Texas Senate Bill SB1231

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/26/11
• Introduced: 3/7/11
• Voted on by Senate: 5/3/11
• Refer: 3/16/11
• Out of House Committee: 5/20/11
• Report Pass: 4/26/11
• Voted on by House: 5/23/11
• Engrossed: 5/3/11
• Governor Action: 6/17/11
• Refer: 5/4/11
• Report Pass: 5/18/11
• Enrolled: 5/23/11
• Passed: 6/17/11

Caption

Relating to the regulation of health spas by the secretary of state.

Impact

The bill modifies existing statutes to enhance consumer protection for health spa members. By requiring health spas to maintain security and provide adequate notice before closing or relocating, SB1231 aims to reduce potential financial losses for members. Moreover, it sets guidelines on how members can recover their dues in an accountable manner through filings with the Texas Secretary of State. These changes are significant as they provide legal recourse and more transparent information for consumers, contributing to a more regulated health spa industry.

Summary

SB1231 seeks to amend the Occupations Code with respect to the regulation of health spas in Texas. The bill provisions aim to ensure that health spa operators maintain security deposits to protect consumers in the event of business closures or relocations. It specifically mandates that health spas must inform their members about cancellation rights and processes should their health spa close or relocate more than ten miles away from their original location. Furthermore, it establishes the required notice period for closures and stipulates conditions under which members can file claims for refunds against the deposited security.

Contention

Although the bill had commendable objectives regarding consumer protection, there may be points of contention among health spa operators concerning the financial burden of maintaining security deposits. Some may argue that the requirements for maintaining such security could disproportionately impact smaller health spas or emerging businesses. Additionally, there could be concerns regarding the administrative burden of compliance with the new notice and claim processes outlined in the bill, which may be viewed as overly regulatory by certain stakeholders.