89R26024 MZM-F By: McQueeney H.B. No. 4281 Substitute the following for H.B. No. 4281: By: Leach C.S.H.B. No. 4281 A BILL TO BE ENTITLED AN ACT 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 or the donee's estate. Sec. 100B.003. DAMAGES. (a) A court shall award a claimant who prevails in an action brought under this chapter: (1) 125 percent of the amount of donations the defendant collected on behalf of the claimant through the fraudulent crowdfunding; and (2) reasonable attorney's fees. (b) Nothing in this section prevents a claimant from pursuing a claim for exemplary damages under Chapter 41 for 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.