SB1526 HFLR Page 1
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
ENGROSSED SENATE
BILL NO. 1526 By: Floyd of the Senate
and
Osburn of the House
An Act relating to the Oklahoma Subdivided Lan d Sales
Code; amending 71 O.S. 2021, Sect ions 602, 625, 626,
627, 628, 631, 633, 642, 652, 655, 660, 662, 663, and
664, which relate to definitions, registration of
subdivided lands, licensing, liens, fees, violations,
rules, filing of documents , and service of process;
modifying definitions; modifying entity to receive
certain filings; decreasing number of require d copies
of certain statement; requiring inclu sion of
electronic mail and website addresses in certain
statements; modifying persons to file applic ation for
certain registration; modifying official authorized
to enter certain denial order; removing certain
licensing requirements; removing certain record
keeping requirements; pro hibiting offer or
disposition of lots by certain persons; deleting
certain licensing fees; modifying certain rec ord
keeping requirements for the Administrator of the
Department of Securities; conforming language;
updating statutory language; making language gender
neutral; repealing 71 O.S. 2021, Sections 632 and
634, which relate to application for license and
denial, revocation, or suspension of license; and
providing an effective d ate.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SB1526 HFLR Page 2
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
SECTION 1. AMENDATORY 71 O.S. 2021, Section 602, is
amended to read as follows:
Section 602. In this Code, unless the context otherwise
requires;
1. "Administrator" means the Administrator of the Department of
Securities;
2. "Advertising" means:
a. any circular, prospectus, public of fering statement,
information, advertis ement or other material or
communication by radio, television, pictures,
newspapers, magazines or similar media material
published or designed for use in social media or a
newspaper, magazine, or other periodical, or f or
radio, television, telephone solicit ations or tape
recordings, videotaped displays, signs, billboards,
motion pictures, tele phone directories other than
routine listings, websites, other public medi a, and
any other written or electronic communication
distributed or made generally available t o customers
or the public and used in connection with a
disposition, an offer to dispose of, or any inducement
to any person to purchase or acquire an interest in
the title to any subdivided lands , including any
leasehold interest or land contract,
SB1526 HFLR Page 3
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. any material used to induce prospective purchasers to
visit any subdivided lands or submit t o a presentation
by a subdivider or any of his the subdivider's
representatives or agents including but not limited to
websites, prospectuses, pamphlets, circulars, for m
letters, market letters, telemarketing scripts,
seminar texts, research reports, surve ys, performance
reports or summaries, and reprints or excerpts of any
other advertisement, sales literature , or published
material, and
c. the entire promotional plan f or the disposition of
subdivided lands, including promotional displays at
public or private events, parties, dinners, or other
meetings;
Advertising shall not mean stockholder communications including, but
not limited to, annual reports and interim financi al reports, proxy
materials, registration statements, securities prospectuse s, and
application for listing securities on stock exchanges;
communications addressed to and relating to the account of any
persons who have previously executed a contract for the acquisition
of any of the subdivider's lands except where directed to the
disposition of additional lands; press releases or other
communications delivered to newspapers or other periodicals for
general information or public relations purposes, provided n o charge
SB1526 HFLR Page 4
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
is made by and nothing of value is given to such newspapers, their
employees or other periodicals for the publication or use of any
part of such communication;
3. "Agent" means any person who, directly or indi rectly,
disposes of, or offers to dis pose of, or advertises for disposition
any lot in a subdivision and includes a real estate salesman, broker
or subdivider so engaged;
4. "Blanket encumbrance" means any trust deed, mortgage,
judgment, lien or other fin ancial encumbrance securing or eviden cing
debt and affecting lands to be subdivided or affecting more than one
lot of subdivided land, and any agreement by which the subdivider
holds more than one lot under an option, contract or deed, contract
to purchase or trust agreement. Blanket encumbr ance shall not mean
a lien or other encumbrance arising as a result of the im position of
a tax assessed by a public authority so long as no portion thereof
is past due;
5. "Commission" means the Oklahoma Securities Com mission;
6. "Department" means the Department of Securities;
7. "Disposition" or "dispose of" means every sale, lease,
assignment, award by lottery, option, or excha nge of a lot and every
contract for, or contract to do, any of the foregoing for value, or
when given as an incident of any of the foregoing;
7. "License" means a subdivided land sales license as set forth
in Article III of this Code;
SB1526 HFLR Page 5
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
8. "Lot" means any portion, parcel, piece, division, unit or
undivided interest in land if such int erest includes the right to
the exclusive use of a specified portion of the land;
9. "Notice" means a communication from the Administ rator.
Notice to a subdivider shall be dee med complete when personally
served upon him the subdivider or mailed to him the subdivider at
the last-known address on file with the Administrator;
10. "Offer" means any inducement, so licitation or attempt to
encourage a person to acquire an interest in a lot in a subdivision;
11. "Option" means, and is limited to, an offer to se ll or
purchase respecting which a consideratio n of not more than fifteen
percent (15%) of the total purchas e price is exchanged to gua rantee
that the offer will not be withdrawn or revoked for an agreed per iod
of time;
12. "Person" means an individual, co rporation, partnership,
association, joint sto ck company, or trust where the interests of
the beneficiaries are evidenced by a securit y, an unincorporated
organization, government, political subdivision of a government or
any other entity;
13. "Purchaser" means a person who acquires, attempts to
acquire, is solicited to acquire, or succeeds to any interest in a
lot in a subdivision, exc luding a security interest;
14. "Subdivision" and "subdivided land" means any land,
wherever located, whether improved or unimproved, contiguous or not,
SB1526 HFLR Page 6
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
which is divided into lots or proposed to be divided for the purpose
of disposition pursuant to a comm on promotional scheme or plan of
advertising and disposition. If the lan d is designated or
advertised as a common unit or by a common name, the land shall be
presumed, without regard to the number of lots covered by each
individual offering, to be offered for disposition as part of a
common promotional plan. Where the context so requires, it shall
also include any lot in a subdivision and any interest therein; and
15. "Subdivider" means a person whose interest in subdivided
lands is advertised, offered , or disposed of by himself the
subdivider or another person.
SECTION 2. AMENDATORY 71 O.S. 2021, Section 625, is
amended to read as follows:
Section 625. Application for registration of subdivided land
shall be filed with the Admi nistrator in such form as the
Administrator may require. The application shall contain the
following information and shall be accompanied by the following
documents and exhibits, in addition to the information which may be
required by the Administrator pu rsuant to subsection E of Section
627 of this title, the consent to service of process required by
subsection A of Section 664 of this titl e, and the fees required by
Section 652 of this title. To the extent that the information
required below is included in filings submitted to and approved by
the Federal Office of Interstate Land Sales Registration Consumer
SB1526 HFLR Page 7
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Financial Protection Bureau , or its successors, such filing w ill be
accepted in lieu of a separate state filing:
1. The subdivider's name and address, form of business
organization, date and jurisdiction of its organization and name and
address of each of its offices and agents in this state;
2. The name, address , and principal occupation for the past
five (5) years of every director, officer or part ner of the
subdivider or other person occup ying a similar position or
performing similar functions, as well as for each owner of ten
percent (10%) or more of the equity of the subdivider; the extent
and nature of the interest of each of the foregoing perso ns in the
subdivider and in the subdivided lands as of a date specified by the
Administrator within thirty (30) days of filing of the application
for registration;
3. If any person named in paragraph 2 of this section has been
disciplined, debarred, censu red, or suspended by any governmental
body or agency or convicted by any court for violation of a federal,
state, or local law or regulation in connection with activiti es
relating to land sales, land investment, securities sales or
registration, constructi on or sale of homes or home improvements , or
any other similar or related activity, a summary of the facts
relating thereto;
4. If any person named in paragraph 2 of t his section has,
during the past thirteen (13) years, filed a petition in bankruptcy
SB1526 HFLR Page 8
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
or has had an involuntary petition in bankrupt cy filed against him
the person, or has been an officer, director , or controlling person
of a business entity which has becom e insolvent or has voluntarily
or involuntarily filed in bankruptcy, a summary of the fa cts
relating thereto;
5. The states or jur isdictions in which a n application for
registration or similar document have been filed , including a copy
of any filing with the United States Securities and Exchange
Commission or Federal Office of Interstate Lan d Sales Registration
the Consumer Financial Protection Bureau or the successors of
either, and a copy of any adverse order, judgment, order permitting
withdrawal, or decree of any court or regulatory authority in
connection with the of fering of subdivided lands;
6. A legal description of the subdi vided lands and the recorded
plat thereof, together with a map showing the division proposed to
be made, the dimensions of th e lots, and the relation of the
subdivided lands to existing street s, roads, and other off-site
improvements, all verified by affid avit of an independent
professional land surveyor and a topograp hical map;
7. A statement in a form acceptable to the Admini strator of the
condition of title to the land comprising the lots in this offering
and any common areas or facilities related to or included in this
offering, including a description of all encum brances, easements,
covenants, conditions, reservations, limi tations, or restrictions
SB1526 HFLR Page 9
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
applicable thereto. This requirement may be met by submission of
evidence of title in the form of a legal opinion, stating the
condition of title, prepared and signed by an attorney at law who is
experienced in the examination of titles, a member of the Bar
Association of the state in which the pro perty is located and who is
not a salaried employee, partner, officer, or director either of the
subdivider or of any of its age nts or affiliates; or by any other
evidence of title accept able to the Administrator;
8. Copies of the instruments by which the subdivider's interest
