CHAPTER 76. REPORT, DELIVERY, AND CLAIMS PROCESS FOR CERTAIN PROPERTY
PROPERTY CODE
TITLE 6. UNCLAIMED PROPERTY
CHAPTER 76. REPORT, DELIVERY, AND CLAIMS PROCESS FOR CERTAIN
PROPERTY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 76.001. APPLICABILITY. This chapter applies only to the
holder of property if:
(1) the holder is a school district, municipality, or county;
and
(2) the property is:
(A) presumed abandoned under Chapter 72 or 75; and
(B) valued at $100 or less.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 1015, Sec. 1, eff.
Sept. 1, 2000.
Sec. 76.002. OFFICERS AND REPRESENTATIVES. In this chapter:
(1) a reference to the treasurer of a holder includes a person
performing the duties of the treasurer of a holder in a school
district, municipality, or county in which the office of
treasurer does not exist;
(2) a reference to the chief fiscal officer of a holder includes
a person performing the duties of the chief fiscal officer of a
holder in a school district, municipality, or county in which the
office of chief fiscal officer does not exist; and
(3) a reference to the attorney for a holder includes an
attorney designated by the governing body of the holder to
represent the holder.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 1015, Sec. 2, eff.
Sept. 1, 2000.
SUBCHAPTER B. PROPERTY REPORT
Sec. 76.101. PROPERTY REPORT. (a) Each holder who on June 30
holds property subject to this chapter shall file a report of
that property on or before the following November 1. Each report
shall be filed with the treasurer of the holder as provided by
this section and on forms prescribed by the treasurer of the
holder.
(b) A holder required by Subsection (a) to file a report shall
file a report each successive year regardless of whether the
holder has any reportable property on June 30 of the year in
which the report is filed.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.102. VERIFICATION. (a) The person preparing a property
report shall place at the end of each copy of the report a
verification made under oath and executed by the chief fiscal
officer of the holder, as designated by the holder.
(b) The verification must include the following sentence: "This
report contains a full and complete list of all property held by
the undersigned that, from the knowledge and records of the
undersigned, is abandoned under the laws of the State of Texas."
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.103. RETENTION OF RECORDS. (a) The holder required to
file a property report shall keep a record of:
(1) the name and last known address of each person who, from the
records of the holder, appears to be the owner of the property;
(2) a brief description of the property, including the
identification number of the account, if any; and
(3) the balance of each account, if appropriate.
(b) The record must be kept until the 10th anniversary of the
date on which the property is reportable.
(c) The treasurer of the holder may provide for a shorter period
for keeping a record required by this section.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.104. CONFIDENTIALITY OF PROPERTY REPORT. (a) Except as
provided by this chapter, a property report filed with the
treasurer of the holder is confidential until the second
anniversary of the date the report is filed.
(b) Notwithstanding other law, the social security number of an
owner that is reported to the treasurer of the holder is
confidential.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
SUBCHAPTER C. NOTICE
Sec. 76.201. PUBLISHED NOTICE. (a) Except as provided by
Subsections (b) and (e), the treasurer of a holder shall publish
a notice in a newspaper in the calendar year immediately
following the year in which the property report is filed. The
newspaper must be a newspaper of general circulation in the
jurisdiction of the holder.
(b) The treasurer of the holder may use a method of publishing
notice that is different from that prescribed by Subsection (a)
if the treasurer determines that the different method would be as
likely as the prescribed method to give actual notice to the
person required to be named in the notice.
(c) The published notice must state that the reported property
is presumed abandoned and subject to this chapter and must
contain:
(1) a statement that, by addressing an inquiry to the treasurer
of the holder, any person possessing a legal or beneficial
interest in the reported property may obtain information
concerning the amount of the property; and
(2) a statement that the owner may present proof of the claim to
the treasurer of the holder and establish the owner's right to
receive the property.
(d) The treasurer of a holder may offer for sale space for
suitable advertisements in a notice published under this section.
Proceeds from the sale of the advertising space shall be used to
defray the cost of publishing the notices, with the remaining
amount, if any, to be deposited to the credit of the unclaimed
money fund.
