Arizona limits foreign adversaries’ property rights and equipment access

The section bars foreign adversary nations and agents from obtaining substantial interests in Arizona real estate or certain property rights. The listed property rights include leases, concessions, certain access or development rights, and options or financial instruments that can lead to those rights. The section has an exception for certain transactions cleared by, or covered by a mitigation agreement with, the federal foreign investment review committee. A transaction that violates such an agreement or a federal divestment order remains covered. The section applies to transactions entered into on or after the act’s effective date, and to renewals, extensions, changes, or exercises of rights on or after that date.

Foreign adversary nations and agents may not install, maintain, access data from, or operate listed equipment on Arizona real estate. Covered equipment includes uncrewed or autonomous systems, antennas, communications systems, surveillance devices, and sensors. The rule covers temporary or permanent arrangements, including equipment embedded in other structures. A foreign adversary agent that violates this rule is guilty of a class 5 felony. The section applies to transactions entered into on or after the act’s effective date, and to renewals, extensions, changes, or exercises of rights on or after that date.

Certain Arizona entities must notify the attorney general and Corporation Commission about suspected equipment arrangements involving foreign adversaries. This applies to public service corporations, telecommunications providers, critical infrastructure owners, and government agencies in Arizona. A report is required if the entity entered into or suspects a lease, license, or shared-location agreement has or may have allowed the equipment installation. The reporting duty begins January 1, 2027.

The attorney general may seek court orders to stop equipment use, remove prohibited devices, or pause development or installation during a federal review. These court requests concern equipment or property development tied to a suspected violation or a transaction under federal review. The attorney general may seek an immediate injunction and an order requiring removal at the violator’s expense. The attorney general may ask a court for an automatic pause when a federal review of a transaction involving Arizona real estate begins. A pause may be requested when the federal review begins and may last until the federal review ends.