Oklahoma 2024 2024 Regular Session

Oklahoma Senate Bill SB1705 Engrossed / Bill

Filed 04/29/2024

                     
 
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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   
 
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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   
 
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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.   
 
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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;   
 
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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   
 
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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   
 
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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   
 
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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 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,   
 
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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. "   
 
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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 
   
 
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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;   
 
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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.   
 
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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;   
 
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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.   
 
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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