Tennessee House Bill HB1788

Tennessee 2025-2026 Regular Session

• Filed/Introduced: 8/16/26
• Introduced: 1/21/26
• Refer: 2/2/26
• Refer: 3/11/26
• Refer: 3/18/26
• Chaptered: 5/4/26
• Passed: 5/4/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 66, Chapter 2, Part 3, relative to real property ownership.

Summary

HB1788 revises Tennessee’s restrictions on foreign ownership of non-agricultural land. The bill creates the “Sen. Frank Niceley National Security and Economic Protection Act” and prohibits a “prohibited foreign party” or a “prohibited foreign-party-controlled business” from acquiring non-agricultural land in Tennessee. It also bars anyone from holding such land as an agent, trustee, or fiduciary for a prohibited foreign party or controlled business, and requires divestiture within two years if a violation is found. The bill adds a registration regime for covered foreign parties and foreign-party-controlled businesses that hold non-agricultural land in Tennessee on or after January 1, 2025. Registrants must disclose extensive ownership and control information, including names, addresses, birthplace, nationality, business purpose, related entities, and other U.S. land interests above 250 acres. The Secretary of State must report violations to the Attorney General, and late registration can trigger civil penalties. The bill also updates definitions in the existing statute to clarify that “prohibited foreign party” does not include a “qualified alien,” which is defined by federal immigration law. The bill’s impact is to strengthen and expand Tennessee Code Annotated Title 66, Chapter 2, Part 3, governing real property ownership by foreign persons and foreign-controlled entities. It adds new compliance obligations, enforcement mechanisms, and criminal and civil penalties, while shifting more oversight to the Secretary of State and Attorney General. The effective date is July 1, 2026, though the registration deadlines are keyed to January 1, 2025 and January 1, 2027 for different covered parties. The available vote history suggests the bill had generally favorable committee support, advancing 6-0 in the House Cities & Counties Subcommittee and 16-2 in the House State & Local Government Committee. No transcript excerpts are provided, but the bill’s title and structure indicate a policy focus on national security, economic protection, and limiting foreign influence in Tennessee land ownership. The main likely point of contention is the breadth of the foreign-ownership restrictions and the scope of the reporting and disclosure requirements, especially for entities with complex ownership structures or ties to foreign nationals.

Impact

HB1788 amends Tennessee’s foreign land ownership laws in Title 66, Chapter 2, Part 3 by tightening prohibitions on acquisition and holding of non-agricultural land by prohibited foreign parties and foreign-party-controlled businesses, adding mandatory registration and disclosure requirements, and creating enforcement tools for the Secretary of State and Attorney General. It also clarifies statutory definitions, including an exclusion for qualified aliens under federal law, and establishes misdemeanor and civil penalty exposure for violations.

Sentiment

The bill appears to have been received positively in committee, with unanimous support in one subcommittee and strong support in the full committee vote. The framing of the act as a national security and economic protection measure suggests broad support among proponents for restricting foreign ownership of land, while the recorded dissent in committee indicates at least some concern about the scope or consequences of the restrictions.

Contention

The likely areas of contention are the breadth of the ban on foreign-party land ownership, the treatment of entities controlled by foreign parties, and the extensive disclosure requirements imposed on registrants. Opponents may view the law as overly restrictive or burdensome for legitimate business activity, while supporters likely emphasize national security, transparency, and protection of Tennessee land from foreign control. The distinction between prohibited foreign parties and qualified aliens may also be a point of debate, as it narrows the law’s reach but still leaves significant compliance obligations for affected entities.