| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to regulating the collection or solicitation of donated |
|
|
goods subsequently sold by for-profit entities or individuals; |
|
|
providing a civil penalty. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 17, Business & Commerce Code, is amended |
|
|
by adding Subchapter K to read as follows: |
|
|
SUBCHAPTER K. REGULATING THE COLLECTION OR SOLICITATION BY |
|
|
FOR-PROFIT ENTITIES OF CERTAIN PUBLIC DONATIONS |
|
|
Sec. 17.921. DEFINITIONS. In this subchapter: |
|
|
(1) "Charitable organization" means an organization |
|
|
that is exempt from federal income tax under Section 501(a) of the |
|
|
Internal Revenue Code of 1986 by being listed as an exempt |
|
|
organization in Section 501(c) of that code. |
|
|
(2) "For-profit entity" has the meaning assigned by |
|
|
Section 1.002, Business Organizations Code. |
|
|
(3) "Household goods" mean furniture, furnishings, or |
|
|
personal effects used or for use in a dwelling. |
|
|
(4) "Public donations receptacle" means a large |
|
|
container or bin in a parking lot or public place that is intended |
|
|
for use as a collection point for clothing or household goods |
|
|
donated by the public. |
|
|
Sec. 17.922. REQUIRED DISCLOSURE FOR COLLECTIONS THROUGH |
|
|
PUBLIC RECEPTACLE. (a) A for-profit entity or individual may not |
|
|
use a public donations receptacle to collect donated clothing or |
|
|
household goods and subsequently sell the donated items unless the |
|
|
for-profit entity or individual attaches to the receptacle a notice |
|
|
that: |
|
|
(1) is permanently and prominently displayed on the |
|
|
front and at least one side of the receptacle; |
|
|
(2) is in bold print, with letters at least two inches |
|
|
in height and one inch in width; |
|
|
(3) contains the business address, other than a post |
|
|
office box number, and telephone number of the for-profit entity or |
|
|
individual; and |
|
|
(4) contains the appropriate disclosure prescribed by |
|
|
this section in English and Spanish. |
|
|
(b) If none of the proceeds from the sale of the donated |
|
|
items will be given to a charitable organization, the disclosure |
|
|
required by Subsection (a)(4) must state: |
|
|
"DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE |
|
|
SOLD FOR PROFIT." |
|
|
(c) If any of the proceeds from the sale of the donated items |
|
|
will be given to a charitable organization, the disclosure required |
|
|
by Subsection (a)(4) must state: |
|
|
"DONATIONS ARE TO (NAME OF FOR-PROFIT ENTITY OR INDIVIDUAL) |
|
|
AND WILL BE SOLD FOR PROFIT. ____ PERCENT (INSERT PERCENTAGE) OF |
|
|
ALL PROCEEDS WILL BE DONATED TO (NAME OF CHARITABLE ORGANIZATION)." |
|
|
(d) If the for-profit entity or individual pays to a |
|
|
charitable organization a flat fee that is not contingent on the |
|
|
proceeds generated from the sale of the donated items and the |
|
|
for-profit entity or individual retains a percentage of the |
|
|
proceeds from the sale, the disclosure required by Subsection |
|
|
(a)(4) must state: |
|
|
"THIS DONATION RECEPTACLE IS OPERATED BY (NAME OF FOR-PROFIT |
|
|
ENTITY OR INDIVIDUAL) ON BEHALF OF (NAME OF CHARITABLE |
|
|
ORGANIZATION). Donations are sold for profit by (name of |
|
|
for-profit entity or individual) and a flat fee of (insert amount) |
|
|
is paid to (name of charitable organization)." |
|
|
Sec. 17.923. REQUIRED DISCLOSURES FOR TELEPHONE OR |
|
|
DOOR-TO-DOOR SOLICITATIONS. (a) A for-profit entity or |
|
|
individual who makes, or directs another person to make, a |
|
|
telephone or door-to-door solicitation requesting that the person |
|
|
solicited donate clothing or household goods may not subsequently |
|
|
sell the donated items unless the solicitor provides to each person |
|
|
solicited, before accepting a donation from the person, the |
|
|
appropriate disclaimer prescribed by this section. |
|
|
(b) If none of the proceeds from the sale of the donated |
|
|
items will be given to a charitable organization, the solicitor |
|
|
must state: |
|
|
"DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE |
|
|
SOLD FOR PROFIT." |
|
|
(c) If any of the proceeds from the sale of the donated items |
|
|
