ARIZONA HOUSE OF REPRESENTATIVES 57th Legislature, 2nd Regular Session Majority Research Staff
	House: LARA DP 5-3-0-0

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HB 2171: land ownership; hostile entities; prohibition

Sponsor: Representative Diaz, LD 19

Caucus & COW

Overview

Prohibits a person from selling, leasing or conveying an interest in real property to a person from or acting on behalf of designated hostile entities and prescribes mechanisms for regulation and enforcement.

History

Section 108B of the National Security Act of 1947 requires the U.S. Director of National Intelligence (DNI), in coordination with the heads of intelligence community elements, to submit an Annual Report on Worldwide Threats, also called an annual threat assessment (ATA), to appropriate congressional committees. ATAs assess worldwide threats to national security and must be submitted by the first Monday in February annually. ATAs are presented in unclassified form, but they may include a classified annex to protect intelligence sources and methods. The most recent ATAs identified China, Russia, Iran and North Korea as countries that pose a risk to the national security of the United States (50 U.S.C. § 3043b)(U.S. DNI ATA 2022, 2023, 2024, 2025).

Provisions

1. Prohibits a person in Arizona from selling, leasing or conveying an interest in real property to a person from or acting on behalf of:

a. an entity owned or directly controlled by China, Iran, North Korea or Russia;

b. an affiliate, subsidiary or holding company of the listed countries;

c. a country with a commercial or defense industrial base of which the listed entities are a part;

d. a state, province, region, prefecture, subdivision or municipality of any aforementioned parties;

e. an agency, bureau, committee or department of any aforementioned parties that owns a majority interest;

f. an entity in which any aforementioned entities own a majority interest; and

g. an individual that served in the military of the listed countries. (Sec. 1)

2. Mandates that a prohibited owner or lessee that acquired the interest in the property;   

a. prior to the effective date must dispose of the interest at least one year after the effective date; or

b. on or after the effective date must dispose of the interest at least one year after the date it was acquired. (Sec. 1)

3. Designates the Arizona Department of Administration (ADOA) as the lawful owner of any interest in real property that a prohibited owner or lessee fails to dispose of in the prescribed time period. (Sec. 1)

4. Requires ADOA sell or otherwise dispose of seized property at public auction and deposit proceeds in the state General Fund. (Sec. 1)

5. Directs the county recorder, should they have reason to believe a violation has occurred, notify the Department of Public Safety (DPS). (Sec. 1)

6. Directs DPS to:

a. maintain a publicly available list of prohibited owners and lessees that identifies the real property owned or leased;

b. notify ADOA of any violations of this section and refer the matter to the appropriate prosecuting agency; and

c. annually notify the county recorder and the county assessor in all 15 counties of prohibited owners and lessees of real property. (Sec. 1)

7. Allows DPS to investigate persons identified as prohibited owners or lessees. (Sec. 1)

8. Specifies a person that knowingly violates this section is guilty of a class 4 felony. (Sec. 1)

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12. Initials CW/RS                HB 2171

13. 2/2/2026    Page 0 Caucus & COW

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