The Uniform Disposition of Unclaimed Property Act of 1978 governs the handling of unclaimed or abandoned personal property held by political subdivisions. For purposes of the Act, personal property is considered unclaimed if it has been in the possession of the local government for one year without a claim. The Act does not apply to real property and is most commonly used to manage utility deposits.

The State Treasurer administers the Act. Holders of abandoned property valued at $50 or more must maintain records of the owner’s name and last known address for 10 years and make reasonable attempts to notify the owner if an accurate address is available.

According to T.C.A. § 66-29-146, beginning December 31, 2016, and for each report year thereafter:

• The treasurer determines each June 30 the amount of unclaimed funds held by or on behalf of local governments and their agencies that have remained unclaimed for at least 18 months after delivery to the treasurer.
• If the total unclaimed balance exceeds $100, the treasurer, upon request of the local government, will remit an amount equal to the aggregate balance, less a proportionate share of administrative costs as determined by the treasurer.
• The treasurer also provides a report detailing the accounts represented by the funds.

The returned funds must be deposited into the local government’s general fund. However, the local government must retain enough of the unclaimed property accounts to ensure prompt payment when claims are made.