Official Summary Text
SB1683 - 572R - Senate Fact Sheet
Assigned to
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PASSED BY HOUSE
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
S.B. 1683
landownership;
foreign adversary; prohibition
Purpose
An emergency
measure that expands the prohibition on a foreign adversary nation or a foreign
adversary agent from directly or indirectly purchasing, owning, acquiring or
otherwise obtaining a substantial interest in real property in Arizona to
include leasing, obtaining a concession or otherwise obtaining a current or
future substantial interest.
Background
Laws 2025, Chapter
253
prohibits a foreign adversary nation or agent from directly or
indirectly purchasing, owning, acquiring or otherwise obtaining a substantial
interest of 30 percent or more in real property in Arizona. A foreign adversary
nation or agent may acquire real property or any interest in real property
acquired by devise or descent, the enforcement of security interests or the
collection of debt only if the nation or agent sells, transfers or otherwise
divests from the real property within 120 days after acquisition. The Attorney
General (AG) must enforce the prohibition and may not base the enforcement on a
person's race or national origin. If the AG reasonably suspects a violation of
the prohibition has occurred, the AG: 1) may commence an action in the superior
court in the county in which the real property is located; and 2) must report
the matter to the Committee on Foreign Investments in the United States (CFIUS)
and to the Federal Bureau of Investigation for suspected espionage activity or
other local, state and federal law enforcement agencies with the statutory
authority to investigate. If the superior court finds that title or a
substantial interest in real property was obtained in violation of the
prohibition, the court must enter an order stating the court's findings,
divesting the person's interest and directing the county board of supervisors
to sell the property.
A title insurer,
title or escrow agent or real estate licensee may not be held liable for a
violation of the prohibition and prescribed enforcement requirements. A
violation of the prohibition and prescribed enforcement requirements may not be
used as the basis for a title insurance claim for any title insurance policy
issued for property in Arizona. A foreign adversary nation or agent may only
acquire real property or any interest in real property by devise or descent,
enforcement of security interests or collection of debt if the foreign
adversary or agent, within 120 days of acquiring the real property, sells,
transfers or otherwise divests from the real property. Knowingly making a
false, fraudulent or unfounded report or statement regarding an alleged
violation of a foreign adversary or agent obtaining a substantial interest in
real property to a law enforcement agency or political subdivision is
classified as a class 1 misdemeanor.
A
foreign adversary agent
means: 1) an agent of a foreign
adversary nation involved in espionage; 2) a state-owned enterprise of a
foreign adversary nation; 3) an entity that is directed or controlled by a
foreign adversary nation or the proxies of that foreign adversary nation; 4) a leader
of a controlling political party or government or any administrative
subdivision of a foreign adversary nation; or 5) 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.
There is no anticipated fiscal impact
to the state General Fund associated with this legislation.
Provisions
1.
Prohibits
a foreign adversary nation or a foreign adversary agent from directly or
indirectly leasing or obtaining a concession for a current or future
substantial interest in real property in Arizona.
2.
Redefines
substantial interest
to mean a 15 percent interest or more and that is
calculated as if all contingent interests that are held by the foreign
adversary nation or agent have been converted or exercised, rather than only 30
percent.
3.
Specifies
that
substantial interest
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.
4.
Prohibits
any transaction that results in the acquisition of property rights, whether or
not the transaction involves a transfer of title, including:
a)
a
purchase, lease or concession of real property by or to a foreign adversary
nation or foreign adversary agent;
b)
a
change in property rights resulting from a covered real estate transaction that
allows a foreign adversary nation or agent to:
i.
physically access the real property;
ii.
exclude
others from physical access to the real property;
iii.
improve or
develop the real property; or
iv.
attach fixed or
immovable structures or objects to the real property;
c)
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; or
d)
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.
5.
Prohibits
a foreign adversary nation or agent from installing, maintaining or having
access to the data of, or operating any equipment on, any real property in
Arizona that includes uncrewed or autonomous systems, antennas, communications
systems, surveillance devices or sensors, whether or not the installation,
maintenance, access or operation is:
a)
permanent
or temporary;
b)
physical
or embedded within other structures; or
c)
authorized
by contract, license, concession or informal arrangement.
6.
