26.549.17\t101st\r\n\tLegislative Session\t60
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\r\n\t2026\r\n\tSouth Dakota Legislature
\r\n\t\r\n\tSenate\r\n\tBill 60
\r\n\t\r\n\tENROLLED
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\r\n\t\r\n\tAn\r\n\tAct
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\r\n\r\nENTITLED An Act to restrict\r\nownership of real property interests by certain prohibited entities\r\nand to provide for enforcement.
\r\nBe\r\nit enacted by the Legislature of the State of South Dakota:
\r\n\r\nSection 1. That a NEW SECTION\r\nbe added to a NEW CHAPTER in title 43:
\r\n\r\nTerms\r\nused in this chapter mean:
\r\n\r\n(1)\t"Military\r\ninstallation," any federally or state owned, leased, or operated\r\nbase, building, camp, post, reservation, or other facility to which\r\nactive duty or reserve members of the armed forces or civilian\r\nemployees are assigned pursuant to orders issued by the United States\r\nDepartment of Defense or the South Dakota National Guard;
\r\n\r\n(2)\t"Prohibited\r\nentity," any entity as defined in § 43-2A-1;\r\nand
\r\n\r\n(3)\t"Real\r\nproperty interest," any direct or indirect legal or equitable\r\nstake in real property as evidenced by a contract for deed, deed,\r\neasement, lease, option, purchase agreement, trust, or other\r\ninstrument.
\r\n\r\nSection 2. That a NEW SECTION\r\nbe added to a NEW CHAPTER in title 43:
\r\n\r\nAfter\r\nthe expiration of any applicable divestment period provided in\r\nsection 3 of this Act, a prohibited entity may not, during any time\r\nin which there exists a military installation in this state:
\r\n\r\n(1)\tHold\r\nor obtain any real property interest located, in whole or in part, in\r\nthis state; or
\r\n\r\n(2)\tDirectly\r\nor indirectly control, finance, or hold a legal or equitable interest\r\nin any entity that holds a real property interest in this state.
\r\n\r\nSection 3. That a NEW SECTION\r\nbe added to a NEW CHAPTER in title 43:
\r\n\r\nDuring\r\nany time in which there exists a military installation in this state,\r\na prohibited entity that acquires a real property interest in this\r\nstate:
\r\n\r\n(1)\tThrough\r\ndescent or devise, must dispose of the interest within three years of\r\nacquiring the interest; or
\r\n\r\n(2)\tBy\r\nany means other than descent or devise, must dispose of the interest\r\nwithin two years of the date the interest was initially acquired in\r\nviolation of this chapter.
\r\n\r\nSection 4. That a NEW SECTION\r\nbe added to a NEW CHAPTER in title 43:
\r\n\r\nThe\r\nattorney general shall investigate any alleged violation of this\r\nchapter.
\r\n\r\nUpon\r\ncommencing an enforcement action pursuant to section 5 of this Act,\r\nthe attorney general may, in addition to any authority granted under\r\n§§ 15-6-28.2\r\nto 15-6-28.4,\r\ninclusive, subpoena from any prohibited entity, any:
\r\n\r\n(1)\tContract,\r\npurchase agreement, or other transaction document related to a real\r\nproperty interest in this state;
\r\n\r\n(2)\tDeed\r\nor title to the interest;
\r\n\r\n(3)\tDocumentation\r\nconcerning the financing or ownership of the interest;
\r\n\r\n(4)\tDocumentation\r\nidentifying any party to a transaction related to the interest; and
\r\n\r\n(5)\tAny\r\nother documentation or information necessary to investigate or\r\nsubstantiate an alleged violation of this chapter.
\r\n\r\nSection 5. That a NEW SECTION\r\nbe added to a NEW CHAPTER in title 43:
\r\n\r\nThe\r\nattorney general shall enforce the provisions of this chapter. Any\r\nreal property interest owned in violation of this chapter must be\r\nforfeited to the state or terminated, as applicable.
\r\n\r\nUpon\r\nsubstantiation of an allegation that a prohibited entity holds an\r\ninterest in this state in violation of this chapter, the attorney\r\ngeneral may commence an action, in the circuit court for the county\r\nin which the real property is located, for forfeiture or termination\r\nof the interest.
\r\n\r\nThe\r\ncourt may not order\r\nforfeiture or termination of the interest unless the action is\r\nbrought within three years after evidence of the violation is\r\nreferred to the attorney general.
\r\n\r\nIf\r\nthe court finds that the interest is held in violation of this\r\nchapter, the court must:
\r\n\r\n(1)\tEnter\r\na judgment declaring the prohibited entity's interest void as of the\r\ndate of the judgment; and
\r\n\r\n(2)\tOrder\r\nthat the interest be forfeited or terminated, as applicable;
\r\n\r\nIf\r\nthe court orders forfeiture of the interest, the court must enter a\r\njudgment directing the attorney general to sell the property and\r\nspecifying that the sale is for the benefit of the person that held\r\nthe interest immediately before entry of the judgment, subject to the\r\ndistribution of proceeds pursuant to section 6 of this Act.
\r\n\r\nUpon\r\ncommencing an action pursuant to this section, the attorney general\r\nshall cause a notice of lis pendens to be recorded with the register\r\nof deeds for the county in which the interest is located.
