Tennessee § 40-33-211 - Property disposition.

§ 40-33-211. Property disposition.

The proceeds from all seizures, confiscations and sales made by a state agency pursuant to § 39-14-307, § 47-25-1105, § 53-11-451, § 55-10-414, § 57-3-411, § 57-5-409, § 57-9-201, § 67-4-1020 or § 70-6-202, shall be transmitted to the state treasurer and deposited in the state treasury. All the seizures, confiscations and sales made by county or municipal law enforcement personnel shall be paid to the county trustee or city recorder, respectively, and shall be used exclusively for the benefit of the seizing county or municipality for law enforcement or drug education purposes. All such seizures, confiscations and sales derived from the activities of a judicial district drug task force shall be paid to an expendable trust fund maintained by the county mayor in a county designated by the district attorney general, and shall be used exclusively in a drug enforcement or drug education program of the district as directed by the board of directors of the judicial district drug task force. If any other provision of law requires that the proceeds from seizures, confiscations and sales made under one (1) of the sections set out in this subsection (a) be deposited in a special fund, the provisions of that other provision shall control. The comptroller's regular audit of a local government shall also include how proceeds derived from forfeited assets are used by county or municipal law enforcement or by a judicial district drug task force. The comptroller of the treasury shall provide information obtained during an audit pursuant to this subdivision (a)(2) to the department for publication on the department's website in accordance with § 40-33-216(c). Funds derived from seizures, confiscations and sales shall not be used to supplement the salaries of any public employee or law enforcement officer. All purchases made from the proceeds shall be made in accordance with existing purchasing statutes, including private acts, which establish purchasing provisions or requirements for the county or municipality. Notwithstanding the provisions of subsections (a) and (b) to the contrary, the revenue derived from the sale of vehicles forfeited under the authority of § 55-50-504(g) shall be distributed as follows: The revenue shall be retained by the entity, either the state or local government, which was responsible for the seizure. The revenue shall be used during each fiscal year to compensate the entity for reasonable and direct expenses involved in the confiscation, towing, storage, and sale of the forfeited vehicles. All expenses claimed by the entity shall be subject to audit and review by the comptroller of the treasury for the purpose of determining that expenses claimed by the entity are direct and reasonable; Any remaining revenue shall be transmitted to the department of mental health and substance abuse services no later than June 30 of each fiscal year. This revenue shall be placed in a special fund to be known as the “alcohol and drug addiction treatment fund” and shall be available for use after July 1, 1998, to pay the cost of alcohol and drug addiction treatment for persons certified for the treatment by order of either general sessions or criminal court judges, pursuant to a plan and procedures developed by the department of mental health and submitted to the general assembly prior to July 1, 1998. Any moneys in the alcohol and drug addiction treatment fund administered by the state treasurer shall be transferred to the alcohol and drug addiction treatment fund administered by the department of mental health on April 8, 1998. The alcohol and drug addiction treatment fund shall be administered pursuant to rules promulgated by the department of mental health and substance abuse services, which shall establish criteria for application of the funds; The rules promulgated by the department of mental health and substance abuse services shall include application of a portion of the funds up to a total of two hundred thousand dollars ($200,000), and any grants, gifts, contributions, or other appropriations made to supplement the funds for services related to compulsive gambling disorder, to provide prevention, early intervention, assessment or referral, and evaluation services related to compulsive gambling disorder which shall include all of the following: Establishing an information and referral hotline to provide public education regarding compulsive gambling and to make treatment referrals; Coordinating activities, services and gathering data on the prevalence of problems regarding compulsive gambling; Training personnel in the prevention of gambling disorders and in the screening and assessment of these disorders; Making assessment services available through local treatment providers; and Providing development and maintenance of treatment services only to the extent that funds exist to do so and still accomplish the goals intended by creation of the alcohol and drug treatment addiction fund; Subdivision (c)(2)(B) shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to subdivision (c)(2)(B) unless the proposed improvement for the alcohol and drug treatment fund for fiscal year 2004-2005 is included in the general appropriation act; and If a court of competent jurisdiction orders a person to operate only a motor vehicle that is equipped with a functioning ignition interlock device and the judge makes a specific finding that the person is indigent, all costs associated with the lease, purchase, installation, removal and maintenance of such device or with any other cost or fee associated with a functioning ignition interlock device required by title 55, chapter 10, part 4, shall be paid exclusively from the electronic monitoring indigency fund established pursuant to § 55-10-419; Notwithstanding any other provision of