2009 Texas Code
PROPERTY CODE
TITLE 12. MISCELLANEOUS SHARED REAL PROPERTY INTERESTS
CHAPTER 222. TEXAS MEMBERSHIP CAMPING RESORT ACT  

PROPERTY CODE

TITLE 12. MISCELLANEOUS SHARED REAL PROPERTY INTERESTS

CHAPTER 222. TEXAS MEMBERSHIP CAMPING RESORT ACT

Sec. 222.001. SHORT TITLE. This chapter may be cited as the

Texas Membership Camping Resort Act.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989.

Sec. 222.002. APPLICATION OF CHAPTER. (a) This chapter applies

to all membership camping resorts located in this state.

(b) Sections 222.003-222.013 also apply to membership camping

resorts located outside this state but offered for sale in this

state.

(c) This chapter does not affect a membership camping contract

made before August 31, 1987.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989.

Sec. 222.003. DEFINITIONS. In this chapter:

(1) "Advertising" means a direct or indirect solicitation or

inducement to purchase and includes but is not necessarily

limited to a solicitation or inducement made by print or

electronic media, through the mail, or by personal contact.

(2) "Amenities" means all common areas of real property occupied

by a membership camping resort and includes but is not

necessarily limited to camping sites, swimming pools, stables,

tennis courts, recreation buildings, restrooms and showers,

laundry rooms, trading posts, grocery stores, and maintenance

facilities.

(3) "Blanket encumbrance" means a mortgage, deed of trust,

option to purchase, or vendor's lien, an interest obtained under

a contract or agreement of sale, or other financing lien or

encumbrance granted by an operator that secures or evidences the

obligation to pay money or to sell or convey any campgrounds

located in this state that are made available to purchasers by

the operator, and that authorizes, permits, or requires the

foreclosure or other disposition of the affected campground.

(4) "Business day" means any day other than a Saturday, Sunday,

or federal holiday.

(5) "Camping site" means a space designed and promoted for the

purpose of locating a trailer, tent, tent trailer, pickup camper,

recreational vehicle, or similar device designed for camping.

(6) "Dispose" or "disposition" means a voluntary transfer of any

membership interest or membership right but does not include the

transfer or release of a real estate lien or of a security

interest.

(7) "Home resort" means the camping resort to which the

purchaser has purchased a right of membership. The term does not

include a resort that a purchaser may use as a result of a

reciprocal program among operators.

(8) "Membership camping contract" means an agreement under which

a purchaser pays for or becomes obligated to pay for a membership

interest or membership right in a membership camping resort.

(9) "Membership camping contract broker" means a person who

resells a membership camping contract to a new purchaser on

behalf of the former purchaser. The term does not include a

membership camping operator or that person's agent.

(10) "Membership camping resort disclosure statement" means a

written statement that includes the information that is required

by Section 222.006(b).

(11) "Membership camping resort" means real property owned or

operated by a membership camping operator that is available for

camping by purchasers of a membership right.

(12) "Membership interest" means a membership camping resort

estate.

(13) "Membership right" means a license, contract right, or

other right entitling a purchaser to use camping sites or

amenities at a membership camping resort.

(14) "Offering" or "offer" means any advertisement, inducement,

or solicitation and includes but is not necessarily limited to

any attempt to encourage a person to purchase a membership

interest or membership right.

(15) "Operator" means a person who owns or provides a camping

site or an amenity to a purchaser. The term does not include:

(A) a person who owns or otherwise provides a mobile home park

or a camping or recreational trailer park open to the general

public with camping sites that are rented on a fee for use basis

and who does not solicit purchases of membership camping

contracts; or

(B) an outdoor service, facility, enterprise, or park that is

owned or operated by or under the control of the United States,

this state, or a political subdivision of this state.

(16) "Promotion" means any program or activity that is used to

induce any person to attend a membership camping resort sales

presentation.

(17) "Promotional disclosure statement" means a written

statement that includes the information required by Section

222.006(a).

(18) "Purchaser" means a person, other than an operator, seller,

or broker, who by means of voluntary transfer acquires a

membership interest or membership right in a membership camping

resort other than as security for an obligation.

(19) "Reciprocal company" means any person, including an

operator, who operates a reciprocal program.

(20) "Reciprocal program disclosure statement" means a written

statement that includes the information required by Section

222.006(c).

(21) "Reciprocal program" means any program under which the

purchaser of a membership interest or membership right in a

membership camping resort may use the facilities of a membership

camping resort other than those of the purchaser's home resort.

