| 1 | 1 | | By: Middleton H.B. No. 3305 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to requiring the disclosure of the place of origin for |
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| 7 | 7 | | products sold online; authorizing a civil penalty. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is |
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| 10 | 10 | | amended by adding Chapter 113 to read as follows: |
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| 11 | 11 | | CHAPTER 113. DISCLOSURE REQUIRED FOR E-COMMERCE |
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| 12 | 12 | | Sec. 113.001. APPLICABILITY. This chapter applies only to |
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| 13 | 13 | | a business entity that is a taxable entity subject to the franchise |
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| 14 | 14 | | tax under Chapter 171, Tax Code. |
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| 15 | 15 | | Sec. 113.002. DEFINITIONS. In this chapter: |
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| 16 | 16 | | (1) "Comptroller" means the comptroller of public |
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| 17 | 17 | | accounts of the State of Texas. |
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| 18 | 18 | | (2) "E-commerce" means the sale, transfer, |
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| 19 | 19 | | negotiation, or exchange of goods for value that occurs through the |
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| 20 | 20 | | Internet or another electronic method. |
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| 21 | 21 | | (3) "Place of origin" means the state or geographic |
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| 22 | 22 | | region in which a good was manufactured or produced and the country |
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| 23 | 23 | | in which the state or geographic region is located. |
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| 24 | 24 | | Sec. 113.003. DISCLOSURE REQUIRED. (a) A business entity |
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| 25 | 25 | | that engages in e-commerce shall disclose in writing the place of |
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| 26 | 26 | | origin for each good offered for purchase to a person in Texas. |
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| 27 | 27 | | (b) The disclosure required under Subsection (a) shall |
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| 28 | 28 | | appear: |
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| 29 | 29 | | (1) on each web page on which the good is made |
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| 30 | 30 | | available for purchase; and |
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| 31 | 31 | | (2) in a size and typeface that is reasonably legible |
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| 32 | 32 | | and conspicuous. |
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| 33 | 33 | | (c) For purposes of this section, a web page does not make a |
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| 34 | 34 | | good available for purchase if: |
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| 35 | 35 | | (1) the web page only contains advertisements in which |
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| 36 | 36 | | the good appears or other images of the good; and |
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| 37 | 37 | | (2) a person cannot: |
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| 38 | 38 | | (A) purchase the good directly from the web page; |
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| 39 | 39 | | or |
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| 40 | 40 | | (B) indicate through the web page an intention to |
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| 41 | 41 | | purchase the good. |
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| 42 | 42 | | Sec. 113.004. VIOLATION. A business entity commits a |
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| 43 | 43 | | violation if the business entity: |
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| 44 | 44 | | (1) fails to provide the disclosure required by |
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| 45 | 45 | | Section 113.003; or |
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| 46 | 46 | | (2) provides fraudulent, misleading, or deceptive |
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| 47 | 47 | | information in the disclosure required by Section 113.003. |
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| 48 | 48 | | Sec. 113.005. COMPLAINTS; INVESTIGATIONS. (a) The |
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| 49 | 49 | | comptroller by rule shall establish a method by which a person may |
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| 50 | 50 | | file a complaint for an alleged violation of this chapter. |
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| 51 | 51 | | (b) The comptroller shall conduct an investigation of an |
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| 52 | 52 | | alleged violation of this chapter, unless the comptroller |
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| 53 | 53 | | determines the complaint: |
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| 54 | 54 | | (1) does not allege a violation of this chapter; |
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| 55 | 55 | | (2) is brought against a business entity that is not |
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| 56 | 56 | | subject to this chapter; or |
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| 57 | 57 | | (3) does not contain sufficient information to conduct |
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| 58 | 58 | | an investigation. |
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| 59 | 59 | | Sec. 113.006. NOTICE; OPPORTUNITY TO CURE. (a) Upon the |
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| 60 | 60 | | conclusion of an investigation under Section 113.005(b), the |
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| 61 | 61 | | comptroller shall provide written notice to a business entity of |
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| 62 | 62 | | any violation of this chapter. |
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| 63 | 63 | | (b) The comptroller shall provide a business entity 30 days |
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| 64 | 64 | | to cure any violation of which the business entity is notified under |
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| 65 | 65 | | Subsection (a). |
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| 66 | 66 | | Sec. 113.007. CIVIL PENALTY. (a) If a business entity |
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| 67 | 67 | | fails to cure a violation before the 31st day after receiving a |
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| 68 | 68 | | notice under Section 113.006(a), the comptroller may assess a civil |
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| 69 | 69 | | penalty against the business entity in an amount not to exceed the |
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| 70 | 70 | | greater of: |
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| 71 | 71 | | (1) $250 for each day in which a violation occurs; or |
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| 72 | 72 | | (2) $10,000. |
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| 73 | 73 | | (b) The comptroller may assess a separate penalty under |
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| 74 | 74 | | Subsection (a) for each violation for which notice was given. |
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| 75 | 75 | | (c) A penalty assessed under this section may be recovered |
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| 76 | 76 | | by the comptroller in the same manner as is provided by Subtitle B, |
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| 77 | 77 | | Title 2, Tax Code, for the recovery of delinquent taxes. |
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| 78 | 78 | | Sec. 113.008. RULES. The comptroller may adopt rules for |
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| 79 | 79 | | the administration of this chapter. |
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| 80 | 80 | | SECTION 2. This Act takes effect September 1, 2021. |
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