Req. No. 10080 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 STATE OF OKLAHOMA 1st Session of the 60th Legislature (2025) HOUSE BILL 1308 By: Humphrey AS INTRODUCED An Act relating to foreign ownership of property; defining terms; prohibiting real property ownership by certain parties; providing cer tain exemptions; requiring divestment of violating property; requiring Attorney General to bring suit for violation; providing for judicial foreclosure of property; providing certain documents to be recorded in the county records office; providing for felo ny punishment and fines; providing affirmative defense to prosecution; providi ng when title to real property is not invalid or subject to divestiture; prohibiting agricultural land ownership by certain parties; providing certain exemptions; requiring dives tment of violating property; requiring the Office of Agricultural Intelligence upon discovery of a violation to report such violation to the Attorney General; allowing the Attorney General to issue certain subpoenas; authorizing the Attorney General to commence legal actions upon certain determinations; providing for judicial forecl osure of property; providing certain documents to be recorded in the office of the county clerk; providing when title to agricultural land is not invalid or subject to divestiture; providing for felony punishment and fines; providing affirmative defense to prosecution; requiring inclusion of certain affidavit with recording of a deed; directing Attorney General to promulgate certain affidavit forms; creating within the Oklahoma Department of Agriculture, Food, and Forestry the Office of Agricultural Intelli gence; stating authorized duties; requiring the Office operate under the direction of the Secretary of the Oklahoma Department of Agriculture, Food, and Forestry; repealing 60 O. S. 2021, Sections 121, as last amended by Section 1, Chapter 373, O.S.L. 2024, Req. No. 10080 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 24 122, 123, and Sections 124, 125, 126 and 127, as amended by Sections 2, 3, 4 and 5, Chapter 373, O.S.L. 2024 (60 O.S. Supp. 2024, Sections 121, 124, 125, 126 and 127), which rel ate to alien ownership of land; providing for codification; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 128 of Title 60, unless there is created a duplication in numbering, reads as follows: As used in this act: 1. "Agricultural land" means any land which is outside the corporate limits of a municipality and is: a. used for forestry product ion including, without limitation, land exceeding ten (10) acres in which ten percent (10%) of the land is stocked by trees of any size, including land that formerly had trees of any size covering the land that will be naturally or artificially regenerated , or b. currently used for, or, if currently idle, land last used within the past five (5) years, for farming, ranching, or timber production, except land not exceeding ten (10) acres in the aggregate, if the annual gross receipts from the sale of the farm , Req. No. 10080 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 ranch, or timber products produced on the land do not exceed One Thousand Do llars ($1,000.00). This does not include oil, gas, and all other minerals, including coal, lignite, brine, and all minerals known and recognized as commercial minerals underlying the land; 2. "Controlling interest " means an ownership interest of fifty percent (50%) or more, in the aggregate; 3. "Foreign government" means any government other than the federal government or any government of a state or a political subdivision of a state; 4. "Interest in agricultural land " means all direct interest acquired, transferred, or held in agricultural land, including without limitation, a lease of agricultural land: a. for a term of one (1) year or longer, or b. renewable by option for te rms which, if the options were all exercised, would total one (1) year; 5. "Party" means any individual, corporation, company, association, firm, partnership, society, joint -stock company, trust, estate, or any other legal entity; 6. "Prohibited foreign party" means: a. a citizen or resident of a country subject to International Traffic in Arms Regulations, 22 C.F.R., Section 126.1, Req. No. 10080 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. a foreign government formed within a country subject to International Traffic in Arms Regulations, 22 C.F.R., Section 126.1, c. a party other than an individual or a government, that is created or organized under the laws of a foreign government within a country subject to International Traffic in Arms Regulations, 22 C.F.R., Section 126.1, d. any party other than an individ ual or government: (1) that is created or organized under the laws of any state, and (2) in which a significant interest or substantial control is directly or indirectly held or is capable of being exercised by: (a) an individual referred to in subparagrap h a of this paragraph, (b) a foreign government referred to in subparagraph b of this paragraph, (c) a party referred to in subparagraph c of this paragraph, or (d) a combination of the individuals, parties, or governments referred to in this division, e. an Entity of Particular Concern designated by the United States Department of State, or Req. No. 10080 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 f. an agent, trustee, or other fiduciary of a person or entity enumerated in subparagraphs a through e of this paragraph; 7. "Prohibited foreign-party-controlled business" means a corporation, company, association, firm, partnership, society, joint-stock company, trust, estate, or other legal entity whose controlling interest is owned by a prohibited foreign party; 8. "Real property" means all land or property that is not agricultural land; 9. "Residence" means the principal dwelling of a perso n place where the person intends to remain permanently for an indefinite period of