Texas 2011 - 82nd Regular

Texas Senate Bill SB1231 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Estes S.B. No. 1231
2	2	(Laubenberg)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of health spas by the secretary of state.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 702.155, Occupations Code, is amended to
10	10	read as follows:
11	11	Sec. 702.155. DURATION OF SECURITY. A certificate holder
12	12	shall maintain the security filed or posted under Section 702.151
13	13	in effect until the earlier [later] of:
14	14	(1) the second anniversary of the date the certificate
15	15	holder's health spa closes; or
16	16	(2) the date the secretary of state determines that
17	17	each claim filed against the security has been satisfied or
18	18	foreclosed by law.
19	19	SECTION 2. Section 702.156, Occupations Code, is amended to
20	20	read as follows:
21	21	Sec. 702.156. NOTICE OF CANCELLATION OF SECURITY. [(a)] A
22	22	surety or obligor of security filed or posted under this subchapter
23	23	shall provide to the secretary of state, not later than the 60th day
24	24	before the date the security is canceled, written notice of the
25	25	cancellation.
26	26	[(b) If the security filed or posted under this subchapter
27	27	by a certificate holder is canceled, the secretary of state shall:
28	28	[(1) suspend the certificate holder's certificate of
29	29	registration on the date of cancellation; and
30	30	[(2) maintain other security on file with the
31	31	secretary until the later of:
32	32	[(A) the second anniversary of the date the
33	33	certificate holder's health spa closes; or
34	34	[(B) the date the secretary determines that each
35	35	claim filed against the security has been satisfied or foreclosed
36	36	by law.]
37	37	SECTION 3. Section 702.207, Occupations Code, is amended to
38	38	read as follows:
39	39	Sec. 702.207. DENIAL AND REVOCATION OF EXEMPTION. After
40	40	notice and opportunity for hearing, the secretary of state may deny
41	41	an application for an exemption or permanently revoke a certificate
42	42	holder's certificate of exemption if the secretary finds that the
43	43	applicant or certificate holder:
44	44	(1) provided false information on the application for
45	45	an exemption; or
46	46	(2) is no longer eligible for an exemption.
47	47	SECTION 4. Section 702.251, Occupations Code, is amended to
48	48	read as follows:
49	49	Sec. 702.251. FILING OF SECURITY CLAIM. A member may file a
50	50	claim against the security filed or posted under this subchapter by
51	51	providing [sending] to the secretary of state [by certified mail] a
52	52	copy of the contract between the member and certificate holder who
53	53	filed or posted the security, accompanied by proof of payment made
54	54	under the contract, if the certificate holder's health spa:
55	55	(1) closes and fails to provide alternative facilities
56	56	not more than 10 miles from the location of the health spa; or
57	57	(2) relocates more than 10 miles from its location
58	58	preceding the relocation.
59	59	SECTION 5. Section 702.254, Occupations Code, is amended to
60	60	read as follows:
61	61	Sec. 702.254. CLAIM BARRED. The secretary of state may not
62	62	consider a claim filed under Section 702.251 if the claim is
63	63	received later than the 90th day after the date notice of the
64	64	closure or relocation is first posted on the secretary of state's
65	65	Internet website under Section 702.452(c) [702.452].
66	66	SECTION 6. Subsection (a), Section 702.304, Occupations
67	67	Code, is amended to read as follows:
68	68	(a) Except as provided by Subsection (b), a contract must
69	69	state in at least 10-point type that is boldfaced, capitalized,
70	70	underlined, or otherwise conspicuously distinguished from
71	71	surrounding written material:
72	72	(1) "NOTICE TO PURCHASER: DO NOT SIGN THIS CONTRACT
73	73	UNTIL YOU READ IT OR IF IT CONTAINS BLANK SPACES."
74	74	(2) "IF YOU DECIDE YOU DO NOT WISH TO REMAIN A MEMBER
75	75	OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY MAILING TO THE
76	76	HEALTH SPA BY MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DAY YOU
77	77	SIGN THIS CONTRACT A NOTICE STATING YOUR DESIRE TO CANCEL THIS
78	78	CONTRACT. THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO
79	79	THE FOLLOWING ADDRESS:
80	80	(Address of the health spa home office)."