(22) "Seller" means a person, including an operator, who in the

ordinary course of business offers a membership interest or

membership right for sale to the public but does not include a

person who acquires a membership interest or membership right for

his use and subsequently offers it for resale.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989. Amended by Acts 1989, 71st Leg., ch. 1039, Sec. 3.20,

eff. Sept. 1, 1989.

Sec. 222.004. REGISTRATION; ADMINISTRATION. (a) A person may

not offer or dispose of a membership interest or membership right

under a membership camping contract in this state unless the

operator is registered with the secretary of state. If an

operator also sells membership camping contracts, that operator

must also comply with the registration requirements for

membership camping contract brokers imposed by Section 222.005.

(b) A registration filed under this section must be on a form

prescribed by the secretary of state and must include, to the

extent applicable, the following information:

(1) the operator's name, address, and the organizational form of

the operator's business, including the date and jurisdiction

under which the business was organized, the name and address of

each of its officers in this state, and the name and address of

each membership camping resort located in this state that is

owned or operated in whole or in part by the operator;

(2) a list of all owners of 10 percent or more of the capital

stock of the operator's business if the operator is not required

to report under the Securities Exchange Act of 1934 (15 U.S.C.

Sec. 78a et seq.);

(3) a brief description and certified copy of the instrument

creating the operator's ownership of or other right to use the

membership camping resort and the amenities that are to be

available for use by purchasers, together with a copy of any

lease, license, franchise, reciprocal agreement, or other

agreement entitling the operator to use the membership camping

resort and the amenities, and any material provision of the

agreement that restricts a purchaser's use of the membership

camping resort or the amenities;

(4) a sample copy of each instrument to be delivered to a

purchaser to evidence the purchaser's membership in the

membership camping resort and a sample copy of each agreement

that a purchaser is required to execute;

(5) financial statements of the operator for the most recent

fiscal quarter;

(6) a narrative description of the promotional plan for the

offering of membership interests or membership rights;

(7) a copy of any agreement between the operator and any person

owning, controlling, or managing the membership camping resort;

(8) a complete list of the locations and addresses of any sales

offices located in this state;

(9) the names of any other states or foreign countries in which

a registration of the operator or the membership camping contract

has been filed;

(10) complete information concerning any adverse order,

judgment, or decree entered by any court or administrative agency

in connection with a membership camping resort operated by the

operator or in which the operator had an interest at the time of

the order, judgment, or decree;

(11) a description of any blanket encumbrance on the membership

camping resort; and

(12) a membership camping resort disclosure statement and any

required reciprocal program disclosure statement required by

Section 222.006.

(c) The registration must be signed by the operator, by an

officer or general partner of the operator, or by another person

who holds a power of attorney for this purpose from the operator.

If the registration is signed under a power of attorney, a copy

of the power of attorney must be included with the registration.

The registration must be submitted with the registration fee set

by the secretary of state pursuant to Section 222.010.

(d) The operator shall promptly file amendments to the

registration reporting to the secretary of state any material and

adverse change in any document contained in such registration.

For the purposes of this subsection, a material and adverse

change includes any change that significantly reduces or

terminates either the applicant's or a purchaser's right to use

the membership camping resort or any of the amenities described

by the membership camping contract but does not include minor

changes covering the use of the membership camping resort, its

amenities, or any reciprocal program.

(e) The secretary of state shall investigate all matters

relating to the registration and may in his discretion require a

personal inspection of the proposed membership camping resort by

any persons designated by him.

(f) The secretary of state may prescribe and publish forms

necessary to carry out the provisions of this chapter. The

secretary of state may not approve or disapprove any

registration, and an operator may not represent to any person

that the secretary of state endorses or approves the membership

camping resort or membership camping contract.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989. Amended by Acts 1989, 71st Leg., ch. 1039, Sec. 3.21,

eff. Sept. 1, 1989.

Sec. 222.005. REGISTRATION OF SELLERS AND MEMBERSHIP CAMPING

CONTRACT BROKERS. (a) A person may not offer a membership

interest or membership right in a membership camping resort or

resell membership camping contracts in this state unless the

person is registered with the secretary of state. Each

application for registration as a seller or membership camping

contract broker must be in writing and must be signed by the

applicant.

(b) The application must state:

(1) the name and address of the applicant;

(2) the name and place of business of the applicant's employer,

if any;

(3) whether the applicant has been convicted of a felony or a

misdemeanor involving moral turpitude and if so, the nature of

the felony, where and when it was committed, and the disposition

of the conviction; and

(4) whether the applicant has been refused a real estate

broker's or salesman's license or any other occupational license

in this or any other state or whether the applicant's license as

a real estate broker or salesman in this or any other state has

been revoked or suspended.

