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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
property ownership; communist country; restrictions
Purpose
Urges the U.S. Congress to study and consider enacting legislation to regulate or restrict the ownership of real property in the United States by foreign governments operating under communist or authoritarian systems.
Background
The federal Committee on Foreign Investment in the United States (CFIUS) is charged with conducting investigations of the effects of covered transactions on national security if the transaction would result in the control of any critical infrastructure of or within the United States by any foreign person. If CFIUS determines that the transaction could impair national security, and that such impairment has not been mitigated, CFIUS must take necessary actions in connection with the transaction to protect the national security of the United States. Covered transactions include investments by a foreign person in any unaffiliated U.S. business that owns, operates, manufactures, supplies or services critical infrastructure (50 U.S.C. § 4565).
The U.S. Director of National Intelligence must post an Annual Threat Assessment of the U.S. Intelligence Community that focuses on the most direct and serious threats to the United States during the following year. The 2025 Annual Threat Assessment 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).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Urges the U.S. Congress to study and consider enacting legislation to regulate or restrict the ownership of real property in the United States by foreign governments operating under communist or authoritarian systems, with appropriate consideration for national security, reciprocity and economic integrity.
2. Directs the Secretary of State to transmit copies of the memorial to each member of Congress from Arizona.
House Action
LARA 2/2/26 DP 5-3-0-0
3rd Read 2/26/26 31-22-7
Prepared by Senate Research
March 12, 2026
AN/TR/ci