Arizona Governor Vetoes Bill Restricting Chinese Property Purchases

A Republican-sponsored bill that would have made it illegal for China to buy real estate in Arizona was turned down by Governor Katie Hobbs.

Despite the importance of safeguarding infrastructure, Hobbs said in her veto statement that the law was "ineffective at counter-espionage and does not directly protect our military assets." 

She also noted that the bill "lacks clear implementation criteria and opens the door to arbitrary enforcement."

The bill, Senate Bill 1109, was introduced by Senate Majority Leader Janae Shamp (R-Surprise), who criticized Hobbs' decision.

In support of her claim that the governor jeopardized state and national security, Shamp cited a recent Chinese attempt to lease land close to Glendale's Luke Air Force Base, a key training ground for American and allied F-35 stealth fighter pilots.

In a statement released on June 3, Shamp described Hobbs' actions as "politically motivated" vetoes of Republican public safety legislation, which she said violated her oath of office. The bill, according to Shamp, is intended to keep enemies from entering military facilities and vital infrastructure.

The Treasury Department's Committee on Foreign Investment in the United States (CFIUS) already oversees foreign real estate purchases close to military installations.

In response to worries about Chinese acquisitions, the Biden Administration broadened these regulations in late 2024, giving CFIUS the authority to prevent transactions close to several bases across the country.

This includes Marine Corps Air Station Yuma, Yuma Proving Grounds, Fort Huachuca in Sierra Vista, Luke Air Force Base, Davis-Monthan Air Force Base in Tucson, and Camp Navajo in Bellemont in Arizona.

President Trump proposed more limits on Chinese investment in vital industries like technology, infrastructure, healthcare, agriculture, and energy, as well as in farmland and real estate close to sensitive facilities, to the CFIUS in February.

Despite existing federal protections, Shamp maintained that state legislation was needed to address potential gaps in federal restrictions.

The original Senate version of the bill targeted government entities, officials, and businesses from China, Russia, North Korea, and Iran, prohibiting them from purchasing land or other property.

The general scope of the bill alarmed Representative Alexander Kolodin (R-Scottsdale), who called it potentially "pernicious" since it may result in property seizure without adequate grounds. He pointed out that if the People's Republic of China was mentioned on property titles, the measure would expressly forbid them from owning or acquiring land in Arizona.

Shamp and other Senate Republicans insisted that the law did not specifically target Chinese citizens, claiming that its goal was to prevent opposing parties from acquiring land and spying on national security installations.