Amends TCA Title 43; Title 44; Title 47; Title 48 and Title 66.

This bill prohibits, with certain exceptions discussed below, a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, from purchasing or otherwise acquiring agricultural land in this state. Under this bill, a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, who holds agricultural land in this state on July 1, 2021, may continue to own or hold the agricultural land, but will not be allowed to purchase or otherwise acquire additional agricultural land in this state. A person who acquires agricultural land in violation of this bill or who fails to convert the agricultural land to a purpose other than farming within five years, as discussed below, will be considered to be in violation of this bill for as long as the person holds an interest in the agricultural land. This bill's prohibition will not apply to the following: (1) Agricultural land acquired by devise or descent; (2) A bona fide encumbrance on agricultural land taken for purposes of security; (3) Agricultural land acquired by a process of law in the collection of debts, by a deed in lieu of foreclosure, pursuant to a forfeiture of a contract for deed, or by any procedure for the enforcement of a lien or claim on the agricultural land, whether created by mortgage or otherwise. However, agricultural land so acquired must be sold or otherwise disposed of within two years after title is transferred. Pending the sale or disposition, the agricultural land must not be used for any purpose other than farming, and the agricultural land must not be used for farming except under lease to an individual, trust, corporation, partnership, or other business entity not subject to the restriction on the increase in agricultural land holdings imposed by this bill; and (4) An interest in agricultural land, not to exceed 320 acres, acquired for an immediate or pending use other than farming. However, a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, who lawfully owns over 320 acres on July 1, 2021, may continue to own or hold the agricultural land, but may not purchase or otherwise acquire additional agricultural land in this state except by devise or descent from a nonresident alien. Pending the development of the agricultural land for purposes other than farming, the agricultural land must not be used for farming except under lease to an individual, trust, corporation, partnership, or other business entity not subject to the restriction on the increase in agricultural land holdings imposed by this bill. This bill prohibits a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof from transferring title to or interest in agricultural land to a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof except by devise or descent. This bill requires a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, who acquires agricultural land or an interest in agricultural land for an immediate or pending use other than farming, to convert the agricultural land to a purpose other than farming within five years after the acquisition of the agricultural land or the acquisition of the interest in the agricultural land. Under this bill, a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, who acquires agricultural land or an interest in agricultural land not subject to the restrictions of this bill because the agricultural land or interest in agricultural land was acquired for an immediate or pending use other than farming, must file a report with the secretary of state before March 31 of each year in each year that the nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, holds the agricultural land or interest in agricultural land. This bill sets out in detail the information to be included in the report. This bill requires a nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, who acquires agricultural land or an interest in agricultural land, by devise or descent after July 1, 2021, to divest itself of all right, title, and interest in the agricultural land within two years from the date of acquiring the agricultural land or interest. This requirement does not require divestment of agricultural land or an interest in agricultural land, acquired by devise or descent from a nonresident alien, if such agricultural land or an interest in such agricultural land was acquired by any nonresident alien prior to July 1, 2021. Under this bill, a person or business who purchases or otherwise acquires agricultural land in this state except by devise or descent, after July 1, 2021, and whose status changes so that it becomes a foreign business or nonresident alien subject to this bill must divest itself of all right, title, and interest in the agricultural land within two years from the date that its status changed. A nonresident alien, foreign business, or foreign government, or an agent, trustee, or fiduciary thereof, who owns an interest in agricultural land within this state on or after July 1, 2021, must register the agricultural land with the secretary of state. The registration must be made within 60 days after July 1, 2021, or within 60 days after acquiring the agricultural land or the interest in agricultural land, whichever time is the later. If the secretary of state finds that a nonresident alien, foreign business, foreign government, or an agent, trustee, or other fiduciary thereof, has acquired or holds title to or interest in agricultural land in this state in violation of this bill, the secretary of state must report the violation to the attorney general and reporter, and the attorney general must initiate an action in the circuit court of any county in which the agricultural land is located. This bill requires the attorney general to file a notice of the pendency of any action initiated under these provisions with the recorder of deeds of each county in which any of the agricultural land is located. If the court finds that the agricultural land in question has been acquired in violation of this bill or that the agricultural land has not been converted to a purpose other than farming within five years, the court must declare the agricultural land escheated to the state and order the sale of the agricultural land in the manner provided by law for the foreclosure of a mortgage on real estate for default of payment. The proceeds of the sale must be used to pay court costs, and the remaining funds, if any, must be paid to the person divested of the agricultural land. If the secretary of state finds that a nonresident alien, foreign business, foreign government, or an agent, trustee, or other fiduciary thereof, violated this bill by failing to timely register, or failing to timely file a report, the secretary of state will assess a civil penalty not to exceed $2,000 for each violation.