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Oklahoma Legislature· SB 1963Coauthored by Senator Prieto

An act relating to property and critical 7 infrastructure, the official text

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1                   STATE OF OKLAHOMA

1

2                  2nd Session of the 60th Legislature (2026)

2

3 SENATE BILL 1963  By: Hamilton
3

4

4

5

5

6                   AS INTRODUCED

6

7   An Act relating to property and critical

7   infrastructure; creating the Military Installation

8   and Critical Infrastructure Protection Act of 2026;

8   providing short title; defining terms; prohibiting

9   foreign principals from foreign countries from

9   owning, having an interest in, or acquiring

10  agricultural land; describing scope of de minimis

10  indirect interest; directing the sale, transfer, or

11  divestiture of agricultural land under certain

11  circumstances; establishing registration

12  requirements; allowing for the acquisition of

12  agricultural land under certain circumstances;

13  deeming contracts, deeds, or other agreements

13  invalid; assigning the Attorney General with the

14  responsibility of making certain determinations;

14  granting the Attorney General the authority to

15  commence certain actions in district court; providing

15  for the sale of land through judicial foreclosure;

16  providing payment of a reward to whistleblowers;

16  providing for the disbursement of proceeds; providing

17  for the adoption of rules; prohibiting foreign

17  principals from foreign countries from purchasing,

18  holding, renting, or controlling any property near

18  military bases or installations; requiring the sale,

19  transfer, or divestiture of property within certain

19  time period; deeming contracts, deeds, or other

20  agreements invalid; granting the Attorney General the

20  authority to commence certain actions in district

21  court; providing for the sale of land through

21  judicial foreclosure; providing payment of a reward

22  to whistleblowers; providing for the disbursement of

22  proceeds; assigning the Attorney General with the

23  responsibility of making certain determinations;

23  establishing guidelines for whistleblowers; providing

24  for referrals to the Office of the Attorney General;

24

    Req. No. 2765                                              Page 1
1   establishing rewards for whistleblowers; setting

1   effective date for whistleblower enforcement

2   provision; prohibiting entities and governmental

2   entities from entering into agreements relating to

3   critical infrastructure with foreign principals from

3   foreign countries; authorizing entities and

4   governmental entities to enter into agreements under

4   certain circumstances; requiring companies to file a

5   certification form prior to accessing critical

5   infrastructure; establishing guidelines for

6   maintaining registrations; setting fee for

6   administering certification process; providing for

7   the revocation of certifications; prohibiting the use

7   of certain software in state infrastructure;

8   providing for the replacement of prohibited software;

8   providing software removal and notification

9   requirements; directing the Office of the Attorney

9   General to establish reporting process for non-

10  notified transactions; authorizing the Office of the

10  Attorney General to submit memorandums or reports to

11  certain committee; directing the Attorney General to

11  retain certain documents and notify the Legislature

12  and Governor; providing for noncodification;

12  providing for codification; and providing an

13  effective date.

13

14

14

15

15

16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
16

17  SECTION 1.     NEW LAW  A new section of law not to be

17

18 codified in the Oklahoma Statutes reads as follows:
18

19  This act shall be known and may be cited as the "Military

19

20 Installation and Critical Infrastructure Protection Act of 2026".
20

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

21

22 in the Oklahoma Statutes as Section 128.1 of Title 60, unless there
22

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

24  As used in this act:

24

    Req. No. 2765                                            Page 2
1   1. "Agricultural land" shall mean a land area that is either

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2 arable, under permanent crops, or under permanent pastures. Arable
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3 land includes land under temporary crops such as cereals, temporary
3

4 meadows for mowing or pasture, land under market or kitchen gardens,
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5 and land temporarily fallow. Land abandoned as a result of shifting
5

6 cultivation is excluded. Land under permanent crops is cultivated
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7 with crops that occupy the land for long periods and need not be
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8 replanted after each harvest, such as orchards or vineyards. This
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9 category excludes land under trees grown for wood or timber.
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10 Permanent pasture land is land used for five (5) or more years for
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11 forage, including natural and cultivated crops;
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12  2. "Company" shall mean a for-profit sole proprietorship,

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13 organization, association, corporation, partnership, joint venture,
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14 limited partnership, limited liability partnership, or limited
14

15 liability company, including a wholly owned subsidiary, majority-
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16 owned subsidiary, parent company, or affiliate of those entities or
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17 business associations, that exists to make a profit, or a nonprofit
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18 organization;
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19  3. "Critical infrastructure" shall mean systems and assets,

