Texas 2009 - 81st Regular

Texas House Bill HB1162 Compare Versions

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1	1	81R7990 JE-F
2	2	By: Orr, Leibowitz H.B. No. 1162
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to regulating the collection or solicitation of donated
8	8	goods subsequently sold by for-profit entities or individuals;
9	9	providing a civil penalty.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 17, Business & Commerce Code, is amended
12	12	by adding Subchapter K to read as follows:
13	13	SUBCHAPTER K. REGULATING THE COLLECTION OR SOLICITATION BY
14	14	FOR-PROFIT ENTITIES OF CERTAIN PUBLIC DONATIONS
15	15	Sec. 17.921. DEFINITIONS. In this subchapter:
16	16	(1) "Charitable organization" means an organization
17	17	that is exempt from federal income tax under Section 501(a) of the
18	18	Internal Revenue Code of 1986 by being listed as an exempt
19	19	organization in Section 501(c) of that code.
20	20	(2) "For-profit entity" has the meaning assigned by
21	21	Section 1.002, Business Organizations Code.
22	22	(3) "Household goods" mean furniture, furnishings, or
23	23	personal effects used or for use in a dwelling.
24	24	(4) "Public donations receptacle" means a large
25	25	container or bin in a parking lot or public place that is intended
26	26	for use as a collection point for clothing or household goods
27	27	donated by the public.
28	28	Sec. 17.922. REQUIRED DISCLOSURE FOR COLLECTIONS THROUGH
29	29	PUBLIC RECEPTACLE. (a) A for-profit entity or individual may not
30	30	use a public donations receptacle to collect donated clothing or
31	31	household goods and subsequently sell the donated items unless the
32	32	for-profit entity or individual attaches to the receptacle a notice
33	33	that:
34	34	(1) is permanently and prominently displayed on the
35	35	front and at least one side of the receptacle;
36	36	(2) is in bold print, with letters at least two inches
37	37	in height and one inch in width;
38	38	(3) contains the business address, other than a post
39	39	office box number, and telephone number of the for-profit entity or
40	40	individual; and
41	41	(4) contains the appropriate disclosure prescribed by
42	42	this section.
43	43	(b) If none of the proceeds from the sale of the donated
44	44	items will be given to a charitable organization, the disclosure
45	45	required by Subsection (a)(4) must state:
46	46	"DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE
47	47	SOLD FOR PROFIT."
48	48	(c) If any of the proceeds from the sale of the donated items
49	49	will be given to a charitable organization, the disclosure required
50	50	by Subsection (a)(4) must state:
51	51	"DONATIONS ARE TO (NAME OF FOR-PROFIT ENTITY OR INDIVIDUAL)
52	52	AND WILL BE SOLD FOR PROFIT. _______ PERCENT (INSERT PERCENTAGE) OF
53	53	ALL PROCEEDS WILL BE DONATED TO (NAME OF CHARITABLE ORGANIZATION)."
54	54	(d) If the for-profit entity or individual pays to a
55	55	charitable organization a flat fee that is not contingent on the
56	56	proceeds generated from the sale of the donated items, and the
57	57	for-profit entity or individual retains a percentage of the
58	58	proceeds from the sale, the disclosure required by Subsection
59	59	(a)(4) must state:
60	60	"THIS DONATION RECEPTACLE IS OPERATED BY (NAME OF FOR-PROFIT
61	61	ENTITY OR INDIVIDUAL) ON BEHALF OF (NAME OF CHARITABLE
62	62	ORGANIZATION). Donations are sold for profit by (name of
63	63	for-profit entity or individual) and a flat fee of (insert amount)
64	64	is paid to (name of charitable organization)."
65	65	Sec. 17.923. REQUIRED DISCLOSURES FOR TELEPHONE OR
66	66	DOOR-TO-DOOR SOLICITATIONS. (a) A for-profit entity or individual
67	67	who makes, or directs another person to make, a telephone or
68	68	door-to-door solicitation requesting that the person solicited
69	69	donate clothing or household goods may not subsequently sell the
70	70	donated items unless the solicitor provides to each person
71	71	solicited, before accepting a donation from the person, the
72	72	appropriate disclaimer prescribed by this section.
73	73	(b) If none of the proceeds from the sale of the donated
74	74	items will be given to a charitable organization, the solicitor
75	75	must state:
76	76	"DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE
77	77	SOLD FOR PROFIT."
