By: Middleton H.B. No. 3305
A BILL TO BE ENTITLED
AN ACT
relating to requiring the disclosure of the place of origin for
products sold online; authorizing a civil penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 113 to read as follows:
CHAPTER 113. DISCLOSURE REQUIRED FOR E-COMMERCE
Sec. 113.001. APPLICABILITY. This chapter applies only to
a business entity that is a taxable entity subject to the franchise
tax under Chapter 171, Tax Code.
Sec. 113.002. DEFINITIONS. In this chapter:
(1) "Comptroller" means the comptroller of public
accounts of the State of Texas.
(2) "E-commerce" means the sale, transfer,
negotiation, or exchange of goods for value that occurs through the
Internet or another electronic method.
(3) "Place of origin" means the state or geographic
region in which a good was manufactured or produced and the country
in which the state or geographic region is located.
Sec. 113.003. DISCLOSURE REQUIRED. (a) A business entity
that engages in e-commerce shall disclose in writing the place of
origin for each good offered for purchase to a person in Texas.
(b) The disclosure required under Subsection (a) shall
appear:
(1) on each web page on which the good is made
available for purchase; and
(2) in a size and typeface that is reasonably legible
and conspicuous.
(c) For purposes of this section, a web page does not make a
good available for purchase if:
(1) the web page only contains advertisements in which
the good appears or other images of the good; and
(2) a person cannot:
(A) purchase the good directly from the web page;
or
(B) indicate through the web page an intention to
purchase the good.
Sec. 113.004. VIOLATION. A business entity commits a
violation if the business entity:
(1) fails to provide the disclosure required by
Section 113.003; or
(2) provides fraudulent, misleading, or deceptive
information in the disclosure required by Section 113.003.
Sec. 113.005. COMPLAINTS; INVESTIGATIONS. (a) The
comptroller by rule shall establish a method by which a person may
file a complaint for an alleged violation of this chapter.
(b) The comptroller shall conduct an investigation of an
alleged violation of this chapter, unless the comptroller
determines the complaint:
(1) does not allege a violation of this chapter;
(2) is brought against a business entity that is not
subject to this chapter; or
(3) does not contain sufficient information to conduct
an investigation.
Sec. 113.006. NOTICE; OPPORTUNITY TO CURE. (a) Upon the
conclusion of an investigation under Section 113.005(b), the
comptroller shall provide written notice to a business entity of
any violation of this chapter.
(b) The comptroller shall provide a business entity 30 days
to cure any violation of which the business entity is notified under
Subsection (a).
Sec. 113.007. CIVIL PENALTY. (a) If a business entity
fails to cure a violation before the 31st day after receiving a
notice under Section 113.006(a), the comptroller may assess a civil
penalty against the business entity in an amount not to exceed the
greater of:
(1) $250 for each day in which a violation occurs; or
(2) $10,000.
(b) The comptroller may assess a separate penalty under
Subsection (a) for each violation for which notice was given.
(c) A penalty assessed under this section may be recovered
by the comptroller in the same manner as is provided by Subtitle B,
Title 2, Tax Code, for the recovery of delinquent taxes.
Sec. 113.008. RULES. The comptroller may adopt rules for
the administration of this chapter.
SECTION 2. This Act takes effect September 1, 2021.