HB 2547

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 duly registered and in go od 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 party 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."