Texas House Bill HB1162

Texas 2009 - 81st Regular

• Out of House Committee: 3/26/09
• Voted on by House: 4/3/09

Caption

Relating to regulating the collection or solicitation of donated goods subsequently sold by for-profit entities or individuals; providing a civil penalty.

Impact

This legislation will amend Chapter 17 of the Business & Commerce Code by adding new provisions that require for-profit entities to disclose relevant information when collecting donations. For example, if an entity intends to sell donated items, they must specify whether any portion of the proceeds will benefit a charitable organization and provide explicit details about the business. This ensures that individuals donating goods are well-informed and can make decisions based on the intended use of their donations.

Summary

House Bill 1162 seeks to regulate the collection or solicitation of donated goods by for-profit entities or individuals. It defines procedures for transparency in how public donations, particularly clothing and household goods, are solicited and subsequently sold. The bill mandates that solicitations for these donations must include clear disclosures about where the donations go and how the proceeds will be used. This is to ensure that donors are fully informed before they part with their goods, especially if the donations are to be sold for profit.

Contention

The bill is likely to generate significant discussion around issues of community transparency and the ethics of for-profit entities profiting from public donations. While proponents argue that such regulations protect donors and enhance transparency in charitable appeals, critics may argue that the bill could limit the operations of for-profit businesses that partner with charitable organizations, potentially leading to financial implications for these entities. Furthermore, the law allows local governments to adopt more stringent regulations, which could lead to a patchwork of rules that complicate compliance for businesses operating in multiple jurisdictions.