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20 whether physical or virtual, so vital to Oklahoma or the United
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21 States that the incapacity or destruction of such systems and assets
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22 would have a debilitating impact on state or national security,
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23 state or national economic security, state or national public
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24 health, or any combination of those matters. A critical
24

    Req. No. 2765                                           Page 3
1 infrastructure may be publicly or privately owned and includes, but
1

2 is not limited to:
2

3   a. gas and oil production, storage, or delivery systems,

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4   b. water supply, refinement, storage, or delivery

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5                  systems,

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6   c. telecommunications networks,

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7   d. electrical power delivery systems,

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8   e. emergency services,

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9   f. transportation systems and services,

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10  g. data centers, or

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11  h. personal data or otherwise classified information

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12                 storage systems, including cybersecurity;

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13  4. "Cybersecurity" shall mean the measures taken to protect a

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14 computer, computer network, computer system, or other technology
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15 infrastructure against unauthorized use or access;
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16  5. "Data center" means a facility whose primary services are

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17 the storage, management, and processing of digital data and that is
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18 used to house:
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19  a. computer and network systems, including associated

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20                 components such as servers, network equipment and

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21                 appliances, telecommunications, and data storage

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22                 systems,

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23  b. systems for monitoring and managing infrastructure

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24                 performance,

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    Req. No. 2765                                             Page 4
1           c. equipment used for the transformation, transmission,

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2                  distribution, or management of at least one megawatt

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3                  of capacity of electrical power and cooling, including

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4                  substations, uninterruptible power supply systems, all

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5                  electrical plant equipment, and associated air

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6                  handlers,

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7           d. Internet-related equipment and services,

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8           e. data communications connections,

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9           f. environmental controls,

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10          g. fire protection systems, and

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11          h. security systems and services;

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12  6. "Domicile" shall mean either the country in which a company

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13 is registered, where the affairs of the company are primarily
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14 completed, or where the majority of ownership share is held;
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15  7. "Foreign country" shall mean any country besides the United

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16 States;
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17  8. "Foreign principal" shall mean:

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18          a. the government or any official of the government of a

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19                 foreign country,

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20          b. a political party or member of a political party or

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21                 any subdivision of a political party of a foreign

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22                 country,

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23          c. a partnership, association, corporation, organization,

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24                 or other combination of persons organized under the

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    Req. No. 2765                                        Page 5
1                  laws of or having its principal place of business in a

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2                  foreign country, or a subsidiary of such entity, or

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3                  that is owned or controlled wholly or in part by any

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4                  person, entity, or collection of persons or entities

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5                  of a foreign country,

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6   d. any person who is domiciled in a foreign country and

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7                  is not a citizen or lawful permanent resident of the

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8                  United States, or

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9   e. any person, entity, or collection of persons or

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10                 entities, described in subparagraphs a through d of

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11                 this paragraph having a controlling interest in a

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12                 partnership, association, corporation, organization,

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13                 trust, or any other legal entity or subsidiary formed

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14                 for the purpose of owning real property;

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15  9. "Military base or installation" shall mean any land,

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16 structure, or property owned or controlled by any division of the
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17 United States Department of Defense, Oklahoma National Guard, or any
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18 other department of government, state or federal, critical to the
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19 safety and security of Oklahoma or the United States;
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20  10. "Non-notified transactions" shall mean foreign investments

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21 in the United States that are not voluntarily submitted to the
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22 Committee on Foreign Investment in the United States for review
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23 under 50 U.S.C., Section 4565;
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24

24

    Req. No. 2765                                            Page 6
1   11. "Operational software" shall mean computer programs used

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2 for the operation, control, maneuver, or maintenance of state
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3 infrastructure, or any other computer program applications related
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4 to state infrastructure;
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5   12. "Software" shall mean any program or routine, or any set of

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6 one or more programs or routines, which are used or intended for use
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7 to cause one or more computers or pieces of computer related
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8 peripheral equipment, or any combination thereof, to perform a task
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9 or set of tasks, as it relates to state infrastructure;
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10  13. "State infrastructure" shall mean critical infrastructure

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11 and transportation infrastructure; and
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12  14. "Transportation infrastructure" shall include, but not be

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13 limited to:
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14  a. airports including, but not limited to, commercial and

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15                 intermodal airports and heliports and all airport

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16                 infrastructure,

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17  b. roadways including, but not limited to, publicly

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18                 accessible streets, roads, highways, and bridges and

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19                 all roadway infrastructure including, but not limited

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20                 to, signage, toll booths, weigh stations, and traffic

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21                 signals,

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22  c. railways including, but not limited to, all classes of

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23                 freight rail and passenger rail and all railway

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24

24

    Req. No. 2765                                          Page 7
1                  infrastructure including, but not limited to,

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2                  intermodal rail yards and signals,

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3   d. ports including, but not limited to, inland ports,

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4                  seaports, deepwater ports, inland waterways, and

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5                  levees and all port infrastructure including, but not

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6                  limited to, intermodal stations, and

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7   e. public transit including bus, ferry, cable car, tram,

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8                  trolley, and other types of publicly accessible

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9                  transportation and all public transit infrastructure.

