Oklahoma 2025 Regular Session

Oklahoma House Bill HB1453 Latest Draft

Bill / Introduced Version Filed 01/28/2025

                             
 
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STATE OF OKLAHOMA 
 
1st Session of the 60th Legislature (2025) 
 
HOUSE BILL 1453 	By: Shaw 
 
 
 
 
 
 
 
AS INTRODUCED 
 
An Act relating to foreign ownership of property; 
defining terms; prohibiting real property ownership 
by certain parties; providing certa in exemptions; 
requiring divestment of violating property; requiring 
Attorney General to bring suit for violating; 
providing for judicial foreclosure of property; 
providing certain documents to be recorded in the 
county records office; providing for felony 
punishment and fines; providing affirmative defense 
to prosecution; providing when title to real property 
is not invalid or subject to divestiture; prohibiting 
agricultural land ownership by certain parties; 
providing certain exemptions; requiring divestm ent of 
violating property; requiring the Office of 
Agricultural Intelligence upon discovery of a 
violation to report such violation to the Attorney 
General; providing that the Attorney General may 
issue certain subpoenas; providing that the Attorney 
General upon a certain determination shall commence 
legal actions; providing for judicial foreclosure of 
property; providing certain documents to be recorded 
in the county records office; 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 Intelligence; 
providing authorized duties; provi ding the office 
shall operate under the direction of the Secretary of 
the Oklahoma Department of Agriculture, Food, and   
 
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Forestry; 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 production, 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, 
ranch, or timber products prod uced on the land do not 
exceed One Thousand Dollars ($1,000.00).   
 
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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 terms 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, 
b. a foreign government formed within a country subject 
to International Traffic in Arms Regulations, 22 
C.F.R., Section 126.1,   
 
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c. a party other than an ind ividual or a government, that 
is created or organized under the laws of a foreign 
government within a country subject to Interna tional 
Traffic in Arms Regulations, 22 C.F.R. , Section 126.1, 
d. any party other than an individual 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 subparagraph 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 
f. an agent, trustee, or other fiduciary of a person or 
entity enumerated in subparagraphs a through e of this 
paragraph;   
 
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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 a person's principal dwelling 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 lawful permanent 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%) o r more held 
by: 
(1) a party referred to in subparagraph d of 
paragraph 6 of this section, 
(2) an individual referred to in subparagraph a of 
paragraph 6 of this section,   
 
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(3) a party referred to in subparagraph c of 
paragraph 6 of this section, 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 mor e held 
whenever the parties, individuals, or governments 
referred to in paragraph 6 of this section are acting 
in concert with respect to the interest even though no 
single individual, party, 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 Section 128.1 of Title 60, unless there 
is created a duplication in numbering, reads 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 interest in real property in this 
state.   
 
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2.  A party may not hold real property as an agent, trustee, or 
other fiduciary for a prohibited foreign party o r prohibited 
foreign-party-controlled business in violation of this section. 
B.  A prohibited foreign party or a prohibited fore ign-party-
controlled business entity in violation of this section shall have 
one (1) year to divest of the real property. 
C.  If a prohibited foreign party or a prohibited foreign -party-
controlled business entity does not divest the real 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 in violation of this s ection, the court shall 
order that the real property be sold 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 county clerk's office 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.   
 
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D.  A prohibited foreign party or a prohibited foreign -party-
controlled business entity shall , upon conviction, be guilty of a 
felony punishable by not more than two (2) year s' imprisonment or a 
fine of Thirty Thousand Dollars ($30,000.00), or both. 
E.  It is an affirmative defense to prosecution unde r 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.  Individuals 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 6 0, 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, 
descent, or otherwise any interest in agricultural land in this 
state regardless of whether the prohibited foreign party or a   
 
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prohibited foreign-party-controlled business entity intends to use 
the agricultural land for nonfarming 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 codifi ed 
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 St ates 
during the continuance of his or her residence in the State of 
Oklahoma. 
B.  1.  If a prohibited foreign party or a prohibi ted foreign-
party-controlled business entity is no longer a resident alien under 
subsection A of this section, he or she shall have one (1) year to 
divest of the agricultural land.   
 
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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 an action in district court within the 
jurisdiction of the agricultural land. 
3.  If the ownership of the agricult ural 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 forei gn-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 subsection 
or upon receipt of inform ation 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 
this act has occurred, the Attorney General shall commence an action   
 
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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 promptly record a copy of the 
following in the county clerk's office 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 by: 
1.  Any former owner; or 
2.  Another person holding or owning a former interest in the 
agricultural land.   
 
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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 n ew section of law to be codified 
in the Oklahoma Statutes as Section 128.4 of Title 60, unless there 
is created a duplication in numbering, reads as follows: 
A.  A prohibited foreign party or prohibited foreign -party-
controlled business entity owning agric ultural 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 for not 
more than two (2) years, or a fine of Thirty Thousand Dollars 
($30,000.00), or by both such imprisonment and fine. 
B.  It is an affirmative defense to pr osecution under this 
section that a prohibited foreign party or prohibited foreign -party-
controlled business entity is a residen t alien of the State of 
Oklahoma. 
SECTION 6.     NEW LAW     A new 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: 
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   
 
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the land in complian ce with the requirements of Sections 2, 3, 4, 
and 5 of this act and that no funding 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 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 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 4101 of Title 2, unless there is 
created a duplicatio n in numbering, reads as follows: 
A.  There is created within the Oklahoma Department of 
Agriculture, Food, and Forestry the Off ice of Agricultural 
Intelligence. 
B.  The Office of Agricultural Intelligence is authorized and 
directed to: 
1.  Collect and analyze information concerning the unlawful sale 
or possession of agricultural 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.   
 
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C.  The Office of Agricultural Intelligence shall operate under 
the direction of the Secretary of the Oklahoma Department of 
Agriculture, Food, an d Forestry. 
SECTION 8.     REPEALER     60 O.S. 2021, Sections 121, as 
amended by Section 1, Chapter 327, O.S.L. 2023, 122, 123, 124, 125, 
126, and 127 (60 O.S. Supp. 2024, Section 121), are hereby repealed. 
SECTION 9.  This act shall become effective November 1, 202 5. 
 
60-1-11011 MAH 01/14/25