85R20164 PMO-F
By: Villalba H.B. No. 2650
Substitute the following for H.B. No. 2650:
By: Oliveira C.S.H.B. No. 2650
A BILL TO BE ENTITLED
AN ACT
relating to the presumption of membership initiation deposits as
abandoned property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 72, Property Code, is
amended by adding Section 72.1018 to read as follows:
Sec. 72.1018. MEMBERSHIP INITIATION DEPOSITS. (a) In this
section, "membership initiation deposit" means an amount of money
paid to join a club membership program operated by a business that
provides a member access to or the use of entertainment,
recreation, sports, dining, or social facilities and other related
real property.
(b) A membership initiation deposit is not presumed
abandoned if:
(1) the member forfeits the deposit under the terms of
an agreement between the member and the business that sold the
membership; or
(2) the deposit is included as discharge of
indebtedness income on the federal income tax return of the
business that sold the membership.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.