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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring the disclosure of the place of origin for |
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products sold online; authorizing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 113 to read as follows: |
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CHAPTER 113. DISCLOSURE REQUIRED FOR E-COMMERCE |
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Sec. 113.001. APPLICABILITY. This chapter applies only to |
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a business entity that is a taxable entity subject to the franchise |
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tax under Chapter 171, Tax Code. |
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Sec. 113.002. DEFINITIONS. In this chapter: |
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(1) "Comptroller" means the comptroller of public |
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accounts of the State of Texas. |
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(2) "E-commerce" means the sale, transfer, |
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negotiation, or exchange of goods for value that occurs through the |
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Internet or another electronic method. |
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(3) "Place of origin" means the state or geographic |
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region in which a good was manufactured or produced and the country |
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in which the state or geographic region is located. |
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Sec. 113.003. DISCLOSURE REQUIRED. (a) A business entity |
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that engages in e-commerce shall disclose in writing the place of |
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origin for each good offered for purchase to a person in Texas. |
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(b) The disclosure required under Subsection (a) shall |
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appear: |
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(1) on each web page on which the good is made |
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available for purchase; and |
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(2) in a size and typeface that is reasonably legible |
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and conspicuous. |
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(c) For purposes of this section, a web page does not make a |
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good available for purchase if: |
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(1) the web page only contains advertisements in which |
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the good appears or other images of the good; and |
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(2) a person cannot: |
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(A) purchase the good directly from the web page; |
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or |
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(B) indicate through the web page an intention to |
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purchase the good. |
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Sec. 113.004. VIOLATION. A business entity commits a |
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violation if the business entity: |
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(1) fails to provide the disclosure required by |
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Section 113.003; or |
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(2) provides fraudulent, misleading, or deceptive |
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information in the disclosure required by Section 113.003. |
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Sec. 113.005. COMPLAINTS; INVESTIGATIONS. (a) The |
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comptroller by rule shall establish a method by which a person may |
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file a complaint for an alleged violation of this chapter. |
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(b) The comptroller shall conduct an investigation of an |
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alleged violation of this chapter, unless the comptroller |
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determines the complaint: |
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(1) does not allege a violation of this chapter; |
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(2) is brought against a business entity that is not |
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subject to this chapter; or |
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(3) does not contain sufficient information to conduct |
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an investigation. |
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Sec. 113.006. NOTICE; OPPORTUNITY TO CURE. (a) Upon the |
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conclusion of an investigation under Section 113.005(b), the |
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comptroller shall provide written notice to a business entity of |
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any violation of this chapter. |
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(b) The comptroller shall provide a business entity 30 days |
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to cure any violation of which the business entity is notified under |
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Subsection (a). |
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Sec. 113.007. CIVIL PENALTY. (a) If a business entity |
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fails to cure a violation before the 31st day after receiving a |
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notice under Section 113.006(a), the comptroller may assess a civil |
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penalty against the business entity in an amount not to exceed the |
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greater of: |
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(1) $250 for each day in which a violation occurs; or |
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(2) $10,000. |
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(b) The comptroller may assess a separate penalty under |
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Subsection (a) for each violation for which notice was given. |
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(c) A penalty assessed under this section may be recovered |
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by the comptroller in the same manner as is provided by Subtitle B, |
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Title 2, Tax Code, for the recovery of delinquent taxes. |
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Sec. 113.008. RULES. The comptroller may adopt rules for |
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the administration of this chapter. |
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SECTION 2. This Act takes effect September 1, 2021. |