Texas 2009 - 81st Regular

Texas Senate Bill SB776 Compare Versions

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1	1	S.B. No. 776
2	2
3	3
4	4	AN ACT
5	5	relating to regulating the collection or solicitation of donated
6	6	goods subsequently sold by for-profit entities or individuals;
7	7	providing a civil penalty.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 17, Business & Commerce Code, is amended
10	10	by adding Subchapter K to read as follows:
11	11	SUBCHAPTER K. REGULATING THE COLLECTION OR SOLICITATION BY
12	12	FOR-PROFIT ENTITIES OF CERTAIN PUBLIC DONATIONS
13	13	Sec. 17.921. DEFINITIONS. In this subchapter:
14	14	(1) "Charitable organization" means an organization
15	15	that is exempt from federal income tax under Section 501(a) of the
16	16	Internal Revenue Code of 1986 by being listed as an exempt
17	17	organization in Section 501(c) of that code.
18	18	(2) "For-profit entity" has the meaning assigned by
19	19	Section 1.002, Business Organizations Code.
20	20	(3) "Household goods" mean furniture, furnishings, or
21	21	personal effects used or for use in a dwelling.
22	22	(4) "Public donations receptacle" means a large
23	23	container or bin in a parking lot or public place that is intended
24	24	for use as a collection point for clothing or household goods
25	25	donated by the public.
26	26	Sec. 17.922. REQUIRED DISCLOSURE FOR COLLECTIONS THROUGH
27	27	PUBLIC RECEPTACLE. (a) A for-profit entity or individual may not
28	28	use a public donations receptacle to collect donated clothing or
29	29	household goods and subsequently sell the donated items unless the
30	30	for-profit entity or individual attaches to the receptacle a notice
31	31	that:
32	32	(1) is permanently and prominently displayed on the
33	33	front and at least one side of the receptacle;
34	34	(2) is in bold print, with letters at least two inches
35	35	in height and one inch in width;
36	36	(3) contains the business address, other than a post
37	37	office box number, and telephone number of the for-profit entity or
38	38	individual; and
39	39	(4) contains the appropriate disclosure prescribed by
40	40	this section in English and Spanish.
41	41	(b) If none of the proceeds from the sale of the donated
42	42	items will be given to a charitable organization, the disclosure
43	43	required by Subsection (a)(4) must state:
44	44	"DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE
45	45	SOLD FOR PROFIT."
46	46	(c) If any of the proceeds from the sale of the donated items
47	47	will be given to a charitable organization, the disclosure required
48	48	by Subsection (a)(4) must state:
49	49	"DONATIONS ARE TO (NAME OF FOR-PROFIT ENTITY OR INDIVIDUAL)
50	50	AND WILL BE SOLD FOR PROFIT. ____ PERCENT (INSERT PERCENTAGE) OF
51	51	ALL PROCEEDS WILL BE DONATED TO (NAME OF CHARITABLE ORGANIZATION)."
52	52	(d) If the for-profit entity or individual pays to a
53	53	charitable organization a flat fee that is not contingent on the
54	54	proceeds generated from the sale of the donated items and the
55	55	for-profit entity or individual retains a percentage of the
56	56	proceeds from the sale, the disclosure required by Subsection
57	57	(a)(4) must state:
58	58	"THIS DONATION RECEPTACLE IS OPERATED BY (NAME OF FOR-PROFIT
59	59	ENTITY OR INDIVIDUAL) ON BEHALF OF (NAME OF CHARITABLE
60	60	ORGANIZATION). Donations are sold for profit by (name of
61	61	for-profit entity or individual) and a flat fee of (insert amount)
62	62	is paid to (name of charitable organization)."
63	63	Sec. 17.923. REQUIRED DISCLOSURES FOR TELEPHONE OR
64	64	DOOR-TO-DOOR SOLICITATIONS. (a) A for-profit entity or
65	65	individual who makes, or directs another person to make, a
66	66	telephone or door-to-door solicitation requesting that the person
67	67	solicited donate clothing or household goods may not subsequently
68	68	sell the donated items unless the solicitor provides to each person
69	69	solicited, before accepting a donation from the person, the
70	70	appropriate disclaimer prescribed by this section.
71	71	(b) If none of the proceeds from the sale of the donated
72	72	items will be given to a charitable organization, the solicitor
73	73	must state:
74	74	"DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE
75	75	SOLD FOR PROFIT."
76	76	(c) If any of the proceeds from the sale of the donated items
77	77	will be given to a charitable organization, the solicitor must
78	78	state:
79	79	"DONATIONS TO (NAME OF FOR-PROFIT ENTITY OR INDIVIDUAL) WILL
80	80	BE SOLD FOR PROFIT AND ____ PERCENT (INSERT PERCENTAGE) OF ALL
81	81	PROCEEDS WILL BE DONATED TO (NAME OF CHARITABLE ORGANIZATION)."
