Governor Katie Hobbs Vetoes Bill on Foreign Land Ownership

News Summary

Arizona Governor Katie Hobbs has vetoed Senate Bill 1109, which sought to limit foreign ownership of land, particularly by Chinese entities. The bill, aimed at enhancing national security for military bases, faced criticisms regarding constitutional rights and ineffective enforcement. This decision has ignited discussions on the delicate balance between national security and property rights amidst rising concerns over foreign investments in the U.S.

Arizona Governor Katie Hobbs has vetoed Senate Bill 1109, a piece of legislation that sought to prevent the People’s Republic of China and its subsidiaries from owning a significant interest in land within the state. The bill defined a substantial interest as having a stake of 30% or more in Arizona land. This decision has prompted discussions about national security and foreign ownership of land, particularly concerning military bases.

The veto is significant as it comes amid rising tensions between the United States and China, especially regarding issues of land ownership and foreign investments. The legislation was initially sponsored by Republican Senator Janae Shamp to enhance the state’s protections against potential espionage, particularly aimed at protecting U.S. military bases from foreign influence. Shamp cited alarming instances, including allegations that the Chinese government had attempted to lease properties near Luke Air Force Base.

Despite the intentions behind the bill, it faced considerable resistance within the Arizona legislature. Democratic representatives expressed concerns that the proposed legislation could violate constitutional rights and lead to discriminatory practices in land sales. An amended version of the bill was passed by the Arizona House on May 7, 2025, with bipartisan support, garnering a vote of 41-17, including the backing of eight Democrats. The Senate approved this amended version on May 28, 2025, through a party-line vote of 17-11, showcasing a divide between the two parties on the issue of foreign land ownership.

Governor Hobbs issued her veto on June 2, citing that the legislation was “ineffective at counter-espionage” and did not provide specific measures to protect military assets as intended. She criticized the bill for lacking clear criteria for implementation, which could result in arbitrary enforcement. Although proponents, including Shamp, argued that the bill would bolster Arizona’s protections for its military, commercial, and agricultural assets against espionage from foreign entities, the governor’s concerns about its effectiveness ultimately led to her decision to veto.

Following the veto, Senator Wendy Rogers, a far-right Republican, expressed her confusion regarding previous legislative trends and the setbacks in similar proposals she had previously introduced. Her support of the current bill underlines the ongoing debates among lawmakers concerning the balance between national security and property rights in the context of foreign investments.

The situation in Arizona is part of a larger national trend, with several U.S. states proposing or enacting legislation aimed at restricting foreign ownership of land. Many states have introduced similar measures targeting Chinese investment, motivated by fears of potential espionage and security breaches. As states increasingly scrutinize foreign ownership, the differing opinions within the Arizona legislature reflect a broader dialogue about the implications of such legislation on both state and national levels.

In summary, Governor Hobbs’s veto of Senate Bill 1109 highlights the complexities of addressing national security concerns in relation to foreign land ownership. The mixed responses from legislators further illustrate the challenges in finding a legislative solution that balances security needs with constitutional protections concerning property rights.

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