Classifies,
as a class 5 felony, a violation of the prohibition on a foreign adversary
nation or agent installing, maintaining or having access to the data of, or
operating any equipment on, any real property in Arizona.
7.
Applies
the prescribed prohibition to any transaction, transfer, agreement or
arrangement that is designed or intended to evade, avoid or circumvent that
application, including;
a)
the
use of any intermediary, shell company, partnership or trust to obscure the
identity of a foreign adversary nation or agent as the beneficial owner or
controlling party; or
b)
the
restructuring of an existing interest to fall below the substantial interest
threshold while maintaining functional control of the property rights.
8.
Requires, beginning January 1, 2027, an entity that is a public service
corporation, telecommunications provider, critical infrastructure owner or
government agency in Arizona to notify the AG and the Arizona 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
agent to install equipment on the entity's property or infrastructure.
9.
Specifies that the prescribed prohibition does not apply to any
transaction that has received clearance from or that includes a party that is
operating under a mitigation agreement with CFIUS pursuant to federal
regulations.
10.
Deems that
any transaction that fails to comply with a CFIUS mitigation agreement or a
presidential order of divestment is a violation of the prescribed prohibition.
11.
Adds, to the AG's authority
to enforce the prescribed prohibition, the ability for the AG to:
a)
seek an immediate injunction to cease the operation of equipment and
move for an order of forfeiture and removal of the prohibited devices at the
violators expense; and
b)
on
the initiation of a CFIUS review of a transaction involving real property in
Arizona, to petition the court for an automatic stay of any property
development or equipment installation pending the federal outcome.
12.
Requires,
if a superior court finds that a title or substantial interest is in violation
of the prescribed prohibitions, the court order to divest the interest of the
foreign adversary nation or agent, rather than the person's interest.
13.
Requires,
if a superior court finds that a title or substantial interest is in violation
of the prescribed prohibitions and 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 the state, the court order to
declare that the substantial interest is extinguished and order that instrument
canceled in accordance with its terms, subject to the rights of any registered
mortgagee or other lienholder.
14.
Applies the outlined
prohibitions to:
a)
transactions
that are entered into on or after the effective date; and
b)
a
renewal, extension, modification or exercise of rights that is related to an
existing real property interest that occurs on or after the effective date.
15.
Modifies
the definition of
foreign adversary agent
by adding a foreign person as
defined by the U.S. Code of Federal Regulation when applied to a foreign
adversary nation.
16.
Defines
antenna
as communications equipment that transmits or receives electromagnetic
radio frequency signals and that is used in providing wireless services.
17.
Defines
beneficial
owner
as 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.
18.
Defines
communications
system
as any equipment at a fixed location that enables wireless or
wireline communications between user equipment and a network.
19.
Defines
concession
as 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.
20.
Defines
contingent
interest
as 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.
21.
Defines
control
as 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.
22.
Defines
lease
as a contract or arrangement, written or oral, for the possession and use of
real property for a specified period of time.
23.
Defines
sensor
as a high-sensitivity device that is designed to detect, measure or record
physical stimuli, including seismic, thermal, acoustic or chemical data.
24.
Defines
surveillance
device
as a device or apparatus that can be used to intercept the contents
of a communication or to conduct video or electronic monitoring.
25.
Makes
technical and conforming changes.
26.
Becomes
effective on signature of the Governor, if the emergency clause is enacted.
Amendments Adopted by
Committee of the Whole
�
Redefines
substantial interest
.
Amendments Adopted by the
House of Representatives
1.
Adds an emergency clause.
2.
Delays, until January 1, 2027, the requirement that an outlined entity
must notify the AG and Arizona Corporation Commission if the entity has entered
into or suspects an agreement that allows a foreign adversary nation or agent to
install equipment on the entity's property.
3.
Specifies that the prescribed prohibition does not apply to any
transaction that has received clearance from or that includes a party that is
operating under a mitigation agreement with CFIUS pursuant to federal
regulations.
4.
Modifies the definitions of
foreign adversary agent
and
substantial
interest
.
Senate Action
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House
Action
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Prepared by Senate Research
June 11, 2026
AN/ci
Current Bill Text
Read the full stored bill text
SB1683 - 572R - H Ver
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_STATUTE
33-443.
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.
END_STATUTE
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.