SB 1683: landownership; foreign adversary; prohibition - Arizona

Senate Engrossed Version (03/04/2026) → Chaptered Version · 5 edits

MODERATE

This bill was finalized as Chapter 240, changing its status from a pending Senate version to an enacted House version approved by the Governor. The substantive policy changes include adding a new date requirement for entities to report foreign equipment installations starting January 1, 2027, and clarifying exemptions for transactions with federal security clearances. Additionally, the definition of 'substantial interest' was expanded to explicitly exclude passive ownership interests where the foreign entity lacks control over management or policy.

Scope change

The bill's scope remains focused on prohibiting foreign adversary nations and agents from owning land or installing surveillance equipment in Arizona, but the applicability of the reporting requirement is now time-bound to begin on January 1, 2027.

TIMELINE

Added a specific effective date of January 1, 2027, for the requirement that public utilities and government agencies notify the Attorney General if they suspect foreign adversaries have installed equipment on their property.

DEFINITION

Expanded the definition of 'substantial interest' to explicitly exclude passive ownership interests where the foreign adversary does not have the power to direct the management or policies of the entity.

Clarified the definition of 'foreign adversary agent' to include individuals acting at the direction of a foreign adversary nation involved in espionage.

REQUIREMENT

Modified the exemption clause to explicitly state that the bill does not apply to transactions that have received clearance from or operate under mitigation agreements with the Committee on Foreign Investment in the United States.

TECHNICAL

Changed the document header from 'Senate Engrossed' to 'House Engrossed' and updated the title from 'SB 1683' to 'Chapter 240' to reflect its enactment.

House Engrossed Version (06/11/2026) → Senate Engrossed Version (03/04/2026) · 4 edits · Jun 12, 2026

MODERATE

The bill was renumbered to reflect its Senate origin and had several substantive changes to its enforcement and definition sections. The most significant change is the removal of a mandatory notification requirement for public utilities and government agencies regarding foreign equipment installations, shifting the process to voluntary reporting. Additionally, the definition of 'foreign adversary agent' was expanded to include individuals supporting designated foreign terrorist organizations, and the definition of 'substantial interest' was slightly adjusted to clarify how ownership percentages are calculated.

Scope change

The bill's scope regarding mandatory reporting was narrowed by removing the requirement for specific entities to notify the attorney general about foreign equipment installations, though the general prohibition against such installations remains in effect.

REQUIREMENT

Removed the mandatory requirement for public service corporations, telecommunications providers, and government agencies to notify the attorney general if they suspect foreign adversary equipment is installed on their property.

DEFINITION

Added a new definition for 'foreign adversary agent' to include individuals who are members of or act in support of designated foreign terrorist organizations.

Adjusted the definition of 'substantial interest' to clarify that the percentage calculation must assume all contingent interests are converted or exercised.

TECHNICAL

Revised the bill title from 'House Engrossed' to 'Senate Engrossed' and renumbered sections to reflect the legislative chamber.

Introduced Version → House Engrossed Version (06/11/2026) · 5 edits · Jun 12, 2026

MODERATE

The bill was reclassified from an Introduced version to a House Engrossed version, indicating it has passed the House of Representatives. Substantive changes include a delayed effective date for notification requirements to January 1, 2027, expanded exemptions for transactions with U.S. security clearances, and stricter definitions for 'foreign adversary agents' and 'substantial interest' thresholds.

Scope change

The bill's scope was narrowed by adding specific exemptions for transactions cleared by the Committee on Foreign Investment in the United States (CFIUS) or operating under specific executive orders, limiting the law's reach to only those transactions that fail to comply with federal mitigation agreements.

TIMELINE

The requirement for public service corporations and critical infrastructure owners to notify the attorney general about foreign equipment installation is delayed until January 1, 2027.

ELIGIBILITY

The bill now explicitly exempts transactions that have received clearance from CFIUS or include parties operating under specific federal mitigation agreements.

DEFINITION

The definition of a 'foreign adversary agent' was expanded to include agents acting at the direction of a foreign nation, not just those directly involved in espionage.

The threshold for a 'substantial interest' was lowered from 35% to 15%, and passive ownership interests that lack control over management policies are now excluded from this calculation.

The definition of a 'foreign adversary agent' was broadened to include individuals who are members of or support designated foreign terrorist organizations.

landownership; foreign adversary; prohibition

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