9

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

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11 in the Oklahoma Statutes as Section 128.2 of Title 60, unless there
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12 is created a duplication in numbering, reads as follows:
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13  A. A foreign principal from a foreign country may not directly

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14 or indirectly own, have an interest of greater than twenty-five
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15 percent (25%) in, or acquire by purchase, grant, devise, or descent
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16 agricultural land or any interest, except a de minimis indirect
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17 interest, in such land in this state. A foreign principal has a de
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18 minimis indirect interest if any ownership is the result of the
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19 foreign principal's ownership of registered equities in a publicly
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20 traded company owning the land and if the ownership of the foreign
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21 principal in the country is either:
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22  1. Less than five percent (5%) of any class of registered

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23 equities or less than five percent (5%) in the aggregate in multiple
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24 classes of registered equities; or
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    Req. No. 2765                                                 Page 8
1   2. A noncontrolling interest in an entity controlled by a

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2 company that is both registered with the United States Securities
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3 and Exchange Commission as an investment advisor under the
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4 Investment Advisers Act of 1940, as amended, and is not a foreign
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5 entity.
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6   B. A foreign principal that directly or indirectly owns or

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7 otherwise controls agricultural land, as defined in Section 2 of
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8 this act, in this state must sell, transfer, or otherwise divest
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9 itself of the agricultural land within one hundred eighty (180) days
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10 of the effective date of this act.
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11  C. A foreign principal that directly or indirectly owns or

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12 acquires agricultural land or any interest in such land in this
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13 state shall register with the Oklahoma Department of Agriculture,
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14 Food, and Forestry within sixty (60) days of the effective date of
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15 this act or the date of acquisition, whichever is latest. The
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16 Department shall establish a form for such registration which, at
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17 minimum, shall include all of the following:
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18  1. The name of the owner of the agricultural land or the owner

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19 of the interest in such land;
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20  2. The address of the agricultural land, the parcel

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21 identification number of the property appraiser, and the legal
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22 description of the property; and
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23  3. The number of acres of the agricultural land.

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24

24

    Req. No. 2765                                             Page 9
1   D. Notwithstanding the provisions of subsection A of this

1

2 section, a foreign principal from a foreign country may acquire
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3 agricultural land on or after the effective date of this act by
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4 devise or descent, through the enforcement of security interests, or
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5 through the collection of debts, provided that the foreign principal
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6 sells, transfers, or otherwise divests itself of the agricultural
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7 land within one hundred eighty (180) days of acquiring the
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8 agricultural land.
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9   E. Any current deeds, contracts, rental agreements, or other

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10 legal agreements in conflict with the provisions of this act shall
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11 be deemed invalid from the date of adoption unless otherwise
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12 provided.
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13  F. The responsibility for determining whether an entity is

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14 subject to the provisions of this section rests solely with the
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15 foreign entity, the Attorney General, any qualifying whistleblower,
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16 and no other individual or entity. An individual or entity who is
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17 not a foreign entity shall not be required to determine or inquire
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18 whether another person or entity is or may be subject to this
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19 section, and shall bear no civil or criminal liability under the
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20 provisions of this section.
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21  G. If a foreign principal from a foreign country does not

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22 divest the real property as required by this section, the Attorney
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23 General shall commence an action in district court within the
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24 jurisdiction of the real property.
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    Req. No. 2765                                             Page 10
1   H. If the real property is held in violation of the provisions

1

2 of this section, the district court shall order that the real
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3 property be sold through judicial foreclosure.
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4   I. If a whistleblower referral results in a divestiture of land

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5 or other assets held in violation of the provisions of this section,
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6 the whistleblower shall be entitled to a reward equal to thirty
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7 percent (30%) of the proceeds of the land sale that results from the
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8 violation of this section after payments to lienholders. Proceeds
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9 of the sale shall be disbursed in the following order, as
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10 applicable:
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11  1. The payment of authorized costs of the sale, including all

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12 approved fees and expenses of the referee and any taxes and
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13 assessments due;
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14  2. The payment, in an amount approved by the court, to the

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15 Office of the Attorney General for reimbursement of investigation
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16 and litigation costs and expenses;
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17  3. To bona fide lienholders, in their order of priority, except

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18 for liens which under the terms of the sale are to remain on the
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19 property;
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20  4. To whistleblowers; and

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21  5. To the restricted foreign entity.

