, 123, and Sections 124, 125, 126 and 127, as

    amended by Sections 2, 3, 4 and 5, Chapter 373,

2   O.S.L. 2024 (60 O.S. Supp. 2024, Sections 121, 124,

    125, 126 and 127), which relate to alien ownership of

3   land; providing for codification; and providing an

    effective date.

4

5

6 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

7   SECTION 1.      NEW LAW  A new section of law to be codified

8 in the Oklahoma Statutes as Section 128 of Title 60, unless there is

9 created a duplication in numbering, reads as follows:

10  As used in this act:

11  1. "Agricultural land" means any land which is outside the

12 corporate limits of a municipality and is:

13  a. used for forestry production including, without

14              limitation, land exceeding ten (10) acres in which ten

15              percent (10%) of the land is stocked by trees of any

16              size, including land that formerly had trees of any

17              size covering the land that will be naturally or

18              artificially regenerated, or

19  b. currently used for, or, if currently idle, land last

20              used within the past five (5) years, for farming,

21              ranching, or timber production, except land not

22              exceeding ten (10) acres in the aggregate, if the

23              annual gross receipts from the sale of the farm,

24

    Req. No. 10080                                                 Page 2
1   ranch, or timber products produced on the land do not

2   exceed One Thousand Dollars ($1,000.00).

3   This does not include oil, gas, and all other minerals,

4 including coal, lignite, brine, and all minerals known and

5 recognized as commercial minerals underlying the land;

6   2. "Controlling interest" means an ownership interest of fifty

7 percent (50%) or more, in the aggregate;

8   3. "Foreign government" means any government other than the

9 federal government or any government of a state or a political

10 subdivision of a state;

11  4. "Interest in agricultural land" means all direct interest

12 acquired, transferred, or held in agricultural land, including

13 without limitation, a lease of agricultural land:

14  a. for a term of one (1) year or longer, or

15  b. renewable by option for terms which, if the options

16  were all exercised, would total one (1) year;

17  5. "Party" means any individual, corporation, company,

18 association, firm, partnership, society, joint-stock company, trust,

19 estate, or any other legal entity;

20  6. "Prohibited foreign party" means:

21  a. a citizen or resident of a country subject to

22  International Traffic in Arms Regulations, 22 C.F.R.,

23  Section 126.1,

24

    Req. No. 10080                                                 Page 3
1   b. a foreign government formed within a country subject

2   to International Traffic in Arms Regulations, 22

3   C.F.R., Section 126.1,

4   c. a party other than an individual or a government, that

5   is created or organized under the laws of a foreign

6   government within a country subject to International

7   Traffic in Arms Regulations, 22 C.F.R., Section 126.1,

8   d. any party other than an individual or government:

9   (1) that is created or organized under the laws of

10                  any state, and

11  (2) in which a significant interest or substantial

12                  control is directly or indirectly held or is

13                  capable of being exercised by:

14                  (a) an individual referred to in subparagraph a

15                  of this paragraph,

16                  (b) a foreign government referred to in

17                  subparagraph b of this paragraph,

18                  (c) a party referred to in subparagraph c of

19                  this paragraph, or

20                  (d) a combination of the individuals, parties,

21                  or governments referred to in this division,

22  e. an Entity of Particular Concern designated by the

23  United States Department of State, or

24

    Req. No. 10080                                                Page 4
1   f. an agent, trustee, or other fiduciary of a person or

2   entity enumerated in subparagraphs a through e of this

3   paragraph;

4   7. "Prohibited foreign-party-controlled business" means a

5 corporation, company, association, firm, partnership, society,

6 joint-stock company, trust, estate, or other legal entity whose

7 controlling interest is owned by a prohibited foreign party;

8   8. "Real property" means all land or property that is not

9 agricultural land;

10  9. "Residence" means the principal dwelling of a person place

11 where the person intends to remain permanently for an indefinite

12 period of time;

13  10. "Resident alien" means a person who:

14  a. is not a citizen of the United States, and

15  b. is a resident of a:

16  (1) state of the United States,

17  (2) territory of the United States,

18  (3) trusteeship of the United States, or

19  (4) protectorate of the United States;

20  11. "Significant interest" or "substantial control" means:

21  a. an interest of thirty-three percent (33%) or more held

22  by:

23  (1) a party referred to in subparagraph d of

24                    paragraph 6 of this section,

    Req. No. 10080                                                 Page 5
1               (2) an individual referred to in subparagraph a of

2                   paragraph 6 of this section,

3               (3) a party referred to in subparagraph c of

4                   paragraph 6 of this section, or

5               (4) a single government referred to in subparagraph b

6                   of paragraph 6 of this section;

7          b. an interest of thirty-three percent (33%) or more held

8               whenever the parties, individuals, or governments

9               referred to in paragraph 6 of this section are acting

10              in concert with respect to the interest even though no

11              single individual, party, or government holds an

12              interest of thirty-three percent (33%) or more, or

13         c. an interest of fifty percent (50%) or more, in the

14              aggregate, held by parties, individuals, or

15              governments referred to in paragraph 6 of this section

16              even though the individuals, parties, or foreign

17              governments may not be acting in concert.

