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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
constables; report; board of
supervisors
(NOW: land ownership; designated countries; prohibition)
As passed by the Senate, S.B. 1082 required constable appointments to be reported to the county board of supervisors (county BOS).
The House of Representatives adopted a strike-everything amendment that does the following:
Purpose
Bars a foreign adversary nation or agent from having a substantial interest of 30 percent or more in real property in Arizona, outlines requirements for enforcement and prescribes related exceptions. Classifies making a false report of a violation to the prohibition as a class 1 misdemeanor.
Background
The U.S. Director of National Intelligence (U.S. DNI) must post an Annual Threat Assessment of the U.S. Intelligence Community (Threat Assessment) that focuses on the most direct and serious threats to the United States during the following year. The 2022, 2023 and 2024 Threat Assessments identified the People's Republic of China, Russia, Iran and North Korea as countries that pose a risk to the national security of the United States (U.S. DNI).
A class 1 misdemeanor carries a maximum prison sentence of six months and a maximum fine of $2,500 (A.R.S. §§ 13-707 and 13-802).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Prohibition against Landownership
1. Prohibits a foreign adversary nation or agent from directly or indirectly purchasing, owning, acquiring by grant or devise or otherwise obtaining a substantial interest in real property in the State of Arizona.
2. Specifies that a substantial interest is an interest of 30 percent or more.
Enforcement
4. Classifies, as a class 1 misdemeanor, knowingly making a false, fraudulent or unfounded report or statement regarding an alleged violation to a law enforcement agency or a political subdivision of the state.
5. Requires the Attorney General (AG) to enforce the prohibition against landownership.
6. Prohibits the enforcement of the prohibition against landownership from being based on a person's race or national origin.
7. Stipulates that, if the AG reasonably suspects a violation of the prohibition has occurred, the AG:
a) may commence an action in superior court in the county in which the real property is located;
b) must report the suspected espionage activity to the Federal Bureau of Investigation or other local, state or federal law enforcement agencies with the statutory authority to investigate those cases; and
c) must report the matter to the Committee on Foreign Investments in the Unites States.
8. Requires the superior court, if the court finds that title or a substantial interest in real property was obtained in violation of the prohibition, to enter an order:
a) stating the court's findings;
b) divesting the person's interest; and
c) directing the county BOS to sell the real property in a manner consistent with statutory requirements for the sale of land held by the state under tax deed.
9. Instructs the county BOS to distribute the remaining proceeds after paying taxes, interest, penalties, fees and costs in the following order of priority:
a) any valid lienholder for the value of the lienholder's outstanding lien that is attached to the real property;
b) the appropriate county treasurer and the AG to reimburse the appropriate county BOS and the AG for expenses incurred in the prosecution of a violation; and
c) the property owner in an amount equal to the remaining proceeds of the sale, if any.
10. Excludes, from the prohibition against landownership and enforcement requirements, acquisitions that occurred before the general effective date.
11. Immunizes a title insurer, title agent, escrow agent or real estate licensee from being held liable for any violation of the prohibition.
12. Precludes a violation of the prohibition from being used as the basis for a title insurance claim for any title insurance policy issued for property in Arizona.
13. Defines a foreign adversary nation as a country that is either:
a) identified by the U.S. DNI as a country that poses a risk to the national security of the United States in each of the three most recent Threat Assessments; or
b) determined to be a foreign adversary by the U.S. Department of Commerce.
14. Defines a foreign adversary agent as:
a) an agent of a foreign adversary nation involved in espionage;
b) a state-owned enterprise of a foreign adversary nation;
c) an entity that is directed or controlled by a foreign adversary nation or proxies of that nation;
d) a leader of a controlling political party or government or any administrative subdivision of a foreign adversary nation; or
e) any business or other entity that is headquartered or domiciled in a foreign adversary nation and directly or indirectly held or controlled by a foreign adversary nation.
15. Defines a substantial interest as an interest of 30 percent or more.
16. Contains a statement of legislative findings.
17. Becomes effective on the general effective date.
Amendments Adopted by the House of Representatives
ˇ Adopted the strike-everything amendment relating to prohibiting landownership by a foreign adversary nation or agent.
House Action
APPROP 6/17/25 DPA/SE 11-5-1-1
3rd Read 6/24/25 41-15-4
Prepared by Senate Research
June 25, 2025
KJA/NRG/ci