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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
Senate: FED W/D | MABS DP 4-3-0-0 | 3rd read 17-12-1-0-0
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SB 1109: 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 in Arizona.
History
Section 108B of the National Security Act of 1947 (50 U.S.C. § 3043b) requires the United States (U.S.) 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 2022, 2023 and 2024).
Provisions
1. Prohibits foreign principals, from countries identified by the U.S. Director of National Intelligence as a country that poses a risk to national security, from holding real property in Arizona. (Sec. 1)
2. Requires the Attorney General (AG) 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 (BOS) to force the sale of the property. (Sec. 1)
4. Stipulates that, when the property is sold, any balance remaining after paying taxes, interests, penalties fees and costs are to be distributed to:
a) any valid lienholder for the value of their outstanding lien attached to the real property;
b) the appropriate county treasurer and the AG to reimburse the AG and BOS for expenses incurred in the prosecution of a violation; and
c) the property owner in an amount equal to the remaining proceeds of the sale. (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;
e) the foreign principal possesses a current verified U.S. visa that is not only for tourist travel or for asylum; and
f) the foreign principal sells, transfers or divests from the real property within 3 years after acquiring the real property. (Sec. 1)
8. States a foreign entity that holds real property in Arizona by the effective date of this legislation may continue to own or hold such real property. (Sec. 2)
9. Prohibits a foreign entity that holds real property in Arizona by the effective date of this legislation to hold any additional real property. (Sec. 2)
10. Defines critical infrastructure, designated country, foreign principal, military instillation and substantial interest. (Sec. 1)
11. Contains a legislative findings clause. (Sec. 3)
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15. SB 1109
16. Initials BSR Page 0 Caucus & COW
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