(e) In the notice required by this section, the treasurer of the
holder may publish other information regarding property if the
treasurer determines that publication of that information is in
the public interest.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.202. NOTICE TO OWNER. (a) During the calendar year
immediately following the year in which the property report is
filed, the treasurer of the holder may mail a notice to each
person who has an address in this state and appears to be
entitled to the reported property.
(b) The notice must contain:
(1) a statement that property is being held by the treasurer of
the holder to which the addressee appears to be entitled; and
(2) a statement that the owner may present proof of the claim to
the treasurer of the holder and establish the owner's right to
receive the property.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.203. NOTICE THAT ACCOUNTS ARE SUBJECT TO THIS CHAPTER.
Publication of notice in accordance with Section 76.201 is notice
to the owner by the holder that the reported property is subject
to this chapter.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.204. CHARGE FOR NOTICE. The treasurer of the holder may
charge the following against the property delivered under this
chapter:
(1) expenses incurred for the publication of notice required by
Section 76.201; and
(2) the amount paid in postage for the notice to the owner
required by Section 76.202.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
SUBCHAPTER D. DELIVERY
Sec. 76.301. DELIVERY OF PROPERTY TO TREASURER. (a) Each
holder who on June 30 holds property that is subject to this
chapter shall deliver the property to the treasurer of the holder
on or before the following November 1 accompanied by the property
report.
(b) If the property subject to delivery under Subsection (a) is
stock or some other intangible ownership interest in a business
association for which there is no evidence of ownership, the
holder shall issue a duplicate certificate or other evidence of
ownership to the treasurer of the holder at the time delivery is
required under this section.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.302. VERIFICATION OF DELIVERED PROPERTY. (a) Property
delivered under Section 76.301 must be accompanied by a
verification under oath that:
(1) the property delivered is a complete and correct remittance
of all accounts subject to this chapter in the holder's
possession;
(2) the existence and location of the listed owners are unknown
to the holder; and
(3) the listed owners have not asserted a claim or exercised an
act of ownership with respect to the owner's reported property.
(b) The verification required by Subsection (a) shall be signed
by the chief fiscal officer of the holder, as designated by the
holder.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.303. LIST OF OWNERS. (a) The treasurer of the holder
shall compile and revise each year an alphabetical list of names
and last known addresses of the owners listed in the reports and
the amount credited to each account.
(b) The treasurer of the holder shall make the list available
for public inspection during all reasonable business hours.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.304. PERIOD OF LIMITATION NOT A BAR. The expiration of
any period specified by statute or court order, during which an
action or proceeding may be initiated or entered to obtain
payment of a claim for money, does not prevent the money from
being presumed abandoned property and does not affect any duty to
file a report required by this chapter or to deliver abandoned
property to the treasurer of the holder.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
SUBCHAPTER E. DISPOSITION OF DELIVERED PROPERTY
Sec. 76.401. SALE OF PROPERTY. (a) Except as provided by
Subsection (c), the treasurer of the holder shall sell at public
sale all personal property, other than money and marketable
securities, delivered to the treasurer of the holder in
accordance with Section 76.301. The treasurer of the holder shall
conduct the sale in the holder's jurisdiction.
(b) The treasurer of the holder shall sell the property to the
highest bidder. If the treasurer of the holder determines that
the highest bid is insufficient, the treasurer of the holder may
decline that bid and offer the property for public or private
sale.
(c) The treasurer of the holder is not required to offer
property for sale if the property belongs to a person with an
address outside this state or the treasurer of the holder
determines that the probable cost of the sale of the property
exceeds its value.
(d) If after investigation the treasurer of the holder
determines that property delivered has insubstantial commercial
value, the treasurer of the holder may destroy or otherwise
dispose of the property at any time.
(e) A person may not maintain any action or proceeding against
the state, an officer of the state, or the holder of property
because of an action taken by the treasurer of the holder under
this section.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.402. NOTICE OF SALE. Before the 21st day before the day
on which a public sale is held under Section 76.401, the
treasurer of the holder shall publish notice of the sale in a
newspaper of general circulation in the county where the sale is
to be held.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.403. PURCHASER'S TITLE. (a) At a sale, public or
private, of property that is held under this subchapter, the
purchaser receives title to the purchased property free from all
claims of the prior owner and prior holder of the property and
all persons claiming through or under the owner or holder.
