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A BILL TO BE ENTITLED
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AN ACT
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relating to a civil cause of action for fraudulent crowdfunding. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 4, Civil Practice and Remedies Code, is |
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amended by adding Chapter 100B to read as follows: |
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CHAPTER 100B. LIABILITY FOR FRAUDULENT CROWDFUNDING |
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Sec. 100B.001. DEFINITION. In this chapter, "fraudulent |
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crowdfunding" means collecting donations on behalf of a donee with |
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the intent to keep the donations instead of giving the donations to |
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the donee on whose behalf the donations were made. |
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Sec. 100B.002. LIABILITY FOR FRAUDULENT CROWDFUNDING. A |
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person who engages in fraudulent crowdfunding is liable to the |
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donee on whose behalf the donations were made. |
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Sec. 100B.003. DAMAGES. (a) A court shall award a claimant |
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who prevails in an action brought under this chapter 125 percent of |
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the amount of donations the defendant collected on behalf of the |
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claimant through the fraudulent crowdfunding. |
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(b) Nothing in this section prevents a claimant from |
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pursuing a claim for exemplary damages under Chapter 41 relating to |
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the defendant's fraudulent crowdfunding. |
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SECTION 2. Chapter 100B, Civil Practice and Remedies Code, |
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as added by this Act, applies only to a cause of action that accrues |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |