Arizona Gov. Hobbs vetoes bill banning China from owning land in state

Arizona Gov. Katie Hobbs vetoed a bill that would have banned the Chinese government from owning a stake of 30% or more of any property in the state. Hobbs, a Democrat, disagreed with Republican lawmakers over whether the measure would prevent Chinese espionage.

The “legislation is ineffective at counterespionage and does not directly protect our military assets,” Hobbs wrote in a veto message on Monday, June 2. She argued that the bill “lacks clear implementation criteria and opens the door to arbitrary enforcement.”

It would take a two-thirds vote by both chambers of the state Legislature to override Hobbs’ veto.

National security concerns

The legislation, known as Senate Bill 1109, was sponsored by GOP Sen. Janae Shamp. She argued the measure was needed to protect military facilities in Arizona from spying efforts by the Chinese Communist Party (CCP). Military installations in Arizona include Luke Air Force Base, located outside Mesa, and the Marine Corps Air Station in Yuma.

Shamp accused Beijing of already committing espionage near the Air Force base.

“The actual Chinese government, our enemy, was trying to lease buildings near the (Luke Air Force) base,” Shamp said. “Not making sure we are protecting our national security or our men and women on the ground here in Arizona is ludicrous to me.” 

Shamp previously said the “protection of this state’s military, commercial and agricultural assets from foreign espionage and sabotage will place this state in a significantly stronger position to withstand national security threats.”

Chinese investors have purchased land near military bases in other areas, raising national security concerns. The Wall Street Journal reported in 2023 that the U.S. tracked roughly 100 cases involving Chinese nationals, sometimes posing as tourists, who tried to enter American military bases or installations. 

Concerns over proposal

State Democratic lawmakers argued the original version of Shamp’s bill was unconstitutional and discriminatory, the Arizona Mirror wrote.

In its first draft, the bill banned land ownership in Arizona by people and companies from any nation listed as an enemy of the United States, according to the Office of the Director of National Intelligence. However, the proposal exempted small residential tracts more than 50 miles from a U.S. military facility. It was similar to an even more restrictive piece of legislation in Texas, as Straight Arrow News reported in May.

The heavily amended version of Shamp’s bill, which passed the House on May 6, alleviated some concerns by banning property ownership by the Chinese government or entities controlled by the CCP. Eight Democrats supported the bill in the House, but the Senate’s final approval came on a party-line vote.

Backlash to Hobbs’ veto

Shamp called Hobbs’ veto “politically motivated” and “utterly insane.” She accused the governor of obstructionism “against safeguarding our citizens from threats,” Fox News reported.

Hobbs also drew criticism from State Armor Action, a nonprofit organization that is pushing 70 bills targeting China in states across the country, according to The Wall Street Journal. The organization declines to identify its funding sources.

“Gov. Hobbs’s veto of SB 1109 hangs an ‘Open for the CCP’ sign on Arizona’s front door, allowing Communist China to buy up land near critical assets like Luke Air Force Base, Palo Verde nuclear power plant and Taiwan Semiconductor’s growing fabrication footprint,” Michael Lucci, the CEO and founder of State Armor Action, told Fox News.

“Allowing Communist China to buy up land near our critical assets is a national security risk, plain and simple,” Lucci said, adding that “Gov. Hobbs is substantively and completely wrong when she says that SB 1109 ‘is ineffective at counter-espionage and does not directly protect our military assets.'”