SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 702.001 - Short Title
This chapter may be cited as the Health Spa Act. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
- Texas Section 702.002 - Purpose And Construction
(a) The purpose of this chapter is to protect the public against fraud, deceit, imposition, and financial hardship and to foster and encourage competition, fair...
SUBCHAPTER B POWERS AND DUTIES OF SECRETARY OF STATE
- Texas Section 702.003 - Definitions
In this chapter: (1) "Closed" means a condition in which: (A) the facilities of a health spa are no longer available to the health spa's...
- Texas Section 702.051 - Administrative And Rulemaking Authority
(a) The secretary of state shall administer this chapter. (b) In administering this chapter, the secretary of state shall: (1) adopt rules; (2) issue administrative...
- Texas Section 702.052 - Rules Relating To Security Claims And Proceeds
The secretary of state shall adopt rules necessary to: (1) determine the disposition of a security claim filed under Section 702.251; and (2) ensure the...
SUBCHAPTER C CERTIFICATE OF REGISTRATION
- Texas Section 702.053 - Registration And Renewal Fees
The secretary of state may charge each applicant for a certificate of registration, or renewal of a certificate, a reasonable fee not to exceed $100...
- Texas Section 702.101 - Certificate Of Registration Required
A person may not operate a health spa or offer for sale, or sell, a membership in a health spa unless the person holds a...
- Texas Section 702.102 - Application Requirements
(a) An applicant for a health spa operator's certificate of registration must file with the secretary of state an application stating: (1) the applicant's name,...
- Texas Section 702.103 - Certificate Of Registration Nontransferable; Application By New Owner
(a) A health spa operator's certificate of registration is not transferable. (b) A person who obtains ownership of a health spa by purchase or other...
- Texas Section 702.104 - Term; Renewal
(a) A health spa operator's certificate of registration expires on the first anniversary of the date of issuance. (b) A certificate of registration may be...
- Texas Section 702.105 - Certificate Posting
A certificate holder shall post a health spa operator's certificate of registration in a conspicuous place at each registered location. Acts 1999, 76th Leg., ch....
- Texas Section 702.106 - Change Of Information
If the information provided in an application for a certificate of registration changes, the certificate holder shall amend the application not later than the 90th...
SUBCHAPTER D SECURITY REQUIREMENTS
- Texas Section 702.107 - Sales Tax Permit; Proof Of Registration Required
(a) A health spa operator shall submit to the comptroller a copy of the operator's certificate of registration at the time the operator applies for...
- Texas Section 702.151 - Security Required
(a) Except as provided by Subchapter E, the secretary of state may not issue a health spa operator's certificate of registration to an applicant unless...
- Texas Section 702.152 - Surety Bond Requirements
If a surety bond is filed under Section 702.151, the bond must: (1) remain in effect until canceled by the surety company; (2) be issued...
- Texas Section 702.153 - Requirements For Security Other Than Surety Bond
An applicant who posts under Section 702.151 security other than a surety bond is: (1) not required to post other security annually if the applicant...
- Texas Section 702.154 - Beneficiary Of Security
The security filed or posted by a certificate holder under this subchapter must be payable to the state and held for the benefit of: (1)...
- Texas Section 702.155 - Duration Of Security
A certificate holder shall maintain the security filed or posted under Section 702.151 in effect until the earlier of: (1) the second anniversary of the...
- Texas Section 702.156 - Notice Of Cancellation Of Security
A surety or obligor of security filed or posted under this subchapter shall provide to the secretary of state, not later than the 60th day...
- Texas Section 702.157 - Limit On Liability Of Surety Or Obligor
(a) The limit of a surety's or obligor's liability stated in the security filed or posted under this subchapter may not be cumulative from year...
SUBCHAPTER E EXEMPTION FROM SECURITY REQUIREMENTS
- Texas Section 702.158 - Review Of Security Amount
(a) At least once every three years, the secretary of state shall review the amount of security a health spa operator is required to post...
- Texas Section 702.201 - Application For Exemption
A certificate holder may apply for an exemption from the security requirements of Subchapter D by filing with the secretary of state a sworn application...
