Bill bans Arizona land purchases by 'hostile' foreign entities

PHOENIX — State lawmakers want to make it illegal for foreign entities “hostile to the United States’’ to buy land in Arizona unless legislators approve.

But the legislation awaiting action by the Senate does not exactly make it clear who is considered “hostile’’ and how such a decision would be made — other than what a majority of lawmakers decide.

And while Sen. Mark Finchem specifically mentioned the Chinese Communist Party, the measure approved this past week by the Senate Committee on Federalism is broad enough that it also is drawing concern from the Council on American-Islamic Relations of Arizona.

The Prescott Republican said his SB 1066, which was approved by the panel on a party-line vote, is modeled after legislation in Arkansas which restricts certain foreign businesses from acquiring any real property in the state.

During a hearing on the measure, Finchem said there was an incident in Arizona — he provided no specifics — where a group representing the Chinese Communist Party purchased some property.

“But they were subversive with the way they were going about it,’’ he told colleagues.

“It wasn’t about gold, it wasn’t about silver,’’ Finchem continued. “It was about other mineral elements that are in the ground,’’ which he did not specify.

There already are some restrictions on what can happen on state-owned land. That includes a prohibition in the sale, lease or sublease of state land to corporations or associations not qualified to transact business in this state.

But corporations generally can get such authority by registering with the Arizona Corporation Commission.

What Finchem wants in SB 1066 takes it a step farther, with a new restriction on any and all land within the state regardless of ownership for any “foreign entity that is hostile to the United States.’’ That is defined as not just a foreign government by any state-controlled enterprise of a foreign government or any entity acting as an agency for either.

To enforce it, the seller or the seller’s agent has to obtain a “valid form of identification’’ of the buyer. And if the buyer is a company or other organization, that ID has to be of the agent, with copies sent to the Arizona Department of Real Estate.

Finchem has at least some idea of who he wants to block from buying land in Arizona.

“I’m not going to go along with the sale of property in this state to the Chinese Communist Party, to Russia, to anybody who has said ‘Death to America,’’ he said during the hearing.

Azza Abuseif who lobbies for CAIR-AZ, told lawmakers it’s a bad idea.

“This legislation raises serious constitutional concerns, threatens Arizona’s economic vitality, and undermines the values of equity and fairness upon which this state was built,’’ she said. “It is a dangerous and discriminatory proposal that should be unequivocally rejected.’’

Beyond that, Abuseif said that the federal government, not the state, controls foreign relations.

“Moreover, our elected leaders have a duty to act in the best interests of all Arizonans, not just select and elite few,’’ she said. “SB 1066 abandons this by targeting vulnerable populations and prioritizing exclusion over inclusion.’’

Abuseif, who said she is from Sudan, at no point mentioned what has been the hot-button issue of a Saudi Arabian company which has bought land in western Arizona where it grows alfalfa which is then shipped back to the home country to feed dairy cattle there. Such farming is illegal in that country given its water shortage.

The state has taken actions to end leases of state land by Fondomonte, the subsidiary of the company, at least in part over concerns about high use of unregulated groundwater.

But the company owns other property where it continues to farm — and pump.

Abuseif, however, said this is a broader issue.

“Many immigrants and dual citizens have built their lives in Arizona, contributing to the state’s prosperity,’’ she said. “SB 1066 stigmatizes these communities, fostering fear and alienation.’’

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Her arguments didn’t impress Sen. Kevin Payne.

“Can I own land in Sudan?’’ asked the Peoria Republican.

“If you’re a citizen, yes,’’ Abuseif responded.

“There’s the rub,’’ Payne said. “Isn’t that what this bill says?’’

She responded by saying there are “a lot of constitutional issues in the bill.’’

Finchem was not convinced, saying he does not understand why there would be a problem with the state denying the opportunity for a “foreign adversary’’ to obtain land here.

“That means somebody who is a threat to our nation,’’ he said.

All that, however, gets back to the fact there is nothing in SB 1066 that defines who is “hostile to the United States,’’ the trigger in the legislation for determining the ability to purchase land in Arizona.

“I think we need to know which foreign entities are going to be deemed hostile to the United States and who will be deeming them hostile,’’ said Sen. Priya Sundareshan.

“Without that kind of clarity this kind of a bill, this kind of a restriction is going to put in place a scenario where people may be racially profiled,’’ said the Tucson Democrat. “They may end up being unable to proceed with transactions that are being made.’’

Finchem, however, said he’s not concerned.

“As far as the question of who’s going to determine who’s hostile, who’s an enemy of the state, et cetera, this takes legislative action,’’ he said.

“That means a hearing, Finchem said. “That means there will be considerable debate.’’

And Finchem took note of the fact that the lobbyist for CAIR was the only one testifying against his bill.

“Keep in mind that CAIR is an unindicted co-conspirator in the bombing of World Trade Center No. 1,’’ he told Capitol Media Services after the committee hearing. “I was not at all impressed.’’

There is no evidence linking CAIR to the 1993 incident where Islamic terrorists drove a bomb-filled vehicle into a public parking garage below the towers in an unsuccessful effort to bring it down. Six people were killed.

But a report by the Inspector General’s Office at the U.S. Department of Justice says CAIR was named an an unindicted co-conspirator in a separate case involving the Holy Land Foundation for Relief and Development which had to do with funneling money to a terrorist organization. That report says two known national CAIR leaders were linked to Hamas.

In a response on its web site, the organization cites a 2010 ruling by a federal appeals court which said the Department of Justice violated the Fifth Amendment rights of the the North American Islamic Trust when it included it on the 2007 publicly filed list of unindicted co-conspirators. While CAIR was not a party to that litigation, the CAIR statement says that ruling, by implication, means its rights and those of other organizations and individuals publicly named also were violated.

The idea of limiting foreign ownership is not unique.

That Arkansas measure signed by Gov. Sarah Huckabee Sanders has two provisions.

One bars certain foreign parties from acquiring interest in any agricultural land within the state, even if the person or company intends to use it for non-farming purpose. A separate one bars any “prohibited foreign-party-controlled business’’ to acquire any land in the state.

Gov. Katie Hobbs, asked this past week about the idea of restricting foreign ownership of land in Arizona, declined to comment.