Changes to Existing Law

26.549.15 26.549.16 101st Legislative Session 60 2026 South Dakota Legislature Senate Bill 60 SENATE COMMERCE AND ENERGY ENGROSSED Introduced by: Senator Crabtree Underscores indicate new language. Overstrikes indicate deleted language. An Act to restrict ownership of certain real property near military installations interests by 1 certain prohibited entities 1 and to provide for enforcement. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That a NEW SECTION be added to a NEW CHAPTER in title 43: 4 Terms used in this chapter mean: 5 (1) "Military installation," any federally or state owned, leased, or operated base, 6 building, camp, post, reservation, or other facility to which active duty or reserve 7 members of the armed forces or civilian employees are assigned pursuant to orders 8 issued by the United States Department of Defense or the South Dakota National 9 Guard; 10 (2) "Prohibited entity," any entity as defined in § 43-2A-1; and 11 (3) "Real property interest," any direct or indirect legal or equitable stake in real 11 12 property as evidenced by a contract for deed, deed, easement, last will and 12 testament, lease, option, 13 purchase agreement, trust, or other instrument; and 13 (3) "Restricted zone," an area within a ten-mile radius, measured in a straight line, instrument. 14 from any point on the boundary of a military installation. 15 Section 2. That a NEW SECTION be added to a NEW CHAPTER in title 43: 16 15 After the expiration of any applicable divestment period provided in section 3 of 17 16 this Act, a prohibited entity, as defined entity may not, during any time in § 43-2A-1, may not: which there exists a military 17 installation in this state: 18 (1) Hold or obtain any real property interest located, in whole or in part, within a in this state; 19 restricted zone; or 20 (2) Directly or indirectly control, finance, or hold a legal or equitable interest in any 21 entity that holds a real property interest in a restricted zone. this state. 22 Section 3. That a NEW SECTION be added to a NEW CHAPTER in title 43: 23 26.549.15 26.549.16 2 60 Underscores indicate new language. Overstrikes indicate deleted language. A During any time in which there exists a military installation in this state, a 1 prohibited entity, as defined in § 43-2A-1, which entity that acquires a real property interest 1 in a restricted zone: this state: 2 (1) Through descent or devise, must dispose of the interest within three years of 3 acquiring the interest; or 4 (2) By any means other than descent or devise, must dispose of the interest within 5 two years of the date the interest was initially acquired in violation of this chapter. 6 Section 4. That a NEW SECTION be added to a NEW CHAPTER in title 43: 7 For The attorney general shall investigate any transfer alleged violation of this chapter. 8 Upon commencing an enforcement action pursuant to section 5 of this Act, the 9 attorney general may, in addition to any authority granted under §§ 15-6-28.2 to 15-6-10 28.4, inclusive, subpoena from any prohibited entity, any: 11 (1) Contract, purchase agreement, or other transaction document related to a real 12 property interest in a restricted zone, a transferee shall 8 execute an affidavit, under penalty of perjury, declaring that, as of the date of the transfer, 9 the transferee's acquisition of the interest does not violate this chapter. The affidavit must 10 be recorded in the office of the register of deeds of the county in which the interest is 11 located. 12 The transferee's failure to execute an affidavit under this section does not: state; 13 (1) Affect the marketability (2) Deed or insurability of the title to the interest; 14 (3) Documentation concerning the financing or 14 (2) Subject ownership of the interest; 15 (4) Documentation identifying any party to a closing agent, real estate broker transaction related to the interest; and 16 (5) Any other documentation or salesperson, information necessary to investigate or title insurance 15 company to civil or criminal liability, unless the person has actual knowledge that 16 the transaction is in substantiate 17 an alleged violation of this chapter. 17 The electronic recording commission shall, by rule promulgated pursuant to 18 chapter 1-26, establish a standard form for the affidavit required by this section. 19 Section 5. That a NEW SECTION be added to a NEW CHAPTER in title 43: 20 The attorney general shall investigate any alleged violation of this chapter. 21 Upon commencing an enforcement action pursuant to section 6 of this Act, the 22 attorney general may, in addition to any authority granted under §§ 15-6-28.2 to 15-6-23 28.4, inclusive, subpoena from any foreign entity, foreign government, foreign person, 24 prohibited entity, or resident, as those terms are defined in § 43-2A-1, any: 25 (1) Contract, purchase agreement, or other transaction document related to a real 26 property interest in a restricted zone; 27 (2) Deed or title to the interest; 28 (3) Documentation concerning the financing or ownership of the interest; 29 (4) Documentation identifying any party to a transaction related to the interest; and 30 (5) Any other documentation or information necessary to investigate or substantiate 31 an alleged violation of this chapter. 