Bill Text: TX HB578 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the characterization of certain membership initiation payments as abandoned property.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-02-20 - Referred to Business & Industry [HB578 Detail]
Download: Texas-2019-HB578-Introduced.html
| 86R5191 PMO-F | ||
| By: Geren | H.B. No. 578 | |
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| 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. | ||
