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Oklahoma House Bill HB1308

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1308 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 1st Session of the 60th Legislature (2025)
3131
3232 HOUSE BILL 1308 By: Humphrey
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3838 AS INTRODUCED
3939
4040 An Act relating to foreign ownership of property;
4141 defining terms; prohibiting real property ownership
4242 by certain parties; providing cer tain exemptions;
4343 requiring divestment of violating property; requiring
4444 Attorney General to bring suit for violation;
4545 providing for judicial foreclosure of property;
4646 providing certain documents to be recorded in the
4747 county records office; providing for felo ny
4848 punishment and fines; providing affirmative defense
4949 to prosecution; providi ng when title to real property
5050 is not invalid or subject to divestiture; prohibiting
5151 agricultural land ownership by certain parties;
5252 providing certain exemptions; requiring dives tment of
5353 violating property; requiring the Office of
5454 Agricultural Intelligence upon discovery of a
5555 violation to report such violation to the Attorney
5656 General; allowing the Attorney General to issue
5757 certain subpoenas; authorizing the Attorney General
5858 to commence legal actions upon certain
5959 determinations; providing for judicial forecl osure of
6060 property; providing certain documents to be recorded
6161 in the office of the county clerk; providing when
6262 title to agricultural land is not invalid or subject
6363 to divestiture; providing for felony punishment and
6464 fines; providing affirmative defense to prosecution;
6565 requiring inclusion of certain affidavit with
6666 recording of a deed; directing Attorney General to
6767 promulgate certain affidavit forms; creating within
6868 the Oklahoma Department of Agriculture, Food, and
6969 Forestry the Office of Agricultural Intelli gence;
7070 stating authorized duties; requiring the Office
7171 operate under the direction of the Secretary of the
7272 Oklahoma Department of Agriculture, Food, and
7373 Forestry; repealing 60 O. S. 2021, Sections 121, as
7474 last amended by Section 1, Chapter 373, O.S.L. 2024,
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101101 122, 123, and Sections 124, 125, 126 and 127, as
102102 amended by Sections 2, 3, 4 and 5, Chapter 373,
103103 O.S.L. 2024 (60 O.S. Supp. 2024, Sections 121, 124,
104104 125, 126 and 127), which rel ate to alien ownership of
105105 land; providing for codification; and providing an
106106 effective date.
107107
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110110
111111 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
112112 SECTION 1. NEW LAW A new section of law to be codified
113113 in the Oklahoma Statutes as Section 128 of Title 60, unless there is
114114 created a duplication in numbering, reads as follows:
115115 As used in this act:
116116 1. "Agricultural land" means any land which is outside the
117117 corporate limits of a municipality and is:
118118 a. used for forestry product ion including, without
119119 limitation, land exceeding ten (10) acres in which ten
120120 percent (10%) of the land is stocked by trees of any
121121 size, including land that formerly had trees of any
122122 size covering the land that will be naturally or
123123 artificially regenerated , or
124124 b. currently used for, or, if currently idle, land last
125125 used within the past five (5) years, for farming,
126126 ranching, or timber production, except land not
127127 exceeding ten (10) acres in the aggregate, if the
128128 annual gross receipts from the sale of the farm ,
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155155 ranch, or timber products produced on the land do not
156156 exceed One Thousand Do llars ($1,000.00).