(c) The secretary of state may require any additional

information that is reasonably necessary to determine the good

moral character of an applicant for registration.

(d) Each application for registration as a seller or membership

camping contract broker must be accompanied by the required

registration fee set by the secretary of state pursuant to

Section 222.010.

(e) The secretary of state may prescribe and publish forms to

carry out the provisions of this section.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989. Amended by Acts 1989, 71st Leg., ch. 1039, Sec. 3.22,

eff. Sept. 1, 1989.

Sec. 222.006. DISCLOSURE STATEMENTS. (a) Before or at the time

of the use of any promotion in connection with the offering of a

membership interest or membership right in a membership camping

resort, the person who intends to use the promotion shall include

the following information in its advertisements to the

prospective purchaser:

(1) a statement to the effect that the promotion is intended to

solicit purchasers of membership interests or membership rights

in a membership camping resort;

(2) the full name of the operator and seller of the membership

interest or membership right in the membership camping resort;

(3) if applicable, the full name and address of any marketing

company involved in the promotion of the membership camping

resort;

(4) the complete rules of the promotion;

(5) the method of awarding, the odds of winning, and the

approximate retail value of prizes, gifts, or other benefits

under the promotion and the date by which each prize, gift, or

other benefit will be awarded or conferred;

(6) any restrictions, qualifications, or other conditions that

the recipient must satisfy before the recipient is entitled to

receive a prize, gift, or other benefit, including:

(A) any deadline by which the recipient must visit the

membership camping resort, attend the sales presentation, or

contact a seller in order to receive the prize, gift, or other

benefit;

(B) the date on which the offer expires; and

(C) any other conditions, including minimum age qualifications,

financial qualifications, or a requirement that if the recipient

is married both husband and wife must be present in order to

receive the prize, gift, or other benefit;

(7) if applicable, a statement that the operator or seller

reserves the right to provide a certificate with which to redeem

or claim the prize, gift, or other benefit awarded and that the

prize, gift, or other benefit shall be shipped or delivered to

the recipient within 30 days following the mailing of the

certificate; and

(8) if applicable, a statement that the operator or seller

reserves the right to substitute a prize, gift, or other benefit

of equal value for the prize, gift, or other benefit awarded if

the item is not available to the operator or seller after the

purchaser or prospect has complied with the provisions of the

promotion.

(b) Before or at the time of the signing of any agreement or

membership camping contract to acquire a membership interest or

membership right in a membership camping resort, the operator

shall provide a membership camping resort disclosure statement to

the prospective purchaser and shall obtain from the purchaser a

written acknowledgement of receipt of the membership camping

resort disclosure statement. The membership camping resort

disclosure statement must include:

(1) the name and address of the operator and the name and

specific location of the membership camping resort;

(2) a description of the amenities, membership camping resort,

and any project or development within which the membership

camping resort is located or of which it is a part. The

disclosure statement must also state the total number of camping

sites in the membership camping resort and whether and under what

circumstances that number may be increased or decreased; if a

membership interest or membership right includes amenities not

yet in existence, the disclosure statement must provide the

approximate commencement and completion schedule of those

proposed amenities;

(3) a description of the membership interests and membership

rights currently available for disposition;

(4) a statement that a council of purchasers exists or is

expected to be created or that such a council does not exist and

is not expected to be created; if such a council exists or is

reasonably contemplated, the disclosure statement must contain a

description of its powers and responsibilities;

(5) the name and principal address of the managing entity;

(6) a description and amount of any current or expected dues,

assessments, fees, taxes, or charges to be paid by purchasers for

the use of amenities or for any other purpose;

(7) a description and amount of insurance coverage provided for

the protection of the purchaser; and

(8) a statement that any deposit made in connection with the

purchase of a membership interest or membership right will be

held until expiration of any right to cancel the contract or any

later time specified in the contract and will be returned to the

purchaser if he elects to exercise his right of cancellation.

(c) Before or at the time of the signing of any agreement or

membership camping contract in which a prospective purchaser is

also offered participation in a reciprocal program, the operator

shall also deliver to the prospective purchaser the reciprocal

program disclosure statement of the reciprocal company whose

reciprocal program is advertised or offered by the operator or

seller in connection with the disposition. If participation in a

reciprocal program is offered for the first time after a

disposition has occurred, any person offering the participation

shall also deliver a reciprocal program disclosure statement to

the purchaser before the execution by the purchaser of any

instrument relating to participation in the reciprocal program.