18  SECTION 2.      NEW LAW  A new section of law to be codified

19 in the Oklahoma Statutes as Section 128.1 of Title 60, unless there

20 is created a duplication in numbering, reads as follows:

21  A. 1. A prohibited foreign party or a prohibited foreign-

22 party-controlled business shall not acquire by grant, purchase,

23 devise, descent, or otherwise any interest in real property in this

24 state.

    Req. No. 10080                                                  Page 6
1   2. A party may not hold real property as an agent, trustee, or

2 other fiduciary for a prohibited foreign party or prohibited

3 foreign-party-controlled business in violation of this section.

4   B. A prohibited foreign party or a prohibited foreign-party-

5 controlled business entity in violation of this section shall have

6 two (2) years to divest of the real property.

7   C. If a prohibited foreign party or a prohibited foreign-party-

8 controlled business entity does not divest the real property as

9 required by subsection B of this section, the Attorney General shall

10 commence an action in the district court within the jurisdiction of

11 the real property.

12  1. If the ownership of the real property is determined by the

13 district court to be in violation of this section, the court shall

14 order that the real property be sold through judicial foreclosure.

15  2. Proceeds of the sale shall be disbursed to lienholders, in

16 the order of priority, except for liens which, under the terms of

17 the sale, are to remain on the real property.

18  3. The Attorney General shall promptly record a copy of the

19 following in the office of the county clerk of the county where the

20 real property is located:

21  a. upon commencement, notice of the pendency of an action

22  brought under this subsection, and

23  b. the order for the sale of the real property under

24  paragraph 1 of this subsection.

    Req. No. 10080                                                 Page 7
1   D. A prohibited foreign party or a prohibited foreign-party-

2 controlled business entity shall, upon conviction, be guilty of a

3 felony punishable by imprisonment in the custody of the Department

4 of Corrections for a term not to exceed two (2) years, or a fine of

5 Fifteen Thousand Dollars ($15,000.00), or by both such fine and

6 imprisonment.

7   E. It is an affirmative defense to prosecution under this

8 section that a prohibited foreign party or prohibited foreign-party-

9 controlled business entity is a resident alien of the State of

10 Oklahoma.

11  F. Title to real property is not invalid or subject to

12 divestiture due to a violation of this section by:

13  1. Any former owner; or

14  2. Another person holding or owning a former interest in the

15 real property.

16  G. Persons not subject to this section shall be required to

17 determine or inquire into whether another person is or may be

18 subject to this section.

19  SECTION 3.      NEW LAW  A new section of law to be codified

20 in the Oklahoma Statutes as Section 128.2 of Title 60, unless there

21 is created a duplication in numbering, reads as follows:

22  A. 1. Except as provided in Section 4 of this act, a

23 prohibited foreign party or a prohibited foreign-party-controlled

24 business entity shall not acquire by grant, purchase, devise,

    Req. No. 10080                                                 Page 8
1 descent, or otherwise any interest in agricultural land in this

2 state regardless of whether the prohibited foreign party or a

3 prohibited foreign-party-controlled business entity intends to use

4 the agricultural land for nonfarming purposes.

5   2. A party may not hold agricultural land as an agent, trustee,

6 or other fiduciary for a prohibited foreign party in violation of

7 this act.

8   B. A prohibited foreign party or a prohibited foreign-party-

9 controlled business entity that acquires agricultural land in

10 violation of this section remains in violation as long as the

11 prohibited foreign party or a prohibited foreign-party-controlled

12 business entity holds an interest in the agricultural land.

13  SECTION 4.      NEW LAW  A new section of law to be codified

14 in the Oklahoma Statutes as Section 128.3 of Title 60, unless there

15 is created a duplication in numbering, reads as follows:

16  A. A prohibited foreign party or a prohibited foreign-party-

17 controlled business entity, who is a resident alien of the United

18 States, shall have the right to acquire and hold agricultural land

19 in the state upon the same terms as a citizen of the United States

20 during the continuance of his or her residence in the State of

21 Oklahoma.

22  B. 1. If a prohibited foreign party or a prohibited foreign-

23 party-controlled business entity is no longer a resident alien under

24

    Req. No. 10080                                                 Page 9
1 subsection A of this section, he or she shall have two (2) years to

2 divest of the agricultural land.

3   2. If the prohibited foreign party or a prohibited foreign-

4 party-controlled business entity does not divest of the agricultural

5 land as required by paragraph 1 of this subsection, the Attorney

6 General shall commence an action in district court within the

7 jurisdiction of the agricultural land.

8   3. If the ownership of the agricultural land is held in

9 violation of this section, the district court shall order that the

10 agricultural land be sold through judicial foreclosure.

11  C. 1. When the Office of Agricultural Intelligence determines

12 a prohibited foreign party or a prohibited foreign-party-controlled

13 business entity has acquired agricultural land in Oklahoma in

14 violation of this act, the Office shall report the violation to the

15 Attorney General.

16  2. Upon receiving notice under paragraph 1 of this subsection

17 or upon receipt of information that leads the Attorney General to

18 believe that a violation of this act may exist, the Attorney General

19 may issue subpoenas requiring the:

20  a. appearance of witnesses,

21  b. production of relevant records, and

22  c. giving of relevant testimony.

