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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 1705 By: Howard, Bullard, Pederson,
and Burns of the Senate
and
Moore and Hays of the House
COMMITTEE SUBSTITUTE
An Act relating to alien ownership of land; amending
60 O.S. 2021, Section s 121, as amended by Section 1,
Chapter 327, O.S.L. 2023 , 124, 125, 126, and 127 (60
O.S. Supp. 2023, Section 121) , which relate to
prohibition of alien owne rship of land; defining
terms; adding entities prohibited from certain
ownership; updating statutory reference; adding
persons authorized t o execute certain affidavit;
requiring notarization of certain document; providing
exemptions to certain requirements ; requiring
inclusion of specific exemption on recorded deed;
authorizing Attorney General to establish additional
exemptions; allowing sub stantial compliance to
certain form requirements ; updating statutory
language; changing escheatment to foreclosure for
property owned by aliens; providing order of payment
for foreclosed property owned by aliens; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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SECTION 1. AMENDATORY 60 O.S. 2021, Secti on 121, as
amended by Section 1, Chapter 327, O.S.L. 2023 (60 O.S. Supp. 2023,
Section 121), is amended to read as follows:
Section 121. A. As used in Chapter 3 of this title:
1. "Deed" means any instrument in writing whereby land is
assigned, transferred, or otherwise conveyed to, or vested in, the
person coming into title or, at his or her direction, any other
person;
2. "Foreign government adversary" means a government other than
the federal government of the United States, the government of any
state, political subdivision of the s tate, tribe, territory, or
possession of the United States and designated by the United States
Secretary of State as hostile or a Country of Particular Concern
(CPC);
3. "Foreign government enterprise" means a business ent ity,
sovereign wealth fund, or st ate-backed investment fund in which a
foreign government adversary holds a controlling interest; and
4. "Land" means the same as defined in Section 6 of this title,
but shall not include oil, gas, other minerals, or any in terest
therein.
B. No alien, foreign government adversary, or any person who is
not a citizen of the United States shall acquire title to or own
land in this state either directly or indirec tly through a business
entity or, trust, or foreign government adversary enterprise, except
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as hereinafter provided, but he or she they shall have and enjoy in
this state such rights as to personal property as are, or shall be ,
accorded a citizen of the Un ited States under the laws of the nation
to which such alien belo ngs, or by the treat ies of such nation with
the United States, except as the same may be affected by the
provisions of Section 121 et seq. of this title or the Constitution
of this state. Provided, however, the requirements of this
subsection shall not ap ply to a business entity that is engaged in
regulated interstate commerce in accordance with federal law.
B. C. On or after the effective date of this act November 1,
2023, any deed recorded with a county clerk shall include as an
exhibit to the deed an a ffidavit executed by the person or, the
person's attorney-in-fact, a court-appointed guardian or personal
representative, an authorized officer of the entity, or trustee of
the trust coming into title attesting that the person, business
entity, or trust is obtaining the land in compliance with the
requirements of this section and that no funding source is being
used in the sale or transfer in violation of this section or any
other state or federal law. A county clerk shall not accept and
record any deed without an affidavit a s required by this section
which is duly notarized pursuant to Title 49 of the Oklahoma
Statutes. The requirements of this subsection shall not apply to a:
1. Deed which, without additional consideration, confirms,
corrects, modifies, or supplements a deed previously recorded;
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2. Deed made by a grantor to cure a defect in title or
effectuate a disclaimer of interest in real property;
3. Transfer-on-death deed made by a grantor designating a
grantee beneficiary pursuant to the Nontest amentary Transfer of
Property Act, Section 1251 et seq. of Title 58 of the Oklahoma
Statutes;
4. State or federal court order in an action to quiet title or
to cure a defect in title;
5. State or federal court order or decree in probate,
partition, quiet title, and divorce actions;
6. Deed which secures a debt or other obligation, or which
releases such property as security for a debt or other obligation;
7. Deed of dedication to the publi c; or
8. Deed in favor of the United States or any of its politi cal
subdivisions, a state or any of its political subdivisions, or a
tribe.
The applicable exemption shall be shown on the face of the deed
prior to the recording of the deed and no affidavit shall be
required.
D. The Attorney General shall promulgate a s eparate affidavit
form for individuals and for business entities or trusts to comply
with the requirements of this section , with the exception of those
deeds. The Attorney General may establ ish additional exemptions
which the Attorney General deems necess ary when promulgating the
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affidavit form to substantially comply with the requirements of this
section. The county clerk may accept an affidavit in substantial
compliance with the affidavit form promulgated by the Attorney
General.