- Texas Section 702.202 - Qualifications For Exemption
A certificate holder may apply for an exemption under Section 702.201 if: (1) the certificate holder does not require, or solicit or offer a plan...
- Texas Section 702.205 - Issuance Of Exemption
(a) On approval of an application for an exemption under Section 702.201, the secretary of state shall issue a certificate of exemption. (b) A certificate...
- Texas Section 702.206 - Nontransferability Of Exemption
(a) A certificate of exemption is not transferable. (b) A person who by purchase or other transfer obtains ownership of a health spa for which...
SUBCHAPTER F CLAIM ON SECURITY
- Texas Section 702.207 - Denial And Revocation Of Exemption
After notice and opportunity for hearing, the secretary of state may deny an application for an exemption or permanently revoke a certificate holder's certificate of...
- Texas Section 702.251 - Filing Of Security Claim
A member may file a claim against the security filed or posted under this subchapter by providing to the secretary of state a copy of...
- Texas Section 702.252 - Computation Of Claim
(a) Recovery on a claim filed under Section 702.251 is limited to the amount of actual financial loss suffered by the member as a result...
- Texas Section 702.253 - Adjudication On Pro Rata Basis
If the total amount of actual financial losses computed under Section 702.252 for all claims filed under Section 702.251 exceeds the amount of available security,...
SUBCHAPTER G CONTRACT REQUIREMENTS
- Texas Section 702.254 - Claim Barred
The secretary of state may not consider a claim filed under Section 702.251 if the claim is received later than the 90th day after the...
- Texas Section 702.301 - General Requirements
(a) A contract: (1) must be: (A) in writing; and (B) signed by the purchaser; (2) must state the proposed opening date of the health...
- Texas Section 702.302 - Disclosure Requirements
(a) A health spa shall prepare a comprehensive list that includes each membership plan the health spa offers for sale. The health spa shall disclose...
- Texas Section 702.303 - Contract Term
(a) Except as provided by Subsection (b), the term of a contract may not exceed three years. (b) A contract that is financed through a...
- Texas Section 702.304 - Cancellation And Refund Notice
(a) Except as provided by Subsection (b), a contract must state in at least 10-point type that is boldfaced, capitalized, underlined, or otherwise conspicuously distinguished...
- Texas Section 702.305 - Prepayment Refund Notice
If a certificate holder offers for sale, or sells, memberships in a health spa before the date the health spa opens, the contract for the...
- Texas Section 702.306 - Finance Charge Notice
A contract that contains a finance charge as defined by the Truth in Lending Act (15 U.S.C. Section 1601 et seq.) or Regulation Z (12...
- Texas Section 702.307 - Cancellation Of Contract For Full Refund
(a) A member may cancel a contract and receive a full refund of the payments made under the contract by sending, not later than midnight...
- Texas Section 702.308 - Cancellation Of Contract For Partial Refund
(a) A member may cancel a contract and receive a refund of unearned payments made under the contract by sending written notice of cancellation, accompanied...
- Texas Section 702.309 - Proof Of Payment
A receipt given to a purchaser by a health spa when the purchaser makes a payment under a contract constitutes proof of the payment. Acts...
- Texas Section 702.310 - Effect Of Contract On Third-party Rights
A contract may not require the purchaser to execute a note or series of notes if separate negotiation of the notes cuts off as to...
SUBCHAPTER H PREPAYMENTS AND ESCROW
- Texas Section 702.311 - Void Contract
A contract is void if: (1) the contract or an assignment of the contract does not comply with this chapter; (2) the seller does not...
- Texas Section 702.351 - Membership Prepayment
A certificate holder may offer for sale, or sell, a membership in a health spa before the date the health spa opens. Acts 1999, 76th...
- Texas Section 702.352 - Escrow Deposit Required
(a) A certificate holder or an assignee or agent of a certificate holder who accepts a prepayment for a membership in the certificate holder's health...
- Texas Section 702.353 - Exemption From Escrow Requirement
(a) A certificate holder is not required to deposit prepayments in an escrow account under Section 702.352 if: (1) the certificate holder has operated at...