time; 10. "Resident alien" means a person who: a. is not a citizen of the United States, and b. is a resident of a: (1) state of the United States, (2) territory of the United States, (3) trusteeship of the United States, or (4) protectorate of the United States; 11. "Significant interest " or "substantial control" means: a. an interest of thirty -three percent (33%) or more held by: (1) a party referred to in subparagraph d of paragraph 6 of this section, Req. No. 10080 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 (2) an individual referred to in subparagraph a of paragraph 6 of this section, (3) a party referred to in subparagraph c of paragraph 6 of this s ection, or (4) a single government referred to in subparagraph b of paragraph 6 of this section; b. an interest of thirty -three percent (33%) or more held whenever the parties, individuals, or governments referred to in paragraph 6 of this section are acti ng in concert with respect to the interest even though no single individual, p arty, or government holds an interest of thirty-three percent (33%) or more, or c. an interest of fifty percent (50%) or more, in the aggregate, held by parties, individuals, or governments referred to in paragraph 6 of this section even though the individuals, parties, or foreign governments may not be acting in concert. SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Sec tion 128.1 of Title 60, unless there is created a duplication in numbering, re ads as follows: A. 1. A prohibited foreign party or a prohibited foreign - party-controlled business shall not acquire by grant, purchase, devise, descent, or otherwise any inter est in real property in this state. Req. No. 10080 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 2. A party may not hold real property as an agent, trustee, or other fiduciary for a prohibited foreign party or prohibited foreign-party-controlled business in violation of this section. B. A prohibited foreign party or a prohibited foreign -party- controlled business entity in violation of this section shall have two (2) years to divest of the real property. C. If a prohibited foreign party or a prohibited foreign -party- controlled business entity does not divest the re al property as required by subsection B of this section, the Attorney General shall commence an action in the district court within the jurisdiction of the real property. 1. If the ownership of the real property is determined by the district court to be i n violation of this section, the court shall order that the real property be s old through judicial foreclosure. 2. Proceeds of the sale shall be disbursed to lienholders, in the order of priority, except for liens which, under the terms of the sale, are to remain on the real property. 3. The Attorney General shall promptly record a copy of the following in the office of the county clerk of the county where the real property is located: a. upon commencement, notice of the pendency of an action brought under this subsection, and b. the order for the sale of the real property under paragraph 1 of this subsection. Req. No. 10080 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 D. A prohibited foreign party or a prohibited foreign -party- controlled business entity shall, upon conviction, be guilty of a felony punishable by imprisonment in the custody of the Department of Corrections for a term not to exceed two (2) years, or a fine of Fifteen Thousand Dollars ($15,000.00), or by both such fine and imprisonment. E. It is an affirmative defense to prosecution under this section that a prohibited foreign party or prohibited foreign -party- controlled business entity is a resident alien of the State of Oklahoma. F. Title to real property is not invalid or subject to divestiture due to a violation of this section by: 1. Any former owner; or 2. Another person holding or owning a former interest in the real property. G. Persons not subject to this section shall be required to determine or inquire into whether another person is or may be subject to this section. SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 128.2 of Title 60, unless there is created a duplication in numbering, reads as follows: A. 1. Except as provided in Section 4 of this act, a prohibited foreign party or a prohibited foreign -party-controlled business entity shall not acquire by grant, purchase, devise, Req. No. 10080 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 descent, or otherwise any interest in agricultural land in this state regardless of whether the prohibited foreign party or a prohibited foreign-party-controlled business entity intends to use the agricultural land for non farming purposes. 2. A party may not hold agricultural land as an agent, trustee, or other fiduciary for a prohibited foreign party in violation of this act. B. A prohibited foreign party or a prohibited foreign -party- controlled business entity that acquires agricultural land in violation of this section remains in violation as long as the prohibited foreign party or a prohibited foreign -party-controlled business entity holds an interest in the agricultural land. SECTION 4. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 128.3 of Title 60, unless there is created a duplication in numbering, reads as follows: A. A prohibited foreign party or a prohibited foreign -party- controlled business entity, who is a resident alien of the United States, shall have the right to acquire and hold agricultural land in the state upon the same terms as a citizen of the United States during the continuance of his or her residence in the State of Oklahoma. B. 1. If a prohibited foreign party or a prohibited foreign - party-controlled business entity is no longer a resident alien under Req. No. 10080 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 subsection A of this section, he or she shall have two (2) year s to divest of the agricultural land. 2. If the prohibited foreign party or a prohibited foreign - party-controlled business entity does not divest of the agricultural land as required by paragraph 1 of this subsection, the Attorney General shall commence a n action in district court within the jurisdiction of the agricultural land. 3. If the ownership of the agricultural land is held in violation of this section, the district court shall order that the agricultural land be sold through judicial foreclosure. C. 1. When the Office of Agricultural Intelligence determines a prohibited foreign party or a prohibited foreign -party-controlled business entity has acquired agricultural land in Oklahoma in violation of this act, the Office shall report the violation to the Attorney General. 