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§ 140A.104.Evidence

Title 6. Miscellaneous Provisions · Chapter 140A. Civil Racketeering Related to Trafficking of Persons · Subchapter C. Enforcement · Last amended 2023 · Last verified August 29, 2026

In one sentenceSection 140A.104 sets a preponderance standard, gives conviction preclusive effect, and requires personal culpability before an individual, enterprise or financial institution is liable for another’s conduct.

Full Text of § 140A.104

Text sizeJump to: (a) (b) (c) (d) (e)

(a)In a proceeding under this chapter, the state bears the burden of proof by a preponderance of the evidence.
(b)A person convicted in a criminal proceeding is precluded, in a proceeding under this chapter, from subsequently denying the essential allegations of the criminal offense of which the person was convicted. For purposes of this subsection, a verdict or a plea, including a plea of nolo contendere, is considered a conviction.
(c)An individual may not be held liable under this chapter based on the conduct of another person unless the finder of fact finds by a preponderance of the evidence that the individual authorized, requested, commanded, participated in, ratified, or recklessly tolerated the unlawful conduct of the other person.
(d)An enterprise may not be held liable under this chapter based on the conduct of a person unless the finder of fact finds by a preponderance of the evidence that a director or high managerial agent performed, authorized, requested, commanded, participated in, ratified, or recklessly tolerated the unlawful conduct of the person.
(e)A bank or savings and loan association insured by the Federal Deposit Insurance Corporation, a credit union insured by the National Credit Union Administration, or the holder of a money transmission license as defined by Chapter 152, Finance Code, may not be held liable in damages or for other relief under this chapter, unless the finder of fact finds by a preponderance of the evidence that the person or agent acquiring or maintaining an interest in or transporting, transacting, transferring, or receiving the funds on behalf of another did so knowing that the funds were the proceeds of an offense and that a director or high managerial agent performed, authorized, requested, commanded, participated in, ratified, or recklessly tolerated the unlawful conduct of the person or agent.
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Plain-English Summary

Five evidentiary rules, and three of them protect against liability by association.

Subsection (a): the state bears the burden by a preponderance of the evidence — the civil standard, notwithstanding that the conduct is criminal.

Subsection (b) gives a conviction preclusive effect. A person convicted in a criminal proceeding is precluded from denying the essential allegations of that offense here, and a verdict or a plea, including nolo contendere, is a conviction for this purpose.

Naming the no-contest plea matters, since such a plea is ordinarily not an admission in later civil proceedings.

Subsections (c) and (d) require personal culpability, and use the same six verbs. An individual is not liable for another’s conduct unless they authorized, requested, commanded, participated in, ratified, or recklessly tolerated it. An enterprise is not liable unless a director or high managerial agent did.

"Recklessly tolerated" is the outer boundary, and it is the one that decides cases: a defendant who knew of the risk and did nothing is within it; one who was merely careless is not.

Subsection (e) is a separate protection for financial institutions — an FDIC-insured bank or savings and loan, an NCUA-insured credit union, or a money transmission licensee. Such an entity is not liable unless the person handling the funds knew they were the proceeds of an offense and a director or high managerial agent performed, authorized or recklessly tolerated the conduct.

Both elements are required, which reflects that banks move enormous volumes of transactions for customers they cannot investigate individually.

Frequently Asked Questions

What is the standard of proof?

A preponderance of the evidence, borne by the state, even though the underlying conduct is criminal.

Does a criminal conviction settle the civil case?

It precludes the person from denying the essential allegations of that offense — and a nolo contendere plea counts as a conviction.

When is a company liable for an employee?

Only where a director or high managerial agent performed, authorized, requested, commanded, participated in, ratified, or recklessly tolerated the conduct.

Are banks liable for moving proceeds?

Only where the person handling the funds knew they were proceeds of an offense and a director or high managerial agent was culpable.

Amendment History

  • Added by Acts 2013, 83rd Leg., R.S., Ch. 1066 (H.B. 3241), Sec. 1, eff. June 14, 2013. Redesignated from Civil Practice and Remedies Code, Chapter 140 by
  • Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 21.001(5), eff. September 1, 2015.
  • Transferred, redesignated and amended from Civil Practice and Remedies Code, Section 140A.006 by Acts 2017, 85th Leg., R.S., Ch. 685 (H.B. 29), Sec. 7, eff. September 1, 2017.
  • Amended by:
  • Acts 2021, 87th Leg., R.S., Ch. 807 (H.B. 1540), Sec. 13, eff. September 1, 2021.
  • Acts 2023, 88th Leg., R.S., Ch. 277 (S.B. 895), Sec. 2.01, eff. September 1, 2023.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source