How does a Mississippi city handle unclaimed cash found by police, and does a court order have to authorize transfer to the city general fund?

Plain-English summary

In October 2023, the Sturgis Police Department got a call about suspicious activity at a Dollar General. The chief found $11,180 in cash in a bathroom trashcan. The Dollar General did not claim the money. The chief took custody of it and turned it over to the Oktibbeha County Sheriff's Department for safekeeping. No owner has ever come forward, and the money is not part of any criminal investigation or seizure. The county attorney asked how to legally move the money out of evidence storage and into a public fund.

The AG identified Section 21-39-21 as the governing procedure if Sturgis determines the money is "abandoned property." The statute addresses municipal officers' receipt or recovery of "any lost, stolen, abandoned or misplaced personal property," and "personal property" includes cash under Section 1-3-41.

The statutory procedure calls for notice in three public places in the municipality describing the property; if the owner is known, the notice is also mailed. The owner has 120 days from notice to claim the property. If no one claims it, the statute calls for an auction, but cash cannot be sold. The AG said that, after the required notice, the money could be deposited directly into the municipality's general fund without a sale.

Section 21-39-21 does not contemplate transferring the money to a law enforcement agency's general fund. The destination is the municipal general fund. The statute does not require a court order, county court or otherwise, to authorize the deposit.

The AG noted that the Uniform Disposition of Unclaimed Property Act (Sections 89-12-1 et seq.) does not apply here because the money's owner is unknown. It did not explain the Act's general scope further.

What this means for you

For police chiefs and city attorneys

The opinion holds that if the city makes the factual determination that the cash is "abandoned property," the governing procedure is Section 21-39-21: notice posted in three public places, a 120-day claim period, and, because cash cannot be sold, direct deposit into the municipal general fund without an auction. It holds no county-court order or other judicial order is required, and it recommends contacting the Office of the State Auditor for advice on applying the procedure.

For sheriffs holding found cash on behalf of a municipality

If Sturgis finds the money abandoned, the opinion says Section 21-39-21 supplies the handling procedure and the cash could go directly into the municipality's general fund. The section does not contemplate depositing it with a law enforcement agency. On these facts, the Sturgis Police Department found the money and the sheriff's department held it for safekeeping.

For municipal clerks

Section 21-39-21 provides that, after a sale, the designated officer delivers to the municipal clerk the notice, a list of property sold, the amounts received, and the buyers, and the clerk deposits the money in the general fund and files the records. The opinion says this cash could be deposited directly, without a sale, if Sturgis finds it abandoned and gives the required notice.

For police departments hoping to put found cash into their own budget

The opinion says Section 21-39-21 does not contemplate depositing found money with a law enforcement agency. If Sturgis determines this cash is abandoned, it could be deposited in the municipal general fund after the required notice. The request concerned cash that was not part of any criminal investigation or seizure.

Common questions

Does Section 21-39-21 apply to cash, not just to physical items?

Yes. Section 1-3-41 generally defines "personal property" to include cash, and the AG specifically applied Section 21-39-21 to cash in MS AG Op., Murdock (Aug. 24, 2007) (money found and turned in to the Gulfport Police Department).

What is the notice procedure?

Post notice in three public places in the municipality. The notice has to contain "an accurate and detailed description of such property." If the city knows who the owner is, also mail the owner a copy of the notice.

How long does the owner have to claim the property?

120 days from the date the notice is given.

What happens after 120 days if no one claims the cash?

For ordinary personal property, the statute requires public auction with at least 10 days' advance notice posted in three public places. If Sturgis determines this cash is abandoned property, the opinion says it could go directly into the municipal general fund after the required notice, without an auction.

Does a county court judge have to sign off on the transfer?

No. Section 21-39-21 does not require a court order from a county court judge or any other judicial officer.

Can the law enforcement agency keep the cash for its own budget?

Section 21-39-21 does not contemplate depositing the money with a law enforcement agency. If Sturgis determines it is abandoned property, the opinion says the money could instead be deposited in the municipal general fund after notice.

What about the Uniform Disposition of Unclaimed Property Act?

The opinion says the Act does not apply here because the owner of the found money is unknown. It does not set out a broader test for when the Act applies.

Background and statutory framework

Section 21-39-21, municipal disposition of lost, stolen, abandoned, or misplaced personal property. When a marshal, police, or other municipal officer recovers such personal property, the municipality posts notice in three public places. The owner has 120 days to claim. If no one claims within 120 days, the property is sold at public auction with at least 10 days' notice. Sale proceeds go to the municipal general fund.

Section 1-3-41. Defines "personal property" generally to include cash.

MS AG Op., Stewart (May 20, 2005). The finder of lost property does not acquire absolute ownership but has a property interest as against all but the rightful owner.

MS AG Op., Murdock (Aug. 24, 2007). Section 21-39-21 applies to money found and turned in to a municipal police department.

Sections 89-12-1 et seq., Uniform Disposition of Unclaimed Property Act. The opinion says it does not apply to this found money because the owner is unknown.