will be given to a charitable organization, the solicitor must |
|
|
state: |
|
|
"DONATIONS TO (NAME OF FOR-PROFIT ENTITY OR INDIVIDUAL) WILL |
|
|
BE SOLD FOR PROFIT AND ____ PERCENT (INSERT PERCENTAGE) OF ALL |
|
|
PROCEEDS WILL BE DONATED TO (NAME OF CHARITABLE ORGANIZATION)." |
|
|
(d) If the for-profit entity or individual pays to a |
|
|
charitable organization a flat fee that is not contingent on the |
|
|
proceeds generated from the sale of the donated items and the |
|
|
for-profit entity or individual retains a percentage of the |
|
|
proceeds from the sale, the solicitor must state: |
|
|
"SOLICITATIONS FOR DONATIONS ARE MADE BY (NAME OF FOR-PROFIT |
|
|
ENTITY OR INDIVIDUAL) ON BEHALF OF (NAME OF CHARITABLE |
|
|
ORGANIZATION). Donations will be sold for profit by (name of |
|
|
for-profit entity or individual) and a flat fee of (insert amount) |
|
|
is paid to (name of charitable organization)." |
|
|
Sec. 17.924. REQUIRED DISCLOSURES FOR MAIL SOLICITATIONS. |
|
|
(a) A for-profit entity or individual who mails, or directs |
|
|
another person to mail, a solicitation requesting that the |
|
|
recipient donate clothing or household goods may not subsequently |
|
|
sell the donated items unless the solicitor includes with the |
|
|
mailed solicitation the appropriate disclosure prescribed by this |
|
|
section, prominently displayed in boldfaced type or capital letters |
|
|
in English and Spanish. |
|
|
(b) If none of the proceeds from the sale of the donated |
|
|
items will be given to a charitable organization, the disclosure |
|
|
required by Subsection (a) must state: |
|
|
"DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE |
|
|
SOLD FOR PROFIT." |
|
|
(c) If any of the proceeds from the sale of the donated items |
|
|
will be given to a charitable organization, the disclosure required |
|
|
by Subsection (a) must state: |
|
|
"DONATIONS TO (NAME OF FOR-PROFIT ENTITY OR INDIVIDUAL) WILL |
|
|
BE SOLD FOR PROFIT AND _______ PERCENT (INSERT PERCENTAGE) OF ALL |
|
|
PROCEEDS WILL BE DONATED TO (NAME OF CHARITABLE ORGANIZATION)." |
|
|
(d) If the for-profit entity or individual pays to a |
|
|
charitable organization a flat fee that is not contingent on the |
|
|
proceeds generated from the sale of the donated items and the |
|
|
for-profit entity or individual retains a percentage of the |
|
|
proceeds from the sale, the disclosure required by Subsection (a) |
|
|
must state: |
|
|
"SOLICITATIONS FOR DONATIONS ARE MADE BY (NAME OF FOR-PROFIT |
|
|
ENTITY OR INDIVIDUAL) ON BEHALF OF (NAME OF CHARITABLE |
|
|
ORGANIZATION). Donations will be sold for profit by (name of |
|
|
for-profit entity or individual) and a flat fee of (insert amount) |
|
|
is paid to (name of charitable organization)." |
|
|
Sec. 17.925. LOCAL ORDINANCE OR REGULATION. Nothing in |
|
|
this subchapter shall be construed to limit the authority of a local |
|
|
government to adopt an ordinance or regulation relating to the use |
|
|
of public donations receptacles as a collection point for donated |
|
|
clothing or household goods if the ordinance or regulation is |
|
|
compatible with and equal to or more stringent than a requirement |
|
|
prescribed by this subchapter. |
|
|
Sec. 17.926. CIVIL PENALTY. (a) Except as provided by |
|
|
Subsection (b), a person who violates this subchapter is liable to |
|
|
this state for a civil penalty in an amount not to exceed $500 for |
|
|
each violation. Each sale of a donated item is considered a |
|
|
separate violation for purposes of this subsection. |
|
|
(b) The total amount of penalties that may be imposed under |
|
|
Subsection (a) may not exceed $2,000 for donated items sold during a |
|
|
single transaction. |
|
|
(c) In determining the amount of the civil penalty imposed |
|
|
under this section, the court shall consider the amount necessary |
|
|
to deter future violations. |
|
|
(d) The attorney general or the prosecuting attorney in the |
|
|
county in which the violation occurs may bring an action to recover |
|
|
the civil penalty imposed under this section. In this subsection, |
|
|
"prosecuting attorney" has the meaning assigned by Section 41.101, |
|
|
Government Code. |
|
|
SECTION 2. This Act takes effect September 1, 2009. |