in the subdivided land was acquired or, if required by the
Administrator, proof of marketable title to th e subdivided lands;
9. A statement and such additional ass urance as the
Administrator may require that the subdivider can convey or cause to
be conveyed to the purchaser, upon compliance wi th the terms of the
offer, the interest offered in the subdivided lands;
10. Copies of instruments which will be delivered t o the
purchaser to evidence his interest in the subdivided lands and
copies of the contracts or other agreements which a purchaser will
be required to agree to or sign in connection with the offer or
disposition, together with the range of selling prices, rates or
rentals at which it is proposed to dispose of the lots, and a list
of fees the purchaser may be required to pay for member ship in
groups including, but not limited to, homeowners ' associations,
country clubs, golf courses , and other community orga nizations
SB1526 HFLR Page 10
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
associated with the subdivision, together with the descriptio n of
any qualifications for or restrictions on membership in any of the
foregoing;
11. A legal description of any lien or encu mbrance affecting
the subdivision or any portion thereof a nd a statement in a form
acceptable to the Administrator of the efforts made or to be made to
remove such lien or encumbrance and t he consequences to the
purchasers of the success or failure of the efforts to remove such
lien or encumbrance;
12. A summary of any easements or restrictions affecting any of
the subdivided lands and copies of any instruments creating,
altering, or removing such easements or restrictions;
13. Evidence and a statement the reof, in a form satisfactory to
the Administrator, indica ting compliance with the zoning and other
governmental laws, ordinances, and regulations affecting the use of
the subdivided lands and adjacent properties, together with dates of
the most recent zoni ng or jurisdictional changes, the nature
thereof, any proposed changes now pending or known to be
contemplated, and any existing or proposed taxes, special taxes,
assessments, or levies of a similar nature affecting any of the
subdivided land;
14. Evidence and a statement thereof, in a form satisfactory to
the Administrator, indicating compliance with the requirements of
federal, state and local governments or agencies or
SB1526 HFLR Page 11
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
instrumentalities thereof which have authority to regulate or issue
permits or licenses which may have a material effect on the
subdivider's plans with respect to the proposed subdivision, its
facilities, common are as or improvements, specifically including
environmental protection agencies and required environmental impact
statements. If any permit, license, or approval of any of the
foregoing has been refused or conditioned, a summary of the reasons
therefor and the effect on the proposed subdivision shall also be
included;
15. A description of the land as it existed prior to any
changes in connection with the proposed subdivision and any cha nges
which have occurred or are contemplated in connection with the
proposed subdivision;
16. A statement, in a form suitable to t he Administrator, of
the existing provisions for access to the subdivi sion, the
availability of sewage disposal facilities an d other public
utilities including, but not limited to, water, electricity , gas and
telephone facilities, the proximity in miles of the subdivision to
nearby municipalities, the availability and scope of community fire
and police protection, the location o f primary and secondary
schools, the improvements installed or to be insta lled, including
off-site and on-site community and recrea tional facilities, the
persons who are to install, maintain and pay fo r such improvements,
and the estimated schedule for com pletion;
SB1526 HFLR Page 12
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
17. If required by the Administrator 's rule or order, a
performance or completion bond to assure that planned improvement s
will be completed, in a form suitable to the Administrator;
18. Such financial statements of the subdivider as the
Administrator may require;
19. A narrative description of the promotional plan f or the
disposition of the subdivided lands, together with duplicate copies
of all advertising material which has been prepared for public
distribution. The subject matter of adverti sing material which is
pictorial in nature shall be limited to a depiction of the actual
on-site conditions of the subdivided lands as of the date of the
filing of the material. No advertising shall b e used until a copy
thereof has been allowed for use by the Administrator or a person
authorized by the Administrator as provided in Section 653 of this
title;
20. Three copies One copy of the proposed public offering
statement prepared in accordance with Section 626 of this title; and
21. Such additional in formation or exhibits as the
Administrator may require.
Any of the items required u nder this section may be incorporated
in the application for registration by reference provided that such
item is contained in the public offering statement and the
Administrator so allows.
SB1526 HFLR Page 13
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
SECTION 3. AMENDATORY 71 O.S. 2021, Se ction 626, is
amended to read as follows:
Section 626. A. It shall be unlawful for a person to dispose
of an interest in subdivided land s, pursuant to a registration under
this Code, unless a current public offering statement is delivered
to the purchaser at th e expense of the subdivider or his the
subdivider's agent at least forty -eight (48) hours prior to any
sale, contract to sell or op tion to purchase and unless the
purchaser is afforded a reasonable opportunity to examine and is
permitted to retain the public offering statement. The subdivider
shall obtain and retain a receipt, signed by the purchaser,
acknowledging receipt of a copy of the public offering statement
prior to the execution by the purchaser of any contract or agre ement
for the disposition of any lot in a subdivision, which receipt shall
be kept in the files of the subdivider and be subject to inspection
by the Administrator for a period of three (3) years f rom the date
the receipt is taken.
