Arizona bill by Sen. Shamp bars foreign principals from owning large real estate interests

Passed bill authored by State Sen. Janae Shamp seeks to protect Arizona from national security risks by prohibiting foreign principals from designated countries from owning or acquiring significant real estate interests in the state, according to the Arizona State Senate.

It passed both chambers as of May 28, clearing the House by a vote of 41-17 and the Senate by a vote of 17-12.

The bill, introduced as SB1109 on Jan. 14, during the first regular session of the 57th Legislature, was formally listed with the short title: ‘designated countries; land ownership; prohibition’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill amends Arizona law to prohibit foreign principals from designated countries, identified as posing U.S. national security risks, from owning or acquiring substantial interests in real property in the state, directly or indirectly. Exceptions are made for individual foreign principals buying small residential properties with certain geographical restrictions if they hold the proper visa or asylum documentation. Violations will be prosecuted by the attorney general, with court-ordered divestment and sale of offending properties. Title insurance entities are exempt from liability, and violations will not serve as a basis for title claims. Existing property ownership by such foreign principals is allowed to continue, but no additional acquisitions are permitted following the bill’s enactment. The bill aims to protect Arizona from national security threats, particularly concerning the potential influence of the Chinese Communist Party.

In the House, eight Democrats and 33 Republicans voted in favor while 17 Democrats opposed it.

Meanwhile, in the Senate, 17 Republicans voted in favor while 12 Democrats voted against it.

Shamp introduced the bill in the Arizona Senate on Jan. 14 during the first regular session of the 57th Legislature.

The bill was co-sponsored by Hildy Angius (Republican-30th District), and Frank Carroll (Republican-28th District), and David Gowan (Republican-19th District), along with nine others.

Shamp graduated from Arizona State University in 2002 with a BS and again in 2012 from Grand Canyon University with a BS.

Shamp, a Republican, was elected to the Arizona State Senate in 2023 to represent the state’s 29th Senate District, replacing previous state senator Martin Quezada.

The bill was vetoed by Gov. Katie Hobbs on June 2.

In Arizona, the legislative process begins when a bill is introduced in either the House of Representatives or the Senate. It is then assigned to one or more committees for discussion and possible amendment. If approved by committee, the bill proceeds to floor debate and voting in both chambers. If both chambers pass the bill, it is sent to the governor, who may sign it into law, veto it, or allow it to become law without a signature. The Arizona Legislature convenes annually in regular session starting the second Monday in January. Lawmakers introduce hundreds of bills each session, though only a portion make it into law. You can learn more about the legislative process on the Arizona State Legislature website.