SECTION 2. AMENDATORY 60 O.S. 2021, Section 124, is
amended to read as follows:
Section 124. Any alien who shall hereafter hold lands in the
State of Oklahoma in contravention of the provisions of this
article, may nevertheless convey the fee simpl e title thereof at any
time before the instituti on of escheat foreclosure proceedings as
hereinafter provided: Provided, however, that if any such
conveyance shall be made by such alien either to an alien or a
citizen of the United States in trust, and for the purpose and with
the intention of evading the pro visions of this article, or the
provisions of the Constitution of this state, such conveyance shall
be null and void, and any such lands so conveyed shall be forfeited
and escheated to the state absolutely foreclosed upon.
SECTION 3. AMENDATORY 60 O.S. 2021, Section 125, is
amended to read as follows:
Section 125. It shall be the duty of the Attorney General or
the district attorney of the county where the land is situate
situated, when he shall be inform ed or have reason to believe that
any lands in the state are being held contrary to the provisions of
this act, or the provisions of the Constitution of this state, to
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institute suit in behalf of the State of Oklahoma in the district
court of the county in which said lands are situate situated,
praying for the escheat foreclosure of the same in behalf of the
state, and proceed therein as in cases provided by law for escheats
of lands or property where such property has no known owner: .
Provided, that before any such suit is instituted, the Attorney
General, or district attorney aforesaid, as the case may be, shall
give thirty (30) days ' notice by registered letter of his or her
intention to sue, directed to the owner of the lands, at his or her
last-known post office address or to the persons who last rendered
the same for taxes, or to any known agents of the owner; proof of
having mailed such registered letter shall be deemed and held prima
facie evidence of the giving of such notice.
SECTION 4. AMENDATORY 60 O.S. 2021, Section 126, is
amended to read as follows:
Section 126. In case the lands, at the time escheat foreclosure
proceedings are about to be commenced, are owned by minors, or by
persons of unsound mind, such notice shall be addressed to the
guardian of the said minors, or persons of unsound mind, and if
there is no such guardian, the Attorney General of the state, or
district attorney shall make application in the name of the state to
the court and procure the appointment of a guardian ad litem to
represent such minor, or person of unsound mind in such proceedings;
thereafter the district attorney shall direct the clerk of such
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court to ascertain the residence or postoffice post office address
of the next of kin of such minor, or person of unsound mi nd, and to
transmit to such next of kin a copy of the petition or application
to escheat foreclose such lands, and such minor or person of unsound
mind shall have ninety (90) days after the mailing of such notice to
appear and defend the action.
SECTION 5. AMENDATORY 60 O.S. 2021, Section 127, is
amended to read as follows:
Section 127. If it shall be determined upon the trial of any
such escheat foreclosure proceedings that lands are held contrary to
the provisions of this article, or the Constitu tion of this state,
the court trying said cause shall render judgment condemning such
lands, and order the same to be sold under the order of court, at
such time, terms, and conditions as to the court may seem best; the
proceeds of such sale after deductin g the cost of the proceed ing,
shall be paid to any lienholders of the property if applicable, then
the rest shall be paid to the clerk of the court ren dering the
judgment where the same shall remain for one (1) year from the date
of such payment, subject t o the order of the alien owner of such
lands, his or her heirs and legal representa tives, and if not
claimed within the period of one (1) year, such clerk sha ll pay the
same into the treasury of the state for the benefit of the available
school fund of the State state: Provided, that when any money shall
have been paid to the State Treasurer as hereinabove provided, an
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alien or his or her heirs may procure the same to be re turned by
applying for and procuring an order from the court condemning the
property showing that such judgment escheating foreclosing said
property was procured by fraud, or mistake, or that there was
material irregularity in the proceedings; this application, howeve r,
must be made within two (2) years from the date such monies were
turned over into the State Treasury; a nd in no event shall the state
be liable or called on to refund any furthe r sum than the actual
cash transmitted and delivered to such Treasurer: Provided,
further, that the defendant in such escheat foreclosure proceedings
may at any time before final ju dgment suggest and prove to the
court, that he has conformed to, or complied with the law, under and
by which they will be entitled to hold such estate; which, it being
admitted or proved, said suit shall be dismissed on p ayment by
defendant of the costs a nd reasonable attorney's fees, to be fixed
by the court.
SECTION 6. This act shall be come effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON AGRICULTURE, dated 04/10/2024 - DO
PASS, As Amended and Coauthored.