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Oklahoma Legislature· SB 916Second Reading referred to Judiciary

An act relating to property, the official text

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1                           STATE OF OKLAHOMA

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

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3 SENATE BILL 916             By: Bergstrom
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4

4

5                             AS INTRODUCED

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6   An Act relating to property; defining terms;

6   prohibiting control of real property by certain

7   persons or entities in this state; providing

7   exceptions; providing for waiver of certain

8   requirements under certain circumstances; requiring

8   divestment of certain interests by certain persons or

9   entities; providing for acquisition of real property

9   under certain circumstances of devise or descent;

10  requiring registration of certain property by certain

10  date; establishing registration process; providing

11  penalty; requiring submission of affidavit;

11  specifying terms for failure to obtain affidavit;

12  directing rule promulgation; requiring forfeiture of

12  certain real property following certain violation;

13  providing for initiation of civil action in certain

13  district court; providing for certain petitions;

14  providing for sale of certain property or interests

14  subject to certain requirements; directing proceeds

15  of certain sale; providing for seizure of real

15  property under certain circumstances; providing for

16  codification; and providing an effective date.

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17

17

18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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19  SECTION 1.     NEW LAW    A new section of law to be codified

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20 in the Oklahoma Statutes as Section 128 of Title 60, unless there is
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21 created a duplication in numbering, reads as follows:
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22  As used in this section:

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23  1. "AFIDA" means the Agricultral Foreign Investment Disclosure

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24 Act of 1978, 42 U.S.C., Part 3501 et seq;
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    Req. No. 1078                                              Page 1
1   2. "Agricultural land" means real property in this state used

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2 or zoned in a manner that would permit the use of the property for
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3 an agricultural operation;
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4   3. "Agricultural operation" means any operation devoted to the

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5 bona fide production of crops, animals, or fowl, including the
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6 production of:
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7   a. fruits and vegetables of any kind,

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8   b. meat, dairy, and poultry products,

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9   c. nuts, tobacco, nursery, and floral products, and

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10  d. products from silvicultural activity;

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11  4. "Foreign adversary nation" means any foreign nation which

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12 has been designated as a foreign adversary by the United States
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13 Secretary of Commerce on the basis that its government has engaged
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14 in a long-term pattern or serious instances of conduct significantly
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15 adverse to the national security of the United States or security
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16 and safety of the United States, as set forth in 15 C.F.R., Part 7.4
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17 or such successor regulation, declaration, or statute;
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18  5. "Military installation" means any facility owned or operated

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19 by the United States Armed Forces that shelters military equipment
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20 and personnel and facilitates training and operations for such
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21 organizations as well as any outpost, facility, armory, or like
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22 facility of the Oklahoma National Guard;
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23  6. "Nonresident alien" means an individual who is not:

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24  a. a citizen of the United States of America, or

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    Req. No. 1078                                           Page 2
1           b. a person lawfully admitted into the United States for

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2                  permanent residence pursuant to the federal

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3                  Immigration and Nationality Act. A person shall be

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4                  deemed lawfully admitted for permanent residence

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5                  regardless of whether the individual's lawful

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6                  permanent resident status is conditional; and

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7   7. "Residential property" means property intended to be used as

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8 a dwelling, as such term is defined in the federal Fair Housing Act.
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9   SECTION 2.     NEW LAW  A new section of law to be codified

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10 in the Oklahoma Statutes as Section 129 of Title 60, unless there is
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11 created a duplication in numbering, reads as follows:
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12  A. The following persons or entities shall not directly or

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13 indirectly own, have a controlling interest in, acquire by purchase,
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14 grant, devise, or descent any interest, or hold by lease, contract,
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15 or usufruct, except a de minimus indirect interest, in agricultural
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16 land in this state or in any real property in this state within five
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17 (5) miles of a military installation:
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18  1. A foreign adversary nation;

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19  2. Any government official or agent of a foreign adversary

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20 nation;
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21  3. A partnership, an association, a corporation, an

