Texas 2009 - 81st Regular

Texas Senate Bill SB1702 Compare Versions

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11 By: Fraser S.B. No. 1702
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44 A BILL TO BE ENTITLED
55 AN ACT
66 relating to the regulation of health spas.
77 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
88 SECTION 1. Section 702.155, Occupations Code, is amended to
99 read as follows:
1010 Sec. 702.155. DURATION OF SECURITY. A certificate holder
1111 shall maintain the security filed or posted under Section 702.151
1212 in effect until the earlier [later] of:
1313 (1) the second anniversary of the date the certificate
1414 holder's health spa closes; or
1515 (2) the date the secretary of state determines that
1616 each claim filed against the security has been satisfied or
1717 foreclosed by law.
1818 SECTION 2. Subsection (b), Section 702.156, Occupations
1919 Code, is amended to read as follows:
2020 (b) If the security filed or posted under this subchapter by
2121 a certificate holder is canceled, the secretary of state shall:
2222 (1) suspend the certificate holder's certificate of
2323 registration on the date of cancellation; and
2424 (2) maintain other security on file with the secretary
2525 until the earlier [later] of:
2626 (A) the second anniversary of the date the
2727 certificate holder's health spa closes; or
2828 (B) the date the secretary determines that each
2929 claim filed against the security has been satisfied or foreclosed
3030 by law.
3131 SECTION 3. Section 702.251, Occupations Code, is amended to
3232 read as follows:
3333 Sec. 702.251. FILING OF SECURITY CLAIM. A member may file a
3434 claim against the security filed or posted under this subchapter by
3535 providing [sending] to the secretary of state [by certified mail] a
3636 copy of the contract between the member and certificate holder who
3737 filed or posted the security, accompanied by proof of payment made
3838 under the contract, if the certificate holder's health spa:
3939 (1) closes and fails to provide alternative facilities
4040 not more than 10 miles from the location of the health spa; or
4141 (2) relocates more than 10 miles from its location
4242 preceding the relocation.
4343 SECTION 4. Subsection (a), Section 702.304, Occupations
4444 Code, is amended to read as follows:
4545 (a) Except as provided by Subsection (b), a contract must
4646 state in at least 10-point type that is boldfaced, capitalized,
4747 underlined, or otherwise conspicuously distinguished from
4848 surrounding written material:
4949 (1) "NOTICE TO PURCHASER: DO NOT SIGN THIS CONTRACT
5050 UNTIL YOU READ IT OR IF IT CONTAINS BLANK SPACES."
5151 (2) "IF YOU DECIDE YOU DO NOT WISH TO REMAIN A MEMBER
5252 OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY MAILING TO THE
5353 HEALTH SPA BY MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DAY YOU
5454 SIGN THIS CONTRACT A NOTICE STATING YOUR DESIRE TO CANCEL THIS
5555 CONTRACT. THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO
5656 THE FOLLOWING ADDRESS:
5757 (Address of the health spa home office)."
5858 (3) "IF THE HEALTH SPA GOES OUT OF BUSINESS AND DOES
5959 NOT PROVIDE FACILITIES WITHIN 10 MILES OF THE FACILITY IN WHICH YOU
6060 ARE ENROLLED OR IF THE HEALTH SPA MOVES MORE THAN 10 MILES FROM THE
6161 FACILITY IN WHICH YOU ARE ENROLLED, YOU MAY:
6262 (A) CANCEL THIS CONTRACT BY MAILING BY CERTIFIED
6363 MAIL A WRITTEN NOTICE STATING YOUR DESIRE TO CANCEL THIS CONTRACT,
6464 ACCOMPANIED BY PROOF OF PAYMENT ON THE CONTRACT TO THE HEALTH SPA AT
6565 THE FOLLOWING ADDRESS:
6666 (Address of the health spa home office); AND
6767 (B) FILE A WRITTEN NOTICE OF A CLAIM FOR A REFUND
6868 OF YOUR UNUSED MEMBERSHIP FEES AGAINST THE BOND OR OTHER SECURITY
6969 POSTED BY THE HEALTH SPA WITH THE TEXAS SECRETARY OF STATE. TO MAKE
7070 A CLAIM AGAINST THE SECURITY SEND A COPY OF YOUR CONTRACT TOGETHER
7171 WITH PROOF OF PAYMENTS MADE ON THE CONTRACT TO THE TEXAS SECRETARY
7272 OF STATE. [THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO
7373 THE FOLLOWING ADDRESS:
7474 [OFFICE OF THE SECRETARY OF STATE
7575 [STATUTORY DOCUMENTS SECTION
7676 [P.O. BOX 12887
7777 [AUSTIN, TEXAS 78711-2887.]"
7878 (4) "IF YOU DIE OR BECOME TOTALLY AND PERMANENTLY
7979 DISABLED AFTER THE DATE THIS CONTRACT TAKES EFFECT, YOU OR YOUR
8080 ESTATE MAY CANCEL THIS CONTRACT AND RECEIVE A PARTIAL REFUND OF YOUR
8181 UNUSED MEMBERSHIP FEE BY MAILING A NOTICE TO THE HEALTH SPA STATING
8282 YOUR DESIRE TO CANCEL THIS CONTRACT. THE HEALTH SPA MAY REQUIRE
8383 PROOF OF DISABILITY OR DEATH. THE WRITTEN NOTICE MUST BE MAILED BY
8484 CERTIFIED MAIL TO THE FOLLOWING ADDRESS:
8585 (Address of the health spa home office)."
8686 SECTION 5. Subsection (a), Section 702.452, Occupations
8787 Code, is amended to read as follows:
8888 (a) At least 30 days before the date a health spa is
8989 scheduled to close or relocate, the certificate holder shall
9090 contemporaneously:
9191 (1) post, inside and outside each entrance to the
9292 health spa, a notice stating:
9393 (A) the date the health spa is scheduled to close
9494 or relocate;
9595 (B) that a member of the health spa may, not later
9696 than the 90th day after the date the notice is first posted [health
9797 spa closes or relocates], file with the secretary of state a claim
9898 to recover actual financial loss suffered by the member as a result
9999 of the health spa closing; and
100100 (C) the procedures for perfecting a security
101101 claim; and
102102 (2) notify the secretary of state in writing of the
103103 health spa closing or relocation and the date that the notice was
104104 first posted.
105105 SECTION 6. The changes in law made by this Act to Section
106106 702.251, Occupations Code, and Subsection (a), Section 702.304, and
107107 Subsection (a), Section 702.452, Occupations Code, apply only to a
108108 contract that is entered into on or after the effective date of this
109109 Act. A contract entered into before the effective date of this Act
110110 is governed by the law in effect immediately before that date, and
111111 the former law is continued in effect for that purpose.
112112 SECTION 7. This Act takes effect September 1, 2009.