 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
foreign entities; land; legislative approval
Purpose
Prohibits land in Arizona from being conveyed to a foreign entity that is hostile to the United States without the Foreign Entity Review Commission's (Commission) approval and requires a grantee's identification to be submitted to the Arizona Department of Real Estate (ADRE). Allows the Attorney General (AG) to bring an action against a person or entity for a knowing violation of the prohibition on conveying land or leasing land in Arizona and outlines civil penalties.
Background
The Arizona State Land Department (ASLD) administers all laws relating to lands owned by, belonging to or controlled by the state. A person over 18 years of age may purchase state land by submitting a verified written application to the ASLD. The ASLD may allow state lands to be sold, if the sale is not prohibited by law, upon receiving an application. The application must include the applicant's name, age, residence and the description of the land to be purchased. Corporations or associations not qualified to transact business in Arizona may not purchase, lease or sublease state lands (A.R.S. §§ 37-102; 37-231; 37-232; 37-233; and 37-240).
ADRE is charged with protecting the public interest through the licensure and regulation of real estate, cemetery and membership camping brokers and salespersons in Arizona. ADRE oversees the business of licensees, land developers and real estate education institutions and monitors the sale of subdivisions, unsubdivided lands, timeshares, condominiums, membership campgrounds and cemeteries (A.R.S. §§ 32-2102 and 32-2199).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Land Conveyance
1. Prohibits the sale, lease or sublease of state lands to a hostile foreign entity without approval from the Commission.
2. Requires a grantor and the grantor's agent to submit a valid form of the grantee's identification to the ADRE.
3. Requires, if the grantee is not a natural person, the grantor and grantor's agent to submit valid identification of the grantee's agent and the grantee's name and principal place of business.
4. Requires the grantor, the grantor's agent and the ADRE to maintain a copy of the grantee's identification, or if the grantee is not a natural person, the identification of the grantee's agent, and the grantee's name and principal place of business.
5. Deems the grantee's identification as valid unless it can be determined on its face that the identification has expired.
6. Allows the AG to bring an action against a person or entity that violates the outlined prohibitions relating to conveying land in Arizona.
7. Requires the civil penalty to be $250,000 or 50 percent of the fair market value of the interest in real property that is the subject of the violation, whichever is greater.
8. Classifies, as a class 1 misdemeanor, a knowing violation of the outlined land prohibitions except:
a) if any portion of the land is located within 25 miles of a military installation or critical infrastructure, the person is guilty of a class 6 felony; or
b) if the person knowingly acted as an agent of a foreign government or received compensation or direction from a foreign government, the person is guilty of a class 6 felony.
Commission
9. Establishes the Commission within the ADRE consisting of:
a) the Commissioner of the ADRE;
b) two persons who are appointed by the Governor;
c) one person who is appointed by the President of the Senate; and
d) one person who is appointed by the Speaker of the House of Representatives.
10. Requires each member of the Commission, except for the Commissioner of ADRE, to serve four year terms.
11. Requires the members of the Commission, at the first meeting, to elect a chairperson from among the membership.
12. Requires the Commission to meet at the call of the chairperson to consider any proposed purchases, leases or subleases of land in Arizona by a possible hostile foreign entity.
13. Allows the Commission, on review of the proposed transaction, to vote to approve or reject the transaction.
14. Deems a proposed transaction as void, if the transaction is rejected.
Miscellaneous
15. Defines foreign entity as a foreign government, state-controlled enterprise of a foreign government or entity acting as an agent for a foreign government or state-controlled enterprise of a foreign government.
16. Defines hostile as a foreign entity that is listed as a threat or a country of concern by the U.S. Director of National Intelligence or the U.S. Department of State.
17. Defines valid identification as:
a) any document that bears the photograph, name and address of the grantee or, if the grantee is not a natural person, the grantee's agent;
b) an Arizona driver license;
c) an Arizona nonoperating identification license;
d) a tribal enrollment card or another form of tribal identification; or
e) a U.S., state or local government-issued identification.
18. Makes technical and conforming changes.
19. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Reinserts the prohibition on a corporation or association not qualified to transact business in Arizona leasing or subleasing state lands.
2. Allows the AG to bring an action against a person or entity that violates the outlined prohibitions relating to land in Arizona.
3. Outlines civil penalties for a violation of the outlined land prohibition.
4. Makes technical and conforming changes.
Amendments Adopted by Committee of the Whole
1. Establishes the Commission within the ADRE to approve the conveyance of land to a hostile foreign entity.
2. Removes the requirement for the Legislature to approve the conveyance of land to a hostile foreign entity.
3. Outlines Commission membership and procedural duties.
4. Makes conforming changes.
Senate Action
FED 1/26/26 DPA 4-3-0
Prepared by Senate Research
February 24, 2026
AN/ci