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HB 20 Legislative Priority

Relating to certain measures to prevent and reduce fraudulent charitable solicitations and theft during disasters, including establishing a voluntary accreditation program for disaster relief organizations; creating a criminal offense; increasing a criminal penalty; providing a civil cause of action.
Overall Vote Recommendation
Yes
Principle Criteria
positive
Free Enterprise
positive
Property Rights
positive
Personal Responsibility
positive
Limited Government
positive
Individual Liberty
In Layman's Terms

HB 20 creates a voluntary state accreditation program for disaster relief charities and increases penalties for people who commit fraud or falsely claim to be disaster volunteers. The bill is intended to help Texans identify legitimate relief organizations while cracking down on disaster-related scams.

Digest
HB 20, titled the Disaster Scam Response Act, aims to enhance consumer protection and public trust during declared disasters by targeting fraudulent charitable solicitations and theft schemes. The bill establishes a framework for educating the public, providing transparency for legitimate nonprofit disaster relief efforts, and creating criminal and civil penalties for those who exploit disaster victims or misrepresent themselves as disaster volunteers.

A major component of the bill is the creation of a voluntary accreditation program for nonprofit disaster relief organizations, administered by the Texas Attorney General. Accredited organizations may use an official seal and are listed in a public registry. While participation is optional, the bill permits state and local agencies to consider accreditation status when distributing disaster relief funds. Importantly, the bill also prohibits government entities from banning volunteer activity solely due to an organization’s lack of accreditation, ensuring continued access for unaffiliated aid groups.

To deter fraud, HB 20 significantly enhances criminal penalties for theft or fraudulent behavior in disaster areas, especially when the offender falsely claims to be a volunteer. It amends the Penal Code to include new offenses related to malicious solicitation, including fabricating accreditation status or misleading disaster victims into believing they are receiving help. Offenses under these provisions range from third-degree to first-degree felonies, depending on severity and repeat offenses. Additionally, the bill establishes a civil cause of action allowing victims (donors or intended recipients) to recover triple damages and attorney’s fees from bad actors.

Overall, HB 20 reinforces public integrity and security during emergencies by equipping law enforcement and the public with tools to identify bad actors, hold them accountable, and promote transparency in charitable disaster responses.
Author (5)
Drew Darby
A.J. Louderback
Armando Martinez
Jeffrey Barry
John McQueeney
Co-Author (77)
Sponsor (1)
Charles Perry
Co-Sponsor (11)

Contact the Author

Rep. Drew Darby

Capitol Phone:
(512) 463-0331
Capitol Office:
CAP GW.12
E-Mail:
[email protected]
Visit Official Website
Fiscal Notes

According to the Legislative Budget Board (LBB), HB 20 is not expected to result in any significant fiscal impact to the state. The costs associated with the bill’s implementation, such as establishing and maintaining a voluntary accreditation program for nonprofit disaster relief organizations, operating a disaster-related fraud hotline, and enforcing new criminal offenses, are anticipated to be absorbable within existing resources available to the Office of the Attorney General and the Texas Division of Emergency Management.

Additionally, the bill's provisions that create or enhance criminal penalties are not expected to place a meaningful burden on state correctional facilities or increase demand for incarceration or supervision to a degree that would materially affect the state budget. In short, while HB 20 expands the legal toolkit for responding to fraud in disaster settings, it does so without requiring substantial new spending or personnel.

At the local level, no significant fiscal impact is expected for cities, counties, or other local government units. Enforcement and implementation responsibilities at the local level are either minimal or consistent with current disaster response and public safety roles.

Vote Recommendation Notes

HB 20 represents a focused and measured response to the rising problem of fraudulent charitable solicitations during disasters. Building on previous proposals, the bill introduces a voluntary accreditation program to help the public identify reputable disaster relief organizations and imposes new criminal and civil liabilities for individuals who exploit disaster victims. The program is entirely optional and is designed to enhance transparency, not restrict operations. Nonprofits that participate will benefit from state-issued certification and may use a state-approved seal, while those that opt out remain free to operate. Public confidence in charitable giving is further supported by educational outreach from the Texas Division of Emergency Management (TDEM) and the Attorney General’s office, which must publish online materials helping Texans detect fraud during declared disasters.

