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State f/Jennessee
PUBLIC CHAPTER NO. 733
SENATE BILL NO. 2424
By Crowe, Bailey, Bowling, Lowe, Reeves, Rose, Stevens
Substituted for: House Bill No. 1788
By Reedy, Moody, Russell, Fritts, Reneau, Lafferty, Cepicky
AN ACT to amend Tennessee Code Annotated, Title 66, Chapter 2, Part 3, relative to real property
ownership.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 66, Chapter 2, Part 3, is amended by adding
the following as a new section:
This part is known and may be cited as the "Sen. Frank Niceley National Security and
Economic Protection Act."
SECTION 2. Tennessee Code Annotated, Section 66-2-305, is amended by deleting the
section and substituting instead:
(a)(1) A prohibited foreign-party-controlled business or a prohibited foreign party shall
not acquire by grant, purchase, devise, descent, or otherwise an interest in non-
agricultural land in this state.
(2) A party shall not hold an interest in non-agricultural land as an agent,
trustee, or other fiduciary for a prohibited foreign-party-controlled business or a
prohibited foreign party.
(3) A prohibited foreign-party-controlled business or a prohibited foreign party
that acquires non-agricultural land in violation of this section remains in violation as
long as the prohibited foreign-party-controlled business or the prohibited foreign party
holds an interest in ·the non-agricultural land.
(b)(1) A prohibited foreign-party-controlled business or a prohibited foreign party in
violation of this section shall divest itself of the interest in non-agricultural land within
two (2) years of the date the entity is found to be in violation.
(2) If a prohibited foreign-party-controlled business or a prohibited foreign
party does not divest itself of the interest in non-agricultural land as prescribed in
subdivision (b)(1), then the attorney general and reporter may commence an action
pursuant to § 66-2-307.
(c) A violation of this section is a Class A misdemeanor, punishable by a fine of one
thousand five hundred dollars ($1,500) or confinement for not more than eleven (11) months
and twenty-nine (29) days, or both.
SECTION 3. Tennessee Code Annotated, Section 66-2-306, is amended by deleting the
section and substituting instead:
(a) A prohibited foreign-party-controlled business or a prohibited foreign party that
holds an interest in non-agricultural land in this state on or after January 1, 2025, shall
register the interest in such land with the secretary of state.
(b) Registration pursuant to subsection (a) must be made:
SB 2424
(1) In such form and manner as prescribed by the secretary of state; and
(2) Within the later of sixty (60) days after:
(A) For a prohibited foreign-party-controlled business, January 1, 2025;
(8) For a prohibited foreign party, January 1, 2027; or
(C) The date the prohibited foreign-party-controlled business or the
prohibited foreign party acquires the interest in non-agricultural land.
(c) The secretary of state shall require that registration pursuant to this section
includes:
(1) The legal name, street address, mailing address, if different, and the
birthplace and nationality of the prohibited foreign party or the prohibited foreign party
that owns a controlling interest in the prohibited foreign-party-controlled business that
owns the interest in non-agricultural land;
(2) The legal name, street address, mailing address, if different, and the
birthplace and nationality of the agent, trustee, or fiduciary of the prohibited foreign
party or prohibited foreign-party-controlled business described in subdivision (c)(1}, if
specifically authorized to:
(A) Purchase the non-agricultural land; or
(8) Supervise the daily operations on the non-agricultural land;
(3) A statement of the purpose for conducting business in this state;
(4) A description of the purpose of the interest in non-agricultural land in this
state as it relates to the stated business purpose of subdivision (c)(3);
(5) The legal name, street address, and mailing address of any parent of the
registering party, including the legal name, street address, and mailing address of any
subsidiary or intermediary of the parent;
(6) The legal name, street address, and mailing address of any subsidiary of
the registering party; and
(7) A listing of all other interests in non-agricultural land that are held directly
or indirectly by the registering party, parent of the registering party, or subsidiary or
intermediary of the parent in the United States that exceeds, in the aggregate, two
hundred fifty (250) acres.
(d) If the secretary of state finds that a prohibited foreign-party-controlled business or
a prohibited foreign party has acquired or holds title to or an interest in non-agricultural land
in this state in violation of this part, then the secretary of state shall report the violation to the
attorney general and reporter.
(e) If the secretary of state finds that a prohibited foreign-party-controlled business or
a prohibited foreign party violated this part by failing to timely register as required under this
section, then the secretary of state shall assess a civil penalty not to exceed two thousand
dollars ($2,000) for each violation.
SECTION 4. Tennessee Code Annotated, Section 66-2-302(9)(8), is amended by deleting
the subdivision and substituting instead:
(8) Does not mean a qualified alien;
SECTION 5. Tennessee Code Annotated, Section 66-2-302, is amended by adding the
following as a new subdivision:
() "Qualified alien" means a qualified alien as defined by 8 U.S.C. § 1641(b);
SECTION 6. This act takes effect July 1, 2026, the public welfare requiring it.
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SENATE BILL NO. 2424
PASSED: March 26, 2026
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RAND'YM~_ALLY
SPEAKER OF THE SENATE
CAMERCJN.@IEXTON,SPEAKER
HOUSE OF REPRESENTATIVES
APPROVED this .. 13-IL day of ,/\x;f 2026
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