In all cases, the person offering the participation shall obtain

from the purchaser a written acknowledgement of receipt of the

reciprocal program disclosure statement. The reciprocal program

disclosure statement must include the following information:

(1) the name and address of the reciprocal company;

(2) if the reciprocal company is not the operator, a statement

describing the legal relationship, if any, between the reciprocal

company and the operator;

(3) a statement that the reciprocal program might terminate or

become unavailable;

(4) whether membership or participation, or both, in the

reciprocal program is voluntary or mandatory;

(5) a complete description of the required procedure for using

the reciprocal program;

(6) the fee required for membership or participation, or both,

in the reciprocal program and whether the fee is subject to

change;

(7) a statement to the effect that participation in the

reciprocal program is conditioned on compliance with the terms of

a contract between the reciprocal company and the purchaser; and

(8) a statement in conspicuous and bold-faced print to the

effect that all reciprocal campgrounds are arranged on a

space-available basis and that neither the operator nor the

reciprocal company guarantees that a particular reciprocal

campground can be used.

(d) A disclosure statement need not be delivered in the case of:

(1) a gratuitous disposition of a membership interest or

membership right;

(2) a disposition pursuant to a court order;

(3) a disposition by a governmental agency;

(4) a disposition by foreclosure or deed in lieu of foreclosure;

(5) a disposition that may be canceled by the purchaser without

penalty at any time and for any reason;

(6) a disposition of a membership interest or membership right

in a membership camping resort situated wholly outside this state

under a contract executed wholly outside this state, if there has

been no offering to the purchaser within this state;

(7) a disposition of a membership interest or membership right

to a purchaser who is not a resident of this state under a

contract executed wholly outside this state, if there has been no

offering to the purchaser within this state; or

(8) the redisposition of a membership interest or membership

right by a purchaser who acquired the interest or right for his

personal use.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989.

Sec. 222.007. CONTRACT. (a) Each sale of a membership interest

or membership right in a membership camping resort must be

evidenced by a membership camping contract written in the

language principally used in any promotional presentation made to

the purchaser. The seller must give the purchaser a copy of the

contract at the time it is signed.

(b) Each contract must contain the following:

(1) the name and address of the operator and the seller and the

location of the membership camping resort;

(2) the signature of the operator or seller;

(3) the signature of the purchaser;

(4) the date on which the purchaser signs the contract;

(5) the name of the person who closed the transaction described

in the membership camping contract;

(6) a brief description of the nature of the purchaser's

interest in and right or license to use the membership camping

resort;

(7) a summary or copy of the rules, restrictions, or covenants

regulating the purchaser's use of the operator's properties,

including a statement of whether and how the rules, restrictions,

or covenants may be changed;

(8) any restraints on the transfer of the membership camping

contract;

(9) any grounds for forfeiture of a purchaser's membership

camping contract;

(10) if applicable, a statement of the purchaser's right to

cancel the membership camping contract as provided by Section

222.008(c);

(11) a statement of whether the purchaser visited the location

of the membership camping resort before signing the contract; and

(12) if applicable, a statement by the seller that if the

purchaser timely exercises any right of cancellation under the

contract, all payments made by the purchaser to the seller in

connection with the contract shall be returned to the purchaser

before the 21st day after the seller receives notice of

cancellation as required under Section 222.008.

(c) The contract must also contain a brief description of the

existing amenities available for use by purchasers at the home

resort and of any proposed amenities or amenities not yet

complete or fully functional.

(d) The contract must also contain a brief statement of the

operator's ownership of or other right to use the camping

properties represented to be available for use by purchasers,

together with the duration of any lease, license, franchise, or

reciprocal program entitling the operator to use the property,

and material provisions of any agreements that restrict a

purchaser's use of the property.

(e) The contract must be revised annually to include any changes

to the information required by this section, if applicable.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989.

Sec. 222.008. PURCHASER'S RIGHT TO CANCEL. (a) A purchaser may

cancel a membership camping contract to purchase a membership

interest or membership right before the fourth business day after

the contract is executed if the purchaser did not visit the

location of the membership camping resort being offered for sale

before the contract was signed. A purchaser may not waive his

right of cancellation under this section. A contract containing a

waiver is voidable by the purchaser.