157157 This does not include oil, gas, and all other minerals,
158158 including coal, lignite, brine, and all minerals known and
159159 recognized as commercial minerals underlying the land;
160160 2. "Controlling interest " means an ownership interest of fifty
161161 percent (50%) or more, in the aggregate;
162162 3. "Foreign government" means any government other than the
163163 federal government or any government of a state or a political
164164 subdivision of a state;
165165 4. "Interest in agricultural land " means all direct interest
166166 acquired, transferred, or held in agricultural land, including
167167 without limitation, a lease of agricultural land:
168168 a. for a term of one (1) year or longer, or
169169 b. renewable by option for te rms which, if the options
170170 were all exercised, would total one (1) year;
171171 5. "Party" means any individual, corporation, company,
172172 association, firm, partnership, society, joint -stock company, trust,
173173 estate, or any other legal entity;
174174 6. "Prohibited foreign party" means:
175175 a. a citizen or resident of a country subject to
176176 International Traffic in Arms Regulations, 22 C.F.R.,
177177 Section 126.1,
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204204 b. a foreign government formed within a country subject
205205 to International Traffic in Arms Regulations, 22
206206 C.F.R., Section 126.1,
207207 c. a party other than an individual or a government, that
208208 is created or organized under the laws of a foreign
209209 government within a country subject to International
210210 Traffic in Arms Regulations, 22 C.F.R., Section 126.1,
211211 d. any party other than an individ ual or government:
212212 (1) that is created or organized under the laws of
213213 any state, and
214214 (2) in which a significant interest or substantial
215215 control is directly or indirectly held or is
216216 capable of being exercised by:
217217 (a) an individual referred to in subparagrap h a
218218 of this paragraph,
219219 (b) a foreign government referred to in
220220 subparagraph b of this paragraph,
221221 (c) a party referred to in subparagraph c of
222222 this paragraph, or
223223 (d) a combination of the individuals, parties,
224224 or governments referred to in this division,
225225 e. an Entity of Particular Concern designated by the
226226 United States Department of State, or
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253253 f. an agent, trustee, or other fiduciary of a person or
254254 entity enumerated in subparagraphs a through e of this
255255 paragraph;
256256 7. "Prohibited foreign-party-controlled business" means a
257257 corporation, company, association, firm, partnership, society,
258258 joint-stock company, trust, estate, or other legal entity whose
259259 controlling interest is owned by a prohibited foreign party;
260260 8. "Real property" means all land or property that is not
261261 agricultural land;
262262 9. "Residence" means the principal dwelling of a perso n place
263263 where the person intends to remain permanently for an indefinite
264264 period of time;
265265 10. "Resident alien" means a person who:
266266 a. is not a citizen of the United States, and
267267 b. is a resident of a:
268268 (1) state of the United States,
269269 (2) territory of the United States,
270270 (3) trusteeship of the United States, or
271271 (4) protectorate of the United States;
272272 11. "Significant interest " or "substantial control" means:
273273 a. an interest of thirty -three percent (33%) or more held
274274 by:
275275 (1) a party referred to in subparagraph d of
276276 paragraph 6 of this section,
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303303 (2) an individual referred to in subparagraph a of
304304 paragraph 6 of this section,
305305 (3) a party referred to in subparagraph c of
306306 paragraph 6 of this s ection, or
307307 (4) a single government referred to in subparagraph b
308308 of paragraph 6 of this section;
309309 b. an interest of thirty -three percent (33%) or more held
310310 whenever the parties, individuals, or governments
311311 referred to in paragraph 6 of this section are acti ng
312312 in concert with respect to the interest even though no
313313 single individual, p arty, or government holds an
314314 interest of thirty-three percent (33%) or more, or
315315 c. an interest of fifty percent (50%) or more, in the
316316 aggregate, held by parties, individuals, or
317317 governments referred to in paragraph 6 of this section
318318 even though the individuals, parties, or foreign
319319 governments may not be acting in concert.
320320 SECTION 2. NEW LAW A new section of law to be codified
321321 in the Oklahoma Statutes as Sec tion 128.1 of Title 60, unless there
322322 is created a duplication in numbering, re ads as follows:
323323 A. 1. A prohibited foreign party or a prohibited foreign -
324324 party-controlled business shall not acquire by grant, purchase,
325325 devise, descent, or otherwise any inter est in real property in this
326326 state.
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353353 2. A party may not hold real property as an agent, trustee, or
354354 other fiduciary for a prohibited foreign party or prohibited
355355 foreign-party-controlled business in violation of this section.
356356 B. A prohibited foreign party or a prohibited foreign -party-
357357 controlled business entity in violation of this section shall have
358358 two (2) years to divest of the real property.
359359 C. If a prohibited foreign party or a prohibited foreign -party-
360360 controlled business entity does not divest the re al property as
361361 required by subsection B of this section, the Attorney General shall
362362 commence an action in the district court within the jurisdiction of
363363 the real property.
364364 1. If the ownership of the real property is determined by the
365365 district court to be i n violation of this section, the court shall
366366 order that the real property be s old through judicial foreclosure.
367367 2. Proceeds of the sale shall be disbursed to lienholders, in
368368 the order of priority, except for liens which, under the terms of
369369 the sale, are to remain on the real property.
370370 3. The Attorney General shall promptly record a copy of the
371371 following in the office of the county clerk of the county where the
372372 real property is located:
373373 a. upon commencement, notice of the pendency of an action
374374 brought under this subsection, and
375375 b. the order for the sale of the real property under
376376 paragraph 1 of this subsection.
