H.B. No. 4281 introduces a new chapter, Chapter 100B, to the Civil Practice and Remedies Code, specifically addressing fraudulent crowdfunding. The bill defines "fraudulent crowdfunding" as the act of collecting donations intended for a donee but keeping the funds instead. It establishes that individuals who engage in such fraudulent activities are liable to the donee or the donee's estate for the donations collected.

Additionally, the bill outlines the damages that a court must award to a prevailing donee or their estate, which includes 125 percent of the amount collected through fraudulent crowdfunding and reasonable attorney's fees. It also clarifies that this provision does not prevent the donee from seeking exemplary damages under Chapter 41 for the fraudulent actions. The new chapter will apply only to causes of action that accrue on or after the effective date of the Act, which is set for September 1, 2025.

Statutes affected:
Introduced: ()
House Committee Report: ()
Engrossed: ()
Senate Committee Report: ()
Enrolled: ()