1 | 1 | | By: Fraser S.B. No. 1702 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | A BILL TO BE ENTITLED |
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5 | 5 | | AN ACT |
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6 | 6 | | relating to the regulation of health spas. |
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7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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8 | 8 | | SECTION 1. Section 702.155, Occupations Code, is amended to |
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9 | 9 | | read as follows: |
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10 | 10 | | Sec. 702.155. DURATION OF SECURITY. A certificate holder |
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11 | 11 | | shall maintain the security filed or posted under Section 702.151 |
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12 | 12 | | in effect until the earlier [later] of: |
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13 | 13 | | (1) the second anniversary of the date the certificate |
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14 | 14 | | holder's health spa closes; or |
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15 | 15 | | (2) the date the secretary of state determines that |
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16 | 16 | | each claim filed against the security has been satisfied or |
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17 | 17 | | foreclosed by law. |
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18 | 18 | | SECTION 2. Subsection (b), Section 702.156, Occupations |
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19 | 19 | | Code, is amended to read as follows: |
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20 | 20 | | (b) If the security filed or posted under this subchapter by |
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21 | 21 | | a certificate holder is canceled, the secretary of state shall: |
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22 | 22 | | (1) suspend the certificate holder's certificate of |
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23 | 23 | | registration on the date of cancellation; and |
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24 | 24 | | (2) maintain other security on file with the secretary |
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25 | 25 | | until the earlier [later] of: |
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26 | 26 | | (A) the second anniversary of the date the |
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27 | 27 | | certificate holder's health spa closes; or |
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28 | 28 | | (B) the date the secretary determines that each |
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29 | 29 | | claim filed against the security has been satisfied or foreclosed |
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30 | 30 | | by law. |
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31 | 31 | | SECTION 3. Section 702.251, Occupations Code, is amended to |
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32 | 32 | | read as follows: |
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33 | 33 | | Sec. 702.251. FILING OF SECURITY CLAIM. A member may file a |
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34 | 34 | | claim against the security filed or posted under this subchapter by |
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35 | 35 | | providing [sending] to the secretary of state [by certified mail] a |
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36 | 36 | | copy of the contract between the member and certificate holder who |
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37 | 37 | | filed or posted the security, accompanied by proof of payment made |
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38 | 38 | | under the contract, if the certificate holder's health spa: |
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39 | 39 | | (1) closes and fails to provide alternative facilities |
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40 | 40 | | not more than 10 miles from the location of the health spa; or |
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41 | 41 | | (2) relocates more than 10 miles from its location |
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42 | 42 | | preceding the relocation. |
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43 | 43 | | SECTION 4. Subsection (a), Section 702.304, Occupations |
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44 | 44 | | Code, is amended to read as follows: |
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45 | 45 | | (a) Except as provided by Subsection (b), a contract must |
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46 | 46 | | state in at least 10-point type that is boldfaced, capitalized, |
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47 | 47 | | underlined, or otherwise conspicuously distinguished from |
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48 | 48 | | surrounding written material: |
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49 | 49 | | (1) "NOTICE TO PURCHASER: DO NOT SIGN THIS CONTRACT |
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50 | 50 | | UNTIL YOU READ IT OR IF IT CONTAINS BLANK SPACES." |
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51 | 51 | | (2) "IF YOU DECIDE YOU DO NOT WISH TO REMAIN A MEMBER |
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52 | 52 | | OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY MAILING TO THE |
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53 | 53 | | HEALTH SPA BY MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DAY YOU |
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54 | 54 | | SIGN THIS CONTRACT A NOTICE STATING YOUR DESIRE TO CANCEL THIS |
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55 | 55 | | CONTRACT. THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO |
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56 | 56 | | THE FOLLOWING ADDRESS: |
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57 | 57 | | (Address of the health spa home office)." |
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58 | 58 | | (3) "IF THE HEALTH SPA GOES OUT OF BUSINESS AND DOES |
