| 1 | 1 | | 86R5191 PMO-F |
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| 2 | 2 | | By: Geren H.B. No. 578 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the characterization of certain membership initiation |
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| 8 | 8 | | payments as abandoned property. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 72.101(a), Property Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (a) Except as provided by this section and Sections 72.1015, |
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| 13 | 13 | | 72.1016, 72.1017, 72.1018, 72.102, and 72.104, personal property is |
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| 14 | 14 | | presumed abandoned if, for longer than three years: |
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| 15 | 15 | | (1) the existence and location of the owner of the |
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| 16 | 16 | | property is unknown to the holder of the property; and |
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| 17 | 17 | | (2) according to the knowledge and records of the |
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| 18 | 18 | | holder of the property, a claim to the property has not been |
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| 19 | 19 | | asserted or an act of ownership of the property has not been |
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| 20 | 20 | | exercised. |
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| 21 | 21 | | SECTION 2. Subchapter B, Chapter 72, Property Code, is |
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| 22 | 22 | | amended by adding Section 72.1018 to read as follows: |
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| 23 | 23 | | Sec. 72.1018. MEMBERSHIP INITIATION PAYMENTS. (a) In this |
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| 24 | 24 | | section, "membership initiation payment" means an amount that: |
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| 25 | 25 | | (1) is paid as a condition of joining a |
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| 26 | 26 | | membership-based program offered by a business entity that uses the |
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| 27 | 27 | | payment to provide: |
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| 28 | 28 | | (A) services or the use of the business entity's |
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| 29 | 29 | | facilities to members; or |
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| 30 | 30 | | (B) maintenance and capital improvements to the |
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| 31 | 31 | | business entity's facilities; and |
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| 32 | 32 | | (2) may be refundable under the terms of the business |
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| 33 | 33 | | membership agreement. |
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| 34 | 34 | | (b) This section applies to a membership initiation payment |
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| 35 | 35 | | regardless of whether the payment is designated as a deposit or |
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| 36 | 36 | | similar designation. |
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| 37 | 37 | | (c) A membership initiation payment is not presumed to be |
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| 38 | 38 | | abandoned under this chapter unless the business entity sets aside |
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| 39 | 39 | | or holds in escrow the payment to satisfy the financial obligation |
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| 40 | 40 | | of the member under the membership agreement. |
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| 41 | 41 | | SECTION 3. This Act takes effect immediately if it receives |
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| 42 | 42 | | a vote of two-thirds of all the members elected to each house, as |
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| 43 | 43 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 44 | 44 | | Act does not receive the vote necessary for immediate effect, this |
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| 45 | 45 | | Act takes effect September 1, 2019. |
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