32 26.549.15 3 60 Underscores indicate new language. Overstrikes indicate deleted language. Section 6. That a NEW SECTION be added to a NEW CHAPTER in title 43: 1 19 The attorney general shall enforce the provisions of this chapter. Any real property 2 20 interest owned in violation of this chapter must be forfeited to the state or terminated, as 3 21 applicable. 4 22 Upon substantiation of an allegation that a prohibited entity holds an interest in a 5 restricted zone 23 this state in violation of this chapter, the attorney general shall may commence an action, 6 in 24 the circuit court for the county in which the real property is located, for forfeiture or 7 25 termination of the interest. 8 26 The court may not order forfeiture or termination of the interest unless the action 9 27 is brought within three years after evidence of the violation is referred to the attorney 10 28 general. 11 29 If the court finds that the interest is held in violation of this chapter, the court 12 30 must: 13 31 (1) Enter a judgment declaring the prohibited entity's interest void as of the date of 14 32 the judgment; and 15 33 26.549.16 3 60 Underscores indicate new language. Overstrikes indicate deleted language. (2) Order that the interest be forfeited or terminated, as applicable; 16 1 If the court orders forfeiture of the interest, the court must enter a judgment 17 2 directing the attorney general to sell the property and specifying that the sale is for the 18 3 benefit of the person that held the interest immediately before entry of the judgment, 19 4 subject to the distribution of proceeds pursuant to section 7 6 of this Act. 20 5 Upon commencing an action pursuant to this section, the attorney general shall 21 6 cause a notice of lis pendens to be recorded with the register of deeds for the county in 22 7 which the interest is located. 23 8 Section 6. That a NEW SECTION be added to a NEW CHAPTER in title 43: 9 Proceeds from the sale of a real property interest ordered pursuant to section 5 of 10 this Act must be distributed in the following order: 11 (1) Payment of the costs of the sale, including all approved fees and expenses, and 12 any taxes and assessments due; 13 (2) Payment, in an amount approved by the court, to the attorney general for 14 reimbursement of investigation and litigation costs and expenses; 15 (3) Payment to bona fide lienholders, in order of priority, except for any lien remaining 16 against the real property under the terms of the sale; and 17 (4) Payment of any remaining proceeds to the person that held the interest 18 immediately before entry of judgment. 19 Section 7. That a NEW SECTION be added to a NEW CHAPTER in title 43: 24 Proceeds from the sale of a real property interest ordered pursuant to section 6 of 25 this Act must be distributed in the following order: 26 (1) Payment of the costs of the sale, including all approved fees and expenses, and 27 any taxes and assessments due; 28 (2) Payment, in an amount approved by the court, to the attorney general for 29 reimbursement of investigation and litigation costs and expenses; 30 (3) Payment to bona fide lienholders, in order of priority, except for any lien remaining 31 against the real property under the terms of the sale; and 32 26.549.15 4 60 Underscores indicate new language. Overstrikes indicate deleted language. (4) Payment of any remaining proceeds to the person that held the interest 1 immediately before entry of judgment. 2 Nothing in this section creates a cause of action against the state or limits the 3 discretion of the attorney general to decline to bring an action under this chapter. 4 Section 8. That a NEW SECTION be added to a NEW CHAPTER in title 43: 5 20 Except as expressly provided in this chapter, a person that is not a prohibited entity 6 21 does not have any duty to determine or inquire whether another person is a prohibited 7 22 entity or is otherwise subject to this chapter. 8 23 A person that is not a prohibited entity may not be held liable under this chapter 9 24 for failing to determine or inquire whether another person is a prohibited entity. 10 25 Section 8. That a NEW SECTION be added to a NEW CHAPTER in title 43: 26 Nothing in this chapter: 27 (1) Creates a cause of action against the state or limits the discretion of the attorney 28 general to decline to bring an action under this chapter; or 29 (2) Limits any penalty or remedy set forth in chapter 43-2A regarding the ownership 30 or leasing of agricultural land. 31 26.549.16 4 60 Underscores indicate new language. Overstrikes indicate deleted language. Section 9. That a NEW SECTION be added to a NEW CHAPTER in title 43: 11 The attorney general shall promulgate rules, pursuant to chapter 1-26, to identify 12 restricted zones and provide maps or other public notice of the restricted zones. 