ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	Senate: MAPS DP 6-1-0-0 | 3^rd Read 16-12-0-2 House: LARA DP 8-1-0-0

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SB 1403: designated countries; land ownership; prohibition

Sponsor: Senator Shamp, LD 29

Caucus & COW

Overview

Makes it generally unlawful for specified foreign principals to purchase, own, acquire by grant or devise or have any other interest in (hold) real property.

History

Section 108B of the National Security Act of 1947 (50 U.S.C. § 3043b) requires the Director of National Intelligence, in coordination with the heads of intelligence community elements, to submit an Annual Report on Worldwide Threats — also called an Annual Threat Assessment (ATA) — to appropriate congressional committees. ATAs assess worldwide threats to national security and must be submitted by the first Monday in February annually. ATAs are to be presented in unclassified form, but they may include a classified annex to protect intelligence sources and methods. The three most recent ATAs identified China, Russia, Iran and North Korea as countries that pose a risk to the national security of the United States (US DNI Annual Threat Assessment 2021; 2022; and 2023).

Provisions

1. Prohibits foreign principals, from countries identified by the US Director of National Intelligence as a country that poses a risk to the national security, from holding real property in Arizona. (Sec. 1)

2. Requires the Attorney General to commence an action in the superior court of a county where there is a reasonable suspicion that a foreign principal is holding real property contrary to law. (Sec. 1)

3. Directs the court, if it finds a foreign principal to be holding real property contrary to law, to enter an order:

a) stating the court's findings;

b) divesting the person's interest; and

c) directing the county board of supervisors to force the sale of the property. (Sec. 1)

4. Stipulates, when the property is sold, that any balance remaining after paying taxes and fees is to be deposited in the state General Fund. (Sec. 1)

5. Asserts that a title insurer, title agent, escrow agent or real estate licensee cannot be held liable for any violation of this legislation. (Sec. 1)

6. Asserts that a violation of this legislation cannot be the basis for a title insurance claim. (Sec. 1)

7. Permits a foreign principal to hold land in Arizona if all the following apply:

a) the parcel is a residential real property and two acres or less in size;

b) the foreign principal is a natural person;

c) the foreign principal owns no other real property in Arizona;

d) the parcel is located a certain distance away from military installations, critical infrastructure, known vector routes and large air force ranges; and

e) he possesses a current verified U.S. visa that is not only for tourist travel or for asylum. (Sec. 1)

8. Defines critical infrastructure, designated country, foreign principal and military instillation. (Sec. 1)

9. Contains a legislative findings clause. (Sec. 2)

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                        SB 1403

Initials NM    Page 0 Caucus & COW

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