2. Upon receiving notice under paragraph 1 of this s ubsection or upon receipt of information that leads the Attorney General to believe that a violation of this act may exist, the Attorney General may issue subpoenas requiring the : a. appearance of witnesses, b. production of relevant records, and c. giving of relevant testimony. 3. If, as a result of the investigation under paragraph 2 of this subsection, the Attorney General concludes that a violation of Req. No. 10080 Page 11 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 act has occurred, t he Attorney General shall commence an action in the district court within the jurisdiction of the agricultural land. 4. If the ownership of the agricultural land is held in violation of this act, the district court shall order that the agricultural land be sold through judicial foreclosure D. 1. The proceeds of the sale of agricultural land by judicial foreclosure authorized under this section shall be disbursed to lienholders, in the order of priority, except for liens which, under the terms of the sale , are to remain on the agricultural land. 2. The Attorney General shall promp tly record a copy of the following in the office of the county clerk where the agricultural land is located: a. upon commencement, notice of the pendency of an action brought under paragraph 2 of subsection B and under paragraph 3 of subsection C of this section, and b. the order for the sale of the agricultural land under paragraph 3 of subsection B and under paragraph 4 of subsection C of this section. E. Title to agricultural land is not invalid or subject to divestiture due to a violation of this act b y: 1. Any former owner; or Req. No. 10080 Page 12 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. Another person holding or owning a former interest in the agricultural land. F. No person not subject to this act shall be required to determine or inquire into whether another person is or may be subject to this act. SECTION 5. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 128.4 of Title 60, unless there is created a duplication in numberin g, reads as follows: A. A prohibited foreign party or prohibited foreign -party- controlled business entity owning agricultural land subsequent to the passage of this act and not listed under one of the exceptions set out in subsections A and B of Section 4 of this act shall, upon conviction, be guilty of a felony punishable by imprisonment in the custody of the Department of Corrections for a term not to exceed two (2) years, or a fine of Fifteen Thousand Dollars ($15,000.00), or by both such fine and impri sonment. B. It is an affirmative defense to prosecution under this section that a prohibited foreign party or prohibited foreign -party- controlled business entity is a resident alien of the State of Oklahoma. SECTION 6. NEW LAW A ne w section of law to be codified in the Oklahoma Statutes as Section 128.5 of Title 60, unless there is created a duplication in numbering, reads as follows: Req. No. 10080 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 On or after the effective date of this act, any deed recorded with a county clerk shall include, as an exhibit to the deed, an affidavit executed by the person or entity coming into title attesting that the person, business entity, or trust is obtaining the land in compliance with the requirements of Sections 2, 3, 4, and 5 of this act and that no fundi ng source is being used in the sale or transfer in violation of Sections 2, 3, 4, and 5 of this act 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. The Attorney Gene ral shall promulgate a separate affidavit form for individuals and for busines s entities or trusts to comply with the requirements of this section, with the exception of those deeds which the Attorney General deems necessary when promulgating the affidavit form. SECTION 7. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 128.6 of Title 60, unless there is created a duplication in numbering, reads as follows: A. There is hereby created within the Oklaho ma Department of Agriculture, Food, and Forestry the Office of Agricultural Intelligence. B. The Office of Agricultural Intelligence is authorized and directed to: Req. No. 10080 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Collect and analyze information concerning the unlawful sale or possession of agricultu ral land by prohibited foreign parties or prohibited foreign-party-controlled business entity; and 2. Administer and enforce the provisions of this act, including without limitation, the reporting of a violation of this subchapter to the Oklahoma Attorney General under Section 4 of this act. C. The Office of Agricultural Intellige nce shall operate under the direction of the Secretary of the Oklahoma Department of Agriculture, Food, and Forestry. SECTION 8. REPEALER 60 O.S. 2021, Se ctions 121, as last amended by Section 1, Chapter 373, O.S.L. 2024, 122, 123, and Sections 124, 125, 126 and 127, as amended by Sections 2, 3, 4 and 5, Chapter 373, O.S.L. 2024 (60 O.S. Supp. 2024, Sections 121, 124, 125, 126 and 127), are hereby repealed. SECTION 9. This act shall become effective November 1, 2025. 60-1-10080 GRS 01/08/25