81	81	(3) "IF THE HEALTH SPA GOES OUT OF BUSINESS AND DOES
82	82	NOT PROVIDE FACILITIES WITHIN 10 MILES OF THE FACILITY IN WHICH YOU
83	83	ARE ENROLLED OR IF THE HEALTH SPA MOVES MORE THAN 10 MILES FROM THE
84	84	FACILITY IN WHICH YOU ARE ENROLLED, YOU MAY:
85	85	(A) CANCEL THIS CONTRACT BY MAILING BY CERTIFIED
86	86	MAIL A WRITTEN NOTICE STATING YOUR DESIRE TO CANCEL THIS CONTRACT,
87	87	ACCOMPANIED BY PROOF OF PAYMENT ON THE CONTRACT TO THE HEALTH SPA AT
88	88	THE FOLLOWING ADDRESS:
89	89	(Address of the health spa home office); AND
90	90	(B) FILE A CLAIM FOR A REFUND OF YOUR UNUSED
91	91	MEMBERSHIP FEES AGAINST THE BOND OR OTHER SECURITY POSTED BY THE
92	92	HEALTH SPA WITH THE TEXAS SECRETARY OF STATE. TO MAKE A CLAIM
93	93	AGAINST THE SECURITY PROVIDE [SEND] A COPY OF YOUR CONTRACT
94	94	TOGETHER WITH PROOF OF PAYMENTS MADE ON THE CONTRACT TO THE TEXAS
95	95	SECRETARY OF STATE. THE REQUIRED CLAIM INFORMATION [WRITTEN
96	96	NOTICE] MUST BE RECEIVED BY [MAILED BY CERTIFIED MAIL TO] THE
97	97	SECRETARY OF STATE NOT LATER THAN THE 90TH DAY AFTER THE DATE NOTICE
98	98	OF THE CLOSURE OR RELOCATION IS FIRST POSTED ON THE SECRETARY OF
99	99	STATE'S INTERNET WEBSITE [FOLLOWING ADDRESS:
100	100	OFFICE OF THE SECRETARY OF STATE
101	101	STATUTORY DOCUMENTS SECTION
102	102	P.O. BOX 12887
103	103	AUSTIN, TEXAS 78711-2887]."
104	104	(4) "IF YOU DIE OR BECOME TOTALLY AND PERMANENTLY
105	105	DISABLED AFTER THE DATE THIS CONTRACT TAKES EFFECT, YOU OR YOUR
106	106	ESTATE MAY CANCEL THIS CONTRACT AND RECEIVE A PARTIAL REFUND OF YOUR
107	107	UNUSED MEMBERSHIP FEE BY MAILING A NOTICE TO THE HEALTH SPA STATING
108	108	YOUR DESIRE TO CANCEL THIS CONTRACT. THE HEALTH SPA MAY REQUIRE
109	109	PROOF OF DISABILITY OR DEATH. THE WRITTEN NOTICE MUST BE MAILED BY
110	110	CERTIFIED MAIL TO THE FOLLOWING ADDRESS:
111	111	(Address of the health spa home office)."
112	112	SECTION 7. Sections 702.451 and 702.452, Occupations Code,
113	113	are amended to read as follows:
114	114	Sec. 702.451. DISCIPLINARY ACTIONS. (a) After notice and
115	115	opportunity for hearing, the secretary of state may deny an
116	116	application for a certificate of registration, or may permanently
117	117	revoke [or suspend for a definite period] a health spa operator's
118	118	certificate of registration, on a finding by the secretary that the
119	119	applicant or certificate holder:
120	120	(1) provided false information on an application or
121	121	other document filed with the secretary;
122	122	(2) failed to file or post, or maintain, the security
123	123	for each health spa location as required by Subchapter D; or
124	124	(3) failed to provide the contract disclosure language
125	125	required by Subchapter G.
126	126	(b) The secretary of state may permanently revoke a
127	127	certificate of registration under Subsection (a) based on the
128	128	certificate holder's failure to maintain the required security only
129	129	after a finding by the secretary that, within the 30-day period
130	130	following the cancellation or lapse of the security, the
131	131	certificate holder failed to file or post replacement security in
132	132	the required amount.
133	133	Sec. 702.452. NOTICE REQUIREMENT BEFORE HEALTH SPA CLOSING.