\r\n\r\nSection 6. That a NEW SECTION\r\nbe added to a NEW CHAPTER in title 43:
\r\n\r\nProceeds\r\nfrom the sale of a real property interest ordered pursuant to section\r\n5 of this Act must be distributed in the following order:
\r\n\r\n(1)\tPayment\r\nof the costs of the sale, including all approved fees and expenses,\r\nand any taxes and assessments due;
\r\n\r\n(2)\tPayment,\r\nin an amount approved by the court, to the attorney general for\r\nreimbursement of investigation and litigation costs and expenses;
\r\n\r\n(3)\tPayment\r\nto bona fide lienholders, in order of priority, except for any lien\r\nremaining against the real property under the terms of the sale; and
\r\n\r\n(4)\tPayment\r\nof any remaining proceeds to the person that held the interest\r\nimmediately before entry of judgment.
\r\n\r\nSection 7. That a NEW SECTION\r\nbe added to a NEW CHAPTER in title 43:
\r\n\r\nExcept\r\nas expressly provided in this chapter, a person that is not a\r\nprohibited entity does not have any duty to determine or inquire\r\nwhether another person is a prohibited entity or is otherwise subject\r\nto this chapter.
\r\n\r\nA\r\nperson that is not a prohibited entity may not be held liable under\r\nthis chapter for failing to determine or inquire whether another\r\nperson is a prohibited entity.
\r\n\r\nSection 8. That a NEW SECTION\r\nbe added to a NEW CHAPTER in title 43:
\r\n\r\nNothing\r\nin this chapter:
\r\n\r\n(1)\tCreates\r\na cause of action against the state or limits the discretion of the\r\nattorney general to decline to bring an action under this chapter; or
\r\n\r\n(2)\tLimits any penalty or remedy\r\nset forth in chapter 43-2A\r\nregarding the ownership or leasing of agricultural land.
\r\n\r\nSection 9. That a NEW SECTION\r\nbe added to a NEW CHAPTER in title 43:
\r\n\r\nThis\r\nchapter does not apply to:
\r\n\r\n(1)\tAny\r\nreal property interest held by an entity that has received clearance,\r\napproval, or a determination of no unresolved national security\r\nconcerns from the Committee on Foreign Investment in the United\r\nStates, including any entity operating in compliance with a\r\nmitigation or national security agreement under section 721 of the\r\nDefense Production Act of 1950, 50 U.S.C. § 4565 (January\r\n1, 2026);
\r\n\r\n(2)\tThe\r\nexchange, expansion, purchase, relocation, or sale of a real property\r\ninterest approved by the governing body of a county, municipality, or\r\nother political subdivision of this state;
\r\n\r\n(3)\tAny\r\nreal property interest held by a prohibited entity solely for the\r\npurpose of securing indebtedness, if the prohibited entity does not\r\ntake possession of, or obtain voting or managerial control over, the\r\nreal property interest;
\r\n\r\n(4)\tStock\r\nownership in a publicly traded entity by a foreign person, as defined\r\nin § 43-2A-1,\r\nif the foreign person does not control or operate the publicly traded\r\nentity, provided that de minimis stock ownership is not considered\r\ncontrol or operation for purposes of this section;
\r\n\r\n(5)\tAny\r\nreal property interest held by an individual who is a lawful\r\npermanent resident or citizen of the United States, including a dual\r\ncitizen; or
\r\n\r\n(6)\tAny\r\nreal property interest held by an individual with lawful status, as\r\ndefined in § 32-12-1.1.
\r\n\r\nAn Act to restrict ownership of\r\nreal property interests by certain prohibited entities and to provide\r\nfor enforcement.
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\n\r\n\t\t\t \r\n\t\t\tI\r\n\t\t\tcertify that the attached Act originated in the: \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\tSenate\r\n\t\t\tas Bill No. 60 \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t
Secretary\r\n\t\t\tof the Senate \r\n\t\t\t
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President\r\n\t\t\tof the Senate \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\tAttest: \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t
Secretary\r\n\t\t\tof the Senate \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t
Speaker\r\n\t\t\tof the House \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\tAttest: \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t
Chief\r\n\t\t\tClerk of the House \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\r\n\t\t\tFile\r\n\t\t\tNo. ____ \r\n\t\t\tChapter\r\n\t\t\tNo. ______ \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t | \r\n\t\t\r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t
Received\r\n\t\t\tat this Executive Office \r\n\t\t\tthis\r\n\t\t\t_____ day of _____________, \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t2026\r\n\t\t\tat ____________M. \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t
for\r\n\t\t\tthe Governor \r\n\t\t\t
\n\r\n\t\t\t \r\n\t\t\tThe\r\n\t\t\tattached Act is hereby \r\n\t\t\tapproved\r\n\t\t\tthis ________ day of \r\n\t\t\t______________,\r\n\t\t\tA.D., 2026\n\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t
STATE\r\n\t\t\tOF SOUTH DAKOTA, \r\n\t\t\tss. \r\n\t\t\tOffice\r\n\t\t\tof the Secretary of State \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\tFiled\r\n\t\t\t____________, 2026 \r\n\t\t\t\r\n\t\t\tat _________ o'clock __M. \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t
Secretary\r\n\t\t\tof State \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t\t
Asst.\r\n\t\t\tSecretary of State \r\n\t\t\t\n\r\n\t\t\t \r\n\t\t | \r\n\t
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