title 55, chapter 10, no funds from the alcohol and drug addiction treatment fund administered by the department of mental health and substance abuse services shall be used for the lease, purchase, installation, removal or maintenance of such device or for any other cost or fee associated with a functioning ignition interlock device required by title 55, chapter 10, part 4. An owner of property whose interest is forfeited after being arrested for, or charged with, any felony shall be ineligible to purchase the property from, or to bid at any sale of the property conducted by, the seizing agency or its agent. An owner whose interest is forfeited after being arrested for, or charged with, any felony, shall also be ineligible to redeem the property from, or to bid at any sale of the property by, a secured party acting pursuant to the agreement, contract or title 47, chapter 9. Nothing in this section shall be construed as prohibiting a state, county or municipal agency from using a seized vehicle in accordance with § 53-11-201(b). Notwithstanding the provisions of subsections (a) and (b) to the contrary, the revenue derived from the sale of vehicles forfeited under the authority of § 55-10-414 shall be distributed as follows: The revenue shall be retained by the entity, either the state or local government, which was responsible for the seizure. The revenue shall be used during each fiscal year to compensate the entity for reasonable and direct expenses involved in the confiscation, towing, storage, and sale of the forfeited vehicles. All expenses claimed by the entity shall be subject to audit and review by the comptroller of the treasury for the purpose of determining that expenses claimed by the entity are direct and reasonable; Any remaining revenue shall be transmitted to the department of mental health and substance abuse services no later than June 30 of each fiscal year. This revenue shall be placed in a special fund to be known as the “alcohol and drug addiction treatment fund” and shall be available for use after July 1, 1998, to pay the cost of alcohol and drug addiction treatment for persons certified for the treatment by order of either general sessions or criminal court judges, pursuant to a plan and procedures developed by the department of mental health and submitted to the general assembly prior to July 1, 1998. Any moneys in the alcohol and drug addiction treatment fund administered by the state treasurer shall be transferred to the alcohol and drug addiction treatment fund administered by the department of mental health on April 8, 1998; and If a court of competent jurisdiction orders a person to operate only a motor vehicle that is equipped with a functioning ignition interlock device and the judge makes a specific finding that the person is indigent, all costs associated with the lease, purchase, installation, removal and maintenance of such device or with any other cost or fee associated with a functioning ignition interlock device required by title 55, chapter 10, part 4, shall be paid exclusively from the electronic monitoring indigency fund established pursuant to § 55-10-419; Notwithstanding any other provision of title 55, chapter 10, part 4, no funds from the alcohol and drug addiction treatment fund administered by the department of mental health and substance abuse services shall be used for the lease, purchase, installation, removal or maintenance of such device or for any other cost or fee associated with a functioning ignition interlock device required by title 55, chapter 10, part 4. Notwithstanding the provisions of this section, the proceeds from all forfeitures of conveyances or real or personal property used in the commission of an offense under title 39, chapter 17, part 10 shall be transmitted to the general fund, where there is established a general fund reserve to be allocated through the general appropriations act, which shall be known as the child abuse fund. Moneys from the fund shall be expended to fund activities authorized by § 39-13-530. Any revenues deposited in this reserve shall remain in the reserve until expended for purposes consistent with this section, and shall not revert to the general fund at the end of the fiscal year. Any excess revenues or interest earned by the revenues shall not revert at the end of the fiscal year, but shall remain available for appropriation in subsequent fiscal years. Any appropriation from the reserve shall not revert to the general fund at the end of the fiscal year, but shall remain available for expenditure in subsequent fiscal years. The general assembly shall appropriate, through the general appropriations act, moneys from the child abuse fund to the department of finance and administration for the child abuse fund. The appropriations shall be specifically earmarked for the purposes set out in § 39-13-530. Notwithstanding this section, the proceeds from all forfeitures of conveyances or real or personal property used in the commission of an offense under title 39, chapter 13, part 5, shall be transmitted to the general fund where there is established a general fund reserve to be allocated through the general appropriations act, which shall be known as the child abuse fund. Moneys from the fund shall be expended to fund activities authorized by § 39-13-530. Any revenues deposited in this reserve shall remain in the reserve until expended for purposes consistent with this section, and shall not revert to the general fund on any June 30. Any excess revenues or interest earned by the revenues shall not revert on any June 30, but shall remain available for appropriation in subsequent fiscal years. Any appropriation from the reserve shall not revert to the general fund on any June 30, but shall remain available for expenditure in subsequent fiscal years. The general assembly shall appropriate, through the general