Tennessee Senate Bill SB0519

Tennessee 2025-2026 Regular Session

• Introduced: 1/30/25
• Chaptered: 6/4/25
• Passed: 6/4/25

Caption

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

Summary

SB0519 creates a new Tennessee reporting requirement for foreign persons who acquire agricultural land and are already required to report that acquisition to the U.S. Department of Agriculture under the federal Agricultural Foreign Investment Disclosure Act (AFIDA). Those foreign persons must file a copy of the federal report with the Tennessee commissioner of agriculture within the same federal deadline. The bill defines key terms such as “foreign person,” “person,” and “commissioner,” and authorizes the commissioner to adopt rules to carry out the law. If a foreign person fails to file the required copy with the commissioner, the commissioner must notify the attorney general and reporter. The attorney general may then seek a civil penalty of up to 25% of the fair market value of the agricultural land interest involved and may bring the enforcement action in circuit court in any county where part of the land is located. The new section expires if the federal AFIDA is repealed, and the commissioner must notify the Tennessee Code Commission if that happens. The act applies to federal reports made on or after July 1, 2025.

Impact

The bill adds a state-level compliance and enforcement layer to Tennessee’s regulation of foreign ownership interests in agricultural land, supplementing the existing federal AFIDA reporting system. It affects foreign persons who buy or hold agricultural land in Tennessee, the commissioner of agriculture, and the attorney general and reporter by creating a state filing obligation, rulemaking authority, and civil penalty enforcement mechanism. The law is tied to federal law and will automatically expire if AFIDA is repealed.

Sentiment

The available voting history suggests strong support for the bill. The Senate Energy, Agriculture and Natural Resources Committee recommended passage with amendment by a unanimous 9-0 vote, indicating broad agreement in committee. No committee transcript is available, but the bill’s progression and vote count suggest the measure was viewed favorably as an agriculture and land-reporting enforcement bill.

Contention

The main point of contention, based on the bill’s structure, is the regulation of foreign ownership and reporting of agricultural land, particularly the imposition of a potentially significant civil penalty of up to 25% of fair market value for noncompliance. Any concerns would likely center on administrative burden, enforcement, and the scope of state oversight over foreign persons and land transactions. However, no recorded transcript is available showing active debate or opposition, and the committee vote was unanimous.