Official Summary Text
Present law generally prohibits a prohibited foreign party or prohibited foreign-party-controlled business from acquiring an interest in agricultural land in Tennessee and prohibits a prohibited foreign-party-controlled business from acquiring an interest
in non-agricultural land in Tennessee. Present law defines "prohibited foreign party" to mean:
(1) A citizen or resident of a country subject to international traffic in arms regulations under federal regulations;
(2) A foreign government formed within a country described in (1);
(3) A party other than an individual or a government that is created or organized under the laws of a foreign government within a country described in (1); or
(4) A party other than an individual or a government that is created or organized under the laws of a state, federal district, or territory of the United States and in which a significant interest or substantial control is directly or indirectly held or
is capable of being exercised by an individual, foreign government, party, or combination thereof, described in (1);
(5) An entity of particular concern; or
(6) An agent, trustee, or other fiduciary of a person or entity enumerated in (1)-(5).
A resident alien is not a prohibited foreign party under present law.
Present law specifies that, for purposes of the restrictions on the acquisition of agricultural land by a prohibited foreign party or prohibited foreign-party-controlled business, agricultural land does not include oil, gas, and all other minerals, inclu
ding coal, lignite, brine, and all minerals known and recognized as commercial minerals underlying the land. This bill applies the land acquisition restrictions to the acquisition of such mineral rights whether the land is agricultural or non-agricultura
l.
This bill extends prohibited foreign party to persons, and the businesses such persons control, who have been designated by the U.S. department of commerce as a foreign adversary for purposes of federal law concerning the evaluation of information and co
mmunications technology or service (ICTS) transactions.
Present law defines "prohibited foreign-party-controlled business" to mean a corporation, company, association, firm, partnership, society, joint-stock company, trust, estate, or other legal entity whose controlling interest is owned by a prohibited fore
ign party. This bill redefines "p
rohibited foreign-party-controlled business" to mean any entity in which a prohibited foreign party holds a controlling interest or significant interest or exercises substantial control.
This bill reduces from 33% to 10% the amount of interest that constitutes a significant interest or substantial control when held by an individual person or entity or by a group of individuals and entities acting in concert. This bill reduces from 50% t
o 33% the amount of interest that constitutes a significant interest or substantial control when held by a group of individuals and entities acting in concert.
A
prohibited foreign party or prohibited foreign-party-controlled business that is prohibited from acquiring an interest in land in Tennessee by this bill, and that has an interest in land in Tennessee, will have 60 days from this bill's effective date to r
egister the interest with the commissioner of agriculture or secretary of state, as applicable.
Present law exempts a prohibited foreign party or prohibited foreign-party-controlled business that possesses an interest in agricultural land or non-agricultural land if such prohibited foreign party or prohibited foreign-party-controlled business is dul
y registered and in good standing with the secretary of state as of January 1, 2025, and has:
(1) Been approved by the committee on foreign investment in the United States (CFIUS); or
(2) Previously received a determination that there are no unresolved national security concerns or that pending actions under the Defense Production Act of 1950 are concluded with respect to a covered transaction; provided, that such prohibited foreign p
arty or prohibited foreign-party-controlled business has not undergone a change in control constituting a covered control transaction.
This bill adds that
a party or business that becomes a prohibited foreign party or prohibited foreign-party-controlled business by operation of this bill is eligible for the exemption if such party or entity meets all other present law requirements for the exemption.
ON MARCH 30, 2026, THE HOUSE SUBSTITUTED SENATE BILL 2233 FOR HOUSE BILL 2547, ADOPTED AMENDMENT #1, AND PASSED SENATE BILL 2233, AS AMENDED.
AMENDMENT #1 removes from the bill the changes pertaining to the requirements for registration of an interest in non-agricultural land, which provided that registration must be within the later of 60 days after any of the following:
January 1, 2025.
The date that the business meets the definition of a prohibited foreign-party-controlled business.
The date the prohibited foreign-party-controlled business acquires the interest in non-agricultural land.
ON APRIL 2,
2026, THE SENATE CONCURRED IN HOUSE AMENDMENT #1.
