Tennessee House Bill HB0459

Tennessee 2025-2026 Regular Session

• Introduced: 1/28/25
• Refer: 2/5/25
• Refer: 2/19/25
• Refer: 3/12/25
• Chaptered: 4/8/25
• Passed: 4/8/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 43, Chapter 38; Title 48, Chapter 24; Title 48, Chapter 245; Title 48, Chapter 246; Title 48, Chapter 249; Title 48, Chapter 25; Title 48, Chapter 64; Title 48, Chapter 65 and Title 61, Chapter 3, relative to entities filing documents with the secretary of state.

Impact

The proposed amendments specifically target how foreign ownership is regulated within the state’s business landscape. By defining a 'foreign adversary' and laying out conditions under which foreign entities can be prohibited from filing, the bill seeks to tighten scrutiny of foreign investments. This aligns with federal regulations by providing clear criteria for identifying foreign adversaries, thereby ensuring state-level actions resonate with concerns about national security and economic integrity.

Summary

House Bill 459 seeks to amend various sections of the Tennessee Code Annotated related to the filing of documents by corporations and other business entities with the secretary of state. The bill introduces new provisions to address circumstances where false information is knowingly submitted in official filings. This includes stipulations against submissions made by individuals within corporations, cooperatives, limited liability companies (LLCs), or partnerships that contain materially false information. Such provisions are designed to enhance compliance and accountability among business entities operating within the state.

Contention

While the bill aims to improve the integrity of business filings, concerns have arisen regarding its implications for foreign investment. Critics argue that the criteria set forth in the bill could unnecessarily hinder international partnerships and discourage foreign investment in the state. Moreover, the definitions used in the bill might create ambiguities that could lead to excessive state intervention in business operations, potentially resulting in over-regulation that stifles economic growth.