Citations

• Miss. Code Ann. § 21-39-21
• Miss. Code Ann. § 1-3-41
• Miss. Code Ann. §§ 89-12-1 et seq.
• MS AG Op., Stewart (May 20, 2005)
• MS AG Op., Murdock (Aug. 24, 2007)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2024/12/R.-Roberson-November-22-2024-Money-Found-by-Law-Enforcement.pdf

Original opinion text

November 22, 2024
Mr. Rob Roberson, Esq.
Attorney, Oktibbeha County
212 East Main Street
Starkville, Mississippi 39759
Re:

Money Found by Law Enforcement

Dear Mr. Roberson:
The Office of the Attorney General has received your request for an official opinion. Background According to your request, around October 2023, after receiving a call regarding suspicious activity, the Chief of Police for the Sturgis Police Department found $11,180.00 in a bathroom trashcan at the Dollar General in Sturgis, Mississippi. The Chief verified with the general manager that the money did not belong to the Dollar General. The Chief then took the money into custody and handed it over to the Oktibbeha County Sherrif's Department for holding. Every effort has been made to locate the owner, but no one has claimed the money. Finally, according to our phone conversation, the subject money has not been part of any criminal investigation or seizure. Questions Presented

1. What is the proper procedure for transferring money found by a law enforcement agency
   — that has not been claimed — to the law enforcement agency's general fund?
2. Does a county court judge have to sign an order to transfer the found money to the law
   enforcement agency?
   Brief Response
3. If the factual determination is made that the subject money is "abandoned property," the
   proper procedure for handling the same would be the procedures set forth in Mississippi Code Annotated Section 21-39-21. For additional advice on how to apply these procedures, we would recommend contacting the Office of the State Auditor.
4. Section 21-39-21 does not contemplate depositing the money with a law enforcement
   agency nor does it require an order from a county court judge. Applicable Law and Discussion This office has previously noted that "[g]enerally, the finder of lost property does not acquire absolute ownership, but acquires such property interest or right as will enable him to keep it against all the world but the rightful owner." MS AG Op., Stewart at 2 (May 20, 2005) (citing 1 Am. Jur. 2d Abandoned, Lost, and Unclaimed Property section 18 (2004)). We have also advised that Section 21-39-21 addresses the way municipalities should handle lost, stolen, abandoned, or misplaced personal property and is applicable to found money or cash. See MS AG Op., Murdock at 2 (Aug. 24, 2007) (discussing Section 21-39-21's applicability to money found by an individual and turned in to the Gulfport Police Department). Although Chapter 39 does not define "personal property," pursuant to Section 1-3-41, which is generally applicable to every statute, "personal property . . . means all tangible and intangible personal property and shall include cash." Section 21-39-21 provides in relevant part, The governing authorities of any municipality, upon the receipt or recovery of any lost, stolen, abandoned or misplaced personal property by the marshal, police or other officers of such municipality, shall cause to be posted, in three (3) public places in the municipality, notice that such property has been received or recovered. Such notice shall contain an accurate and detailed description of such property and, if the governing authorities are advised as to who owns such property, a copy of such notice shall be mailed to such person or persons in addition to being posted as herein required. The owner of such property may recover the same by filing a claim with the governing authorities of the municipality and establishing his right thereto.
   ...
   If no person claims the property within one hundred twenty (120) days from the date the notice provided for above is given, the governing authorities of the municipality shall cause the same to be sold at public auction to the highest bidder for cash after first posting notice of such sale in three (3) public places in the municipality at least ten (10) days preceding the date of such sale. The notice shall contain a detailed and accurate description of the property to be sold and shall be addressed to the unknown owners or other persons interested in the property to be sold. The notice shall also set forth the date, time and place such sale is to be conducted and shall designate the person who is to make the sale, which person shall be some official designated by the governing authorities of the municipality.
   ...

The person or officer designated and making the sale of such property shall promptly upon completion of the sale deliver to the clerk of the municipality a copy of the notice authorizing the sale, a list of the property sold, the amount paid for each item, the person to whom each item was sold, and all monies received from such sale, whereupon, the clerk shall deposit the monies in the general fund of the municipality and shall file the information concerning the sale among the other records of his office. (emphasis added). As stated supra, you have indicated that the subject money has not been part of any criminal investigation or procedure but rather was found by the Sturgis Police Department, which has not been able to locate the owner. It is thus the opinion of this office that if Sturgis makes the factual determination that the subject money is "abandoned property," the proper procedure for handling the same would be the procedure set forth in Section 21-39-21. We recognize that the subject personal property is money, which cannot be sold. Accordingly, after providing the requisite notice, the money could be directly deposited — without an actual sale — into the municipality's general fund as set forth in Section 21-39-21. Finally, Section 21-39-21 does not contemplate depositing the money with a law enforcement agency nor does it require an order by a judge, county court, or otherwise. If you have additional questions on how to apply procedures set forth in Section 21-39-21, we recommend contacting the Office of the State Auditor. If this office may be of any further assistance to you, please do not hesitate to contact us. Sincerely, LYNN FITCH, ATTORNEY GENERAL By:

/s/ Maggie Kate Bobo
Maggie Kate Bobo
Special Assistant Attorney General

Because the owner of the subject money is unknown, the Uniform Disposition of Unclaimed Property Act, Sections 89-12-1, et. seq., is not applicable here.