77R4053 AJA-D                           
         By Junell                                              H.B. No. 541
         Substitute the following for H.B. No. 541:
         By Berman                                          C.S.H.B. No. 541
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to disposition of military awards and decorations
 1-3     escheated to the state.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 74.401(a), Property Code, is amended to
 1-6     read as follows:
 1-7           (a)  Except as provided by Subsection (c) or Section 74.404,
 1-8     the comptroller shall sell at public sale all personal property,
 1-9     other than money and marketable securities, delivered to the
1-10     comptroller in accordance with Section 74.301.  The comptroller
1-11     shall conduct the sale in the city in this state that the
1-12     comptroller determines affords the most favorable market for the
1-13     particular property.
1-14           SECTION 2. Subchapter E, Chapter 74, Property Code, is
1-15     amended by adding Section 74.404 to read as follows:
1-16           Sec. 74.404.  SALE OF MILITARY AWARDS AND DECORATIONS
1-17     PROHIBITED. (a)  In this section, "military award or decoration"
1-18     means a military decoration for an act of valor, heroism, or
1-19     exceptional service, a good conduct medal, a service medal, a
1-20     service ribbon, or a badge, tab, certificate, or letter awarded in
1-21     connection with military service.
1-22           (b)  A military award or decoration delivered to the
1-23     comptroller under this chapter:
1-24                 (1)  may not be sold under Section 74.401 or destroyed;
 2-1     and
 2-2                 (2)  shall be delivered by the comptroller to the
 2-3     adjutant general's department.
 2-4           (c)  The adjutant general's department shall conduct a
 2-5     reasonable search of public records to locate the person to whom
 2-6     the military award or decoration was awarded.  If the department
 2-7     cannot locate the person, the department shall attempt to locate
 2-8     the person's next of kin.  If the department locates the person or
 2-9     the person's next of kin, the department shall deliver the award or
2-10     decoration to the person or the person's next of kin, as
2-11     applicable.
2-12           (d)  If the adjutant general's department cannot locate the
2-13     person to whom a military award or decoration was awarded or the
2-14     person's next of kin, the award or decoration shall be held in
2-15     trust for the comptroller at:
2-16                 (1)  a museum established by the department; or
2-17                 (2)  if no museum exists, any other public facility
2-18     designated by the department.
2-19           (e)  Except as provided by this subsection, a military award
2-20     or decoration held in trust by a museum or facility designated
2-21     under Subsection (d) shall be used in a display or exhibit that
2-22     honors persons who have served the state or nation in military
2-23     service.  If the museum or facility cannot practically incorporate
2-24     the award or decoration into an established display or exhibit of
2-25     the museum or facility, the award or decoration shall be kept in a
2-26     secure storage area or loaned to another museum for use in a
2-27     display or exhibit that honors persons who have served the state or
 3-1     nation in military service.
 3-2           (f)  This section does not affect a person's right to claim a
 3-3     military award or decoration under Subchapter F.
 3-4           SECTION 3. This Act takes effect September 1, 2001, and
 3-5     applies only to property described by Section 74.404, Property
 3-6     Code, as added by this Act, that is delivered to the comptroller on
 3-7     or after that date.