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.

89th Legislature, 2nd Called Session (2025) Introduced by Daniel Alders and 89 co-sponsors

Texas law creates a state designation program for verified disaster relief nonprofits and institutions while criminalizing fraudulent solicitations and theft during declared disasters.

Effective on . . . . . . . . . . . . . . .

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Legislative bill overview

HB 20 establishes a state designation program for vetted disaster relief nonprofits and financial institutions in Texas, creating legal mechanisms to prevent fraudulent charitable solicitations and theft during declared disasters. The bill creates new criminal offenses related to disaster fraud and increases penalties for existing theft crimes committed during disaster periods.

Why is this important

Disaster declarations historically attract scammers who exploit donor generosity and displaced persons' vulnerability. By creating an official registry of legitimate relief organizations and institutions, the bill aims to direct resources to verified charities while protecting both donors and disaster victims from predatory schemes that divert aid money.

Potential points of contention

Vetting criteria ambiguity: The bill's effectiveness depends on how the state defines and implements designation standards—unclear criteria could exclude legitimate smaller nonprofits or create bureaucratic barriers to rapid relief deployment

First Amendment concerns: Restricting promotion of non-designated relief organizations during disasters could raise constitutional questions about commercial speech and charitable solicitation rights

Implementation burden: Financial institutions must comply with new identification and reporting requirements, potentially creating operational costs and delays in legitimate disaster relief fund processing