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22 organization, or any other combination of persons organized under
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23 the laws of this state or having its principal place of business in
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24 a foreign adversary nation, or a subsidiary of such entity;
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    Req. No. 1078                                                 Page 3
1   4. Any person who is domiciled in a foreign adversary nation

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2 and who is determined to be a nonresident alien; and
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3   5. Any person, entity, or collection of persons or entities

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4 described in paragraphs 1 through 4 of this subsection having a
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5 controlling interest in a partnership, association, corporation,
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6 organization, trust, or any other legal entity or subsidiary formed
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7 for the purpose of owning real property in this state.
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8   B. 1. Any person or entity in violation of the provisions of

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9 subsection A of this section shall, within two (2) years following
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10 the effective date of this act, fully divest from any holding or
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11 interest in such property.
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12  2. Notwithstanding the prohibitions of subsection A of this

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13 section, a person or entity may acquire real property in this state
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14 on or after the effective date of this act, by devise or descent,
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15 through the enforcement of security interests, or through the
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16 collection of debts, provided that the person or entity sells,
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17 transfers, or otherwise divests itself of such real property within
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18 two (2) years after acquiring such interest in the real property.
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19  C. A person or entity is deemed to have a de minimus indirect

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20 interest if any ownership is the result of the person's or entity's
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21 ownership of registered equities in a publicly traded company owning
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22 the land and if the person's or entity's ownership interest in the
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23 company is either:
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    Req. No. 1078                                         Page 4
1   1. Less than five percent (5%) of any class of registered

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2 equities or less than five percent (5%) in the aggregate in multiple
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3 classes of registered equities; or
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4   2. A noncontrolling interest in an entity controlled by a

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5 company that is both registered with the United States Securities
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6 and Exchange Commission as an investment adviser under the
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7 Investment Advisors Act of 1940, as amended, and is not a foreign
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8 entity.
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9   D. Nothing in Subsection A of this section shall prohibit the

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10 lease, purchase, or other acquisition of an interest in residential
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11 property by a natural person.
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12  E. Nothing in this section shall prohibit a corporation,

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13 partnership, limited partnership, trustee, or other business entity
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14 leasing land from its owner and using such land for agricultural
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15 research and development or experimental purposes, including
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16 testing, developing, or producing crop production inputs, including,
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17 but not limited to, seeds, plants, pesticides, soil amendments,
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18 biologicals, and fertilizers, for sale or resale to farmers.
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19  F. Nothing in this section shall prohibit the free purchase,

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20 sale, lease, or possession of real property in this state for
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21 diplomatic purposes covered by the Vienna Convention on Diplomatic
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22 Relations or by any individual who is:
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23  1. A citizen of the United States;

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24  2. A legal permanent resident of the United States;

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    Req. No. 1078                                             Page 5
1   3. An individual who has been granted asylum or other protected

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2 status by the United States government; or
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3   4. The spouse of a person listed in paragraphs 1 through 3 of

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4 this subsection.
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5   G. In consultation with the Oklahoma Department of Commerce,

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6 the Governor may waive any purchase, acquisition, or holding of real
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7 estate that might otherwise constitute a violation of this section
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8 upon a finding by the Governor that the positive short-term and
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9 long-term benefits of the purchase, acquisition, or holding to the
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10 economy and people of this state outweighs the threat imposed by the
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11 purchase, acquisition, or holding.
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12  SECTION 3.      NEW LAW  A new section of law to be codified

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13 in the Oklahoma Statutes as Section 130 of Title 60, unless there is
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14 created a duplication in numbering, reads as follows:
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15  A. A person or entity subject to the prohibitions in subsection

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16 A of Section 2 of this act who owns, holds, leases, or controls a
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17 prohibited interest in real property in this state as of the
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18 effective date of this act shall register such property interest
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19 with the Office of the Attorney General. The Office shall establish
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20 a form for such registration which, at a minimum, shall include:
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21  1. The name of the owner of the real property, as well as the