(b) The treasurer of the holder shall execute all documents
necessary to complete the transfer of title.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
SUBCHAPTER F. CLAIM FOR DELIVERED PROPERTY
Sec. 76.501. FILING OF CLAIM. (a) A claim for property
delivered to the treasurer of the holder under this chapter must
be filed with the treasurer of the holder.
(b) All claims to which this section applies must be filed in
accordance with procedures and on forms prescribed by the
treasurer of the holder.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.502. CONSIDERATION OF CLAIM. The treasurer of the
holder shall consider the validity of each claim filed under this
subchapter.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.503. HEARING. (a) The treasurer of the holder may hold
a hearing and receive evidence concerning a claim filed under
this subchapter.
(b) If the treasurer of the holder considers that a hearing is
necessary to determine the validity of a claim, the treasurer of
the holder shall sign the statement of the findings and the
decision on the claim. The statement shall report the substance
of the evidence heard and the reasons for the decision. The
statement is a public record.
(c) If the treasurer of the holder determines that a claim is
valid, the treasurer of the holder shall approve and sign the
claim.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.504. PAYMENT OF CLAIM. (a) If a claim has been
approved under this subchapter, the treasurer of the holder shall
pay the claim.
(b) If a claim is for personal property other than money and has
been approved under this subchapter, the treasurer of the holder
promptly shall deliver the property to the claimant unless the
treasurer of the holder has sold the property. If the property
has been sold under Section 76.401, the treasurer of the holder
shall pay to the claimant the proceeds from the sale.
(c) Costs of publication and postage shall be deducted from the
amounts paid under this section, but deductions for any costs of
administration or service charges may not be made.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.505. APPEAL. (a) A person aggrieved by the decision on
a claim filed under this subchapter may appeal the decision
before the 61st day after the date the decision was rendered.
(b) If a claim has not been decided before the 91st day after
the date the claim was filed, the claimant may appeal within the
60-day period beginning on the 91st day after the date of filing.
(c) An appeal under this section must be made by filing suit
against the holder in a district court in the county in which the
claimed property is located. The holder's immunity from suit
without consent is waived with respect to a suit under this
section.
(d) A court shall try an action filed under this section de novo
and shall apply the rules of practice of the court.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.506. FEE FOR RECOVERY. A person who informs a potential
claimant that the claimant may be entitled to claim property that
is reportable to the treasurer of the holder under this chapter,
that has been reported to the treasurer of the holder, or that is
in the possession of the treasurer of the holder may not contract
for or receive from the claimant for services an amount that
exceeds 10 percent of the value of the property recovered. If the
property involved is mineral proceeds, the amount for services
may not include a portion of the underlying minerals or any
production payment, overriding royalty, or similar payment.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.507. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY;
PROCEDURE. (a) At any time after property has been paid or
delivered to the treasurer of the holder under this chapter,
another state may recover the property if:
(1) the property was subjected to custody by the holder because
the records of the holder did not reflect the last known address
of the apparent owner when the property was presumed abandoned
under this chapter, and the other state establishes that the last
known address of the apparent owner or other person entitled to
the property was in that state and under the laws of that state
the property escheated to or was subject to a claim of
abandonment by that state;
(2) the last known address of the apparent owner or other person
entitled to the property, as reflected by the records of the
holder, is in the other state and under the laws of that state
the property has escheated to or become subject to a claim of
abandonment by that state; or
(3) the records of the holder were erroneous in that the records
did not accurately reflect the actual owner of the property and
the last known address of the actual owner is in the other state
and under the laws of that state the property escheated to or was
subject to a claim of abandonment by that state.
(b) The claim of another state to recover escheated or abandoned
property must be presented in a form prescribed by the treasurer
of the holder, who shall decide the claim within 90 days after
the date it is presented. The treasurer of the holder shall allow
the claim if the treasurer of the holder determines that the
other state is entitled to the abandoned property under
Subsection (a).
