Texas 2023 - 88th Regular

Texas Senate Bill SB1835 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R30810 MPF-D
2	2	By: Hinojosa S.B. No. 1835
3	3	(Longoria)
4	4	Substitute the following for S.B. No. 1835: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to certain contract and notice requirements for the
10	10	cancellation of a health spa membership.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 702.304, Occupations Code, is amended to
13	13	read as follows:
14	14	Sec. 702.304. CANCELLATION AND REFUND NOTICE. (a) Except
15	15	as provided by Subsection (b), a contract must state in at least
16	16	10-point type that is boldfaced, capitalized, underlined, or
17	17	otherwise conspicuously distinguished from surrounding written
18	18	material:
19	19	(1) "NOTICE TO PURCHASER: DO NOT SIGN THIS CONTRACT
20	20	UNTIL YOU READ IT OR IF IT CONTAINS BLANK SPACES."
21	21	(2) "IF YOU DECIDE YOU DO NOT WISH TO REMAIN A MEMBER
22	22	OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY PROVIDING NOTICE
23	23	[MAILING] TO THE HEALTH SPA BY MIDNIGHT OF THE THIRD BUSINESS DAY
24	24	AFTER THE DAY YOU SIGN THIS CONTRACT [A NOTICE] STATING YOUR DESIRE
25	25	TO CANCEL THIS CONTRACT. [THE WRITTEN NOTICE MUST BE MAILED BY
26	26	CERTIFIED MAIL TO THE FOLLOWING ADDRESS:
27	27	[(Address of the health spa home office).]"
28	28	(3) "IF AFTER MIDNIGHT OF THE THIRD BUSINESS DAY AFTER
29	29	THE DAY YOU SIGN THIS CONTRACT YOU DECIDE YOU DO NOT WISH TO REMAIN A
30	30	MEMBER OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY PROVIDING
31	31	30 DAYS' NOTICE TO THE HEALTH SPA."
32	32	(4) [(3)] "IF THE HEALTH SPA GOES OUT OF BUSINESS AND
33	33	DOES NOT PROVIDE FACILITIES WITHIN 10 MILES OF THE FACILITY IN WHICH
34	34	YOU ARE ENROLLED OR IF THE HEALTH SPA MOVES MORE THAN 10 MILES FROM
35	35	THE FACILITY IN WHICH YOU ARE ENROLLED, YOU MAY:
36	36	(A) CANCEL THIS CONTRACT BY PROVIDING [MAILING BY
37	37	CERTIFIED MAIL A WRITTEN] NOTICE STATING YOUR DESIRE TO CANCEL THIS
38	38	CONTRACT, ACCOMPANIED BY PROOF OF PAYMENT ON THE CONTRACT TO THE
39	39	HEALTH SPA [AT THE FOLLOWING ADDRESS:
40	40	[(Address of the health spa home office)]; AND
41	41	(B) FILE A CLAIM FOR A REFUND OF YOUR UNUSED
42	42	MEMBERSHIP FEES AGAINST THE BOND OR OTHER SECURITY POSTED BY THE
43	43	HEALTH SPA WITH THE TEXAS SECRETARY OF STATE. TO MAKE A CLAIM
44	44	AGAINST THE SECURITY PROVIDE A COPY OF YOUR CONTRACT TOGETHER WITH
45	45	PROOF OF PAYMENTS MADE ON THE CONTRACT TO THE TEXAS SECRETARY OF
46	46	STATE. THE REQUIRED CLAIM INFORMATION MUST BE RECEIVED BY THE
47	47	SECRETARY OF STATE NOT LATER THAN THE 90TH DAY AFTER THE DATE NOTICE
48	48	OF THE CLOSURE OR RELOCATION IS FIRST POSTED ON THE SECRETARY OF
49	49	STATE'S INTERNET WEBSITE."
50	50	(5) "IF YOU MOVE YOUR RESIDENCE MORE THAN 25 MILES FROM
51	51	A HEALTH SPA OPERATED BY (insert: the name of the health spa
52	52	registration holder), YOU MAY CANCEL THIS CONTRACT BY PROVIDING
53	53	NOTICE TO THE HEALTH SPA STATING YOUR DESIRE TO CANCEL THIS
54	54	CONTRACT. THE HEALTH SPA MAY REQUIRE REASONABLE PROOF OF THE MOVE."
55	55	(6) "IF ON A DOCTOR'S ORDER, YOU CANNOT PHYSICALLY
56	56	RECEIVE THE SERVICES PROVIDED BY THE HEALTH SPA FOR A PERIOD OF MORE
57	57	THAN THREE MONTHS BECAUSE OF A SIGNIFICANT PHYSICAL DISABILITY, YOU
58	58	MAY CANCEL THIS CONTRACT BY PROVIDING NOTICE TO THE HEALTH SPA. THE
59	59	HEALTH SPA MAY REQUIRE REASONABLE PROOF OF THE DISABILITY."
