Arizona Gov. Hobbs, lawmakers debating over who can own state land

By Howard Fischer
Capitol Media Services
PHOENIX -- On the defensive after her veto last week, Gov. Katie Hobbs is now proposing her own version of a law to decide who cannot purchase land in Arizona.
The governor is asking lawmakers to ban any "foreign adversary nation'' or "foreign adversary agent'' from owning, purchasing or otherwise have a "substantial interest in real property in the state.'' The only exception would be if it is determined, under federal law, that the transaction "does not post a national security risk.''
In some ways, what Hobbs is proposing is similar to what Senate Majority Leder Janae Shamp had crafted.
The plan by the Surprise Republican applied to certain "foreign principals,'' though it had exceptions for everything from residential property to land located at least 50 miles from any military installation.
But by the time SB 1109 reached Hobbs, it had been diluted by Rep. Alexander Kolodin to apply only to the Chinese Communist Party. The governor, in rejecting that version, called it "ineffective at counter-espionage and does not protect our military assets.''
In crafting her own plan, Hobbs is going on the offensive in the face of what has become a national story, much of it fueled by Republicans, that the governor was putting U.S. security at risk with the veto.
Shrimp called Hobbs a "total disgrace'' and accused the governor of being "an obstructionist against safeguarding our citizens from threats.'' The Surprise Republican specifically mentioned that Luke Air Force Base where pilots are trained is in her district.
Fox News gave Kari Lake, whom Hobbs defeated in 2022, a chance to call the governor "disingenous.''
And Senate President Warren Petersen promised to seek an override later this month.
There aren't the necessary two-thirds votes in each chamber to do that -- something that has not occurred in more than four decades. But just the debate over whether Hobbs had endangered the Arizonans would create even more negative publicity for the governor who is hoping to win reelection in a state where Republicans outnumber Democrats.
Now Hobbs has gone on the offensive with her own plan, one that is more comprehensive than either Shamp's original proposal or the Kolodin-altered version.
First, her list of countries for whom Arizona land would be off limits goes beyond China to also include Russia, Cuba, North Korea, Iran and, specifically, Venezuelan President Nicolas Maduro.
Second, there are no exceptions like Shamp had to the land ownership ban based on residential use or distance from any military base.
What Hobbs has done is turned the table on Republicans, saying if they're really serious about the risk of foreign ownership of land in Arizona they should approve her proposal. And she also is ratcheting up the rhetoric from what she said in her veto message and is now calling the original version of SB 1109 "weak and spineless.''
"The legislative majority needs to stop playing games with Arizona's security and get serious about cracking down on enemies seeking to do us harm,'' Hobbs said in a prepared statement.
Neither Shamp nor Petersen responded to multiple messages. But Kolodin called her proposal a "messaging stunt,'' calling it "laughable'' that Hobbs is now interested in tackling a Republican policy priority.
All this comes amid concern that enemies -- China in particular -- have been buying up farmland in Arizona. Shamp says this provides an opportunity for them to spy on military facilities and other critical infrastructure.
And it's not just about spying. Stamp.
"China can also position autonomous arsenal, such as drone swarms, and would have the ability to launch an attack on military bases or other sensitive areas considered critical to national security in the event of a conflict,'' she said in a press release following the veto.
How much land China owns in Arizona is unclear, with widely divergent figures from different sources. About the only firm data comes from National Public Radio which, using data from the U.S. Department of Agriculture, estimated Chinese investors owned less than 400,000 acres nationally in 2021.
Hobbs, in prepared comments Monday, did not address the question of whether she believes there is a current risk. But what she did say is that if the aim is protecting Arizona, was what lawmakers debated -- and what they ultimately sent her -- was flawed.
One provision in Shamp's original version, for example, allowed adversaries to actually own land that it acquired for up to three years before it had to divest the property or have it seized.
By contrast, Hobbs said her proposal which she dubbed the Blocking Adversarial Nations Act, would ban ownership by any of these entities "from day one.''
Then there was the fact that the bill that reached her desk was narrow, applying not only to China but not the other adversarial counties.
"It didn't address any other foreign adversaries who may be seeking to do Arizonans harm,'' said press aide Christian Slater.
And even with that, the final version of the bill would have applied only to the government of China but not to others within the country.
"It contains loopholes that would allow Chinese Communist Party proxies, including party leaders and foreign adversary-controlled business to purchase and own unlimited land in the state,'' Hobbs said.
So her version would ban land ownership not just by foreign adversary nations but any of their "agents.''
That covers state-owned businesses, anyone who is controlled by a foreign adversary nation, any leader of the controlling political party in that nation, and any business domiciled in one of those adversary nationals that is even indirectly controlled by the foreign government.
But Hobbs, in the language of her revised bill, is acknowledging concerns expressed by Senate Minority Leader Priya Sundareshan.
The Tucson Democrat expressed concern while the original measure was being debated last month that it was so broad that it targeted individual Chinese people.
"May is still Asian American and Pacific Islander month, and yet, here we are hearing a bill that has been very narrowly amended so that it specifically targets foreign nationals from China from owning land in the state,'' Sundareshan said. "“What a way to celebrate Asian American month.''
The Hobbs proposal contains language saying the ban on land ownership does not apply to foreign citizens "who do not qualify as foreign adversary agents.''
Strictly speaking, the deadline to introduce new legislation this session has passed. But Slater said he is sure that there is a way to amend what Hobbs wants onto some other still-pending legislation.
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