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403403 D. A prohibited foreign party or a prohibited foreign -party-
404404 controlled business entity shall, upon conviction, be guilty of a
405405 felony punishable by imprisonment in the custody of the Department
406406 of Corrections for a term not to exceed two (2) years, or a fine of
407407 Fifteen Thousand Dollars ($15,000.00), or by both such fine and
408408 imprisonment.
409409 E. It is an affirmative defense to prosecution under this
410410 section that a prohibited foreign party or prohibited foreign -party-
411411 controlled business entity is a resident alien of the State of
412412 Oklahoma.
413413 F. Title to real property is not invalid or subject to
414414 divestiture due to a violation of this section by:
415415 1. Any former owner; or
416416 2. Another person holding or owning a former interest in the
417417 real property.
418418 G. Persons not subject to this section shall be required to
419419 determine or inquire into whether another person is or may be
420420 subject to this section.
421421 SECTION 3. NEW LAW A new section of law to be codified
422422 in the Oklahoma Statutes as Section 128.2 of Title 60, unless there
423423 is created a duplication in numbering, reads as follows:
424424 A. 1. Except as provided in Section 4 of this act, a
425425 prohibited foreign party or a prohibited foreign -party-controlled
426426 business entity shall not acquire by grant, purchase, devise,
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453453 descent, or otherwise any interest in agricultural land in this
454454 state regardless of whether the prohibited foreign party or a
455455 prohibited foreign-party-controlled business entity intends to use
456456 the agricultural land for non farming purposes.
457457 2. A party may not hold agricultural land as an agent, trustee,
458458 or other fiduciary for a prohibited foreign party in violation of
459459 this act.
460460 B. A prohibited foreign party or a prohibited foreign -party-
461461 controlled business entity that acquires agricultural land in
462462 violation of this section remains in violation as long as the
463463 prohibited foreign party or a prohibited foreign -party-controlled
464464 business entity holds an interest in the agricultural land.
465465 SECTION 4. NEW LAW A new section of law to be codified
466466 in the Oklahoma Statutes as Section 128.3 of Title 60, unless there
467467 is created a duplication in numbering, reads as follows:
468468 A. A prohibited foreign party or a prohibited foreign -party-
469469 controlled business entity, who is a resident alien of the United
470470 States, shall have the right to acquire and hold agricultural land
471471 in the state upon the same terms as a citizen of the United States
472472 during the continuance of his or her residence in the State of
473473 Oklahoma.
474474 B. 1. If a prohibited foreign party or a prohibited foreign -
475475 party-controlled business entity is no longer a resident alien under
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502502 subsection A of this section, he or she shall have two (2) year s to
503503 divest of the agricultural land.
504504 2. If the prohibited foreign party or a prohibited foreign -
505505 party-controlled business entity does not divest of the agricultural
506506 land as required by paragraph 1 of this subsection, the Attorney
507507 General shall commence a n action in district court within the
508508 jurisdiction of the agricultural land.
509509 3. If the ownership of the agricultural land is held in
510510 violation of this section, the district court shall order that the
511511 agricultural land be sold through judicial foreclosure.
512512 C. 1. When the Office of Agricultural Intelligence determines
513513 a prohibited foreign party or a prohibited foreign -party-controlled
514514 business entity has acquired agricultural land in Oklahoma in
515515 violation of this act, the Office shall report the violation to the
516516 Attorney General.
517517 2. Upon receiving notice under paragraph 1 of this s ubsection
518518 or upon receipt of information that leads the Attorney General to
519519 believe that a violation of this act may exist, the Attorney General
520520 may issue subpoenas requiring the :
521521 a. appearance of witnesses,
522522 b. production of relevant records, and
523523 c. giving of relevant testimony.
524524 3. If, as a result of the investigation under paragraph 2 of
525525 this subsection, the Attorney General concludes that a violation of
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552552 this act has occurred, t he Attorney General shall commence an action
553553 in the district court within the jurisdiction of the agricultural
554554 land.
555555 4. If the ownership of the agricultural land is held in
556556 violation of this act, the district court shall order that the
557557 agricultural land be sold through judicial foreclosure
558558 D. 1. The proceeds of the sale of agricultural land by
559559 judicial foreclosure authorized under this section shall be
560560 disbursed to lienholders, in the order of priority, except for liens
561561 which, under the terms of the sale , are to remain on the
562562 agricultural land.
