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A BILL TO BE ENTITLED
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AN ACT
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relating to the characterization of certain membership initiation |
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payments as abandoned property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 72.101(a), Property Code, is amended to |
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read as follows: |
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(a) Except as provided by this section and Sections 72.1015, |
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72.1016, 72.1017, 72.1018, 72.102, and 72.104, personal property is |
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presumed abandoned if, for longer than three years: |
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(1) the existence and location of the owner of the |
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property is unknown to the holder of the property; and |
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(2) according to the knowledge and records of the |
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holder of the property, a claim to the property has not been |
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asserted or an act of ownership of the property has not been |
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exercised. |
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SECTION 2. Subchapter B, Chapter 72, Property Code, is |
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amended by adding Section 72.1018 to read as follows: |
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Sec. 72.1018. MEMBERSHIP INITIATION PAYMENTS. (a) In this |
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section, "membership initiation payment" means an amount that: |
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(1) is paid as a condition of joining a |
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membership-based program offered by a business entity that uses the |
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payment to provide: |
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(A) services or the use of the business entity's |
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facilities to members; or |
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(B) maintenance and capital improvements to the |
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business entity's facilities; and |
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(2) may be refundable under the terms of the business |
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membership agreement. |
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(b) This section applies to a membership initiation payment |
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regardless of whether the payment is designated as a deposit or |
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similar designation. |
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(c) A membership initiation payment is not presumed to be |
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abandoned under this chapter unless the business entity sets aside |
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or holds in escrow the payment to satisfy the financial obligation |
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of the member under the membership agreement. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |