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A BILL TO BE ENTITLED
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AN ACT
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relating to the treatment of membership initiation payments as |
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abandoned personal property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. 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 a payment that: |
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(1) is paid by a person to join a membership program; |
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and, |
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(2) may be refundable under the terms of a membership |
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agreement. |
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(b) A membership initiation payment is not presumed |
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abandoned under this chapter when the member has not forfeited the |
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refund and the person receiving the membership initiation payment |
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incurs discharge of indebtedness income on its state and/or federal |
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tax returns when due. |
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SECTION 2. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2017. |