134	134	(a) At least 30 days before the date a health spa is scheduled to
135	135	close or relocate, the certificate holder shall contemporaneously:
136	136	(1) post, inside and outside each entrance to the
137	137	health spa, a notice stating:
138	138	(A) the date the health spa is scheduled to close
139	139	or relocate;
140	140	(B) that a member of the health spa may, not later
141	141	than the 90th day after the date notice of the closure or relocation
142	142	is first posted on the secretary of state's Internet website [the
143	143	health spa closes or relocates], file with the secretary of state a
144	144	claim to recover actual financial loss suffered by the member as a
145	145	result of the health spa closing; and
146	146	(C) the procedures for perfecting a security
147	147	claim; and
148	148	(2) notify the secretary of state in writing of the
149	149	health spa closing or relocation and the date that the notice was
150	150	first posted.
151	151	(b) The notice posted under Subsection (a)(1) must be:
152	152	(1) at least 8-1/2 by 11 inches in size; and
153	153	(2) posted continuously for at least 30 days.
154	154	(c) [If the certificate holder fails to post the notice
155	155	required by Subsection (a)(1) within the time specified, the
156	156	secretary of state, not later than the 30th day after the date the
157	157	secretary discovers that a health spa is closed, shall post the
158	158	notice required under Subsection (a)(1).
159	159	[(d)] After receiving a notice under Subsection (a)(2) or
160	160	otherwise discovering that a health spa is closed, the secretary of
161	161	state shall post on the secretary of state's Internet website a
162	162	notice containing the information specified in Subsection (a)(1).
163	163	The notice must be posted continuously for at least 30 days.
164	164	(d) [(e)] The secretary of state shall, not later than the
165	165	10th day after the date the secretary receives notice or otherwise
166	166	discovers that a health spa is closed, notify the appropriate
167	167	surety company or obligor of the administrative proceedings pending
168	168	under Subsection (a)(1).
169	169	(e) [(f)] The notice required under Subsection (a) is not
170	170	required in the case of a fire, flood, or act of God that is not
171	171	within the reasonable control of a health spa.
172	172	SECTION 8. (a) The changes in law made by this Act to
173	173	Sections 702.155 and 702.156, Occupations Code, apply to security
174	174	that is filed or posted before, on, or after the effective date of
175	175	this Act.
176	176	(b) The change in law made by this Act to Section 702.207,
177	177	Occupations Code, applies only to an application for exemption that
178	178	is filed or to the revocation of a certificate of exemption that
179	179	occurs on or after the effective date of this Act. An application
180	180	for exemption filed or the revocation of a certificate that occurs
181	181	before the effective date of this Act is governed by the law in
182	182	effect immediately before that date, and the former law is
183	183	continued in effect for that purpose.
184	184	(c) The changes in law made by this Act to Sections 702.251
185	185	and 702.254, Occupations Code, apply only to a claim against
186	186	security that is received by the secretary of state on or after the
187	187	effective date of this Act. A claim against security received by
188	188	the secretary of state before the effective date of this Act is
189	189	governed by the law in effect immediately before that date, and the
190	190	former law is continued in effect for that purpose.
191	191	(d) The change in law made by this Act to Section 702.304,
192	192	Occupations Code, applies only to a contract that is entered into on
193	193	or after the effective date of this Act. A contract entered into
194	194	before the effective date of this Act is governed by the law in
195	195	effect immediately before that date, and the former law is
196	196	continued in effect for that purpose.
197	197	(e) The change in law made by this Act to Section 702.451,
198	198	Occupations Code, applies to a disciplinary action taken on or
199	199	after the effective date of this Act. A disciplinary action taken
200	200	before the effective date of this Act is governed by the law in
201	201	effect immediately before that date, and the former law is
202	202	continued in effect for that purpose.
203	203	(f) The change in law made by this Act to Section 702.452,
204	204	Occupations Code, applies to the closing or relocation of a health
205	205	spa that occurs on or after the effective date of this Act. A
206	206	closing or relocation of a health spa that occurs before the
207	207	effective date of this Act is governed by the law in effect
208	208	immediately before that date, and the former law is continued in
209	209	effect for that purpose.
210	210	SECTION 9. This Act takes effect September 1, 2011.