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
SUBCHAPTER G. UNCLAIMED MONEY FUND
Sec. 76.601. FUND. (a) The treasurer of the holder shall
maintain a fund known as the unclaimed money fund.
(b) The treasurer of the holder shall deposit to the credit of
the fund:
(1) all funds, including marketable securities, delivered to the
treasurer of the holder under this chapter or any other statute
requiring the delivery of unclaimed property to the treasurer of
the holder;
(2) all proceeds from the sale of any property, including
marketable securities, under this chapter; and
(3) any income derived from investments of the fund.
(c) The treasurer of the holder shall keep a separate record and
accounting for delivered unclaimed property, other than money,
before its sale.
(d) The treasurer of the holder shall from time to time invest
the amount in the unclaimed money fund in investments approved by
law for the investment of funds by the holder.
(e) The treasurer of the holder may from time to time sell
securities in the fund, including stocks, bonds, and mutual
funds, and use the proceeds to buy, exchange, invest, or reinvest
in marketable securities. When making the investments, the
treasurer of the holder shall exercise the judgment and care of a
prudent person.
(f) The treasurer of the holder shall keep a separate record and
accounting for securities delivered, sold, purchased, or
exchanged and the proceeds and earnings from the securities.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.602. USE OF FUND. (a) The treasurer of the holder
shall use the unclaimed money fund to pay the claims of persons
establishing ownership of property in the possession of the
treasurer of the holder under this chapter or under any other
unclaimed property or escheat statute.
(b) Each fiscal year after deducting funds sufficient to pay
anticipated expenses and claims of the unclaimed money fund, the
treasurer of the holder shall transfer the remainder to the
general fund of the holder.
(c) The treasurer of the holder and the attorney for the holder
may use the unclaimed money fund generally for the enforcement
and administration of this chapter, including the expenses of
forms, notices, examinations, travel, court costs, supplies,
equipment, and employment of necessary personnel and other
necessary expenses.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.603. AUDIT; BUDGET. The unclaimed money fund is subject
to:
(1) audit by the auditor of the holder or an independent auditor
if the holder does not have an auditor; and
(2) budgetary procedures adopted by the governing body of the
holder.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
SUBCHAPTER H. ENFORCEMENT
Sec. 76.701. RULES. The treasurer of the holder may adopt rules
necessary to carry out this chapter.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.702. EXAMINATION OF RECORDS. (a) To enforce this
chapter and to determine whether reports have been made as
required by this chapter, the treasurer of the holder, at any
reasonable time, may examine the books and records of the holder.
(b) The treasurer of the holder, attorney for the holder, or an
agent of either person may not make public any information
obtained by an examination made under this section and may not
disclose that information except:
(1) in the course of a judicial proceeding authorized by this
chapter in which the holder is a party; or
(2) under an agreement with another state allowing joint audits
or the exchange of information obtained under this section.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.703. ADDITIONAL PERSONNEL. (a) The treasurer of the
holder and the attorney for the holder may employ, in the office
of either person, additional personnel necessary to enforce this
chapter.
(b) The salary rate of additional personnel may not exceed the
rate paid to other employees of the holder for similar services.
(c) The salaries of additional personnel shall be paid in
accordance with Section 76.602.
(d) The provisions of this section are subject to the budgetary
procedures adopted by the governing body of the holder.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.
Sec. 76.704. OFFENSE. (a) A person commits an offense if the
person:
(1) wilfully fails to file a report required by this chapter;
(2) refuses to permit examination of records in accordance with
this chapter;
(3) makes a deduction from or a service charge against a dormant
account or dormant deposit of funds; or
(4) violates any other provision of this chapter.
(b) An offense under this section is punishable by:
(1) a fine of not less than $500 or more than $1,000;
(2) confinement in jail for a term not to exceed six months; or
(3) both the fine and confinement.
(c) In addition to a criminal penalty, a person who commits an
offense under Subsection (a) is subject to a civil penalty not to
exceed $100 for each day of the violation. The attorney for the
holder shall collect the civil penalty by bringing suit in a
district court of the county in which the holder is located.
Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1,
1997.