By: Fraser S.B. No. 1702
(In the Senate - Filed March 10, 2009; March 20, 2009, read
first time and referred to Committee on Business and Commerce;
April 14, 2009, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 14, 2009,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1702 By: Fraser
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of health spas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 702.155, Occupations Code, is amended to
read as follows:
Sec. 702.155. DURATION OF SECURITY. A certificate holder
shall maintain the security filed or posted under Section 702.151
in effect until the earlier [later] of:
(1) the second anniversary of the date the certificate
holder's health spa closes; or
(2) the date the secretary of state determines that
each claim filed against the security has been satisfied or
foreclosed by law.
SECTION 2. Subsection (b), Section 702.156, Occupations
Code, is amended to read as follows:
(b) If the security filed or posted under this subchapter by
a certificate holder is canceled, the secretary of state shall:
(1) suspend the certificate holder's certificate of
registration on the date of cancellation; and
(2) maintain other security on file with the secretary
until the earlier [later] of:
(A) the second anniversary of the date the
certificate holder's health spa closes; or
(B) the date the secretary determines that each
claim filed against the security has been satisfied or foreclosed
by law.
SECTION 3. Section 702.251, Occupations Code, is amended to
read as follows:
Sec. 702.251. FILING OF SECURITY CLAIM. A member may file a
claim against the security filed or posted under this subchapter by
providing [sending] to the secretary of state [by certified mail] a
copy of the contract between the member and certificate holder who
filed or posted the security, accompanied by proof of payment made
under the contract, if the certificate holder's health spa:
(1) closes and fails to provide alternative facilities
not more than 10 miles from the location of the health spa; or
(2) relocates more than 10 miles from its location
preceding the relocation.
SECTION 4. Subsection (a), Section 702.304, Occupations
Code, is amended to read as follows:
(a) Except as provided by Subsection (b), a contract must
state in at least 10-point type that is boldfaced, capitalized,
underlined, or otherwise conspicuously distinguished from
surrounding written material:
(1) "NOTICE TO PURCHASER: DO NOT SIGN THIS CONTRACT
UNTIL YOU READ IT OR IF IT CONTAINS BLANK SPACES."
(2) "IF YOU DECIDE YOU DO NOT WISH TO REMAIN A MEMBER
OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY MAILING TO THE
HEALTH SPA BY MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DAY YOU
SIGN THIS CONTRACT A NOTICE STATING YOUR DESIRE TO CANCEL THIS
CONTRACT. THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO
THE FOLLOWING ADDRESS:
(Address of the health spa home office)."
(3) "IF THE HEALTH SPA GOES OUT OF BUSINESS AND DOES
NOT PROVIDE FACILITIES WITHIN 10 MILES OF THE FACILITY IN WHICH YOU
ARE ENROLLED OR IF THE HEALTH SPA MOVES MORE THAN 10 MILES FROM THE
FACILITY IN WHICH YOU ARE ENROLLED, YOU MAY:
(A) CANCEL THIS CONTRACT BY MAILING BY CERTIFIED
MAIL A WRITTEN NOTICE STATING YOUR DESIRE TO CANCEL THIS CONTRACT,
ACCOMPANIED BY PROOF OF PAYMENT ON THE CONTRACT TO THE HEALTH SPA AT
THE FOLLOWING ADDRESS:
(Address of the health spa home office); AND
(B) FILE A WRITTEN NOTICE OF A CLAIM FOR A REFUND
OF YOUR UNUSED MEMBERSHIP FEES AGAINST THE BOND OR OTHER SECURITY
POSTED BY THE HEALTH SPA WITH THE TEXAS SECRETARY OF STATE. TO MAKE
A CLAIM AGAINST THE SECURITY SEND A COPY OF YOUR CONTRACT TOGETHER
WITH PROOF OF PAYMENTS MADE ON THE CONTRACT TO THE TEXAS SECRETARY
OF STATE. [THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO
THE FOLLOWING ADDRESS:
[OFFICE OF THE SECRETARY OF STATE
[STATUTORY DOCUMENTS SECTION
[P.O. BOX 12887
[AUSTIN, TEXAS 78711-2887.]"
(4) "IF YOU DIE OR BECOME TOTALLY AND PERMANENTLY
DISABLED AFTER THE DATE THIS CONTRACT TAKES EFFECT, YOU OR YOUR
ESTATE MAY CANCEL THIS CONTRACT AND RECEIVE A PARTIAL REFUND OF YOUR
UNUSED MEMBERSHIP FEE BY MAILING A NOTICE TO THE HEALTH SPA STATING
YOUR DESIRE TO CANCEL THIS CONTRACT. THE HEALTH SPA MAY REQUIRE
PROOF OF DISABILITY OR DEATH. THE WRITTEN NOTICE MUST BE MAILED BY
CERTIFIED MAIL TO THE FOLLOWING ADDRESS:
(Address of the health spa home office)."
SECTION 5. Subsection (a), Section 702.452, Occupations
Code, is amended to read as follows:
(a) At least 30 days before the date a health spa is
scheduled to close or relocate, the certificate holder shall
contemporaneously:
(1) post, inside and outside each entrance to the
health spa, a notice stating:
(A) the date the health spa is scheduled to close
or relocate;
(B) that a member of the health spa may, not later
than the 90th day after the date the notice is first posted [health
spa closes or relocates], file with the secretary of state a claim
to recover actual financial loss suffered by the member as a result
of the health spa closing; and
(C) the procedures for perfecting a security
claim; and
(2) notify the secretary of state in writing of the
health spa closing or relocation and the date that the notice was
first posted.
SECTION 6. The changes in law made by this Act to Section
702.251, Occupations Code, and Subsection (a), Section 702.304, and
Subsection (a), Section 702.452, Occupations Code, apply only to a
contract that is entered into on or after the effective date of this
Act. A contract entered into before the effective date of this Act
is governed by the law in effect immediately before that date, and
the former law is continued in effect for that purpose.
SECTION 7. This Act takes effect September 1, 2009.
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