563563 2. The Attorney General shall promp tly record a copy of the
564564 following in the office of the county clerk where the agricultural
565565 land is located:
566566 a. upon commencement, notice of the pendency of an action
567567 brought under paragraph 2 of subsection B and under
568568 paragraph 3 of subsection C of this section, and
569569 b. the order for the sale of the agricultural land under
570570 paragraph 3 of subsection B and under paragraph 4 of
571571 subsection C of this section.
572572 E. Title to agricultural land is not invalid or subject to
573573 divestiture due to a violation of this act b y:
574574 1. Any former owner; or
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601601 2. Another person holding or owning a former interest in the
602602 agricultural land.
603603 F. No person not subject to this act shall be required to
604604 determine or inquire into whether another person is or may be
605605 subject to this act.
606606 SECTION 5. NEW LAW A new section of law to be codified
607607 in the Oklahoma Statutes as Section 128.4 of Title 60, unless there
608608 is created a duplication in numberin g, reads as follows:
609609 A. A prohibited foreign party or prohibited foreign -party-
610610 controlled business entity owning agricultural land subsequent to
611611 the passage of this act and not listed under one of the exceptions
612612 set out in subsections A and B of Section 4 of this act shall, upon
613613 conviction, be guilty of a felony punishable by imprisonment in the
614614 custody of the Department of Corrections for a term not to exceed
615615 two (2) years, or a fine of Fifteen Thousand Dollars ($15,000.00),
616616 or by both such fine and impri sonment.
617617 B. It is an affirmative defense to prosecution under this
618618 section that a prohibited foreign party or prohibited foreign -party-
619619 controlled business entity is a resident alien of the State of
620620 Oklahoma.
621621 SECTION 6. NEW LAW A ne w section of law to be codified
622622 in the Oklahoma Statutes as Section 128.5 of Title 60, unless there
623623 is created a duplication in numbering, reads as follows:
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650650 On or after the effective date of this act, any deed recorded
651651 with a county clerk shall include, as an exhibit to the deed, an
652652 affidavit executed by the person or entity coming into title
653653 attesting that the person, business entity, or trust is obtaining
654654 the land in compliance with the requirements of Sections 2, 3, 4,
655655 and 5 of this act and that no fundi ng source is being used in the
656656 sale or transfer in violation of Sections 2, 3, 4, and 5 of this act
657657 or any other state or federal law. A county clerk shall not accept
658658 and record any deed without an affidavit as required by this
659659 section. The Attorney Gene ral shall promulgate a separate affidavit
660660 form for individuals and for busines s entities or trusts to comply
661661 with the requirements of this section, with the exception of those
662662 deeds which the Attorney General deems necessary when promulgating
663663 the affidavit form.
664664 SECTION 7. NEW LAW A new section of law to be codified
665665 in the Oklahoma Statutes as Section 128.6 of Title 60, unless there
666666 is created a duplication in numbering, reads as follows:
667667 A. There is hereby created within the Oklaho ma Department of
668668 Agriculture, Food, and Forestry the Office of Agricultural
669669 Intelligence.
670670 B. The Office of Agricultural Intelligence is authorized and
671671 directed to:
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698698 1. Collect and analyze information concerning the unlawful sale
699699 or possession of agricultu ral land by prohibited foreign parties or
700700 prohibited foreign-party-controlled business entity; and
701701 2. Administer and enforce the provisions of this act, including
702702 without limitation, the reporting of a violation of this subchapter
703703 to the Oklahoma Attorney General under Section 4 of this act.
704704 C. The Office of Agricultural Intellige nce shall operate under
705705 the direction of the Secretary of the Oklahoma Department of
706706 Agriculture, Food, and Forestry.
707707 SECTION 8. REPEALER 60 O.S. 2021, Se ctions 121, as last
708708 amended by Section 1, Chapter 373, O.S.L. 2024, 122, 123, and
709709 Sections 124, 125, 126 and 127, as amended by Sections 2, 3, 4 and
710710 5, Chapter 373, O.S.L. 2024 (60 O.S. Supp. 2024, Sections 121, 124,
711711 125, 126 and 127), are hereby repealed.
712712 SECTION 9. This act shall become effective November 1, 2025.
713713
714714 60-1-10080 GRS 01/08/25