Bill > SB60

This bill establishes new rules for certain entities, referred to as "prohibited entities," regarding their ownership of "real property interests," which means any direct or indirect legal or equitable stake in land, such as through a contract for deed, deed, easement, lease, or trust. Specifically, after any applicable divestment period, a prohibited entity cannot hold or acquire any real property interest in South Dakota if there is a "military installation" (a federally or state-owned facility for active duty or reserve members of the armed forces or civilian employees) in the state, nor can they control or finance another entity that holds such an interest. If a prohibited entity acquires a real property interest through inheritance or a will, they must sell it within three years; otherwise, they must sell it within two years of acquiring it in violation of these rules. The Attorney General is empowered to investigate alleged violations, subpoena relevant documents, and initiate legal action to forfeit or terminate any real property interest held in violation of the chapter, with proceeds from any sale distributed to cover sale costs, the Attorney General's expenses, lienholders, and finally, the previous owner. The bill clarifies that individuals who are not prohibited entities are not responsible for determining if others are prohibited entities, and it outlines several exceptions, including for entities cleared by the Committee on Foreign Investment in the United States, property exchanges approved by local governments, interests held solely to secure debt without taking possession or control, de minimis stock ownership in publicly traded companies by foreign persons, and interests held by lawful permanent residents, citizens, or individuals with lawful status.

Business and Industry, Military Affairs and Security

https://sdlegislature.gov/#/Session/Bill/26848