B. A public offering st atement shall disclose fu lly and
accurately all material circumstances or features which affect the
subdivided lands or which would be a material consideration in
making the purchasing decision. The proposed public offering
statement shall be submitted to the Administrator as requ ired by
paragraph 20 of Section 625 of this Code and shall be in such form
SB1526 HFLR Page 14
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
and contain such information as the Administrator by rule re quires,
including:
1. The name, principal address, electronic mail address,
website address, and telephone number of the su bdivider, his and the
subdivider's offices and agents in this state;
2. A general description of the subdivided lands including a
statement of the total number of lots to be offered;
3. A statement as to whether the subdivider holds any option to
purchase adjacent properties and, if so, a description of such
option and the location and zoning of the adjacent properties;
4. The assistance, if any, that the subdivider , his and the
subdivider's agents or affiliates will provide to the purchaser in
the resale of the property and the extent to which the subdivider,
his agents, or affiliates will be in competition in the event of
resale;
5. The material terms of any encumbr ances, easements, liens,
and restrictions including zoning and other regulations affecti ng
the subdivided lands and each unit or lot, the efforts t o remove
such liens or encumbrances, the results of the success or failur e
thereof, and all existing taxes an d existing or proposed special
taxes or assessments which affect the subdivided lands;
6. The use for which the property is to be offered;
7. Information concerning exist ing or proposed improvements
including, but not limited to, streets, water supply, l evees,
SB1526 HFLR Page 15
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
drainage control systems, irrigation systems, sewage disposal
systems and customary utilities and the estimated cost, date of
completion, and responsibility for const ruction and maintenance of
existing and propose d improvements which are referred to in
connection with the offering or disposition of any lot in subdivided
lands;
8. Such financial statements of the subdivider as the
Administrator may require;
9. The topographic and climatic characteristics of the
subdivided lands and adjacent area;
10. A statement of the existing provisions for access of the
subdivision to community fir e protection, the location of primary
and secondary schools, the proximity to municip alities and the
population thereof, the improve ments installed or to be installed ,
including off-site and on-site community and recreational
facilities, by whom they were or are to be installed, maintained or
paid for, and an estim ate of completion thereof ; and
11. Such additional information as may b e required by the
Administrator including any of the information contained in the
application for registration.
C. The public offering statement shall not be used for any
promotional purpose before registrati on of the subdivided lands and
afterwards it shall be used only in its entirety. I t shall be
unlawful for any person to advertise or represent that the
SB1526 HFLR Page 16
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Administrator has approved or recommended the subdivided lands or a
disposition thereof. No portion of the public offering statement
may be underscored, italicized, or printed in larger or heavier or
different colored type than the remainder of the statement unless
required or approved by the Administrator.
D. The Administrator may require the subdivider o r his the
subdivider's agent to alter or amend the proposed public offering
statement in order to provide full and fair disclosure to
prospective purchasers.
SECTION 4. AMENDATORY 71 O.S. 2021, Section 627, is
amended to read as follows :
Section 627. A. Within ninety (90) days from the date of
filing a completed application for registration, the A dministrator
shall issue an order registering the subdivided lands or denying the
application for registration. If an order of denial is not issued
within ninety (90) days, the land shall be deemed registered unless
the applicant has consented to a delay or the application has been
withdrawn. If any am endment to the application for registration is
filed prior to the time when the land shall be deemed registered,
the application shall be deemed to have been filed when the
amendment was filed.
B. An application for registration may be filed by the
subdivider, or any other person on whose behalf the sales are to be
SB1526 HFLR Page 17
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
made, or a licensed subdivided land agent, but the Administrator may
require that it be executed by the su bdivider.
C. Any document filed under thi s Code within five (5) years
preceding the filing of an application for registration may be
incorporated by reference in the application for registration to the
extent that the document is currently accurate.
D. The Administrator may by rule or otherwise permit the
omission of any item of information or document from any application
for registration.
E. The Administrator may, as a condition of registration and at
the expense of the subdivider as specified in subse ction A of
Section 652 of this title, inve stigate any subdivision required to
be registered under this Code for the purpose of verifying
statements contained in the application for registration and for the
protection of prospective purchasers. For the pur poses of such
investigation, the Administr ator may:
1. Require that a report or opinion by an independent
accountant, engineer, appraiser or other expert be prepared and
filed;
2. Make an examination of the business and records of the
applicant or subdivider;
3. Use and rely on any relevant inf ormation or data concerning
a subdivision obtained by him the Administrator from any federal,
state or local government or agency thereof;
SB1526 HFLR Page 18
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
4. Conduct an on-site inspection of each subdivision;
5. Conduct an annua l on-site reinspection of each subdivision
for each of the three (3) years after the exp iration date of the
registration or any r enewal thereof;
6. Make on-site examinations or designate a representative to
make such examinations. Where additional techni cal, expert or
special services are used, the actual cost o f such services may be
charged directly to and shall be paid by the person subdivider being
examined; and
7. Where an on-site inspection of any subdivision has been made
under this Code, an inspec tion of adjacent subdivided lands for
which a subsequent application f or registration is filed may be
waived and an inspection thereof may be made at the time of the next
succeeding on-site inspection.
