86R5191 PMO-F
By: Geren H.B. No. 578
A BILL TO BE ENTITLED
AN ACT
relating to the characterization of certain membership initiation
payments as abandoned property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 72.101(a), Property Code, is amended to
read as follows:
(a) Except as provided by this section and Sections 72.1015,
72.1016, 72.1017, 72.1018, 72.102, and 72.104, personal property is
presumed abandoned if, for longer than three years:
(1) the existence and location of the owner of the
property is unknown to the holder of the property; and
(2) according to the knowledge and records of the
holder of the property, a claim to the property has not been
asserted or an act of ownership of the property has not been
exercised.
SECTION 2. Subchapter B, Chapter 72, Property Code, is
amended by adding Section 72.1018 to read as follows:
Sec. 72.1018. MEMBERSHIP INITIATION PAYMENTS. (a) In this
section, "membership initiation payment" means an amount that:
(1) is paid as a condition of joining a
membership-based program offered by a business entity that uses the
payment to provide:
(A) services or the use of the business entity's
facilities to members; or
(B) maintenance and capital improvements to the
business entity's facilities; and
(2) may be refundable under the terms of the business
membership agreement.
(b) This section applies to a membership initiation payment
regardless of whether the payment is designated as a deposit or
similar designation.
(c) A membership initiation payment is not presumed to be
abandoned under this chapter unless the business entity sets aside
or holds in escrow the payment to satisfy the financial obligation
of the member under the membership agreement.
SECTION 3. 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, 2019.