Req. No. 11011 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 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 Req. No. 11011 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 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). Req. No. 11011 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 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, Req. No. 11011 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 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; Req. No. 11011 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 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, Req. No. 11011 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 (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. Req. No. 11011 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 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. Req. No. 11011 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 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 Req. No. 11011 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 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. Req. No. 11011 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 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 Req. No. 11011 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 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. Req. No. 11011 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 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 Req. No. 11011 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 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. Req. No. 11011 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 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