13 Section 10. That a NEW SECTION be added to a NEW CHAPTER in title 43: 14 1 This chapter does not apply to: 15 2 (1) Any real property interest held by an entity that has received clearance, approval, 3 or a publicly traded company determination of no unresolved national security concerns from the Committee 4 on Foreign Investment in the United States, 16 which was acquired before July including any entity operating in 5 compliance with a mitigation or national security agreement under section 721 of 6 the Defense Production Act of 1950, 50 U.S.C. § 4565 (January 1, 2026; 17 2026); 7 (2) The exchange exchange, expansion, purchase, relocation, or sale of a real property interest 8 approved by the governing body of a 18 county, municipality, or other political 9 subdivision of this state; or 19 10 (3) Any real property interest held by a prohibited entity solely for the purpose of 20 11 securing indebtedness, if the prohibited entity does not take possession of, or 21 12 obtain voting or managerial control over, the real property interest. 22 interest; 13 (4) Stock ownership in a publicly traded entity by a foreign person, as defined in § 43-14 2A-1, if the foreign person does not control or operate the publicly traded entity, 15 provided that de minimis stock ownership is not considered control or operation for 16 purposes of this section; 17 (5) Any real property interest held by an individual who is a lawful permanent resident 18 or citizen of the United States, including a dual citizen; or 19 (6) Any real property interest held by an individual with lawful status, as defined in 20 § 32-12-1.1. 21

26.549.16 26.549.17 101st Legislative Session 60 2026 South Dakota Legislature Senate Bill 60 SENATE COMMERCE AND ENERGY ENGROSSED Introduced by: Senator Crabtree Underscores indicate new language. Overstrikes indicate deleted language. ENROLLED AN ACT ENTITLED An Act to restrict ownership of real property interests by certain prohibited entities 1 and to provide for enforcement. 2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 3 Section 1. That a NEW SECTION be added to a NEW CHAPTER in title 43: 4 Terms used in this chapter mean: 5 (1) "Military installation," any federally or state owned, leased, or operated base, 6 building, camp, post, reservation, or other facility to which active duty or reserve 7 members of the armed forces or civilian employees are assigned pursuant to orders 8 issued by the United States Department of Defense or the South Dakota National 9 Guard; 10 (2) "Prohibited entity," any entity as defined in § 43-2A-1; and 11 (3) "Real property interest," any direct or indirect legal or equitable stake in real 12 property as evidenced by a contract for deed, deed, easement, lease, option, 13 purchase agreement, trust, or other instrument. 14 Section 2. That a NEW SECTION be added to a NEW CHAPTER in title 43: 15 After the expiration of any applicable divestment period provided in section 3 of 16 this Act, a prohibited entity may not, during any time in which there exists a military 17 installation in this state: 18 (1) Hold or obtain any real property interest located, in whole or in part, in this state; 19 or 20 (2) Directly or indirectly control, finance, or hold a legal or equitable interest in any 21 entity that holds a real property interest in this state. 22 Section 3. That a NEW SECTION be added to a NEW CHAPTER in title 43: 23 26.549.16 26.549.17 2 60 Underscores indicate new language. Overstrikes indicate deleted language. SB60 ENROLLED During any time in which there exists a military installation in this state, a 1 prohibited entity that acquires a real property interest in this state: 2 (1) Through descent or devise, must dispose of the interest within three years of 3 acquiring the interest; or 4 (2) By any means other than descent or devise, must dispose of the interest within 5 two years of the date the interest was initially acquired in violation of this chapter. 6 Section 4. That a NEW SECTION be added to a NEW CHAPTER in title 43: 7 The attorney general shall investigate any alleged violation of this chapter. 8 Upon commencing an enforcement action pursuant to section 5 of this Act, the 9 attorney general may, in addition to any authority granted under §§ 15-6-28.2 to 15-6-10 28.4, 15-6-28.4, inclusive, subpoena from any prohibited entity, any: 11 (1) Contract, purchase agreement, or other transaction document related to a real 12 property interest in this state; 13 (2) Deed or title to the interest; 14 (3) Documentation concerning the financing or ownership of the interest; 15 (4) Documentation identifying any party to a transaction related to the interest; and 16 (5) Any other documentation or information necessary to investigate or substantiate 17 an alleged violation of this chapter. 18 Section 5. That a NEW SECTION be added to a NEW CHAPTER in title 43: 19 The attorney general shall enforce the provisions of this chapter. Any real property 20 interest owned in violation of this chapter must be forfeited to the state or terminated, as 21 applicable. 22 Upon substantiation of an allegation that a prohibited entity holds an interest in 23 this state in violation of this chapter, the attorney general may commence an action, in 24 the circuit court for the county in which the real property is located, for forfeiture or 25 termination of the interest. 