78	78	(c) If any of the proceeds from the sale of the donated items
79	79	will be given to a charitable organization, the solicitor must
80	80	state:
81	81	"DONATIONS TO (NAME OF FOR-PROFIT ENTITY OR INDIVIDUAL) WILL
82	82	BE SOLD FOR PROFIT AND _______ PERCENT (INSERT PERCENTAGE) OF ALL
83	83	PROCEEDS WILL BE DONATED TO (NAME OF CHARITABLE ORGANIZATION)."
84	84	(d) If the for-profit entity or individual pays to a
85	85	charitable organization a flat fee that is not contingent on the
86	86	proceeds generated from the sale of the donated items and the
87	87	for-profit entity or individual retains a percentage of the
88	88	proceeds from the sale, the solicitor must state:
89	89	"SOLICITATIONS FOR DONATIONS ARE MADE BY (NAME OF FOR-PROFIT
90	90	ENTITY OR INDIVIDUAL) ON BEHALF OF (NAME OF CHARITABLE
91	91	ORGANIZATION). Donations will be sold for profit by (name of
92	92	for-profit entity or individual) and a flat fee of (insert amount)
93	93	is paid to (name of charitable organization)."
94	94	Sec. 17.924. REQUIRED DISCLOSURES FOR MAIL SOLICITATIONS.
95	95	(a) A for-profit entity or individual who mails, or directs another
96	96	person to mail, a solicitation requesting that the recipient donate
97	97	clothing or household goods may not subsequently sell the donated
98	98	items unless the solicitor includes with the mailed solicitation
99	99	the appropriate disclosure prescribed by this section, prominently
100	100	displayed in boldfaced type or capital letters.
101	101	(b) If none of the proceeds from the sale of the donated
102	102	items will be given to a charitable organization, the disclosure
103	103	required by Subsection (a) must state:
104	104	"DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE
105	105	SOLD FOR PROFIT."
106	106	(c) If any of the proceeds from the sale of the donated items
107	107	will be given to a charitable organization, the disclosure required
108	108	by Subsection (a) must state:
109	109	"DONATIONS TO (NAME OF FOR-PROFIT ENTITY OR INDIVIDUAL) WILL
110	110	BE SOLD FOR PROFIT AND _______ PERCENT (INSERT PERCENTAGE) OF ALL
111	111	PROCEEDS WILL BE DONATED TO (NAME OF CHARITABLE ORGANIZATION)."
112	112	(d) If the for-profit entity or individual pays to a
113	113	charitable organization a flat fee that is not contingent on the
114	114	proceeds generated from the sale of the donated items and the
115	115	for-profit entity or individual retains a percentage of the
116	116	proceeds from the sale, the disclosure required by Subsection (a)
117	117	must state:
118	118	"SOLICITATIONS FOR DONATIONS ARE MADE BY (NAME OF FOR-PROFIT
119	119	ENTITY OR INDIVIDUAL) ON BEHALF OF (NAME OF CHARITABLE
120	120	ORGANIZATION). Donations will be sold for profit by (name of
121	121	for-profit entity or individual) and a flat fee of (insert amount)
122	122	is paid to (name of charitable organization)."
123	123	Sec. 17.925. LOCAL ORDINANCE OR REGULATION. Nothing in
124	124	this subchapter shall be construed to limit the authority of a local
125	125	government to adopt an ordinance or regulation relating to the use
126	126	of public donations receptacles as a collection point for donated
127	127	clothing or household goods if the ordinance or regulation is
128	128	compatible with and equal to or more stringent than a requirement
129	129	prescribed by this subchapter.
130	130	Sec. 17.926. CIVIL PENALTY. (a) Except as provided by
131	131	Subsection (b), a person who violates this subchapter is liable to
132	132	this state for a civil penalty in an amount not to exceed $500 for
133	133	each violation. Each sale of a donated item is considered a
134	134	separate violation for purposes of this subsection.
135	135	(b) The total amount of penalties that may be imposed under
136	136	Subsection (a) may not exceed $2,000 for donated items sold during a
137	137	single transaction.
138	138	(c) In determining the amount of the civil penalty imposed
139	139	under this section, the court shall consider the amount necessary
140	140	to deter future violations.
141	141	(d) The attorney general or the prosecuting attorney in the
142	142	county in which the violation occurs may bring an action to recover
143	143	the civil penalty imposed under this section. In this subsection,
144	144	"prosecuting attorney" has the meaning assigned by Section 41.101,
145	145	Government Code.
146	146	SECTION 2. This Act takes effect September 1, 2009.