F. The Administrator may require that any subdivided lands be
sold by use of a specified form contract or agreement, and th at a
signed copy or conformed copy of such signed copy be filed with him
the Administrator or preserved by the subdivider for a period of up
to five (5) years.
G. The Administrator may by rule or otherwise impose other
conditions under which subdivided lands registered un der this Code
may be sold, provided such conditions are reasonable an d in the
public interest. The Administrator may require an escrow, trust or
similar arrangement to reasonably assure that all improvements
SB1526 HFLR Page 19
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
referred to in the application for registration will be completed
and that purchasers will receive the interests in land for which
they have contracted.
H. A registration is effective for one (1) year from its
effective date, or for such longer period as the Administrator may
permit by rule or order. No application for registration or
effective registration may be wit hdrawn at any time after its filing
unless permitted by rule or order of the Administrator. No
registration is effective during the time a stop order is in effect
under Section 628 of th is title.
I. During the effective period of a registration, the
Administrator may by rule or order require the person who filed the
application for registration to file reports, not more often than
quarterly, to keep reasonably current the information con tained in
the application for registration and to disclose the progre ss of the
sales. If any of the lands registered have been sold in this state,
the Administrator may by rule or order extend the period for filing
the reports for an additional period not exceeding two (2) years
from the date the registration became effect ive or the date of the
registration period's latest extension.
J. The subdivider or registrant shal l immediately report to the
Administrator any material changes in the information conta ined in
the application for registration.
SB1526 HFLR Page 20
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
K. Upon the expiration of an effective registration, the
Administrator may renew the registration for an additional period of
one (1) year, provided the registrant is in compliance with this
Code, files such repor ts and applications as the Administrator may
require, and pays an ann ual renewal fee as required by Section 652
of this title, which fee shall not exceed the original re gistration
fee.
SECTION 5. AMENDATORY 71 O.S. 2021, Section 62 8, is
amended to read as follows:
Section 628. A. The Administrator may issue a stop order
denying effectiveness to, or suspending or revoking the
effectiveness of, any registration if he or she finds that the order
is in the public interest and that:
1. The registration statement as of its effective date or any
report under subsections I or J of Section 627 of this Code is
incomplete in any material respect or contai ns any statement which
was, in light of the c ircumstances under which it was made, false or
misleading with respect to any material fact;
2. Any provision of this Code or any rule, order , or condition
lawfully imposed under this Code has been willfully vi olated in
connection with the offer or disposi tion of subdivided lands by the
person filing the registration statement, by the subdivider, any
partner, officer or director of the subdivider, by any person
occupying a similar status or performing similar fu nctions, by any
SB1526 HFLR Page 21
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
person directly or indirectly controlling or controlled by the
subdivider, or by any subdivided land sales agent or other person
involved directly or indirectly in the offer or disposition of
subdivided lands;
3. The subdivided lands are t he subject of an administrative
stop order or similar order or a permanent or temporary injunction
of any court of competent jurisdiction entered unde r any federal or
state act applicable to the offer or disposition of the subdivided
lands. Provided, that however, the Administrator may not institute
a proceeding against an effective registra tion statement under this
paragraph more than one (1) year fro m the date of the order or
injunction relied on, and he or she may not enter an order under
this paragraph on the basis of an order or injunction entered under
any other state or federal act unl ess that order or injunction was
based on facts which would cu rrently constitute a ground for a stop
order under this section;
4. The subdivider's enterprise or method of business includes
or would include activities which are il legal where performed;
5. The offer or disposition of the subdivided lands is or would
be unfair or inequita ble to purchasers or has worked, tended to
work, or would work a fraud upon purchaser s;
6. The disposition has been made or would be made with
unreasonable commissions or o ther unreasonable compensation;
SB1526 HFLR Page 22
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
7. The applicant or registran t has failed to pay th e proper
filing fee. Provided, that however, the Commissioner Administrator
may enter only a denial order under this paragraph and he or she
shall vacate any such order wh en the deficiency has been corrected;
8. Advertising prohibit ed by Section 653 of this Code has been
used in connection with the offer or disposition of the subdivided
lands;
9. The financial condition of the subdivider or of any other
person connected with the offer or disposition of subdivided lands
adversely affects or would adversely affect the soundness of the
land purchase; or
10. The subdivider is not in compli ance with federal, state, or
local environmental quality standards.
