Amends TCA Title 66, Chapter 2.

RESTRICTIONS OF LAND PURCHASES FOR CHINESE ENTITIES This bill prohibits a Chinese entity from directly or indirectly owning, having a controlling interest in, acquiring by purchase, grant, devise, or descent any interest in, or holding by lease, contract, or usufruct an interest in, except a de minimus indirect interest in, real property in this state or within 10 miles of a military installation. As used in this bill, a "Chinese entity" means: (1) The People's Republic of China, the Chinese Communist Party, or any official or member of the People's Republic of China or the Chinese Communist Party; (2) Any political party, member of a political party, or subdivision of a political party in the People's Republic of China; (3) A partnership, an association, a corporation, an organization, or any other combination of persons organized under the laws of or having its principal place of business in the People's Republic of China, including a subsidiary of such entity; (4) A person who is domiciled in the People's Republic of China and who is not a citizen or lawful permanent resident of the United States; and (5) A person, entity, or collection of persons or entities described in (1)-(4) above having a controlling interest in a partnership, association, corporation, organization, trust, or any other legal entity or subsidiary formed for the purpose of owning real property in this state. This bill provides that a person or entity has a de minimus indirect interest if any ownership is the result of the person's or entity's ownership of registered equities in a publicly traded company owning the land and if the person's or entity's ownership interest in the company is either: (A) Less than 5 percent of any class of registered equities or less than 5 percent in the aggregate in multiple classes of registered equities; or (B) A noncontrolling interest in an entity controlled by a company that is both registered with the U.S. securities and exchange commission as an investment adviser under the Investment Advisers Act of 1940, and is not a foreign entity. This bill authorizes a Chinese entity that is a natural person to purchase one residential real property that is up to two acres in size if the following conditions are satisfied: (1) The parcel is not on or within five miles of a military installation in this state; (2) The person has a current, verified United States visa that is not limited to authorizing tourist-based travel or official documentation confirming that the person has been granted asylum in the United States and such visa or documentation authorizes the person to be legally present within this state; and (3) The purchase is in the name of the person who holds the visa or official documentation. This bill does not prohibit a corporation, partnership, limited partnership, trustee, or other business entity from leasing land from its owner and using such land for agricultural research and development or experimental purposes. This bill requires a Chinese entity who owns, holds, leases, or controls more than a de minimus interest in real property in this state as of July 1, 2024, to register such property interest with the secretary of state pursuant to existing law and is subject to the civil penalties for violations under existing law. A Chinese entity having an interest in real property as of July 1, 2024, must, within two years from the effective date of this bill, fully divest itself of the interest. This bill authorizes a person or an entity who is domiciled in the People's Republic of China and who is not a citizen or lawful permanent resident of the United States to acquire real property in this state on or after July 1, 2024, by devise or descent, through the enforcement of security interests, or through the collection of debts, if the person or entity sells, transfers, or otherwise divests itself of such real property within two years after acquiring such interest in the real property. This bill does not prohibit the free purchase, sale, lease, or possession of real property in this state for diplomatic purposes covered by the Vienna Convention on Diplomatic Relations or by any individual who is (i) a U.S. citizen, (ii) a legal permanent resident of the United States; (iii) an individual who has been granted asylum or other protected status by the U.S. government, or (iv) the spouse of such individuals. At the time of purchase or of acquisition by means of contract, lease, or other instrument, this bill requires an entity or person acquiring an interest in real property in this state to execute an affidavit signed under penalty of perjury attesting that the acquisition is not prohibited by this bill and to maintain a copy of the affidavit throughout the period during which the entity or person holds an interest in such property. The failure to obtain or maintain the affidavit does not (i) affect the title, or the insurability or transferability, of the real property; or (ii) subject a closing agent to civil or criminal liability, unless the closing agent has actual knowledge that the transaction will result in a violation of this bill. The Tennessee real estate commission must adopt rules to implement this provision. REPORT OF VIOLATIONS Present law provides that if the secretary of state finds that a sanctioned nonresident alien, sanctioned foreign business, sanctioned foreign government, or an agent, trustee, or other fiduciary thereof, has acquired or holds title to or interest in real property in this state in violation of the law regarding restrictions on land purchase by sanctioned aliens or entities, then the secretary of state must report the violation to the attorney general. This bill adds to the present law by providing that if the secretary of state finds that a Chinese entity has acquired or holds title to or interest in real property in this state in violation of this bill, then the secretary of state must report the violation to the attorney general.