Assigned to GOV                                                                                                AS PASSED BY COMMITTEE

ARIZONA STATE SENATE

Fifty-Sixth Legislature, First Regular Session

AMENDED

FACT SHEET FOR S.B. 1115

land sales; foreign entities; prohibition

Purpose

Prohibits the sale of state lands to a foreign entity and defines foreign entity as a foreign government or a state-controlled enterprise of a foreign government.

Background

The State Land Department may allow state lands to be sold, if the sale is not prohibited by law, upon receiving an application or on the commissioner's initiative (A.R.S. § 37-233). A person over 18 years of age may purchase any of the state lands by submitting a verified written application to the State Land Department. The application must include the applicant's: 1) name; 2) age;
3) residence; and 4) the description of the land to be purchased (A.R.S. §§ 37-231 and 37-232). Corporations or associations not qualified to transact business in Arizona may not purchase, lease or sublease state lands (A.R.S. § 37-240).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Prohibits the sale of state lands to a foreign entity.

2. Defines foreign entity as:

a) a company or other entity that is:

i. headquartered in China, Cuba, Iran, North Korea, Russia, Syria or Venezuela;

ii. directly or indirectly held or controlled by the government of China, Cuba, Iran, North Korea, Russia, Syria or Venezuela;

iii. owned by a majority of stock or other ownership interest of which is held or controlled by individuals who are citizens of China, Cuba, Iran, North Korea, Russia, Syria, Venezuela;

b) a company or entity that is owned by or the majority of stock or other ownership which is held or controlled by a company or entity that is headquartered or indirectly or directly controlled by the list of prescribed countries; or

c) an individual who is a citizen of China, Cuba, Iran, North Korea, Russia, Syria or Venezuela. 

3. Specifies that a foreign entity does not include the U. S. government or its states, territories or possessions.

4. Removes the prohibition of leases and subleases of state lands to corporations or associations not qualified to transact business in Arizona.

5. Makes technical and conforming changes.

6. Becomes effective on the general effective date.

Amendments Adopted by Committee

· Expands the definition of foreign entity.

Senate Action

GOV               2/1/23        DPA          5-3-0

Prepared by Senate Research

February 7, 2023

AN/slp