82	82	(d) If the for-profit entity or individual pays to a
83	83	charitable organization a flat fee that is not contingent on the
84	84	proceeds generated from the sale of the donated items and the
85	85	for-profit entity or individual retains a percentage of the
86	86	proceeds from the sale, the solicitor must state:
87	87	"SOLICITATIONS FOR DONATIONS ARE MADE BY (NAME OF FOR-PROFIT
88	88	ENTITY OR INDIVIDUAL) ON BEHALF OF (NAME OF CHARITABLE
89	89	ORGANIZATION). Donations will be sold for profit by (name of
90	90	for-profit entity or individual) and a flat fee of (insert amount)
91	91	is paid to (name of charitable organization)."
92	92	Sec. 17.924. REQUIRED DISCLOSURES FOR MAIL SOLICITATIONS.
93	93	(a) A for-profit entity or individual who mails, or directs
94	94	another person to mail, a solicitation requesting that the
95	95	recipient donate clothing or household goods may not subsequently
96	96	sell the donated items unless the solicitor includes with the
97	97	mailed solicitation the appropriate disclosure prescribed by this
98	98	section, prominently displayed in boldfaced type or capital letters
99	99	in English and Spanish.
100	100	(b) If none of the proceeds from the sale of the donated
101	101	items will be given to a charitable organization, the disclosure
102	102	required by Subsection (a) must state:
103	103	"DONATIONS ARE NOT FOR CHARITABLE ORGANIZATIONS AND WILL BE
104	104	SOLD FOR PROFIT."
105	105	(c) If any of the proceeds from the sale of the donated items
106	106	will be given to a charitable organization, the disclosure required
107	107	by Subsection (a) must state:
108	108	"DONATIONS TO (NAME OF FOR-PROFIT ENTITY OR INDIVIDUAL) WILL
109	109	BE SOLD FOR PROFIT AND _______ PERCENT (INSERT PERCENTAGE) OF ALL
110	110	PROCEEDS WILL BE DONATED TO (NAME OF CHARITABLE ORGANIZATION)."
111	111	(d) If the for-profit entity or individual pays to a
112	112	charitable organization a flat fee that is not contingent on the
113	113	proceeds generated from the sale of the donated items and the
114	114	for-profit entity or individual retains a percentage of the
115	115	proceeds from the sale, the disclosure required by Subsection (a)
116	116	must state:
117	117	"SOLICITATIONS FOR DONATIONS ARE MADE BY (NAME OF FOR-PROFIT
118	118	ENTITY OR INDIVIDUAL) ON BEHALF OF (NAME OF CHARITABLE
119	119	ORGANIZATION). Donations will be sold for profit by (name of
120	120	for-profit entity or individual) and a flat fee of (insert amount)
121	121	is paid to (name of charitable organization)."
122	122	Sec. 17.925. LOCAL ORDINANCE OR REGULATION. Nothing in
123	123	this subchapter shall be construed to limit the authority of a local
124	124	government to adopt an ordinance or regulation relating to the use
125	125	of public donations receptacles as a collection point for donated
126	126	clothing or household goods if the ordinance or regulation is
127	127	compatible with and equal to or more stringent than a requirement
128	128	prescribed by this subchapter.
129	129	Sec. 17.926. CIVIL PENALTY. (a) Except as provided by
130	130	Subsection (b), a person who violates this subchapter is liable to
131	131	this state for a civil penalty in an amount not to exceed $500 for
132	132	each violation. Each sale of a donated item is considered a
133	133	separate violation for purposes of this subsection.
134	134	(b) The total amount of penalties that may be imposed under
135	135	Subsection (a) may not exceed $2,000 for donated items sold during a
136	136	single transaction.
137	137	(c) In determining the amount of the civil penalty imposed
138	138	under this section, the court shall consider the amount necessary
139	139	to deter future violations.
140	140	(d) The attorney general or the prosecuting attorney in the
141	141	county in which the violation occurs may bring an action to recover
142	142	the civil penalty imposed under this section. In this subsection,
143	143	"prosecuting attorney" has the meaning assigned by Section 41.101,
144	144	Government Code.
145	145	SECTION 2. This Act takes effect September 1, 2009.
146	146	______________________________ ______________________________
147	147	President of the Senate Speaker of the House
148	148	I hereby certify that S.B. No. 776 passed the Senate on
149	149	April 2, 2009, by the following vote: Yeas 31, Nays 0.
150	150	______________________________
151	151	Secretary of the Senate
152	152	I hereby certify that S.B. No. 776 passed the House on
153	153	May 20, 2009, by the following vote: Yeas 138, Nays 0, one present
154	154	not voting.
155	155	______________________________
156	156	Chief Clerk of the House
157	157	Approved:
158	158	______________________________
159	159	Date
160	160	______________________________
161	161	Governor