B. The Administrato r may not institute a stop order proceeding
against an effective registration statement on the basis of a fact
or transaction known to him the Administrator when the registration
statement became effective unless the proceeding is instituted
within sixty (60) days.
C. In a proceeding for registration, within sixty ( 60) days of
the effective date of such registration statement, the appl icant or
registrant has the burden of satisfying the requirements of
subsection A of this section.
D. The Administrator ma y issue a summary order denying,
postponing, suspending , or revoking the effectiveness of the
SB1526 HFLR Page 23
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
registration statement pending final det ermination of any proceeding
under this section. Upon the entry of the order, the Administrator
shall promptly notify eac h person specified in subsection E of this
section that the order has been entered, the reasons for the entry
of order, and that each such person has a right to request a hearing
under subsection A of Section 661 of this Code. If no hearing is
requested and none is ordered by the Administrator, the order will
remain in effect until it is modified or vacated by the
Administrator.
E. No stop order may be entered under th is section except under
subsection D of this section unless there has been appropriate p rior
notice to the applicant or registrant, to the subdivider and to the
person on whose behalf the lands are to be or have been offere d, an
opportunity for hearings an d the making of written findings of fact
and conclusions of law.
F. The Administrator m ay vacate or modify a stop order if he
finds that the conditio ns which prompted the stop order 's entry have
changed or that it is other wise in the public interest to do so.
SECTION 6. AMENDATORY 71 O.S. 2021, Section 631, is
amended to read as follows:
Section 631. A. It is unlawful for any person to transact
business in this state as an agent unless he the person has obtained
a real estate broker's or real estate sales associat e's license from
his this state of residence, if req uired, and has obtained a license
SB1526 HFLR Page 24
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
under this Code to offer or dispose of subdivided lands , provided
that the provisions of this section shall not apply to a person
whose dealings relate solely to property exempt under Section 622 of
this title or to transa ctions exempt under Section 623 of th is
title.
B. Every license expires on the thirtieth day of June following
the date of issuance. It may be renewed under such rule s as the
Administrator may establish .
C. Any license may be susp ended, revoked or denie d as provided
in Section 634 of this title.
D. The Administrator may, by rule or order, exempt from the
requirements of this section persons as to whom he finds licens ing
under this Code is not necessary for the protection of purcha sers.
SECTION 7. AMENDATORY 71 O.S. 2021, Section 633, is
amended to read as follows:
Section 633. A. Agents shall make and keep all accounts,
correspondence, memo randa, papers, books and other records as the
Administrator by rule requires and shall k eep them for at least six
(6) years, and for the first three (3) years in a readily accessible
location, unless the Administrator by rule prescribes otherwise.
The Administrator may require that copies of any such records be
provided by the agent to the s ubdivider for retention and inspection
by the Administrator under such rules as he the Administrator may
prescribe. All requir ed records shall be made available to the
SB1526 HFLR Page 25
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Administrator upon request for his inspection at his or her office
or such other place as he or she may require. The Administrator may
accept copies of records at his or her discretion.
B. Every agent shall file such reports as the A dministrator by
rule prescribes.
C. If the information contained in any application for a
license or other document filed with the Administrator is or becomes
inaccurate or incomplete in any material respect, the licensee shall
file a corrective amendment within ten (10) days.
D. The Administrator may make periodic examinations, within or
without this state, o f the business and records of each licensed
agent at such times and in such scope as he determines. The
examinations may be made without prior noti ce. The Administrat or
shall charge all expenses incurred in such examination to the
licensed agent whose bu siness is being examined in the amount as
provided in Section 652 of this title. For the purpose of avoiding
unnecessary duplication of examination s, the Administrator , insofar
as he deems practicable, may cooperate with other regulatory
agencies. The Administrator may not be compelled to make public the
information obtained in the course of the examinations except when
his duty under this Code requ ires him to take act ion regarding an
agent or to make information available to other regulatory agencies,
or when the Administrator is called as a witness in an y criminal
proceeding.
SB1526 HFLR Page 26
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
E. The Administrator may prescribe rules for the conduct of
business by agents as he or she finds appropriate in the public
interest for the protection of purchasers.
SECTION 8. AMENDATORY 71 O.S. 2021, Sectio n 642, is
amended to read as follows:
Section 642. No agent person may offer or dispose of lots
within a subdivision required to be registered under this Code which
is subject to a blanket encumbrance , option or contract for deed
unless such offer or disposition is in compliance with such rules as
may be prescribed by the Administrator for the protection of
purchasers.
