Real Property - As enacted, makes changes to law regarding restrictions on land purchases by sanctioned aliens or foreign entities. - Amends TCA Title 66, Chapter 2, Part 3. Companion bill has been assigned Public Chapte, the official text

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                              PUBLIC CHAPTER NO. 806

                                                    SENATE BILL NO. 2233

                                 By Johnson, Taylor, Pody, Rose, Stevens, Crowe

                                           Substituted for: House Bill No. 2547

     By Lamberth, Cochran, Reneau, Powers, Reedy, Maberry, McCalmon, Terry, Hawk, Capley,
                                                       Hardaway, Moody

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:

                    (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:
SB 2233

                              (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 66-2-308(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 in control constituting a covered control
                              transaction, as defined in 31 C.F.R. § 800.210, since such determination.
          SECTION 10. This act takes effect upon becoming a law, the public welfare requiring it, and
applies to acts occurring on or after that date.

                                                                 2
         SENATE BILL NO. 2233

PASSED:  April 2, 2026

                        ~... :'SV\..~..._,\.l.._
                        \                RANDYliicNALLY

                           SPEAKER OF THE SENATE

                           CAMERllll~EXTON,SPEAKER

                           HOUSE OF REPRESENTATIVES

I ! APPROVED this :J._ $1- day of Apr,'  2026

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              BILL LEE, GOVERNOR