Importantly, HB 20 introduces specific criminal penalties for malicious solicitation during a disaster, including cases where individuals impersonate volunteers or fabricate official credentials. The penalties range from third- to first-degree felonies depending on the offense and repeat violations. A new civil cause of action also allows defrauded donors or intended recipients to seek triple damages and attorney’s fees. These provisions are clearly limited to egregious, deceptive conduct and do not affect good-faith charitable activity. The bill also ensures that lack of accreditation cannot be used by the state to restrict legitimate volunteer activity during disasters.

From a fiscal perspective, the Legislative Budget Board anticipates no significant cost to the state or local governments. The program responsibilities, creating educational materials, managing a public registry, and operating a fraud hotline, are expected to be implemented using existing resources at TDEM and the Attorney General’s office. Because the program is voluntary and involves no mandatory licensing or regulation of private charities, the administrative and enforcement burdens are modest and fiscally sustainable.

Ultimately, HB 20 promotes accountability, enhances consumer protection, and upholds liberty principles. It avoids heavy-handed regulation in favor of voluntary transparency, preserves operational freedom for charitable organizations, and protects donors and disaster victims from exploitation. Given its narrow scope, minimal taxpayer impact, and strong alignment with the values of individual liberty, personal responsibility, free enterprise, private property rights, and limited government, Texas Policy Research recommends that lawmakers vote YES on HB 20.

Free Enterprise
positive
The bill reinforces voluntary, competitive dynamics in the nonprofit and charitable giving sector. It does not create licensing requirements or barriers to entry for disaster relief organizations, nor does it favor one model of operation over another. Organizations can freely choose whether to seek accreditation, and donors can use the accreditation status (or not) as one of many signals of trustworthiness. This approach promotes competition based on trust, reputation, and effectiveness, all key hallmarks of free-market principles.
Property Rights
positive
The bill enhances protection of property rights by increasing criminal penalties for those who steal from disaster victims under false pretenses. It specifically addresses theft committed by individuals posing as disaster volunteers, a violation that undermines the sanctity of property rights in vulnerable moments. The bill also establishes a civil remedy, allowing wronged donors or intended recipients to recover damages, which reinforces the legal protections surrounding voluntary financial transactions.
Personal Responsibility
positive
The bill places emphasis on accountability. It encourages charitable organizations to earn public trust through voluntary certification, signaling a higher standard of transparency. Donors are likewise empowered to assess organizations based on publicly available information. At the same time, it punishes those who exploit disasters for personal gain, a clear assertion that those who defraud or impersonate relief efforts must be held personally accountable for their actions.
Limited Government
positive
Rather than creating a new regulatory body or imposing sweeping controls, the bill creates a narrow, voluntary, and information-based program within existing state agencies. The bill limits the role of government to providing tools, transparency, and enforcement against fraud. It does not impose costs on the private sector or taxpayers beyond what can be absorbed through existing agency resources. There are no mandates, no coercion, and no new licensing systems, and the government's role is advisory, not controlling.
Individual Liberty
positive
The bill protects individuals' freedom to give, act, and associate by making charitable giving during disasters more transparent and trustworthy. It does not impose any restrictions on nonprofit organizations' ability to operate or solicit donations and participation in the accreditation program is entirely voluntary. It also ensures that individuals and grassroots groups can continue to provide aid, regardless of accreditation status. By publishing public education materials, it enhances the ability of Texans to make informed decisions without limiting their freedom of choice.
Committee Vote Information
  • House Select Committee on Disaster Preparedness & Flooding: 9Y/0N
  • Senate SelectCommittee on Disaster Preparedness & Flooding: 9Y/0N
View Bill Text and Status
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