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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: FED DP 5-2-0-0 | Third Read: 18-12-0-0-0 |
SB 1683: landownership; foreign adversary; prohibition
Sponsor: Senator Carroll, LD 28
Committee on Land, Agriculture & Rural Affairs
Overview
Expands prohibitions against land ownership by foreign adversary nations and foreign adversary nation agents (Agents).
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).
The U.S. Secretary of State has the authority to designate an entity as a foreign terrorist organization if the organization is foreign, engages in terrorist activities and threatens the security of the United States (8 USC 1189).
A foreign entity means any division of a corporation or organization organized under laws of a foreign state if either its principal place of business is outside the United States or its equity securities are primarily traded on one or more foreign exchanges. Any aforementioned entity capable of demonstrating that a majority of the equity interest in the entity is ultimately owned by U.S. nationals is not a foreign entity (31 CFR 802.218).
Provisions
1. Prohibits a foreign adversary nation, or any Agent, from leasing, obtaining a concession or obtain a current or future substantial interest in real property. (Sec. 1)
2. Outlines prohibited transactions for foreign adversary nations and Agents. (Sec. 1)
3. Prohibits a foreign adversary nation or Agent from installing, maintaining or having access to the data of, or operating any equipment on any real property that includes:
a. uncrewed or autonomous systems;
b. antenna;
c. communications systems;
d. surveillance devices; or
e. sensors. (Sec. 1)
4. Outlines the applicability of data prohibitions. (Sec. 1)
5. Specifies that prohibition against land ownership for foreign adversary nations and Agents includes:
a. the use of any intermediary to obscure the identity of a foreign adversary nation or Agent as the beneficial owner or controlling party; and
b. the restructuring of an existing interest to fall below the substantial interest threshold while maintain functional control or property rights. (Sec. 1)
6. Requires that an entity notify the Attorney General and the Arizona Corporation Commission if the entity has entered into or suspects a lease, license or colocation agreement has or may allow a foreign adversary nation or Agent to install equipment on the entity's property or infrastructure if the entity is a:
a. public service corporation;
b. telecommunications provider;
c. critical infrastructure owner; or
d. government agency. (Sec. 1)
7. Stipulates that any transaction that fails to comply with a committee on foreign investment in the United States mitigation agreement or a presidential order of divestment is a violation of this legislation. (Sec. 1)
8. Allows the Attorney General to seek an immediate injunction to cease the operation of equipment and move for an order of forfeiture and removal of prohibited devices at the violator's expense if the Attorney General suspects a violation of this legislation has occurred. (Sec. 1)
9. Allows the Attorney General to petition the court for an automatic stay of any property development or equipment installation pending the federal outcome if a committee on foreign investment in the United States review of a transaction involving real property is initiated. (Sec. 1)
10. Requires the superior court, upon finding a violation, if the substantial interest in real property is held through an instrument relating to land owned in trust by Arizona, declare the substantial interest extinguished and order that instrument canceled in accordance with its terms, subject to the rights of any registered mortgagee or other lienholder. (Sec. 1)
11. Prescribes penalty for the violation of data prohibitions. (Sec. 1)
12. Expands the definition of foreign adversary agent to include;
a. a foreign person as defined in the Code of Federal Regulations when applied to a foreign adversary nation; and
b. an individual who is a member or acts in support of a designated foreign terrorist organization as defined under United States Code. (Sec. 1)
13. Modifies the definition of substantial interest to mean an interest of 15% or more, rather than 30% or more, that is calculated as if all contingent interests that are held by the foreign adversary nation or Agent have been converted or exercised. (Sec. 1)
14. Defines pertinent terms. (Sec. 1)
15. Adds an applicability clause. (Sec. 2)
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19. Initials CW/RS SB 1683
20. 3/18/2026 Page 0 Land, Agriculture & Rural Affairs
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