Texas House Bill HB4281

Texas 2025 - 89th Regular

• Filed: 3/10/25
• Out of House Committee: 5/6/25
• Voted on by House: 5/14/25
• Out of Senate Committee: 5/25/25
• Voted on by Senate: 5/26/25
• Governor Action: 6/20/25

Caption

Relating to a civil cause of action for fraudulent crowdfunding.

Impact

The bill amends the Civil Practice and Remedies Code by adding a new chapter dedicated to liability for fraudulent crowdfunding. If enacted, individuals found liable for such fraud will be responsible for returning funds collected on behalf of the intended recipient, as well as covering reasonable attorney's fees. This introduces new legal recourse for those affected by fraudulent crowdfunding, making it easier for victims to seek justice and financial restitution.

Summary

House Bill 4281 introduces a civil cause of action concerning fraudulent crowdfunding practices in Texas. It defines fraudulent crowdfunding as the act of collecting donations under the pretenses of benefiting a donee but instead misappropriating those funds. This bill aims to safeguard the integrity of crowdfunding activities by holding individuals accountable for fraudulent actions, thereby protecting the rights of donors and intended beneficiaries.

Sentiment

The sentiment surrounding HB 4281 appears largely supportive, particularly from advocates for consumer protection and financial transparency. Proponents argue that the measure is essential for maintaining public trust in crowdfunding platforms, which have gained significant popularity. However, some caution against potential overreach, emphasizing the need for balanced regulations that do not stifle legitimate fundraising efforts.

Contention

One notable point of contention is how the new regulations might be enforced and what constitutes 'fraudulent crowdfunding.' Critics express concerns about ambiguities in enforcement, possibly leading to challenges for legitimate fundraisers who may inadvertently fall afoul of the law. Additionally, discussions have centered around the extent of punitive measures and the implications for online fundraising platforms.

Texas Constitutional Statutes Affected

Civil Practice And Remedies Code

• Chapter 100. Use Of Force In Defense Of Commercial Nuclear Power Plants
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