Arizona Real Estate Remains Accessible to Chinese Government Despite Governor’s Veto

Governor Katie Hobbs has vetoed a Republican-backed bill aimed at banning property purchases by the Chinese government in Arizona. The veto comes amid debates concerning national security and military asset protection.

In her veto message, Hobbs emphasized that while safeguarding infrastructure is vital, the proposed legislation was “ineffective at counter-espionage” and failed to directly protect military assets. She argued that it lacked clear enforcement criteria, which could result in arbitrary application.

Senate Bill 1109, sponsored by Senate Majority Leader Janae Shamp, received significant attention after Hobbs’ decision. Shamp criticized the veto, claiming it endangered both state and national security, particularly citing a recent attempt by China to lease property near Luke Air Force Base in Glendale, a critical training area for F-35 pilots.

Under current U.S. rules, foreign land purchases near military bases are already scrutinized by the Committee on Foreign Investment in the United States (CFIUS). This agency can block transactions near numerous bases, including those in Arizona such as Luke, Davis-Monthan, and Fort Huachuca.

The Biden Administration has recently enhanced these regulations to further restrict foreign investment, especially from China. During his presidency, Donald Trump also proposed additional limitations on foreign land purchases near sensitive facilities.

Despite these measures, Shamp argued that her legislation was necessary to close existing loopholes in federal regulations. Originally, the bill had a broader scope, targeting countries like Russia, North Korea, and Iran, but was amended to focus solely on China after concerns about its sweeping nature.

Opposition within the House came from Rep. Alexander Kolodin, who addressed the legislative concerns regarding property seizure and potential violations of the Arizona Constitution. He successfully pushed for a more refined focus on the Chinese government in the final version.

The veto marks another addition to Hobbs’ growing list of rejected legislation, which now stands at 143 for 2023. Political analysts note the discontent among some legislators, as Kolodin expressed confusion over Hobbs’ reasoning for vetoing what appeared to be a straightforward measure.

The recent debates over property regulations reflect broader national concerns about foreign ownership of U.S. farmland, which has gained attention over the past decade. More than 22 states have enacted various forms of legislation addressing these issues.

Supporters of the bill, including Shamp, contend that such regulations are essential for protecting U.S. military interests. They cite potential surveillance threats as justification for their position. As discussions evolve, it’s clear that this issue is far from resolved.

— Howard Fischer contributed to this report.