60	60	(7) [(4)] "IF YOU DIE OR BECOME TOTALLY AND
61	61	PERMANENTLY DISABLED AFTER THE DATE THIS CONTRACT TAKES EFFECT, YOU
62	62	OR YOUR ESTATE MAY CANCEL THIS CONTRACT AND RECEIVE A PARTIAL REFUND
63	63	OF YOUR UNUSED MEMBERSHIP FEE BY PROVIDING [MAILING A] NOTICE TO THE
64	64	HEALTH SPA STATING YOUR DESIRE TO CANCEL THIS CONTRACT. THE HEALTH
65	65	SPA MAY REQUIRE REASONABLE PROOF OF DISABILITY OR DEATH. [THE
66	66	WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO THE FOLLOWING
67	67	ADDRESS:
68	68	[(Address of the health spa home office).]"
69	69	(b) A health spa operator is required to include the
70	70	statement under Subsection (a)(4)(B) [(a)(3)(B)] in a contract only
71	71	if the operator is required to post security with the secretary of
72	72	state under Subchapter D.
73	73	(c) A health spa operator shall include a statement in a
74	74	contract that any notice a member provides to cancel a contract may
75	75	be given to a health spa:
76	76	(1) in person, by e-mail, by certified mail, or by
77	77	telephone; or
78	78	(2) for a contract entered into through an Internet
79	79	website, through an Internet website.
80	80	(d) A health spa operator shall include a statement in a
81	81	member contract describing the information a member must include in
82	82	a notice to cancel the member's contract.
83	83	SECTION 2. Section 702.307(a), Occupations Code, is amended
84	84	to read as follows:
85	85	(a) A member may cancel a contract and receive a full refund
86	86	of the payments made under the contract by providing to the
87	87	certificate holder for the health spa [sending], not later than
88	88	midnight of the third business day after the contract date,
89	89	[written] notice of cancellation, accompanied by proof of payment
90	90	made under the contract [, by certified mail to the certificate
91	91	holder's home office].
92	92	SECTION 3. Section 702.308, Occupations Code, is amended by
93	93	amending Subsections (a), (b), and (c) and adding Subsections
94	94	(a-1), (a-2), and (a-3) to read as follows:
95	95	(a) A member may cancel a contract and receive a refund of
96	96	unearned payments made under the contract by providing to the
97	97	certificate holder for the health spa 30 days' notice accompanied
98	98	by proof of payment made under the contract.
99	99	(a-1) A member may cancel a contract and receive a refund of
100	100	unearned payments made under the contract by providing [sending
101	101	written] notice of cancellation, accompanied by proof of payment
102	102	made under the contract, [by certified mail] to the certificate
103	103	holder for the health spa [holder's home office] if the certificate
104	104	holder:
105	105	(1) closes the health spa and fails to provide
106	106	alternative facilities not more than 10 miles from the location of
107	107	the health spa;
108	108	(2) relocates the health spa more than 10 miles from
109	109	its location preceding the relocation; or
110	110	(3) fails to provide advertised services.
111	111	(a-2) Subject to Subsection (a-3), a member may cancel a
112	112	contract and receive a refund of unearned payments made under the
113	113	contract by providing notice of cancellation, accompanied by proof
114	114	of payment made under the contract to the certificate holder for the
115	115	health spa, if the member:
116	116	(1) moves the member's residence more than 25 miles
117	117	from any health spa operated by the seller; or
118	118	(2) on a doctor's order, cannot physically receive the
119	119	services provided by the health spa for more than three months
120	120	because of a significant physical disability.
121	121	(a-3) If required by the certificate holder for the health
122	122	spa, a member is only entitled to cancel the member's contract and
123	123	receive a refund under Subsection (a-2) if the member provides the
124	124	required reasonable proof of the move under Subsection (a-2)(1) or
125	125	disability under Subsection (a-2)(2), as applicable.
126	126	(b) A member who dies or becomes totally and permanently
127	127	disabled after the date a contract is entered into, or the member's
128	128	estate, may cancel the contract and receive a refund of the unearned
129	129	payments made under the contract by providing to the certificate
130	130	holder for the health spa [sending written] notice of cancellation
131	131	[by certified mail to the certificate holder's home office]. The
132	132	certificate holder may require the member, or the member's estate,
133	133	to provide reasonable proof of the member's death or disability.
134	134	(c) A certificate holder who receives notice under
135	135	Subsection (a), (a-1), (a-2), or (b) shall refund the unearned
136	136	payments made under the contract to the member, or the member's
137	137	estate, as appropriate, not later than [that] the 30th day after the
138	138	date notice is received.
139	139	SECTION 4. This Act takes effect September 1, 2023.