SB 1403
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
Senate: MAPS DP 6-1-0-0 | 3
rd
Read 16-12-0-2
House: LARA DP 8-1-0-0
SB 1403: designated countries; land ownership; prohibition
Sponsor: Senator Shamp, LD 29
Caucus & COW
Overview
Makes it generally unlawful for specified foreign principals to purchase, own, acquire by grant
or devise or have any other interest in (hold) real property.
History
Section 108B of the National Security Act of 1947 (50 U.S.C. § 3043b) requires the Director
of National Intelligence, 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 to be presented in unclassified form, but they may include a classified annex to
protect intelligence sources and methods. The three most recent ATAs identified China,
Russia, Iran and North Korea as countries that pose a risk to the national security of the
United States (US DNI Annual Threat Assessment 2021; 2022; and 2023).
Provisions
1. Prohibits foreign principals, from countries identified by the US Director of National
Intelligence as a country that poses a risk to the national security, from holding real
property in Arizona. (Sec. 1)
2. Requires the Attorney General to commence an action in the superior court of a county
where there is a reasonable suspicion that a foreign principal is holding real property
contrary to law. (Sec. 1)
3. Directs the court, if it finds a foreign principal to be holding real property contrary to law,
to enter an order:
a) stating the court's findings;
b) divesting the person's interest; and
c) directing the county board of supervisors to force the sale of the property. (Sec. 1)
4. Stipulates, when the property is sold, that any balance remaining after paying taxes and
fees is to be deposited in the state General Fund. (Sec. 1)
5. Asserts that a title insurer, title agent, escrow agent or real estate licensee cannot be held
liable for any violation of this legislation. (Sec. 1)
6. Asserts that a violation of this legislation cannot be the basis for a title insurance claim.
(Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1403
Initials NM Page 2 Caucus & COW
7. Permits a foreign principal to hold land in Arizona if all the following apply:
a) the parcel is a residential real property and two acres or less in size;
b) the foreign principal is a natural person;
c) the foreign principal owns no other real property in Arizona;
d) the parcel is located a certain distance away from military installations, critical
infrastructure, known vector routes and large air force ranges; and
e) he possesses a current verified U.S. visa that is not only for tourist travel or for
asylum. (Sec. 1)
8. Defines critical infrastructure, designated country, foreign principal and military
instillation. (Sec. 1)
9. Contains a legislative findings clause. (Sec. 2)