surge in marijuana grow farms, including those that either were themselves, or were deeply connected to, foreign enterprises, entities, and individuals, “including Mexican drug cartels and Chinese Nationals.” 24 Many Oklahoma residents and the legislature raised concerns around public safety and the effect of such operations on their communities. Compounding these more local concerns, in 2021, the U.S. enacted the Corporate Transparency Act (CTA) under the Anti-Money Laundering Act of 2020, in response to: 1. The use of shell and front companies
o An alien and foreign countries are prohibited from holding title to land in Oklahoma, except as provided in Article 22, § 1 of the Oklahoma Constitution and 60 O.S. §§ 121-124. o Okla. Const. Article 22, § 2 prohibits aliens from directly or indirectly acquiring title to or own land in the State of Oklahoma. o Foreign corporations are prohibited from acquiring title to Oklahoma land and do not avoid the provisions thereof by obtaining articles of domestication to transact business in the State of Oklahoma. o Withdraws 1974 OK AG 214 – Phew, we thought we were going to have to call in Agents J and K.
1979 OK AG 286
to conceal the identities of “illicit actors” using them to conceal illegal activity and shelter money and assets obtained through illegal means from the U.S. government; 2. The rise of digital currency raises concerns about corporate activity, transparency, and unregulated markets where transactions can be conducted anonymously; 3. The war between Russia and Ukraine revealing numerous complications in economic and political relationships enterprises, oligarchs, and organized crime to avoid sanctions on Russia and profit from the conflict; and, 4. Global cooperation on coordinating as shell and front companies are being utilized by state-owned tax policies to address tax avoidance and evasion using offshore shell and front companies.
So now that we are back on track with the long history of alien ownership restrictions, what happened next? One of the most significant cases relating to alien land ownership was in State ex rel. Cartwright v. Hillcrest Investments, Ltd., 21 which revolved around a Canadian corporation which owned several parcels in Oklahoma and had filed Articles of Domestication 22 in Oklahoma. The Oklahoma Supreme Court held that while alien corporations are clearly subject to land ownership restrictions, by definition in the Oklahoma Constitution Article 22, § 1, the term “person” includes corporations and land ownership restrictions are not applicable to a resident of the state. Therefore, as the company established corporate residency by domesticating in Oklahoma, the company could lawfully keep their land. The Court found that there were no additional statutory restrictions on domesticated foreign corporations. This case then essentially overrules the AG’s Opinion in 1979 OK AG 286. in Oklahoma in 2018, you will find the hottest new issue in alien land ownership is not Romulan Ale or di-lithium crystals, but instead revolves around the permitting and licensing for the legal cultivation, use, and possession of medical marijuana. 23 Many rural landowners in Oklahoma found that there was a huge Current Day Space Wars Now if you hop in your spaceship and land
All of which collectively reinforced Congress’ perceived need for federal beneficial ownership reporting and stoked Oklahoma legislators’ fears of alien influence and ownership of Oklahoma lands. Many in state government saw the CTA as an intrusion 21.) 1981 OK 27. 22.) Domestication refers to the process where a company maintains its existence as a single entity, but it moves a company’s legal registration or incorporation from one state to another. 23.) SQ 788 (2018). 24.) Drummond praises signing of laws to combat illegal marijuana operations, GENTNER DRUMMOND OKLA. ATT’Y GEN. (June 9, 2023), https://www.oag.ok.gov/articles/ drummond-praises-signing-laws-combat-illegalmarijuana- operations.
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N at i onal A ssociation of D i v i s i on O rder A nalys t s
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