SECTION 9. AMENDATORY 71 O.S. 2021, Section 652 , is
amended to read as follows:
Section 652. A. Unless otherwise provided by law, the
following are the fees that shall be charged by the Administrator
pursuant to the Oklahoma Subdivided Land Sales Code. No additional
fees shall be assessed or charged pursuant t o rule or regulation of
the Administrator. Once paid, such fees shall be nonrefundable.
1. Agent License registration fee or renewal fee ...$30.00
2. Agent License exam ination fee...................$30.00
3. Filing fee for advertisi ng or promotional materials $10.00
4. 2. Exemption notification filing fee...........$250.00
5. 3. Interpretive opinion or n o-action request...$250.00
6. 4. Affidavit request............................ $10.00
SB1526 HFLR Page 27
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
7. 5. Service of process upon the A dministrator....$10.00
8. 6. Copying fee:
a. 8 1/2" by 14" or smaller $.25 per page
b. Larger than 8 1/2" by 14" $1.00 per page
c. Certified copy 8 1/2" by 14" or smaller $1.00 per
page
d. Certified copy larger than 8 1/2 " by 14" $2.00 per
page
9. 7. Document search fee for commercial purpose ...$20.00 per
hour
10. 8. Initial application for reg istration of subdivided land
pursuant to Section 625 of this title:
a. Examination fee $250.00
b. Registration fee $1.00 per lot
11. 9. Renewal application for registr ation of subdivided land
pursuant to Section 627 of this title:
a. Examination fee $250.00
b. Registration fee $1.00 per
lot not previously
registered pursuant to the
Initial Application or
prior Renewal Application
filed pursuant to this
Code.
SB1526 HFLR Page 28
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
12. 10. Charges for an on-site examination of a subdivision
conducted pursuant to Sectio n 627 of this title or of a licensed
agent pursuant to Section 633 of this title, shall be billed to the
person subdivider being examined at a rate of $25.00 per hour per
employee for the time spent by each Department emp loyee in traveling
to and from the examinati on site, conducting the examination, and
preparing the examination report. In addition, the Department shall
be reimbursed for all actual expenses incurred in conducti ng such
examinations, including travel expen ses, per diem, lodging, and
other related expenses of Department employees conductin g the
examination, the cost of supplies, materials, photocopying, long
distance telephone calls , and postage; and costs of techn ical,
expert or special services required in connection with such
examination.
B. All fees and other charges collected by the A dministrator
pursuant to this section shall be deposited in the General Revenue
Fund except for the following fees and charges w hich shall be
deposited in the Oklahoma Department of Securities Commission
Revolving Fund established pursuant to Section 412 1-612 of this
title:
1. The fees collected pursuant to paragraphs 5, 6, 7, 8 and 9
3, 4, 5, 6, and 7 of subsection A of this sec tion;
SB1526 HFLR Page 29
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2. The fees collected pursuant to the provisions of Sections
Section 627 and 633 of this title as provided in paragraph 12 10 of
subsection A of this section; and
3. The examination fees collected pursuant to subparagraph a of
paragraph 10 8 and subparagraph a of paragraph 11 9 of subsection A
of this section.
SECTION 10. AMENDATORY 71 O.S. 2021, Section 655, is
amended to read as follows:
Section 655. Neither the fact that a regis tration statement or
an application for a l icense has been filed nor the fact that any
subdivided lands are registered or that any person is licensed
constitutes a finding by the Ad ministrator that any document filed
under this Code is true, complete , and not misleading. Neither any
such fact nor the fact that an exemption or exclusion is available
for an agent, subdivided land, or a transaction means that the
Administrator has passe d in any way upon the merits or
qualifications of, or recommended or given approval to, any person,
subdivided land or transaction. It is unlawful to make, or cause to
be made, to any prospective purchase r, any representation
inconsistent with the foregoi ng.
SECTION 11. AMENDATORY 71 O.S. 2021, Section 660, is
amended to read as follows:
Section 660. If the Administrator has reason to believe tha t
any offer or disposition of subdi vided land required to be
SB1526 HFLR Page 30
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
registered under this Code is or would be fraudulent to purchasers,
he the Administrator may by order summari ly prohibit further offers
or dispositions in this state of such land until it is regi stered
under this Code. If the Adm inistrator has reason to believe that
any subdivided land is being offered or disposed of in this state b y
any unlicensed person in violation of this Code or any rule o r order
hereunder, he or she may by order summarily p rohibit such person
from further offers or dispositions in this state of such subdivided
lands until he the person is licensed as required under this Code.
SECTION 12. AMENDATORY 71 O.S. 2021, Section 662, is
amended to read as follows:
Section 662. A. The Administrator may make, amend, and rescind
any rules, forms and orders that are necessary to carry out this
Code, including rules and forms governing app lications for
registration or licensing, reports and defining any terms, wh ether
or not used in this Code, ins ofar as the definitions are not
inconsistent with this Code. For the purpose of rules and forms,
the Administrator may classify subdivided lands, persons, and
matters within his or her jurisdiction, and presc ribe different
requirements for different class es.
