Arizona 2025 2025 Regular Session

Arizona Senate Bill SB1109 Comm Sub / Analysis

Filed 01/30/2025

                    Assigned to MABS 	FOR COMMITTEE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Seventh Legislature, First Regular Session 
 
FACT SHEET FOR S.B. 1109 
 
designated countries; land ownership; prohibition 
Purpose 
Prohibits a foreign principal from a designated country from purchasing, owning, leasing, 
acquiring by grant or devise or having a substantial interest in real property in Arizona, except as 
specified. 
Background 
Every deed or conveyance of real property must be signed by the grantor and must be duly 
acknowledged before an officer is authorized to take acknowledgments (A.R.S. § 33-401).  
The U.S. Director of National Intelligence must post an Annual Threat Assessment of the 
U.S. Intelligence Community (Annual Threat Assessment) that focuses on the most direct and 
serious threats to the United States during the following year. The 2022, 2023 and 2024 Annual 
Threat Assessments identified China, Russia, Iran and North Korea as countries that pose a risk to 
the national security of the United States (U.S. DNI). 
A public entity may not enter into or renew a contract with a company to acquire or dispose 
of services, supplies, information technology, goods or construction unless the contract includes a 
written certification that the company does not currently, and agrees for the duration of the contract 
that it will not, use: 1) the forced labor of ethnic Uyghurs in the People's Republic of China; 2) any 
goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of 
China; or 3) any contractors, subcontractors or suppliers that use any goods or services produced 
by, the forced labor of ethnic Uyghurs in the People's Republic of China (A.R.S. § 35-394). 
There is no anticipated fiscal impact to the state General Fund associated with this 
legislation. 
Provisions 
1. Prohibits a foreign principal from a designated country from directly or indirectly purchasing, 
owning, acquiring by grant or devise or having a substantial interest in real property in the 
State of Arizona. 
2. Specifies that a substantial interest is an interest of 30 percent or more. 
3. Requires the Attorney General (AG) to commence an action in superior court in the county in 
which the real property is located if the AG reasonably suspects a violation of the prohibition 
has occurred.  FACT SHEET 
S.B. 1109 
Page 2 
 
 
4. Requires the superior court, if a violation of the prohibition is found, to enter an order stating 
the court's findings, divesting the person's interest and directing the country board of 
supervisors (county BOS) to sell the real property. 
5. Instructs the county BOS to distribute the remaining proceeds, after paying taxes, interests, 
penalties, fees and costs in the following order of priority: 
a) to any valid lienholder for the value of the lienholder's outstanding lien that is attached to 
the real property; 
b) to the appropriate county treasurer and the AG to reimburse the AG and the appropriate 
county BOS for expenses incurred in the prosecution of a violation; and 
c) to the property owner in an amount equal to the remaining proceeds of the sale, if any. 
6. Precludes a violation of the prohibition from being used as the basis for a title insurance claim 
for a title insurance policy issued for property in Arizona. 
7. Allows a foreign principal to purchase, own, lease, acquire by grant or devise or have an 
interest in land in the State of Arizona if: 
a) the parcel is residential real property of two acres or less; 
b) the foreign principal is a natural person;  
c) the parcel the foreign principal owns or is purchasing or acquiring an interest in is the 
foreign principal's sole real property interest in the State of Arizona; 
d) the parcel is located 50 miles or more from any military installation, critical infrastructure 
or a known vector route in the State of Arizona; 
e) the parcel is located 25 miles or more from an air force range with a total land area between 
0.5 and 2.5 million acres; and  
f) the foreign principal possesses a current verified U.S. visa that is not limited to tourist-
based travel or official documentation that the U.S. government has granted the foreign 
principal asylum in the United States.  
8. Allows a foreign principal to acquire real property or any interest in real property in the State 
of Arizona if the foreign principal sells, transfers or otherwise divests from the real property 
within three years after acquisition. 
9. Determines that a foreign principal that indirectly or directly owns or holds real property in 
Arizona acquired on or before the general effective date: 
a) may continue to hold or own such real property; and 
b) may not purchase or acquire any additional real property in the State of Arizona. 
10. Precludes a foreign principal from, directly or indirectly, purchasing or acquiring any 
additional real property in the State of Arizona. 
11. Defines a designated country as a country that is identified by the U.S. Director of National 
Intelligence as a country that poses a risk to the national security of the United States in each 
of the three most recent Annual Threat Assessment.  FACT SHEET 
S.B. 1109 
Page 3 
 
 
12. Defines a foreign principal as:  
a) the government or any official of the government from a designated country;  
b) a political party or member of a political party from a designated country;  
c) any person who is domiciled in a designated country and who is 31 years old and not a 
citizen or lawful permanent resident of the United States;  
d) any business or other entity that is domiciled in a designated country;  
e) any business or other entity in which more than the majority of the business's or entity's 
ownership belongs to an entity domiciled in a designated country; and  
f) any business or other entity in which the majority of the board of directors is controlled by 
an entity domiciled in a designated country. 
13. Defines critical infrastructure and military installation. 
14. Contains a statement of legislative findings. 
15. Becomes effective on the general effective date. 
Prepared by Senate Research 
January 30, 2025 
KJA/NRG/ci