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22 name or names of all entities having any lease, usufruct,
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23 contractual, or other possessory interest authorizing use or
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24 occupation of the property; and
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    Req. No. 1078                                             Page 6
1   2. The address of the real property, the property appraiser's

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2 parcel identification number, and the property's legal description.
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3   B. 1. The Office shall establish deadlines for registration

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4 under subsection A of this section, with such deadlines being not
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5 later than ninety (90) days after the effective date of this act.
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6   2. A person or entity that fails to timely file a registration

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7 with the Office shall be subject to a civil penalty of One Thousand
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8 Dollars ($1,000.00) for each day that the registration is late.
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9 Such penalty may be enforced by the district attorney of the county
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10 in which the property is located or by the Attorney General.
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11  C. 1. At the time of purchase or of acquisition by means of

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12 contract, lease, or other instrument, an entity or person acquiring
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13 an interest in real property in this state shall provide an
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14 affidavit signed under penalty of perjury attesting that the
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15 acquisition is not prohibited by Section 2 of this act. A person or
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16 entity required to make a report to the United States Department of
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17 Agriculture under the AFIDA shall also file a copy of such report
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18 with the Office of the Attorney General.
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19  2. The failure to obtain or maintain the affidavit shall not:

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20  a. affect the title or insurability of the title for the

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21                 real property, or

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22  b. subject the closing agent to civil or criminal

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23                 liability, unless the closing agent has actual

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24

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    Req. No. 1078                                               Page 7
1                  knowledge that the transaction will result in a

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2                  violation of this section.

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3   D. The Office of the Attorney General shall promulgate rules to

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4 effectuate the provisions of this section.
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5   SECTION 4.     NEW LAW         A new section of law to be codified

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6 in the Oklahoma Statutes as Section 130 of Title 60, unless there is
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7 created a duplication in numbering, reads as follows:
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8   A. If any real property is owned, held, leased, or acquired in

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9 violation of this act, or if divestment of any interest does not
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10 occur in the time period specified in subsection B of Section 2 of
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11 this act, the real property shall be forfeited to the state.
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12  B. The Attorney General and the district attorney of the county

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13 in which the property is located shall have jurisdiction and may
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14 initiate a civil action in the district court of the county in which
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15 the property is located for the forfeiture of the real property or
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16 any interest therein.
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17  C. Upon filing such action, the district court shall record a

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18 lis pendens in accordance with the laws of this state. The
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19 defendant may at any time petition to modify or discharge lis
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20 pendens based upon a finding that there is no probable cause to
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21 believe that the real property or any portion thereof is owned or
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22 held in violation of this act.
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23  D. If the court finds that the real property, or any portion

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24 thereof, is owned or held in violation of this section, the court
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    Req. No. 1078                                        Page 8
1 shall enter a final judgment of forfeiture vesting title to the real
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2 property in this state, subject only to the rights and interests of
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3 bona fide lienholders, and such final judgment relates back to the
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4 date of the lis pendens.
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5   E. The state, acting through the Attorney General or the

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6 district attorney of the county in which the forfeited property is
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7 located, may sell the property or the interest in the real property
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8 subject to a final judgment of forfeiture. Any proceeds from the
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9 sale shall first be paid to any lienholders of the property
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10 interest, followed by the payment of any outstanding fines assessed
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11 pursuant to this section, after which the Office of the Attorney
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12 General shall be reimbursed for all costs related to the forfeiture
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13 civil action and any costs related to the sale of the property
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14 interest. Any remaining proceeds shall be paid to the holder of the
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15 forfeited property interest.
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16  F. At any time during the forfeiture proceeding, the Attorney

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17 General or district attorney may seek an ex parte order of seizure
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18 of the real property upon showing that the defendant's control of
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19 the real property constitutes a clear and present danger to the
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20 state.
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21  SECTION 5. This act shall become effective November 1, 2025.

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22

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23  60-1-1078      RD            1/19/2025 5:45:56 AM

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    Req. No. 1078                                              Page 9
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