Relating to a civil cause of action for fraudulent crowdfunding.
relating to a civil cause of action for fraudulent crowdfunding.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 4, Civil Practice and Remedies Code, is
amended by adding Chapter 100B to read as follows:
CHAPTER 100B. LIABILITY FOR FRAUDULENT CROWDFUNDING
Sec. 100B.001. DEFINITION. In this chapter, “fraudulent
crowdfunding” means collecting donations on behalf of a donee with
the intent to keep the donations instead of giving the donations to
the donee on whose behalf the donations were made.
Sec. 100B.002. LIABILITY FOR FRAUDULENT CROWDFUNDING. A
person who engages in fraudulent crowdfunding is liable to the
donee on whose behalf the donations were made.
Sec. 100B.003. DAMAGES. (a) A court shall award a claimant
who prevails in an action brought under this chapter 125 percent of
the amount of donations the defendant collected on behalf of the
claimant through the fraudulent crowdfunding.
(b) Nothing in this section prevents a claimant from
pursuing a claim for exemplary damages under Chapter 41 relating to
the defendant’s fraudulent crowdfunding.
SECTION 2. Chapter 100B, Civil Practice and Remedies Code,
as added by this Act, applies only to a cause of action that accrues
on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.