Current Bill Text
Read the full stored bill text
HOUSE BILL 2547
By Lamberth
SENATE BILL 2233
By Johnson
SB2233
011270
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AN ACT to amend Tennessee Code Annotated, Title 66,
Chapter 2, Part 3, relative to restrictions on land
purchases.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 66-2-302(1), is amended by deleting
subdivision (B).
SECTION 2. Tennessee Code Annotated, Section 66-2-302(5), is amended by adding
the following as a new subdivision:
( ) Includes rights to oil; gas; all other minerals known and recognized as
commercial minerals, including coal, lignite, and brine, underlying the land; ground
water; and surface water;
SECTION 3. Tennessee Code Annotated, Section 66-2-302(6), is amended by adding
the following as a new subdivision:
( ) Includes rights to oil; gas; all other minerals known and recognized as
commercial minerals, including coal, lignite, and brine, underlying the land; ground
water; and surface water;
SECTION 4. Tennessee Code Annotated, Section 66-2-302(9), is amended by adding
"or designated by the United States department of commerce pursuant to 15 C.F.R. Part 791,
Subpart A, as amended, transferred, or succeeded" immediately following "subject to
international traffic in arms regulations under 22 C.F.R. § 126.1" wherever it appears.
SECTION 5. Tennessee Code Annotated, Section 66-2-302(10), is amended by
deleting the subdivision and substituting:
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(10) "Prohibited foreign-party-controlled business" means any entity in which a
prohibited foreign party holds a controlling interest or significant interest or exercises
substantial control;
SECTION 6. Tennessee Code Annotated, Section 66-2-302(13), is amended by
deleting "interest of thirty-three percent (33%) or more" wherever it appears and substituting
"interest of ten percent (10%) or more".
SECTION 7. Tennessee Code Annotated, Section 66-2-302(13)(C), is amended by
deleting "interest of fifty percent (50%) or more" and substituting "interest of thirty-three percent
(33%) or more".
SECTION 8. Tennessee Code Annotated, Section 66-2-304(b)(2), is amended by
deleting the subdivision and substituting:
(2) Within the later of sixty (60) days after:
(A) January 1, 2025;
(B) The date that the party is designated as a prohibited foreign party;
(C) The date that the business meets the definition of a prohibited
foreign-party-controlled business; or
(D) The date the prohibited foreign party or prohibited foreign-party-
controlled business acquires the interest in agricultural land.
SECTION 9. Tennessee Code Annotated, Section 66-2-306(b)(2), is amended by
deleting the subdivision and substituting:
(2) Within the later of sixty (60) days after:
(A) January 1, 2025;
(B) The date that the business meets the definition of a prohibited
foreign-party-controlled business; or
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(C) The date the prohibited foreign-party-controlled business acquires
the interest in non-agricultural land.
SECTION 10. Tennessee Code Annotated, Section 66-2-308(b), is amended by
deleting the subsection and substituting:
(b) This part does not apply to a prohibited foreign party or prohibited foreign-
party-controlled business that possesses an interest in agricultural land or non-
agricultural land if such prohibited foreign party or prohibited foreign-party-controlled
business:
(1) Is duly registered and in good standing with the secretary of state as
of the later of:
(A) January 1, 2025;
(B) The date that the party is designated as a prohibited foreign
party; or
(C) The date that the business meets the definition of a prohibited
foreign-party-controlled business; and
(2) Has:
(A) Been approved by the committee on foreign investment in the
United States (CFIUS); or
(B) Previously received a determination that there are no
unresolved national security concerns or that pending actions under
Section 721 of the Defense Production Act of 1950 (50 U.S.C. App. 2170)
are concluded with respect to a covered transaction, as defined in 31
C.F.R. § 800.213; provided, that such prohibited foreign party or
prohibited foreign-party-controlled business has not undergone a change
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in control constituting a covered control transaction, as defined in 31
C.F.R. § 800.210, since such determination.
SECTION 11. This act takes effect upon becoming a law, the public welfare requiring it,
and applies to acts occurring on or after that date.