landownership; foreign adversary; prohibition, the official text

House Engrossed
Senate Bill

landownership;
foreign adversary; prohibition

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1683

AN
ACT

amending section 33-443, Arizona Revised
Statutes; relating to real property.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it
enacted by the Legislature of the State of Arizona:

Section 1. Section 33-443, Arizona Revised
Statutes, is amended to read:

START_STATUTE33-443. Prohibition against land ownership; foreign adversary nation or
agent; enforcement; violation; classification; definitions

A. Notwithstanding any other law and except as
provided in subsection [F ] k of
this section, a foreign adversary nation or a foreign adversary agent may not,
directly or indirectly, purchase, own, lease, acquire by
grant or devise, obtain a concession or otherwise obtain a current or future substantial
interest in real property in this state. This prohibition includes any transaction that results in the
acquisition of property rights, whether or not the transaction involves a
transfer of title, including:

1. A purchase, lease or concession of
real property by or to a foreign adversary nation or foreign adversary agent.

2. A change in property rights
resulting from a covered real estate transaction described in 31 Code of
Federal Regulations section 802.301 that allows a foreign adversary nation or
foreign adversary agent to do any of the following:

(a) Physically
access the real property.

(b) Exclude
others from physical access to the real property.

(c) Improve or
develop the real property.

(d) Attach
fixed or immovable structures or objects to the real property.

3. The acquisition of any option,
warrant, right of first refusal or future interest, including a remainder or
reversionary interest, that provides a right to acquire real property or the
property rights described in paragraph 2 of this subsection.

4. Any convertible note, bond or
other debt instrument that provides a right to acquire an equity interest or
property rights on conversion or the occurrence of a contingency.

B. A foreign adversary nation or
foreign adversary agent may not install, maintain, have access to the data of
or operate any equipment on any real property in this state that includes
uncrewed or autonomous systems, antennas, communications systems, surveillance
devices or sensors.  This subsection applies WHETHER or not the installation,
maintenance, access or operation is:

1. Permanent or temporary.

2. Physical or embedded within other
structures.

3. Authorized by contract, license,
concession or informal arrangement.

C. This section applies to any
transaction, transfer, agreement or arrangement that is designed or intended to
evade, avoid or circumvent the application of this section, including:

1. The use of any intermediary, shell
company, partnership or trust to obscure the identity of a foreign adversary
nation or foreign adversary agent as the beneficial owner or controlling party.

2. The restructuring of an existing
interest to fall below the substantial interest threshold while maintaining
functional control of or the property rights described in subsection a,
paragraph 2 of this section.

D. Beginning
JANUARY 1, 2027, an entity that is a public service corporation,
telecommunications provider, critical infrastructure owner or government agency
in this state shall notify the attorney general and the corporation commission
if the entity has entered into or suspects a lease, license or colocation
agreement has or may have allowed a foreign adversary nation or foreign
adversary agent to install equipment on the entity's property or
infrastructure.

E. This section
does not apply to any transaction that has received clearance from or that
includes a party that is operating under a mitigation agreement with the
committee on foreign investment in the United States under section 721 of the
defense production act of 1950 (50 United States code section 4565) as
implemented by executive order 11858 and the regulations prescribed under 31
code of federal regulations part 802, except that any transaction in this state
that fails to comply with a committee on foreign investment in the united
states mitigation agreement or a presidential order of divestment implemented
under 31 code of federal regulations part 802 is a violation of this section.

[B.] F. The
attorney general shall enforce this section. The enforcement of this
section may not be based on a person's race or national origin. If
the attorney general reasonably suspects that a violation
of this section occurred, the attorney general:

1. May commence an action in superior court in the
county in which the real property is located.

2. Shall report the matter to the federal bureau of
investigation for suspected espionage activity or to other local, state or
federal law enforcement agencies with the statutory authority to investigate
those cases.

3. Shall report the matter to the committee on
foreign [investments] investment in
the United States (50 United States Code section 4565).

4. May seek an immediate injunction
to cease the operation of equipment and may move for an order of forfeiture and
removal of the prohibited devices at the violator's expense.

g. On the initiation of a committee
on foreign investment in the united states review of a transaction involving
real property in this state, the attorney general may petition the court for an
automatic stay of any property development or equipment installation pending
the federal outcome.

[C.] h. If
pursuant to an action filed under subsection [B ] F, paragraph 1 of this section the superior court finds that
title or a substantial interest in real property was obtained in violation of
subsection A of this section, the court shall:

1. Enter an order:

[1.] (a) Stating the court's findings.

[2.] (b) Divesting the [person's]
interest of the foreign adversary nation or FOREIGN adversary
agent.

[3.] (c) Directing the board of supervisors to sell the
real property in a manner that is consistent with title 42, chapter 18, article
7, except that the board of supervisors shall distribute the remaining proceeds
after paying taxes, interest, penalties, fees and costs in the following order
of priority:

[(a)] (i) To any valid lienholder for the value of the
lienholder's outstanding lien that is attached to the real property.

[(b)] (ii) To the appropriate county treasurer and the
attorney general to reimburse the appropriate board of supervisors and the
attorney general for expenses incurred in [the prosecution of] prosecuting a violation of this section.

[(c)] (iii) To the property owner in an amount equal to the
remaining proceeds of the sale, if any.