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22  J. The Oklahoma Department of Agriculture, Food, and Forestry

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23 shall adopt rules to implement the provisions of this section.
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24

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    Req. No. 2765                                            Page 11
1   SECTION 4.      NEW LAW     A new section of law to be codified

1

2 in the Oklahoma Statutes as Section 128.3 of Title 60, unless there
2

3 is created a duplication in numbering, reads as follows:
3

4   A. A foreign principal from a foreign country shall not be

4

5 allowed to directly or indirectly purchase, hold, rent, or otherwise
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6 control any real property within ten (10) miles of a military base
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7 or installation.
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8   B. A foreign principal that directly or indirectly controls any

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9 real property covered by the provisions of subsection A of this
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10 section, excluding temporary contractual agreements such as rental
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11 or lease agreements, must sell, transfer, or otherwise divest itself
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12 of the property within one hundred eighty (180) days of the
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13 effective date of this act.
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14  C. Any current deeds, contracts, rental agreements, or other

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15 legal agreements in conflict with this law shall be deemed invalid
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16 from the date of adoption unless otherwise provided.
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17  D. If a foreign principal from a foreign country does not

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18 divest the real property as required by the provisions of this
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19 section, the Attorney General shall commence an action in the
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20 district court within the jurisdiction of the real property.
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21  E. If the real property is held in violation of the provisions

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22 of this section, the district court shall order that the real
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23 property be sold through judicial foreclosure.
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24

24

    Req. No. 2765                                           Page 12
1   F. If a whistleblower referral results in a divestiture of land

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2 or other assets held in violation of the provisions of this section,
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3 the whistleblower shall be entitled to a reward equal to thirty
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4 percent (30%) of the proceeds of the land sale that results from the
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5 violation of the provisions of this section after payments to
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6 lienholders. Proceeds of the sale shall be disbursed in the
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7 following order, as applicable:
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8   1. The payment of authorized costs of the sale, including all

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9 approved fees and expenses of the referee and any taxes and
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10 assessments due;
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11  2. The payment, in an amount approved by the district court, to

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12 the Attorney General for reimbursement of investigation and
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13 litigation costs and expenses;
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14  3. To bona fide lienholders, in their order of priority, except

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15 for liens which under the terms of the sale are to remain on the
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16 property;
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17  4. To whistleblowers; and

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18  5. To the restricted foreign entity.

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19  G. The responsibility for determining whether an entity is

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20 subject to this section rests solely with the foreign entity, the
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21 Attorney General, any qualifying whistleblower, and no other
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22 individual or entity. An individual or entity who is not a foreign
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23 entity shall not be required to determine or inquire whether another
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24 person or entity is or may be subject to the provisions of this
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    Req. No. 2765                         Page 13
1 section, and shall bear no civil or criminal liability under the
1

2 provisions of this section.
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3   SECTION 5.     NEW LAW     A new section of law to be codified

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4 in the Oklahoma Statutes as Section 128.4 of Title 60, unless there
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5 is created a duplication in numbering, reads as follows:
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6   A. Any individual may act as a whistleblower and provide a

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7 referral to the Office of the Attorney General for violations of the
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8 provisions of Section 3 and Section 4 of this act.
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9   B. If a whistleblower referral results in a divestiture of land

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10 or other assets held in violation of the provisions of this act, the
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11 whistleblower shall be entitled to a reward equal to thirty percent
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12 (30%) of the proceeds of the land sale that results from a violation
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13 of this act.
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14  C. The whistleblower enforcement provision shall take effect

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15 one hundred eighty (180) days after the effective date of this act.
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16  SECTION 6.     NEW LAW     A new section of law to be codified

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17 in the Oklahoma Statutes as Section 13001 of Title 74, unless there
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18 is created a duplication in numbering, reads as follows:
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19  A. An entity constructing, repairing, operating, or otherwise

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20 having significant access to critical infrastructure may not enter
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21 into an agreement relating to critical infrastructure in this state
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22 with a foreign principal from a foreign country, or use products or
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23 services produced by a foreign principal from a foreign country.
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24

24

    Req. No. 2765                                            Page 14
1   B. A governmental entity may not enter into a contract or other

1

2 agreement relating to critical infrastructure in this state with a
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3 company that is a foreign principal from a foreign country, or use
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4 products or services produced by a foreign principal from a foreign
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5 country.
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6   C. Notwithstanding the provisions of subsection A and B of this

