Arizona's ban on foreign adversary nations and their agents holding a substantial interest in Arizona real property now covers more deal types, including leases, options and some debt, and kicks in at 15% instead of 30%; it also bars them from putting surveillance and communications equipment on any Arizona property, with a felony penalty for agents.
Official title: landownership; foreign adversary; prohibition
- September 12, 2026
- Applies to transactions entered into on or after the effective date, and to renewals, extensions, modifications or exercise of rights tied to existing interests that occur on or after that date: Expanded land ownership and equipment rules
- January 1, 2027: Notification duty for public service corporations, telecommunications providers, critical infrastructure owners and government agencies
What changes
BeforeA "substantial interest" meant 30% or more.
NowA "substantial interest" means 15% or more, counted as if all convertible or contingent rights held by the foreign adversary nation or agent were already exercised. Passive ownership with no power to direct the entity's decisions about the property does not count.
BeforeThe ban covered purchasing, owning, acquiring by grant or devise, or otherwise obtaining a substantial interest.
NowThe ban also covers leases, concessions, and current or future interests. This includes options, rights of first refusal, remainder or reversionary interests, convertible notes and bonds, and certain federally defined deals that let the foreign party access, control, develop or build on the property. It also covers deals designed to get around the law, such as using shell companies, trusts or intermediaries, or cutting a stake below 15% while keeping control.
-
NowForeign adversary nations and agents may not install, maintain, operate or access data from equipment on any Arizona property, including uncrewed or autonomous systems, antennas, communications systems, surveillance devices or sensors. This applies whether the setup is temporary or permanent, and whether it is formal or informal. A foreign adversary agent who breaks this rule commits a class 5 felony. The attorney general may seek an immediate court order to stop the equipment and to have it forfeited and removed at the violator's expense.
-
NowBeginning January 1, 2027, public service corporations, telecommunications providers, critical infrastructure owners and government agencies in Arizona must notify the attorney general and the corporation commission in either of these cases: they have entered into a lease, license or colocation agreement that allowed a foreign adversary nation or agent to install equipment on their property, or they suspect such an agreement has or may have done so.
BeforeA "foreign adversary agent" included an agent of a foreign adversary nation "involved in espionage," among other entities.
NowThe definition now covers an agent "acting at the direction" of a foreign adversary nation, with no espionage requirement. It also adds a foreign person, as defined in federal rules, when applied to a foreign adversary nation. Deals cleared by, or operating under a mitigation agreement with, the federal Committee on Foreign Investment in the United States are exempt, unless that agreement or a federal divestment order is violated.
Who it affects
- Foreign adversary nations and their agents, including companies they control
- People and businesses that sell, lease or grant rights in Arizona real property
- Foreign adversary nations or agents holding a substantial interest through state trust land leases, certificates of purchase or rights-of-way
- Public service corporations, telecommunications providers and critical infrastructure owners
- Government agencies in Arizona
- Arizona attorney general
- Arizona Corporation Commission
- County boards of supervisors
What you need to do
Nothing for most people. Starting January 1, 2027, public service corporations, telecommunications providers, critical infrastructure owners and government agencies must notify the attorney general and the corporation commission if an agreement has or may have let a foreign adversary nation or agent install equipment on their property.
What the law doesn't answer
- Which specific countries currently count as foreign adversary nations
- Any penalty for an entity that fails to give the required notice
- What counts as critical infrastructure for the notice requirement
- How interests held before the effective date are treated if they are not renewed, extended, modified or exercised
- How the notice to the attorney general and corporation commission must be given
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.