23  3. If, as a result of the investigation under paragraph 2 of

24 this subsection, the Attorney General concludes that a violation of

    Req. No. 10080                                                Page 10
1 this act has occurred, the Attorney General shall commence an action

2 in the district court within the jurisdiction of the agricultural

3 land.

4   4. If the ownership of the agricultural land is held in

5 violation of this act, the district court shall order that the

6 agricultural land be sold through judicial foreclosure

7   D. 1. The proceeds of the sale of agricultural land by

8 judicial foreclosure authorized under this section shall be

9 disbursed to lienholders, in the order of priority, except for liens

10 which, under the terms of the sale, are to remain on the

11 agricultural land.

12  2. The Attorney General shall promptly record a copy of the

13 following in the office of the county clerk where the agricultural

14 land is located:

15       a. upon commencement, notice of the pendency of an action

16       brought under paragraph 2 of subsection B and under

17       paragraph 3 of subsection C of this section, and

18       b. the order for the sale of the agricultural land under

19       paragraph 3 of subsection B and under paragraph 4 of

20       subsection C of this section.

21  E. Title to agricultural land is not invalid or subject to

22 divestiture due to a violation of this act by:

23  1. Any former owner; or

24

    Req. No. 10080                                                Page 11
1   2. Another person holding or owning a former interest in the

2 agricultural land.

3   F. No person not subject to this act shall be required to

4 determine or inquire into whether another person is or may be

5 subject to this act.

6   SECTION 5.        NEW LAW  A new section of law to be codified

7 in the Oklahoma Statutes as Section 128.4 of Title 60, unless there

8 is created a duplication in numbering, reads as follows:

9   A. A prohibited foreign party or prohibited foreign-party-

10 controlled business entity owning agricultural land subsequent to

11 the passage of this act and not listed under one of the exceptions

12 set out in subsections A and B of Section 4 of this act shall, upon

13 conviction, be guilty of a felony punishable by imprisonment in the

14 custody of the Department of Corrections for a term not to exceed

15 two (2) years, or a fine of Fifteen Thousand Dollars ($15,000.00),

16 or by both such fine and imprisonment.

17  B. It is an affirmative defense to prosecution under this

18 section that a prohibited foreign party or prohibited foreign-party-

19 controlled business entity is a resident alien of the State of

20 Oklahoma.

21  SECTION 6.        NEW LAW  A new section of law to be codified

22 in the Oklahoma Statutes as Section 128.5 of Title 60, unless there

23 is created a duplication in numbering, reads as follows:

24

    Req. No. 10080                                                 Page 12
1   On or after the effective date of this act, any deed recorded

2 with a county clerk shall include, as an exhibit to the deed, an

3 affidavit executed by the person or entity coming into title

4 attesting that the person, business entity, or trust is obtaining

5 the land in compliance with the requirements of Sections 2, 3, 4,

6 and 5 of this act and that no funding source is being used in the

7 sale or transfer in violation of Sections 2, 3, 4, and 5 of this act

8 or any other state or federal law. A county clerk shall not accept

9 and record any deed without an affidavit as required by this

10 section. The Attorney General shall promulgate a separate affidavit

11 form for individuals and for business entities or trusts to comply

12 with the requirements of this section, with the exception of those

13 deeds which the Attorney General deems necessary when promulgating

14 the affidavit form.

15  SECTION 7.          NEW LAW  A new section of law to be codified

16 in the Oklahoma Statutes as Section 128.6 of Title 60, unless there

17 is created a duplication in numbering, reads as follows:

18  A. There is hereby created within the Oklahoma Department of

19 Agriculture, Food, and Forestry the Office of Agricultural

20 Intelligence.

21  B. The Office of Agricultural Intelligence is authorized and

22 directed to:

23

24

    Req. No. 10080                                              Page 13
1   1. Collect and analyze information concerning the unlawful sale

2 or possession of agricultural land by prohibited foreign parties or

3 prohibited foreign-party-controlled business entity; and

4   2. Administer and enforce the provisions of this act, including

5 without limitation, the reporting of a violation of this subchapter

6 to the Oklahoma Attorney General under Section 4 of this act.

7   C. The Office of Agricultural Intelligence shall operate under

8 the direction of the Secretary of the Oklahoma Department of

9 Agriculture, Food, and Forestry.

10  SECTION 8.      REPEALER  60 O.S. 2021, Sections 121, as last

11 amended by Section 1, Chapter 373, O.S.L. 2024, 122, 123, and

12 Sections 124, 125, 126 and 127, as amended by Sections 2, 3, 4 and

13 5, Chapter 373, O.S.L. 2024 (60 O.S. Supp. 2024, Sections 121, 124,

14 125, 126 and 127), are hereby repealed.

15  SECTION 9. This act shall become effective November 1, 2025.

16

17  60-1-10080      GRS  01/08/25

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    Req. No. 10080                                                Page 14
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