- Texas Section 702.354 - Duty Of Financial Institution
A financial institution in which an escrow account is established under Section 702.352 shall hold each prepayment in the account as escrow agent for the...
- Texas Section 702.355 - Refund Of Escrowed Prepayment
(a) Except as provided by Subsection (b), a member is entitled to receive a full refund of the prepayment made under a contract if the...
SUBCHAPTER I PROHIBITED PRACTICES
- Texas Section 702.356 - Withdrawal Of Escrow Funds
A certificate holder may withdraw prepayments deposited in an escrow account under Section 702.352 if: (1) the health spa for which the prepayments are made...
- Texas Section 702.401 - Waiver Prohibited
A person, including a person who buys a health spa membership from a former member, may not waive a provision of this chapter by contract...
- Texas Section 702.402 - Prohibited Acts
(a) A seller or certificate holder may not: (1) offer a special offer or discount to fewer than all prospective members of the health spa,...
- Texas Section 702.403 - Application Of Deceptive Trade Practices Act
(a) A person who violates this chapter commits a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce...
SUBCHAPTER J ADMINISTRATIVE ENFORCEMENT AND DISCIPLINARY ACTIONS
- Texas Section 702.404 - Information Required In Advertisement
A health spa operator may not advertise in any print or electronic medium unless the advertisement includes the health spa operator's certificate of registration number...
- Texas Section 702.451 - Disciplinary Actions
(a) After notice and opportunity for hearing, the secretary of state may deny an application for a certificate of registration, or may permanently revoke a...
SUBCHAPTER K CIVIL REMEDY
- Texas Section 702.452 - Notice Requirement Before Health Spa Closing
(a) At least 30 days before the date a health spa is scheduled to close or relocate, the certificate holder shall contemporaneously: (1) post, inside...
- Texas Section 702.501 - Filing Of Suit; Venue
(a) A member may file suit against a seller if: (1) the seller violates this chapter; and (2) the seller's violation causes injury to the...
- Texas Section 702.502 - Statute Of Limitations
A member must file a suit under Section 702.501 not later than the later of: (1) the first anniversary of the date the attorney general...
- Texas Section 702.503 - Recovery
In a suit filed under Section 702.501, a court may award: (1) actual damages; (2) equitable relief; (3) punitive damages; or (4) reasonable attorney's fees...
SUBCHAPTER L ENFORCEMENT AND PENALTIES
- Texas Section 702.504 - Temporary Closing
For purposes of this subchapter, the closing of a health spa is not a violation of this chapter if the closing does not exceed one...
- Texas Section 702.551 - Investigative And Enforcement Authority
(a) The attorney general or a district or county attorney may: (1) investigate an alleged violation of this chapter; and (2) enforce any penalty or...
- Texas Section 702.552 - Suit For Enforcement
(a) The attorney general or a district or county attorney may file suit against a person who violates, or threatens to violate, this chapter to:...
- Texas Section 702.553 - Amount Of Civil Penalty
(a) Except as provided by Subsection (b) and Section 702.554, a person who violates this chapter is subject to a civil penalty in an amount...
- Texas Section 702.554 - Violation Of Injunction
(a) The attorney general or a district or county attorney may file suit to recover a civil penalty against a person who violates an injunction...
- Texas Section 702.555 - Deposit In County Fund
A civil penalty collected under this subchapter by a district or county attorney shall be deposited to the credit of the general fund of the...
- Texas Section 702.556 - Criminal Offense: Violation Of Chapter
(a) A person commits an offense if the person knowingly operates, or attempts to operate, a health spa in violation of Subchapter C, D, or...
- Texas Section 702.557 - Criminal Offense: Interference With Investigation
(a) A person commits an offense if with actual notice that the attorney general, or a district or county attorney, has initiated, or plans to...
- Texas Section 702.558 - Criminal Offense: Noncompliance With Subpoena Or Investigative Demand
(a) A person commits an offense if, after receiving a subpoena or civil investigative demand issued under Section 17.61, Business & Commerce Code, the person...