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7 section, an entity or governmental entity may enter into a contract
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8 or agreement relating to critical infrastructure with a foreign
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9 principal from a foreign country or use products or services
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10 produced by a foreign principal from a foreign country if:
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11  1. There is no other reasonable option for addressing the need

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12 relevant to state critical infrastructure;
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13  2. The contract is preapproved by the Office of the Attorney

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14 General; and
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15  3. Not entering into such a contract or agreement would pose a

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16 greater threat to the state than the threat associated with entering
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17 into the contract.
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18  SECTION 7.         NEW LAW  A new section of law to be codified

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19 in the Oklahoma Statutes as Section 13002 of Title 74, unless there
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20 is created a duplication in numbering, reads as follows:
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21  A. In order to access critical infrastructure, a company must

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22 file a certification form with and pay a certification fee to the
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23 Office of the Attorney General. The Office of the Attorney General
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24

24

    Req. No. 2765                                              Page 15
1 shall prescribe the registration form to be filed pursuant to the
1

2 provisions of this section.
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3   B. To maintain registration as a company with access to

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4 critical infrastructure, a company shall:
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5   1. Identify all employee positions in the organization that

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6 have access to critical infrastructure;
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7   2. Before hiring a person for a position described in paragraph

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8 1 of this subsection, obtain from the Oklahoma State Bureau of
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9 Investigation or a private vendor criminal history record
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10 information relating to the prospective employee and any other
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11 background information considered necessary by the company or
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12 required by the Office of the Attorney General to protect critical
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13 infrastructure from foreign country infiltration or interference;
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14  3. Prohibit foreign nationals from a foreign country from

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15 access to critical infrastructure; and
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16  4. Be compliant with the provisions of Section 6 of this act.

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17  C. The Office of the Attorney General shall set the fee in an

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18 amount sufficient to cover the costs of administering the
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19 certification process but not to exceed One Hundred Fifty Dollars
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20 ($150.00).
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21  D. The Office of the Attorney General shall provide that a

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22 company is compliant with all requirements of this section or revoke
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23 certification.
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24

    Req. No. 2765                                             Page 16
1   SECTION 8.     NEW LAW  A new section of law to be codified

1

2 in the Oklahoma Statutes as Section 13003 of Title 74, unless there
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3 is created a duplication in numbering, reads as follows:
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4   A. All software used in state infrastructure located within or

4

5 serving Oklahoma shall not include any software produced by a
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6 federally banned corporation, nor any software banned at the federal
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7 level.
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8   B. All software used in state infrastructure located within or

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9 serving Oklahoma shall not include any software produced in or by a
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10 foreign country, a state-owned enterprise of a foreign country, or a
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11 company domiciled within a foreign country.
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12  C. All software used in state infrastructure in operation

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13 within or serving Oklahoma, to include any state infrastructure
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14 which is not permanently disabled, shall have all software
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15 prohibited by subsection A or B of this section removed and replaced
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16 with software which is not prohibited by subsection A or B of this
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17 section.
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18  D. Any state infrastructure provider that removes,

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19 discontinues, or replaces any prohibited software shall not be
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20 required to obtain any additional permits from any state agency or
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21 political subdivision for the removal, discontinuance, or
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22 replacement of such software as long as the state agency or
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23 political subdivision is properly notified of the necessary
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24

    Req. No. 2765                                              Page 17
1 replacements and the replacement software is similar to the existing
1

2 software.
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3   SECTION 9.         NEW LAW  A new section of law to be codified

3

4 in the Oklahoma Statutes as Section 13004 of Title 74, unless there
4

5 is created a duplication in numbering, reads as follows:
5

6   A. The Office of the Attorney General shall establish a process

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7 by which local officials, states officials, or other persons may
7

8 submit information or concerns to the Office regarding non-notified
8

9 transactions in Oklahoma. The Office of the Attorney General may
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10 adopt any necessary rules to implement the provisions of this
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11 subsection.
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12  B. The Office of the Attorney General may submit a memorandum

12

13 or report concerning non-notified transactions the Attorney General
13

14 has identified in Oklahoma to the Committee on Foreign Investment in
14

15 the United States.
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16  C. The Office of the Attorney General shall:

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17  1. Retain a copy of any documents submitted to the Committee on

17

18 Foreign Investment in the United States that are included with a
18

19 memorandum or report submitted under the provisions of subsection B
19

20 of this section; and
20

21  2. Notify the Legislature and the Governor as soon as

21

22 practicable after submitting a memorandum, report, or other
22

23 information pursuant to the provisions of subsection B of this
23

24 section.
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    Req. No. 2765                                           Page 18
1   SECTION 10. This act shall become effective November 1, 2026.

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    Req. No. 2765                             Page 19
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