(a) In this section, “military award or decoration” means a military decoration for an act of valor, heroism, or exceptional service, a good conduct medal, a service medal, a service ribbon, or a badge, tab, certificate, or letter awarded in connection with military service.
(b) A military award or decoration delivered to the comptroller under this chapter:
(1) may not be sold under § 74.401 or destroyed; and
(2) shall be delivered by the comptroller to the Texas military forces.

(c) The Texas military forces shall conduct a reasonable search of public records to locate the person to whom the military award or decoration was awarded. If the department cannot locate the person, the department shall attempt to locate the person’s next of kin. If the department locates the person or the person’s next of kin, the department shall deliver the award or decoration to the person or the person’s next of kin, as applicable.
(d) If the Texas military forces cannot locate the person to whom a military award or decoration was awarded or the person’s next of kin, the award or decoration shall be held in trust for the comptroller at:
(1) a museum established by the department; or
(2) if no museum exists, any other public facility designated by the department.
(e) Except as provided by this subsection, a military award or decoration held in trust by a museum or facility designated under Subsection (d) shall be used in a display or exhibit that honors persons who have served the state or nation in military service. If the museum or facility cannot practically incorporate the award or decoration into an established display or exhibit of the museum or facility, the award or decoration shall be kept in a secure storage area or loaned to another museum for use in a display or exhibit that honors persons who have served the state or nation in military service.
(f) This section does not affect a person’s right to claim a military award or decoration under Subchapter F.