Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1705 Latest Draft

Bill / Enrolled Version Filed 05/30/2024

                             
 
 
An Act 
ENROLLED SENATE 
BILL NO. 1705 	By: Howard, Pederson, Burns, 
and Garvin of the Senate 
 
  and 
 
  McCall, Hays, Patzkowsky, 
Maynard, Moore, Williams, 
Bashore, Burns, and 
Steagall of the House 
 
 
 
 
An Act relating to alien ownership of land; amending 
60 O.S. 2021, Sections 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 ownership 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; adding persons authorized to 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 
substantial compliance to certain form requirements; 
changing escheatment to foreclosure for pro perty 
owned by aliens; providing order of payment for 
foreclosed property owned by aliens; updating 
statutory references; updating statutory language; 
making language gender neutral; and providing an 
effective date. 
 
 
 
 
SUBJECT:  Alien ownership of land 
   
 
ENR. S. B. NO. 1705 	Page 2 
BE IT ENACTED BY THE PEOPLE 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.  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 any 
state, political subdivision of the state, tribe, territory, or 
possession of the United States and designated by the Uni ted 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 state -backed investment fund in which a 
foreign government adversary holds a controll ing interest; 
 
4.  “Foreign government entity” 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; and 
 
5.  “Land” means the same as defined in Section 6 of this title, 
but shall not include oil, gas, other minerals, or any interest 
therein. 
 
B. No alien or any person who is not a citizen of the United 
States or foreign government adversary 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 treaties of such nation with   
 
ENR. S. B. NO. 1705 	Page 3 
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 apply to a business entity that is engaged in 
regulated interstate commerce or has a national security agreement 
with the Committee on Foreign Investment in the United States 
(CFIUS) 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 affidavit 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 as required by this secti on 
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; 
 
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, Sectio n 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; 
   
 
ENR. S. B. NO. 1705 	Page 4 
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 may establish additional exemptions 
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 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 this state in contravention of the provisions of 
this article, may nevertheless convey the fee simple title thereof 
at any time before the institution 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 provisions 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 or she shall be informed or have reason to believe 
that any lands in the state are being held contrary to the   
 
ENR. S. B. NO. 1705 	Page 5 
provisions of this act Section 121 et seq. of this title , or the 
provisions of the Constitution of this state, to institute suit in 
behalf of the State of Oklahoma this state in the district court of 
the county in which said such 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 fac ie 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, ar e 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 applicatio n 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 
court to ascertain the reside nce or postoffice post office address 
of the next of kin of such minor, or person of unsound mind, 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 Constitution of this state, 
the court trying said such cause shall render judgment condemning   
 
ENR. S. B. NO. 1705 	Page 6 
such lands, and order the same to be sold under the ord er 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 
rendering the judgment where the same shall remain for one (1) year 
from the date of such payment, subject to the order of the alien 
owner of such lands, his or her heirs and legal representatives, and 
if not claimed within the period of one ( 1) year, such clerk shall 
pay the same into the treasury of the state State Treasury 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 al ien or his or her heirs may procure the 
same to be returned by applying for and procuring an order from the 
court condemning the property showing that such judgment escheating 
said foreclosing the property was procured by fraud, or mistake, or 
that there was material irregularity in the proceedings; this 
application, however, 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 the 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 become effective November 1, 2024. 
   
 
ENR. S. B. NO. 1705 	Page 7 
Passed the Senate the 30th day of May, 2024. 
 
 
  
 	Presiding Officer of the Senate 
 
 
Passed the House of Representatives the 30th day of May, 2024. 
 
 
  
 	Presiding Officer of the House 
 	of Representatives 
 
OFFICE OF THE GOVERNOR 
Received by the Office of the Governor this _______ _____________ 
day of _________________ __, 20_______, at _______ o'clock _______ M. 
By: _________________________________ 
Approved by the Governor of the State of Oklahoma this _______ __ 
day of _________________ __, 20_______, at _______ o'clock _______ M. 
 
 	_________________________________ 
 	Governor of the State of Oklahoma 
 
 
OFFICE OF THE SECRETARY OF STATE 
Received by the Office of the Secretary of State this _______ ___ 
day of _________________ _, 20 _______, at _______ o'clock _______ M. 
By: _________________________________