appropriations act, moneys from the child abuse fund to the department of finance and administration for the child abuse fund. The appropriations shall be specifically earmarked for the purposes set out in § 39-13-530. Notwithstanding subsections (a) and (b), the revenue derived from the sale of motor vehicles forfeited under the authority of § 55-16-104 shall be distributed as follows: Seventy-five percent (75%) of the revenue shall be retained by the entity responsible for the seizure; Ten percent (10%) of the revenue shall be transferred to the state and placed in the general fund; and Fifteen percent (15%) of the revenue shall be transferred to the department of commerce and insurance, division of consumer affairs, for consumer education. Acts 1994, ch. 925, § 1; 1995, ch. 514, § 2; 1996, ch. 910, §§ 2, 5; 1996, ch. 959, § 4; 1997, ch. 148, §§ 1-6; 1998, ch. 729, §§ 1, 2; 2002, ch. 855, §§ 3, 4, 14; 2003, ch. 90, § 2; 2004, ch. 833, § 1; 2006, ch. 960, §§ 3, 5; 2007, ch. 586, § 1; 2009, ch. 186, § 5; 2010, ch. 921, §§ 1, 2; 2010, ch. 1100, § 66; 2012, ch. 575, § 1; 2013, ch. 154, § 35; 2015, ch. 344, § 8; 2016, ch. 993, §§ 5, 6; 2018, ch. 999, § 3; 2018, ch. 1046, § 3. Code Commission Notes. Acts 2006, ch. 960, §§ 3 and 5 both purported to add a new subsection (g). The code commission determined that neither of the subsections purported to be added by the two act sections could be codified, because the two act sections conflict in substance and the code commission was unable to determine the intent. The provisions of Acts 2006, ch. 960, § 3 that purported to add a new subsection (h) were added as a new subsection (g). Former subdivision (f)(4), concerning a pilot program for residents of Shelby County who violate their DUI probation with a subsequent DUI arrest, was deleted as obsolete by authority of the code commission in 2006. Compiler's Notes. Former § 55-10-421 , formerly referred to in this section, was transferred to § 55-10-419 by Acts 2013, ch. 154, § 14, effective July 1, 2013. Former § 55-10-403(k) , formerly referred to in this section, was transferred to § 55-10-414 by Acts 2013, ch. 154, § 18, effective July 1, 2013. For an Order transferring the bureau of alcohol and drug abuse services from the department of health to the department of mental health and developmental disabilities, except for functions related to the licensing of alcohol and drug abuse counselors, see Executive Order No. 44 (February 23, 2007). Acts 2006, ch. 960, § 6 provided that the amendment to this section shall apply to offenses committed on or after July 1, 2006. Acts 2010, ch. 921, § 14, provided that the administrative office of the courts shall develop and provide training to judges with jurisdiction over violations of § 55-10-401 to provide such judges with adequate knowledge to perform their duties under the act. Acts 2010, ch. 921, § 15, provided that the treasurer shall establish a method by which ignition interlock providers, as defined in § 55-10-412(a)(2) [now 55-10-417 ], are reimbursed from the interlock assistance fund [now DUI monitoring fund] for the payment of the costs associated with the lease, purchase, installation, removal and maintenance of ignition interlock devices for persons found to be indigent. Acts 2010, ch. 921, § 16, provided that the provisions of the act shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to the act unless such funds are specifically appropriated by the general appropriations act. Acts 2010, ch. 921, § 18(3), provided that the act, which amended subdivisions (c)(3) and (f)(3), shall apply to applicable offenses of driving under the influence occurring on or after January 1, 2011. Acts 2010, ch. 1100, § 153 provided that the commissioner of mental health and developmental disabilities, the commissioner of mental health, the commissioner of intellectual and developmental disabilities, and the commissioner of finance and administration are authorized to promulgate rules and regulations to effectuate the purposes of the act. All such rules and regulations shall be promulgated in accordance with the provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. For the Preamble to the act concerning the problems associated with curbstoning, see Acts 2015, ch. 344. Acts 2018, ch. 1046, § 12 provided that the act, which amended this section, shall apply to offenses committed on or after July 1, 2018. Amendments. The 2018 amendment by ch. 999, added (a)(2). The 2018 amendment by ch. 1046, in (c)(3)(A) and (f)(3)(A), substituted “electronic monitoring indigency” for “DUI monitoring” preceding “fund”. Effective Dates. Acts 2018, ch. 999, § 4. July 1, 2018; provided, that for purposes of promulgating rules, policies, forms, and procedures and making necessary provisions for the implementation of the act, the act took effect May 21, 2018. Acts 2018, ch. 1046, § 12. July 1, 2018. Attorney General Opinions. Drug forfeiture funds used only to fund county or city drug education or law enforcement programs, OAG 97-037 (4/2/97). Use of drug forfeiture proceeds to fund private drug education programs, OAG 97-125 (9/2/97). Use of motor vehicles seized pursuant to § 55-10-403(k) , OAG 99-190 (9/28/99). Use of drug fines, forfeitures of appearance bonds and the proceeds of property forfeitures to fund salaries of persons employed by county and municipal law enforcement agencies, OAG 99-202 (10/6/99). Member agencies of the Tennessee Association of Police Chiefs may use one percent of the funds received from drug forfeitures to pay the expenses of outside speakers and trainers participating in a continuous training program for the benefit of all municipal law enforcement agencies, provided such expenditures are not for supplementing salaries of public employees or law enforcement officers or for long-term obligations that recur, including salaries, OAG 02-130 (12/02/02).