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HB4014 - 572R - I Ver
REFERENCE TITLE:
state land; foreign entities;
prohibition
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HB 4014
Introduced by
Representative
Kupper
AN
ACT
Amending title 37, chapter 1, article 1,
Arizona Revised Statutes, by adding section 37-111; RELATING to state
land.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 37, chapter 1, article 1,
Arizona Revised Statutes, is amended by adding section 37-111, to read:
START_STATUTE
37-111.
Conveyance of state land; foreign entities; prohibition;
violation; classification; civil penalty; exceptions; definitions
A. Notwithstanding any other law, the
department may not convey to a foreign-CONTROLLED entity, including
THROUGH indirect ACQUISITIONS and UNITED states-based PROXIES, any state
land that is located within ten miles of CRITICAL INFRASTRUCTURE unless both of
the following apply:
1. The ATTORNEY general in
CONSULTATION with applicable federal AUTHORITIES, including the committee on
foreign investment in the United States, has reviewed the conveyance.
2. The ATTORNEY general and
applicable federal AUTHORITIES DETERMINE that the conveyance POSES no NATIONAL
SECURITY risk.
b. Each person that SUBMITs an offer
or application for a conveyance of state land that is located within ten miles
of CRITICAL INFRASTRUCTURE shall do either of the following:
1. disclose any foreign AFFILIATION,
INCLUDING any ownership or control by foreign nationals or FOREIGN governments.
2. SUBMIT an a SIGNED AFFIDAVIT
attesting that the person does not have any foreign AFFILIATION.
c. ANy person that makes a FALSE
statement or fails to DISCLOSE a foreign AFFILIATION pursuant to subsection B
of this section is subject to PROSECUTION for perjury as prescribed in section
13-2702.
D. The commissioner shall forward any
offer of conveyance for state land that is located within ten miles of CRITICAL
INFRASTRUCTURE that may involve a foreign-CONTROLLED entity to the
ATTORNEY general for review and INVESTIGATION.� The attorney general shall
review the information and make a DETERMINATION of foreign affiliation or
control within forty-five days after RECEIPT of the INFORMATION from the
commissioner. The attorney general's review shall examine the
following:
1. The OFFEROR'S ties to foreign
GOVERNMENTS.
2. The POTENTIAL impact of the
conveyance on supply chains or CRITICAL INFRASTRUCTURE.
3. The offeror's aLIGNMENT with
federal threat assessments, including support for nonstate actors designated as
international TERRORISM ORGANIZATIONS by the United States department of state.
E. A person that offers or applies
for a CONVEYANCE of state land and that the attorney general determines has a
foreign AFFILIATION may challenge the attorney general's DETERMINATION in
superior court.
F. in ADDITION to any other
applicable PENALTIES, a person that buys or RECEIVES an INTEREST in state land
that is located within ten miles of CRITICAL INFRASTRUCTURE and that has a
FOREIGN AFFILIATION, or purposefully circumvents the disclosure PROVISIONS of
subsection B of this section, is guilty of a class 6 felony and shall pay a
civil penalty of $250,000 per acre of land acquired in VIOLATION of this
section.� The attorney general may INVESTIGATE VIOLATIONS of this section and
WITHIN one hundred eighty days after a conviction shall seek a court order for
the divestment of any affected state land. The attorney general
shall deposit, pursuant to sections 35-146 and 35-147, any proceeds
from divestments in the state land trust.� The attorney general shall deposit,
pursuant to sections 35-146 and 35-147, any civil PENALTIES
collected PURSUANT to this subsection, MINUS ADMINISTRATIVE costs, in the state
general fund.
G. a person that owns an interest in
state land or FORMER state land that is located within ten miles of CRITICAL
INFRASTRUCTURE and that has a FOREIGN AFFILIATION shall register annually with
the department.� A person that OWNS an interest in state land or FORMER state
land that is located within ten miles of CRITICAL INFRASTRUCTURE and that has a
foreign AFFILIATION may retain the state lands without penalty or required
divestment unless the attorney general determines the ownership of the state
land is a threat to NATIONAL SECURITY.�
H. THis section does not apply to the
following:
1. A de MINIMiS interest in which
foreign control is less than one percent.
2. A transaction that is preapproved
by the committee on FOREIGN investment in the United states.
3. An eNTITy that federal law
DESignates as a MAJOR non-nato ally, unless the attorney general
DEtermines that the SPECIFIC TRANSACTION poses a NATIONAL SECURITY risk due to
the ENTITy's ties to a DESIGNATEd terrorist ORGANIZATION or SIMILAR
ORGANIZATION.
i. For the PURPOSES of this section:
1. "critical
infrastructure":
(
a
) means
systems and assets, whether physical or virtual, that are so vital to the
United States that the incapacity or destruction of the systems and assets
would have a debilitating impact on security, national economic security or
national public health or safety, or any combination of these.
(
b)
Includes
FACILITIES or sites DESIGNATED by the governor as vital to national SECURITY,
including SEMICONDUCTOR MANUFACTURING PLANTS, MILITARY INSTALLATIONS, power
grids, TRANSPORTATION hubs and other FACILITIES that produce DEFENSE-related
TECHNOLOGIES.
2. "foreign-controlled
entity" means any entity in which TWENTY-five percent or more of the
ownership interest, voting rights or controlling interest is held by a foreign
national, FOREIGN GOVERNMENT or entity DOMICILED OUTSIDE of the united states.
END_STATUTE
Sec. 2.
Legislative findings
The
legislature finds that:
1. The
critical infrastructure of this state, including semiconductor manufacturing
facilities, are essential to national defense, artificial intelligence and
economic security and must be protected from foreign influence that could
compromise supply chains or enable espionage.
2. This act is necessary to
ensure that state trust land auctions prioritize domestic interest and align
with federal guidelines under the committee on foreign investment in the United
States without discriminating based on national origin.