Property Liability (B-34)
Original Implementation: April 22, 2003
Last Revision: July 15, 2008
Any university employee entrusted with state property may be held financially liable for damaged, destroyed, lost, or stolen property as outlined in Texas Government Code 403.275.
All university employees will be provided a copy of this policy at new employee orientation.
Department head “property managers” will be required to sign a Change In Department Head Certification of Property Inventory, accepting responsibility for all department property within 30 days of assuming their duties. The department head is responsible for identifying responsible parties who have been entrusted with the care and safekeeping of specific pieces of property. Employees taking equipment off campus will be required to complete a Removal of Property from Campus form. These forms will include the following statement:
“I understand that I may be held financially liable for lost, damaged and stolen property as outlined in Texas Government Code 403.275. See Property Liability Policy B-34.”
A person is financially accountable for any property loss sustained by the state if:
- agency property disappears as a result of the failure of the head of an agency, property manager, or agency employee entrusted with the property to exercise reasonable care for its safekeeping;
- agency property deteriorates as a result of the failure of the head of an agency, property manager, or agency employee entrusted with the property to exercise reasonable care to maintain and service the property; or
- agency property is damaged or destroyed as a result of an intentional wrongful act or of a negligent act of any state official or employee.
If the head of the state agency or property manager has reasonable cause to believe that any property in the agency's possession has been lost, destroyed, or damaged through the negligence of any state official or employee, the head of the agency or property manager shall report the loss, destruction, or damage to the comptroller and the attorney general not later than the date established by the comptroller. If the head of the state agency or property manager has reasonable cause to believe that any property in the agency's possession has been stolen, the head of the agency or property manager shall report the theft to the comptroller, the attorney general, and the appropriate law enforcement agency not later than the date established by the comptroller.
The attorney general may investigate any report received.
If an investigation by the attorney general reveals that a property loss has been sustained through the negligence of a state official or employee, the attorney general shall make written demand on the official or employee for reimbursement of the loss.
If the demand made by the attorney general is refused or disregarded, the attorney general may take legal action to recover the value of the property as the attorney general deems necessary.
Venue for all suits instituted under this section against a state official or employee is in a court of appropriate jurisdiction of Travis County.
Cross Reference: Texas Government Code Ann. Sec. 403.271(a) through 403.278; 2203.004; Property Inventory and Management, Policy C-42
Responsible for Implementation: Vice President for Finance and Administration
Contact for Revision: Director of Purchasing and Inventory/HUB Coordinator
Forms: None