Governor Hobbs Vetoes Bill to Limit Chinese Land Purchases

Categories: Arizona Breaking NewsArizona State News

Concerns arise over foreign land ownership impacting national security in Arizona.

News Summary

Arizona Governor Katie Hobbs has vetoed Senate Bill 1109, which aimed to restrict Chinese ownership of real estate in the state. The bipartisan measure raised concerns regarding national security and military assets, yet Hobbs deemed it ineffective in preventing espionage. The bill’s critics argue that foreign investments pose risks to critical infrastructure, while supporters express disappointment over the veto. Arizona remains one of the few states without restrictions on foreign land ownership, amid rising national scrutiny on such acquisitions.

Arizona Governor Katie Hobbs has vetoed Senate Bill 1109, a bipartisan measure aimed at combating Chinese land purchases in the state. The veto, issued on June 2, has stirred significant concern among state officials and military advocates who argue that it heightens security risks, especially related to critical military and agricultural assets.

The legislation sought to restrict the People’s Republic of China and its subsidiaries from acquiring more than a 30% stake in Arizona real estate. Despite the bill’s intention to safeguard local infrastructure from potential espionage linked to Chinese ownership, Hobbs critiqued it in her veto letter. She stated that the measure was “ineffective at counter-espionage” and “does not directly protect our military assets,” thereby questioning its practical implications for state security.

Currently, over 294,000 acres of agricultural land across Maricopa and Pinal counties are owned by Chinese corporations, as reported by the USDA Farm Services Agency. Foreign entities generally hold about 40 million acres, which accounts for approximately 3% of U.S. farmland, with China responsible for roughly 1% of that total. Given these statistics, proponents of the vetoed bill argue that foreign ownership poses significant risks that need immediate addressing.

Criticism of Hobbs’s decision has come from various political leaders, including Arizona State Senate Majority Leader Janae Shamp, who introduced the bill. Shamp described the veto as “politically motivated” and “utterly insane,” pointing out that it endangers military, commercial, and agricultural interests by allowing foreign access to key assets. The concerns center around increased risks to critical military installations such as Luke Air Force Base and the Palo Verde nuclear power plant, where espionage threats have been reported, particularly regarding Chinese attempts to lease land near the base.

The White House has been increasingly attentive to the issue of foreign land ownership, with notable actions taken to limit Chinese acquisitions throughout the U.S. Agriculture Secretary Brooke Rollins has emphasized national security concerns arising from foreign purchases, reinforcing the urgency around such legislative measures. As of mid-March, 27 states in the U.S. are actively reviewing 84 proposed bills aimed at restricting foreign investments in real estate, with 22 states implementing 40 laws over the previous year to curb these practices.

Arizona remains one of the few Western states without such restrictions, whereas states like Idaho and Utah have already established their own regulations. The recent vetoed bill underwent a bipartisan amendment process intended to address potential discriminatory practices and constitutional issues surrounding property sales. However, Hobbs criticized it for lacking “clear implementation criteria,” which could allow for arbitrary enforcement if the legislation had passed.

Although the bill has been vetoed, there is still a possibility that it could be reintroduced for an override by the Arizona legislature in the future. The ongoing conversation regarding the balance between property rights and national security continues to resonate throughout the state and the nation.