PREFILED JAN 08 2026
|
REFERENCE TITLE: land ownership; hostile entities; prohibition |
|
State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
|
|
HB 2171 |
|
|
|
Introduced by Representative Diaz
|
AN ACT
amending title 33, chapter 4, article 4, Arizona Revised Statutes, by adding section 33-459; relating to real property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 33, chapter 4, article 4, Arizona Revised Statutes, is amended by adding section 33-459, to read:
33-459. Prohibited real property owners and lessees; hostile entities; disposal of property; county recorder; department of public safety; violation; classification
A. A person may not sell, lease or otherwise convey an interest in real property in this state to a person from or on behalf of any of the following hostile entities:
1. An entity that is owned or directly controlled by the government of China, Iran, North Korea or Russia.
2. An affiliate, subsidiary or holding company of an entity described in paragraph 1 of this subsection.
3. A country with a commercial or defense industrial base of which an entity described in paragraph 1 or 2 is a part.
4. A state, province, region, prefecture, subdivision or municipality of a country described in paragraph 1, 2 or 3 of this subsection.
5. An agency, bureau, committee or department of a country described in paragraph 1.
6. An entity in which any entity described in paragraph 1, 2, 3, 4 or 5 owns a majority interest.
7. An individual that served in the military of China, Iran, North Korea or Russia.
B. A prohibited owner or lessee prescribed by subsection A of this section that owns or leases real property in this state and that:
1. Acquired the interest in the property before the effective date of this section shall sell, donate or otherwise dispose of the interest in the property not later than one year after the effective date of this section.
2. Acquired the interest in the property on or after the effective date of this section shall sell, donate, cancel or otherwise dispose of the interest in the property not later than one year after the date the owner or lessee acquired the interest in the property.
C. For any prohibited owner or lessee prescribed by subsection A of this section that does not dispose of its interest in the real property pursuant to subsection B of this section in a timely manner, the department of administration is deemed the lawful owner of the interest in the real property and shall sell or otherwise convey the interest in the real property at a public auction and deposit the proceeds in the state general fund.
D. If a county recorder has reason to believe that a person violates this section, the county recorder shall notify the department of public safety. The department of public safety shall maintain a list of prohibited owners and lessees that identifies the real property that is owned or leased in violation of this section and shall make that list publicly available.
E. The department of public safety may investigate the person that is identified as a prohibited owner or lessee of real property in this state and if the department of public safety determines that the owner or lessee has violated this section, the department of public safety shall notify the department of administration and refer the matter to the appropriate prosecuting agency. The department of public safety shall provide the county recorder and the county assessor in each county in this state annual notice of prohibited owners and lessees of real property in this state.
F. A person that violates this section by knowingly acquiring an interest in real property in this state is guilty of a class 4 felony.