Numbered Letter 1999-03 (Revised)

Summary

Questions have been raised with the Department of Treasury regarding the procedures and accounting of unclaimed recovered stolen property sold by the county sheriff in accordance with Act 214 PA 1979 (MCL 434.181).

Law Enforcement Agency Sale-Accounting and Deposit of Proceeds

MCL 434.181 provides that the sheriff of the county must report in writing to the board of commissioners any recovered stolen property, including money, which is unclaimed for 6 months after recovery.  The sheriff must request in writing for the authority to dispose of the recovered stolen property in accordance with the statute.

MCL 434.182 provides:

• The board of commissioners must act upon the request of the law enforcement agency within 6 months after receipt of the request from the law enforcement agency.
• If the board approves the request, the law enforcement agency shall publish notice in a newspaper of general circulation in the county at least 5 days before the sale.

• The notice must describe that the property can be purchased at public sale to the highest bidder.  The notice must include:
  • The property, including money;
  • Time of the public sale; and
  • Place of the public sale.

Money, which has face value, shall not be subject to public sale.  The law enforcement agency may obtain an appraisal to determine whether money, because of age, origin, metal content or value as a collector’s item, has a value other than its face value.

Until the date of the sale, the property (including money) may be claimed at the law enforcement agency’s office.

If ownership is proved:

• The law enforcement agency must turn the property, including the money, over to the owner.
• Cancel the sale, insofar as the claimed property is concerned.

MCL 434.183 defines the sale and disposition of proceeds.

The law enforcement agency shall conduct a sale of the unclaimed property and shall deposit the proceeds of the sale, and money not subject to public sale, after deducting the cost of the sale, including reasonable appraisal fees, with the county, city, village, or township treasurer to the credit of the county, city, village, or township general fund.

All sale proceeds are credited to the general fund of the county in a revenue account within the 642-647 series and titled “Sale of Unclaimed Stolen Property.

If you need further assistance please call (517) 335-7469 or write our office:  Michigan Department of Treasury, LAFD, P.O. Box 30728, Lansing, Michigan 48909-8228 or email our office at TreasLocalGov@michigan.gov.