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59 | 59 | | NOT PROVIDE FACILITIES WITHIN 10 MILES OF THE FACILITY IN WHICH YOU |
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60 | 60 | | ARE ENROLLED OR IF THE HEALTH SPA MOVES MORE THAN 10 MILES FROM THE |
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61 | 61 | | FACILITY IN WHICH YOU ARE ENROLLED, YOU MAY: |
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62 | 62 | | (A) CANCEL THIS CONTRACT BY MAILING BY CERTIFIED |
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63 | 63 | | MAIL A WRITTEN NOTICE STATING YOUR DESIRE TO CANCEL THIS CONTRACT, |
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64 | 64 | | ACCOMPANIED BY PROOF OF PAYMENT ON THE CONTRACT TO THE HEALTH SPA AT |
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65 | 65 | | THE FOLLOWING ADDRESS: |
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66 | 66 | | (Address of the health spa home office); AND |
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67 | 67 | | (B) FILE A WRITTEN NOTICE OF A CLAIM FOR A REFUND |
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68 | 68 | | OF YOUR UNUSED MEMBERSHIP FEES AGAINST THE BOND OR OTHER SECURITY |
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69 | 69 | | POSTED BY THE HEALTH SPA WITH THE TEXAS SECRETARY OF STATE. TO MAKE |
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70 | 70 | | A CLAIM AGAINST THE SECURITY SEND A COPY OF YOUR CONTRACT TOGETHER |
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71 | 71 | | WITH PROOF OF PAYMENTS MADE ON THE CONTRACT TO THE TEXAS SECRETARY |
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72 | 72 | | OF STATE. [THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO |
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73 | 73 | | THE FOLLOWING ADDRESS: |
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74 | 74 | | [OFFICE OF THE SECRETARY OF STATE |
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75 | 75 | | [STATUTORY DOCUMENTS SECTION |
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76 | 76 | | [P.O. BOX 12887 |
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77 | 77 | | [AUSTIN, TEXAS 78711-2887.]" |
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78 | 78 | | (4) "IF YOU DIE OR BECOME TOTALLY AND PERMANENTLY |
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79 | 79 | | DISABLED AFTER THE DATE THIS CONTRACT TAKES EFFECT, YOU OR YOUR |
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80 | 80 | | ESTATE MAY CANCEL THIS CONTRACT AND RECEIVE A PARTIAL REFUND OF YOUR |
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81 | 81 | | UNUSED MEMBERSHIP FEE BY MAILING A NOTICE TO THE HEALTH SPA STATING |
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82 | 82 | | YOUR DESIRE TO CANCEL THIS CONTRACT. THE HEALTH SPA MAY REQUIRE |
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83 | 83 | | PROOF OF DISABILITY OR DEATH. THE WRITTEN NOTICE MUST BE MAILED BY |
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84 | 84 | | CERTIFIED MAIL TO THE FOLLOWING ADDRESS: |
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85 | 85 | | (Address of the health spa home office)." |
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86 | 86 | | SECTION 5. Subsection (a), Section 702.452, Occupations |
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87 | 87 | | Code, is amended to read as follows: |
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88 | 88 | | (a) At least 30 days before the date a health spa is |
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89 | 89 | | scheduled to close or relocate, the certificate holder shall |
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90 | 90 | | contemporaneously: |
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91 | 91 | | (1) post, inside and outside each entrance to the |
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92 | 92 | | health spa, a notice stating: |
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93 | 93 | | (A) the date the health spa is scheduled to close |
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94 | 94 | | or relocate; |
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95 | 95 | | (B) that a member of the health spa may, not later |
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96 | 96 | | than the 90th day after the date the notice is first posted [health |
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97 | 97 | | spa closes or relocates], file with the secretary of state a claim |
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98 | 98 | | to recover actual financial loss suffered by the member as a result |
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99 | 99 | | of the health spa closing; and |
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100 | 100 | | (C) the procedures for perfecting a security |
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101 | 101 | | claim; and |
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102 | 102 | | (2) notify the secretary of state in writing of the |
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103 | 103 | | health spa closing or relocation and the date that the notice was |
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104 | 104 | | first posted. |
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105 | 105 | | SECTION 6. The changes in law made by this Act to Section |
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106 | 106 | | 702.251, Occupations Code, and Subsection (a), Section 702.304, and |
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107 | 107 | | Subsection (a), Section 702.452, Occupations Code, apply only to a |
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108 | 108 | | contract that is entered into on or after the effective date of this |
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109 | 109 | | Act. A contract entered into before the effective date of this Act |
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110 | 110 | | is governed by the law in effect immediately before that date, and |
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111 | 111 | | the former law is continued in effect for that purpose. |
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112 | 112 | | SECTION 7. This Act takes effect September 1, 2009. |
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