| 2 | 4 | | |
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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to a civil cause of action for fraudulent crowdfunding. |
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| 7 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 10 | | SECTION 1. Title 4, Civil Practice and Remedies Code, is |
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| 9 | 11 | | amended by adding Chapter 100B to read as follows: |
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| 10 | 12 | | CHAPTER 100B. LIABILITY FOR FRAUDULENT CROWDFUNDING |
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| 11 | 13 | | Sec. 100B.001. DEFINITION. In this chapter, "fraudulent |
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| 12 | 14 | | crowdfunding" means collecting donations on behalf of a donee with |
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| 13 | 15 | | the intent to keep the donations instead of giving the donations to |
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| 14 | 16 | | the donee on whose behalf the donations were made. |
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| 15 | 17 | | Sec. 100B.002. LIABILITY FOR FRAUDULENT CROWDFUNDING. A |
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| 16 | 18 | | person who engages in fraudulent crowdfunding is liable to the |
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| 17 | 19 | | donee on whose behalf the donations were made. |
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| 18 | 20 | | Sec. 100B.003. DAMAGES. (a) A court shall award a claimant |
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| 19 | 21 | | who prevails in an action brought under this chapter 125 percent of |
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| 20 | 22 | | the amount of donations the defendant collected on behalf of the |
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| 21 | 23 | | claimant through the fraudulent crowdfunding. |
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| 22 | 24 | | (b) Nothing in this section prevents a claimant from |
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| 23 | 25 | | pursuing a claim for exemplary damages under Chapter 41 relating to |
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| 24 | 26 | | the defendant's fraudulent crowdfunding. |
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| 25 | 27 | | SECTION 2. Chapter 100B, Civil Practice and Remedies Code, |
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| 26 | 28 | | as added by this Act, applies only to a cause of action that accrues |
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| 27 | 29 | | on or after the effective date of this Act. |
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| 28 | 30 | | SECTION 3. This Act takes effect September 1, 2025. |
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