Bill Text: TX HB3305 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to requiring the disclosure of the place of origin for products sold online; authorizing a civil penalty.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-19 - Referred to Business & Industry [HB3305 Detail]
Download: Texas-2021-HB3305-Introduced.html
By: Middleton | H.B. No. 3305 |
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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. |