2. NOTWITHSTANDING SUBSECTION C OF
THIS SECTION, IF THE SUBSTANTIAL INTEREST IN REAL PROPERTY IS HELD THROUGH A
CERTIFICATE OF PURCHASE, LEASE, RIGHT-OF-WAY OR OTHER INSTRUMENT RELATING TO
LAND OWNED IN TRUST BY THis STATE PURSUANT TO ARTICLE X, Constitution OF
ARIZONA, DECLARE THAT the SUBSTANTIAL INTEREST IS EXTINGUISHED AND SHALL ORDER
THAT INSTRUMENT CANCELED IN ACCORDANCE WITH ITS TERMS, SUBJECT TO THE RIGHTS OF
ANY REGISTERED MORTGAGEE OR OTHER LIENHOLDER PURSUANT TO SECTION 37-255.

[D.] i. A
title insurer, title agent, escrow agent or real estate licensee may not be
held liable for any violation of this section.

[E.] j. A
violation of this section may not be the basis for a title insurance claim for
any title insurance policy issued for real property in
this state.

[F.] k. A
foreign adversary nation or foreign adversary agent may
acquire real property or any interest in real property in this state by devise
or descent, the enforcement of security interests or the collection of debt, if
the foreign adversary nation or foreign adversary agent sells, transfers or
otherwise divests from the real property within one hundred twenty days after acquiring the real property.

[G.] l. It
is unlawful for a person to knowingly make to a law enforcement agency of this
state or a political subdivision of this state a false, fraudulent or unfounded
report or statement regarding an alleged violation of this
section. A violation of this subsection is a class 1 misdemeanor.

m. A foreign adversary agent that
violates subsection B of this section is guilty of a class 5 felony.

[H.] N. For
the purposes of this section:

1. "Antenna" means
communications equipment that transmits or receives electromagnetic radio
frequency signals and that is used in providing wireless services.

2. "Beneficial owner" means
any person or entity that, directly or indirectly through any contract,
arrangement, relationship or otherwise, has or shares voting power or
investment power over the property or the entity holding the property.

3. "Communications system"
means any equipment at a fixed location that enables wireless or wireline
communications between user equipment and a network.

4. "Concession" means a
right to use real property, including ports and airports, for a specific
purpose or for a specific period of time, pursuant to an agreement with a
government entity or a private person.

5. "Contingent interest"
means a financial instrument or contractual right that does not constitute an
equity or property interest but is convertible into, or provides the right to
acquire, an equity or property interest on the occurrence of a contingency or
defined event.

6. "control" means the power,
direct or indirect, whether or not exercised, to determine, direct or decide
important matters affecting the real property, including the sale, lease,
mortgage or development of the real property.

[1.] 7. "Foreign
adversary agent" means any of the following:

(a) An agent acting at the direction of
a foreign adversary nation [involved in espionage].

(b) A state-owned enterprise of a foreign
adversary nation.

(c) An entity that is directed or controlled by a
foreign adversary nation or the proxies of that foreign adversary nation.

(d) A leader of a controlling political party or
government or any administrative subdivision of a foreign adversary nation.

(e) Any business or other entity that is headquartered
or domiciled in a foreign adversary nation and directly or indirectly held or
controlled by a foreign adversary nation.

(f) A foreign person as defined in 31
Code of Federal Regulations section 802.221 when applied to a foreign adversary
nation.

[2.] 8. "Foreign
adversary nation" means a country that is either of the following:

(a) Identified by the United States 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 assessments
of the United States intelligence community issued pursuant to section 108b of
the national security act of 1947 (50 United States Code section 3043b).

(b) Determined by the United States department of
commerce pursuant to 15 Code of Federal Regulations section 791.4.

9. "lease" means a contract
or arrangement, written or oral, for the possession and use of real property
for a specified period of time.

10. "SENSOR" MEANS A
HIGH-SENSITIVITY DEVICE that is DESIGNED TO DETECT, MEASURE OR RECORD PHYSICAL
STIMULI, INCLUDING SEISMIC, THERMAL, ACOUSTIC OR CHEMICAL DATA.

[3.] 11. "Substantial
interest":

(a) Means
an interest of [thirty] fifteen percent or more that is calculated as if
all contingent interests that are held by the foreign adversary nation or
foreign adversary agent have been converted or exercised.

(b) Does not
include any passive ownership interest that is held in an entity if the foreign
adversary nation or foreign adversary agent does not possess by virtue of that
ownership INTEREST or otherwise the power to direct or cause the direction of
the management or policies of the entity with respect to the interest in real
property.

12. "SURVEILLANCE DEVICE"
MEANS A DEVICE OR APPARATUS that CAN BE USED TO INTERCEPT THE CONTENTS OF A
COMMUNICATION OR TO CONDUCT VIDEO OR ELECTRONIC MONITORING.

Sec. 2. Applicability

Section 33-443, Arizona Revised
Statutes, as amended by this act, applies to both:

1. Transactions that are
entered into on or after the effective date of this act.

2. A renewal, extension,
modification or exercise of rights that is related to an existing real property
interest and that occurs on or after the effective date of this act.

(ENACTED WITHOUT THE EMERGENCY)

Sec. 3. Emergency

This act is an emergency measure that
is necessary to preserve the public peace, health or safety and is operative
immediately as provided by law.