Text of section effective on September 01, 2007

1. (a) Notwithstanding and in addition to any other provision of this chapter or other law, a nonprofit cooperative corporation may deliver reported money to a scholarship fund for rural students or to stimulate rural economic development instead of delivering the money to the comptroller as prescribed in Section 74.301.

2. (b) A nonprofit cooperative corporation may deliver the money under this section only:

   1. (1) to a scholarship fund established by one or more nonprofit cooperative corporations in this state to enable students from rural areas to attend college, technical school, or other postsecondary educational institution; and
   2. (2) to an economic development fund for the stimulation and improvement of business and commercial activity for economic development in rural communities.
3. (c) A nonprofit cooperative corporation shall file with the comptroller a verification of money delivered under this section that complies with Section 74.302.
4. (d) A claim for money delivered under this section must be filed with the nonprofit cooperative corporation that delivered the money. A nonprofit cooperative corporation shall forward the claim to the administrator of the fund to which the money was delivered. The fund shall pay the claim if the fund determines in good faith that the claim is valid. A person aggrieved by a claim decision may file a suit against the fund in a district court in the county in which the administrator of the fund is located in accordance with Section 74.506.

5. (e) The comptroller shall prescribe forms and procedures governing this section, including forms and procedures relating to:

   1. (1) notice of presumed abandoned property;
   2. (2) delivery of reported money to a scholarship or economic development fund;
   3. (3) filing of a claim; and
   4. (4) procedures to allow equitable opportunity for participation by each nonprofit cooperative corporation in the state.
6. (f) During a state fiscal year the total amount of money that may be transferred by all nonprofit cooperative corporations under this section may not exceed $1 million. No more than 20 percent of each nonprofit cooperative's funds eligible for delivery under this section shall be used for economic development. The comptroller shall adopt procedures to record the total amount of money transferred annually to allow equitable opportunity for participation with preference given to corporations already providing similar scholarship opportunities in other states.
7. (g) Nonprofit cooperative corporations may combine economic development funds from other sources with any economic development funds delivered under this section. In addition, such cooperatives may engage in other business and commercial activities, in their own behalf or through such subsidiaries and affiliates as deemed necessary, in order to provide and promote educational opportunities and to stimulate rural economic development.
8. (h) In this section, a nonprofit cooperative corporation means a cooperative corporation organized under Chapters 51 and 52, Agriculture Code, the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes), the Cooperative Association Act (Article 1396-50.01, Vernon's Texas Civil Statutes), and Chapter 161, Utilities Code.

Added by Acts 1997, 75th Leg., ch. 904, Sec. 1, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.45, eff. Sept. 1, 1999.