B. No rule, form, or order may be made, amended , or rescinded
unless the Administrator finds that the action is necessary or
appropriate in the public interest and for the protection of
purchasers. In pres cribing rules and forms, the Administrator ma y
SB1526 HFLR Page 31
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
cooperate with regulatory agencies of other units of government with
a view to achieving maximum uniformity in the form and content of
registration statements, applications, and reports wherever
practicable.
C. The Administrator may by rule or order pre scribe the form
and content of financial statements required under this Code, the
circumstances under which consolidated financial statements shall be
filed, and whether any required financial statements shall be
certified by independent or certified publi c accountants. All
financial statements shall be prepared in accordance with generally
accepted accounting practices unless otherwise permitted by rule or
order.
D. No provision of this Code imposing any liabili ty applies to
any act done or omitted in go od faith and conformity with any rule,
form, or order of the Administrator, notwithstanding that the rule,
form, or order may later be amended or rescinded or b e determined to
be invalid for any reason.
E. All rules and forms of the Administrator shall be published.
SECTION 13. AMENDATORY 71 O.S. 2021, Section 663, is
amended to read as follows:
Section 663. A. A document is filed when it is r eceived by the
Administrator.
B. The Administrator s hall keep a register record of all
licenses and registration statements which are o r have ever been
SB1526 HFLR Page 32
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
effective under this Code an d all denial, suspension, or revocation
orders which have been entered unde r this Code. The register record
shall be open for public inspection.
C. The information contained in or filed with any application
for registration, licensing or report shall be made available to the
public in accordance with rules prescribed by the Adm inistrator.
D. Subject to the provisions of subsecti on D of Section 633 of
this Code, the Administrator upon request shall furnish to any
person at a reasonable charge photostatic or other copies, certified
under his the seal of office of the Administrator, if certification
is requested, of any entry in the register record or any order on
file in his the office of the Administrator . Any copy so certified
is admissible in evidence in tri als and other proceedings.
E. The Administrator may honor r equests from interested persons
for interpretative opinions.
SECTION 14. AMENDATORY 71 O.S. 2021, Section 664, is
amended to read as follows:
Section 664. A. Every applicant for a license or registration
under this Code shall file with the Administrator, in such form as
he prescribed by rule prescribes, an irrevocable consent appointing
the Administrator or his successor in office to be his or her
attorney to receive service of any lawful process in any noncriminal
suit, action or proceedin g against him the applicant or his or her
successor, executor, or administrator which ar ises under this Code
SB1526 HFLR Page 33
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
or any rule or order issued hereunder after the co nsent has been
filed, with the same v alidity as if served personally on the person
filing the consent. The consent need not be filed by a person who
has filed a consent in connection w ith a previous registration or
license which is then in effect. Servic e may be made by leaving a
copy of the process in the office of the Administrator, but is not
effective unless the plaintiff, who may be the Administr ator in the
suit, action, or proceeding instituted by him or her, promptly sends
notice of the service and a copy of the process by registered or
certified mail to the defendant or respondent at his the last
address on file with the Administrator, and the plaintiff's
affidavit of compliance with this subsection is filed in the case on
or before the return of the process, or within such time as the
court allows.
B. When any person, including any nonreside nt in this state,
engages in conduct prohibited or ma de actionable by this Code or any
rule or order hereunder, and he has not filed a consent to service
of process under subsection A of this section and pers onal
jurisdiction over him the person cannot otherwise be obtained in
this state, that conduct shall be considered equivalent to his
appointment of the Administrator to be his the person's attorney to
receive service of any lawful process in a ny noncriminal suit,
action, or proceeding against him the person or his or her
successor, executor, or administrator which arises out of that
SB1526 HFLR Page 34
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
conduct and which is brought under this Code or any rule or order
hereunder, with the same validity as if served on him the person
personally. Service may be made by leaving a copy of the process in
the office of the Administr ator, but it is not effective unles s the
plaintiff, who may be the Administrator in a suit, action , or
proceeding instituted by him the Administrator, promptly sends
notice of the service and a copy of the process by registered or
certified mail to the def endant or respondent at his the last-known
address or takes other steps which are reasonably calculated to give
actual notice, and the plaintiff's affidavit of compliance with this
subsection is filed in the case on or before the return day of the
process or within such time as the court al lows.
C. When process is served under this section, the court or the
Administrator in a proceeding before him the Administrator, shall
order such continuance as is nec essary to afford the defendant or
respondent reasonable opportunity to defend.
SECTION 15. REPEALER 71 O.S. 2021, Sections 632 and 634,
are hereby repealed.
SECTION 16. This act shall become e ffective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
04/06/2022 - DO PASS.