The Overview

If you own land in Arizona or do business with foreign-connected entities, a new state law now bars foreign adversary nations and their agents from purchasing, leasing, or otherwise acquiring substantial interests in real property anywhere in the state. Arizona's landownership; foreign adversary; prohibition, SB 1683 became law when Gov. Katie Hobbs (D) signed it June 22. ​

Foreign investors held interests in nearly 40 million acres of U.S. agricultural land in 2021, according to NPR. The U.S. Government Accountability Office has identified gaps in federal oversight of those holdings. Because the bill carried an emergency clause, the law took effect immediately on the governor's signature.

What the Law Does

The law amends Arizona's existing prohibition on foreign adversary land ownership to cover leases, concessions, options, future interests, and convertible debt instruments, not just outright purchases. A "substantial interest" means 15 percent or more, calculated as if all contingent interests have already been converted or exercised.

The law also bars foreign adversary agents from installing, maintaining, or operating uncrewed systems, antennas, communications equipment, surveillance devices, or sensors on any Arizona property, whether permanent or temporary. Violating that equipment ban is a class 5 felony.

The Arizona attorney general enforces the section, may seek injunctions and forfeiture of prohibited equipment, and must report suspected violations to federal and state law enforcement and to the federal Committee on Foreign Investment in the United States. If a court finds a violation, it must order divestiture and a board of supervisors sale of the property.

Legislative Status

Sen. Frank Carroll (R) sponsored the bill. The Senate passed it 18–12 on March 4. The House passed it 38–16 on June 11. The Senate then concurred 21–8 on June 12.

Carroll said in a statement released by Arizona Senate Republicans: "SB 1683 sends a clear message that Arizona's land, critical infrastructure, and sensitive assets are not for sale to foreign adversaries seeking to exploit vulnerabilities or undermine our security."

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