(b) If a purchaser elects to cancel a membership camping

contract under Subsection (a), he may do so by hand delivering

notice of cancellation to the seller or by mailing notice by

prepaid United States mail to the seller or to the seller's agent

for service of process. Cancellation is without penalty, and all

payments made by the purchaser before cancellation must be

refunded before the 21st day after the date on which the seller

receives notice of cancellation.

(c) If applicable, immediately before the space reserved in the

contract for the signature of the purchaser, in bold-faced and

conspicuous type or print that is larger than the type of print

in the remaining text of the contract, substantially the

following statement must appear:

"If you have not visited the location of the membership camping

resort in which you are acquiring an interest or membership

right, you may cancel this contract without penalty or obligation

before the fourth business day after the date on which you signed

this contract. If you decide to cancel this contract, you may do

so by hand delivering notice of cancellation to the seller or by

mailing notice by prepaid United States mail to the seller or the

seller's agent for service of process. Your notice of

cancellation is effective on the date sent or delivered to (name

of seller) at (address of seller). A purchaser should not rely on

statements other than those included in this contract and the

disclosure statement."

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989.

Sec. 222.009. RECIPROCAL PROGRAM. An operator does not incur

any liability arising out of use, delivery, or publication by the

operator to the purchaser of written information or audio-visual

materials provided to it by the reciprocal company pursuant to

Section 222.006; provided, however, that an operator is subject

to liability arising out of the use, delivery, or publication to

the purchaser of materials provided by the reciprocal company if

the operator knows that the materials are inaccurate or false.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989.

Sec. 222.010. FEES. (a) The secretary of state shall set all

fees imposed by this chapter in amounts reasonable and necessary

to cover the costs of administering this chapter.

(b) The secretary of state shall deposit all fees received under

this chapter in the state treasury to the credit of a special

fund to be used in the administration of this chapter.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989. Amended by Acts 1989, 71st Leg., ch. 1039, Sec. 3.23,

eff. Sept. 1, 1989.

Sec. 222.011. VIOLATIONS. (a) A person commits a false,

misleading, or deceptive act or practice within the meaning of

Subsections (a) and (b), Section 17.46, Deceptive Trade

Practices-Consumer Protection Act (Section 17.46, Business &

Commerce Code), by engaging in any of the following acts:

(1) failing to disclose information concerning a membership

interest or membership right required by Section 222.006;

(2) failing to provide a purchaser with a copy of the membership

camping contract and any other document signed by the purchaser

or the operator in connection with the purchase of a membership

interest or membership right;

(3) making false or misleading statements of a material nature

concerning camping sites or amenities available to the purchaser;

(4) predicting specific or immediate increases in the value of a

membership interest or membership right without a reasonable

basis for such predictions;

(5) making false or misleading statements of a material nature

concerning the conditions under which a purchaser of a membership

interest or membership right may use or occupy other membership

camping resort camping sites or amenities;

(6) representing that a prize, gift, or other benefit will be

awarded in connection with a promotion with intent not to award

that prize, gift, or other benefit;

(7) representing that registration with the secretary of state

under Section 222.004 constitutes approval or endorsement by the

secretary of state of the operator, the membership camping

contract, or the membership camping resort;

(8) offering or disposing of a membership interest or membership

right under a membership camping contract without having complied

with the registration requirements under Section 222.004; and

(9) offering for sale a membership interest or membership right

in a membership camping resort without having complied with the

registration requirements under Section 222.005.

(b) The provisions of this section are not exclusive and are in

addition to provisions provided for in any other law.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989. Amended by Acts 1989, 71st Leg. ch. 1039, Sec. 3.24,

eff. Sept. 1, 1989.

Sec. 222.012. INSURANCE. Before the disposition of any

membership interest or membership right in a membership camping

resort, the operator shall maintain the following insurance with

respect to the membership camping resort:

(1) property insurance on any personal property for use by

purchasers, other than personal property separately owned by a

purchaser, insuring against all risks of direct physical loss

commonly insured against in a total amount, after application of

deductibles, of the insurable value of the personal property of

the membership camping resort; and

(2) liability insurance covering all occurrences commonly

insured against for death, bodily injury, and property damage

arising out of or in connection with the use, ownership, and

maintenance of the membership camping resort.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989.

Sec. 222.013. EXEMPT FROM SECURITIES ACT. The filing of a

registration under this chapter exempts the sale of a membership

interest or membership right in a membership camping resort

subject to this chapter from registration under The Securities

Act (Article 581-1 et seq., Vernon's Texas Civil Statutes).

Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug.

28, 1989.