Relating to measures to prevent and reduce fraudulent charitable solicitations and theft during declared disasters, including establishing a designation program for disaster relief nonprofit organizations and financial institutions; creating a criminal offense; increasing a criminal penalty.

HB20 establishes a mandatory 300% civil penalty and new felony classes for deceptive disaster solicitations, effective September 1, 2025. This legislation creates a strict liability environment for disaster response contractors and nonprofits, requiring immediate audits of sales scripts and fund segregation to avoid criminal exposure. Additionally, it establishes a new state-sanctioned "Designation Program" for nonprofits and financial institutions, making local political support essential for operational legitimacy during declared disasters.

HB20 was authored by Texas Representative Drew Darby during the 2nd Special Session.

HB20 was signed into law by Governor Greg Abbott on September 17, 2025.

HB20 is enforced by Civil Courts (Private Litigation), Local Law Enforcement / District Attorneys (Criminal Prosecution) and Secretary of State (Program Administration).

The regulatory priority for HB20 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

The cost impact of HB20 is estimated as "low". This may vary based on industry and implementation requirements.

HB20 addresses topics including charitable & nonprofit organizations, consumer protection, disaster preparedness & relief, electronic information systems and disaster scam response act.

Key dates for HB20: Effective date is 2025-09-01. Rulemaking: Adopt rules to implement the Designation Program for Disaster Relief Nonprofit Organizations and Financial Institutions. (As soon as practicable after 2025-09-01); Develop guidelines for approving nonprofit organizations or financial institutions submitted by political subdivisions for designation. (Undetermined (contingent on rulemakin

HB20 establishes the following penalties: civil penalty of 300% of collected donations plus reasonable attorney's fees (Mandatory Award) for Malicious solicitation during a disaster (engaging in conduct defined in Penal Code 32.61).; criminal penalty of Felony of the 3rd Degree (Base) for Malicious solicitation: Soliciting with intent to defraud, retaining donations meant for others, or charging for 'volunteer' services.; criminal penalty of Felony of the 1st Degree for Malicious solicitation involving the fabrication of a Secretary of State designation or 'missing relative' scams.. Consult with legal counsel for specific applicability to your situation.