ENGR. H. A. to ENGR. S. B. NO. 1705 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE AMENDME NT TO ENGROSSED SENATE BILL NO . 1705 By: Howard, Bullard, Pederson, and Burns of the Senate and Hays of the House An Act relating to alien ownership of land; amending 60 O.S. 2021, Section 121, as amended by Section 1, Chapter 327, O.S.L. 2023 (60 O.S. Supp. 2023, Section 121), which relates to prohibition of alien ownership of land; defining terms; adding entities prohibited from certain ownership; updating statutory reference; adding persons authorized to execute certai n affidavit; requiring notarizat ion of certain document; providing exemptions to certain requirements; requiring inclusion of specific exemption on recorded deed; authorizing Attorney General to establish additional exemptions; allowing substantial compliance to certain form requirements ; updating statutory language; and providing an effective date. AUTHORS: Remove Representative Hays as principal House author and substitute with Representative McCall Add the following House Coauthor s: Hays, Patzkowsky, Maynard, Moore, Williams, and Bashore AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill and insert: "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 ENGR. H. A. to ENGR. S. B. NO. 1705 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 O.S. Supp. 2023, Section 121) , which relate to prohibition of alien owne rship of land; defining terms; adding entities prohibited from certain ownership; providing exemption for resident aliens and foreign government entities under certain circumstances; removing reference to personal property; updating statutory reference; adding persons authorized t o execute certain affidavit; requiring notarization of certain document; providing exemptions to certain requ irements; requiring inclusion of specific exemption on recorded deed; authorizing Attorney General to establish additional exemptions; allowing sub stantial compliance t o 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 PEOPL E OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 60 O.S. 2021 , Section 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. No alien or any person who is not a citizen of the United States shall acqui re title to or own land in this state either directly or indirectly through a business entity or trust, except as hereinafter provided, but he or she shall have and enjoy in this state such rights a s to personal property as are, or shall be accorded a citizen of the United States under the laws of the nation to which such alien belo ngs, or by the treaties 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 ENGR. H. A. to ENGR. S. B. NO. 1705 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 As used in Sections 121 through 127 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 an y 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 entity, sovereign wealth fund, or st ate-backed investment fund in which a foreign government adversary holds a controlling interest; 4. "Foreign government entity" means a government other than the federal government of the United States, the governmen t of any state, political subdivision of the s tate, tribe, territory, or possession of the United States; and 5. "Land" means the same as defined in Section 6 of this title, but shall not include oil, g as, other minerals, or any in terest therein. ENGR. H. A. to ENGR. S. B. NO. 1705 Page 4 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. No foreign government adversary shall be authorized to hold title to real property located in the State of Oklahoma under any circumstances. C. An alien who is a resident of Oklahom a or a foreign government entity domiciled in Oklahoma may hold title to real property in this state if the Oklahoma resident or entity organized under the law of the United States or any state of the United States would be allowed to hold title to real property as provided by the laws of the applicable foreig n country. D. 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 affidavit executed by the person or, the person's attorney-in-fact, a court-appointed guardian or pe rsonal 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 as 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; ENGR. H. A. to ENGR. S. B. NO. 1705 Page 5 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. Deed made by a grantor to cure a defect in title or effectuate a disclai mer 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 secur ity 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 exemptio n shall be shown on t he face of the deed prior to the recording of the deed and no affidavit shall be required. E. 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 secti on, with the exception of those deeds. The Attorney General may establ ish additional exemptions which the Attorney General deems necess ary when promulgating the ENGR. H. A. to ENGR. S. B. NO. 1705 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 affidavit form to substantially comply with the requirements of this section. The county cler k 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 institution of escheat foreclosure proceedings as hereinafter provided:. Provided, however, that if an y 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 provisions of this article, or the provisions of the Constitution of this state, such con veyance 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 or she shall be informed or have reason to believe that any lands in the state are being held contrary to the provisions of this act, or the prov isions of the Constitution of ENGR. H. A. to ENGR. S. B. NO. 1705 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 this state, to 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 direc t the clerk of such ENGR. H. A. to ENGR. S. B. NO. 1705 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 deter mined 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 deducting the cost of the proceeding, 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, ENGR. H. A. to ENGR. S. B. NO. 1705 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 an 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; and in no event shall the state be liable or called on to refund any further 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 judgment suggest and prove to the court, that he or she has conformed to, or complied with the law, under and by which they he or she will be entitled to hold such estate; which, it being admitted or proved, said suit shall be dismissed on payment by defendant of the costs and reasonable attorney's attorney fees, to be fixed by the court. SECTION 6. This act shall be come effective November 1, 2024. " ENGR. H. A. to ENGR. S. B. NO. 1705 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the House of Representatives the 25th day of April, 2024. Presiding Officer of the House of Representatives Passed the Senate the ____ day of __________, 2024. Presiding Officer of the Senate ENGR. S. B. NO. 1705 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED SENATE BILL NO. 1705 By: Howard, Bullard, Pederson, and Burns of the Senate and Hays of the House An Act relating to alien ownership of land; amending 60 O.S. 2021, Section 121, as amended by Section 1, Chapter 327, O.S.L. 2023 (60 O.S. Supp. 2023, Section 121), which relates to prohibition of alien ownership of land; defining terms; adding entities prohibited from certain ownership; updating statutory reference; adding persons authorized to execute certain affidavit; requiring notarizat ion of certain document; providing exemptions to certain requirements; requiring inclusion of specific exemption on recorded deed; authorizing Attorney General to establish additional exemptions; allowing substantial complian ce to certain form requirements ; updating statutory language; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 2. AMENDATORY 60 O.S. 2021, Section 121, as amended by Section 1, Ch apter 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 ve sted in, the person coming into title or, at his or her direction, any other person; ENGR. S. B. NO. 1705 Page 2 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. “Foreign government” means a government other than the federal government of the United States, the government of any state, political subdivision of the state, tribe, territory, or possession of the United States; 3. “Foreign government enterprise” means a business entity, sovereign wealth fund, or state -backed investment fund in which a foreign government holds a controlling interest; and 4. “Land” means the same as defined in Section 6 of this t itle, but shall not include oil, gas, other minerals, or any in terest therein. B. No alien, foreign government, 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 indirectly through a business entity, or trust, or foreign government enterprise, except 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 United States under the laws of the nation to which such alien belongs, 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 r equirements of this subsection shall not apply to a business entity that is engaged in regulated interstate commerce in accordance with federal law. ENGR. S. B. NO. 1705 Page 3 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. C. On or after the effective date of this act November 1, 2023, any deed recorded with a county clerk s hall include as an exhibit to the deed an affidavit executed by the person, the person’s attorney-in-fact, a court-appointed guardian or personal representative, an authorized officer of the or entity, or trustee of the trust coming into title attesting th at 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 cl erk 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 c onsideration, confirms, corrects, modifies, or supplements a deed previously recorded; 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 Nontestamentary 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 titl e; ENGR. S. B. NO. 1705 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. State or federal court o rder 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 public; or 8. Deed in favor of the United States or any of its political 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 separate 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 m ay establish additional exempti ons which the Attorney General deems necessary when promulgating the affidavit form to substantially comply with the requirements of this section. The county clerk may accept an affidavit in substantial compliance with the a ffidavit form promulgated by th e Attorney General. SECTION 3. This act shall become effective November 1, 2024. ENGR. S. B. NO. 1705 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Passed the Senate the 1 4th day of March, 2024. Presiding Officer of the Senate Passed the House of Representatives the _ ___ day of __________, 2024. Presiding Officer of the House of Representatives