Hobbs Proposes Multi-Nation Land Ban After Vetoing China-Only Bill

After vetoing a bill that would have directly limited Chinese government property purchases in the state, Arizona Governor Katie Hobbs has offered alternative legislation that targets foreign land ownership.

Last week, Hobbs vetoed Senate Bill 1109, which would have made it illegal for Chinese state-owned businesses and the People's Republic of China to purchase real estate in Arizona. Advocates of the law contended that it would protect agricultural resources and military facilities.

Hobbs has since put forth a revised legislation that eliminates the three-year limit and expands its reach beyond China. Any "foreign adversary nation" that the U.S. Director of National Intelligence designates based on assessments of national security risk would be subject to restrictions under the new proposal.

A clause in the original measure that would have allowed Chinese government agencies to buy property as long as they pledged to sell it within three years raised concerns, according to the governor's office. This was described by officials as a major weakness in the proposed limitations.

According to the governor's office, the enlarged measure would also cover "foreign adversary agents" and include nations like China, Russia, North Korea, and Iran.

"If the legislature is serious about protecting Arizonans, I ask them to send me new legislation that will crack down on the governments of China, Russia, North Korea and others, and close the loopholes in their weak bill." Hobbs had posted on her X account. 

Republican politicians have criticized the governor's veto, accusing the governor of jeopardizing Arizona's security stated by former gubernatorial candidate Kari Lake, who lost to Hobbs in 2022.

She criticized Governor Hobbs' handling of the legislation, arguing that the governor missed opportunities to shape the bill during the legislative process. Lake contended that Hobbs could have influenced the bill's content through the standard amendment process that occurs for all legislation, rather than waiting to veto the final version.

Lake characterized Hobbs' approach as lacking leadership and suggested the governor was not adequately prioritizing Arizona's security interests during her time in office.

Warren Petersen, the President of the Senate, has stated that he intends to call a veto override vote, but this would need Democratic backing in the legislature. On May 28, the original bill passed the Arizona Senate with no Democratic votes.

Despite increased worries about the national security implications of foreign land acquisitions, several states are proposing similar laws, reflecting broader national debates over foreign investment limits and property ownership of multiple nations.