26 The court may not order forfeiture or termination of the interest unless the action 27 is brought within three years after evidence of the violation is referred to the attorney 28 general. 29 If the court finds that the interest is held in violation of this chapter, the court 30 must: 31 (1) Enter a judgment declaring the prohibited entity's interest void as of the date of 32 the judgment; and 33 26.549.16 26.549.17 3 60 Underscores indicate new language. Overstrikes indicate deleted language. SB60 ENROLLED (2) Order that the interest be forfeited or terminated, as applicable; 1 If the court orders forfeiture of the interest, the court must enter a judgment 2 directing the attorney general to sell the property and specifying that the sale is for the 3 benefit of the person that held the interest immediately before entry of the judgment, 4 subject to the distribution of proceeds pursuant to section 6 of this Act. 5 Upon commencing an action pursuant to this section, the attorney general shall 6 cause a notice of lis pendens to be recorded with the register of deeds for the county in 7 which the interest is located. 8 Section 6. That a NEW SECTION be added to a NEW CHAPTER in title 43: 9 Proceeds from the sale of a real property interest ordered pursuant to section 5 of 10 this Act must be distributed in the following order: 11 (1) Payment of the costs of the sale, including all approved fees and expenses, and 12 any taxes and assessments due; 13 (2) Payment, in an amount approved by the court, to the attorney general for 14 reimbursement of investigation and litigation costs and expenses; 15 (3) Payment to bona fide lienholders, in order of priority, except for any lien remaining 16 against the real property under the terms of the sale; and 17 (4) Payment of any remaining proceeds to the person that held the interest 18 immediately before entry of judgment. 19 Section 7. That a NEW SECTION be added to a NEW CHAPTER in title 43: 20 Except as expressly provided in this chapter, a person that is not a prohibited entity 21 does not have any duty to determine or inquire whether another person is a prohibited 22 entity or is otherwise subject to this chapter. 23 A person that is not a prohibited entity may not be held liable under this chapter 24 for failing to determine or inquire whether another person is a prohibited entity. 25 Section 8. That a NEW SECTION be added to a NEW CHAPTER in title 43: 26 Nothing in this chapter: 27 (1) Creates a cause of action against the state or limits the discretion of the attorney 28 general to decline to bring an action under this chapter; or 29 (2) Limits any penalty or remedy set forth in chapter 43-2A regarding the ownership 30 or leasing of agricultural land. 31 26.549.16 26.549.17 4 60 Underscores indicate new language. Overstrikes indicate deleted language. SB60 ENROLLED Section 9. That a NEW SECTION be added to a NEW CHAPTER in title 43: 1 This chapter does not apply to: 2 (1) Any real property interest held by an entity that has received clearance, approval, 3 or a determination of no unresolved national security concerns from the Committee 4 on Foreign Investment in the United States, including any entity operating in 5 compliance with a mitigation or national security agreement under section 721 of 6 the Defense Production Act of 1950, 50 U.S.C. § 4565 (January 1, 2026); 7 (2) The exchange, expansion, purchase, relocation, or sale of a real property interest 8 approved by the governing body of a county, municipality, or other political 9 subdivision of this state; 10 (3) Any real property interest held by a prohibited entity solely for the purpose of 11 securing indebtedness, if the prohibited entity does not take possession of, or 12 obtain voting or managerial control over, the real property interest; 13 (4) Stock ownership in a publicly traded entity by a foreign person, as defined in § 43-14 2A-1, 43-2A-1, if the foreign person does not control or operate the publicly traded entity, 15 provided that de minimis stock ownership is not considered control or operation for 16 purposes of this section; 17 (5) Any real property interest held by an individual who is a lawful permanent resident 18 or citizen of the United States, including a dual citizen; or 19 (6) Any real property interest held by an individual with lawful status, as defined in 20 § 32-12-1.1. 21 26.549.17 5 60 SB60 ENROLLED An Act to restrict ownership of real property interests by certain prohibited entities and to provide for enforcement. I certify that the attached Act originated in the: Senate as Bill No. 60 Secretary of the Senate President of the Senate Attest: Secretary of the Senate Speaker of the House Attest: Chief Clerk of the House Senate Bill No. 60 File No. ____ Chapter No. ______ Received at this Executive Office this _____ day of _____________, 2026 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2026 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2026 at _________ o'clock __M. Secretary of State By Asst. Secretary of State