SB 1109
Initials BSR Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
Senate: FED W/D | MABS DP 4-3-0-0 | 3rd read 17-12-1-0-0
House: LARA DP 6-2-0-1
SB 1109: designated countries; land ownership; prohibition
Sponsor: Senator Shamp, LD 29
House Engrossed
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 in Arizona.
History
Section 108B of the National Security Act of 1947 (50 U.S.C. § 3043b) requires the United
States (U.S.) 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 2022, 2023 and 2024).
Provisions
1. Prohibits foreign principals, from countries identified by the U.S. Director of National
Intelligence as a country that poses a risk to national security, from holding real property
in Arizona. (Sec. 1)
2. Requires the Attorney General (AG) 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 (BOS) to force the sale of the property. (Sec.
1)
4. Stipulates that, when the property is sold, any balance remaining after paying taxes,
interests, penalties fees and costs are to be distributed to:
a) any valid lienholder for the value of their outstanding lien attached to the real
property;
b) the appropriate county treasurer and the AG to reimburse the AG and BOS for
expenses incurred in the prosecution of a violation; and
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1109
Initials BSR Page 2 House Engrossed
c) the property owner in an amount equal to the remaining proceeds of the sale. (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)
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;
e) the foreign principal possesses a current verified U.S. visa that is not only for tourist
travel or for asylum; and
f) the foreign principal sells, transfers or divests from the real property within 3 years
after acquiring the real property. (Sec. 1)
8. States a foreign entity that holds real property in Arizona by the effective date of this
legislation may continue to own or hold such real property. (Sec. 2)
9. Prohibits a foreign entity that holds real property in Arizona by the effective date of this
legislation to hold any additional real property. (Sec. 2)
10. Defines critical infrastructure, designated country, foreign principal, military instillation
and substantial interest. (Sec. 1)
11. Contains a legislative findings clause. (Sec. 3)