No. 28179 (Amendment): R152-23. Utah Health Spa Services

DAR File No.: 28179
Filed: 08/29/2005, 03:22
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

During the 2005 general session, the Utah Legislature enacted H.B. 186. One of the changes made by this bill was to reduce from ten miles to five miles the maximum distance from the original location to which a health spa may relocate in order to be exempt from certain requirements. This change makes the rules consistent with the recently changed statute. (DAR NOTE: H.B. 186 (2005) is found at UT L 2005 Ch 18, and was effective 03/08/2005.)

 

Summary of the rule or change:

This rule change reduces from ten miles to five miles the maximum distance from the original location to which a health spa may relocate in order to be exempt from certain requirements.

 

State statutory or constitutional authorization for this rule:

Subsection 13-2-5(1), and Title 13, Chapter 23

 

Anticipated cost or savings to:

the state budget:

None--This rule change does not affect the registration fees paid to the state by health spas.

 

local governments:

None--Local governments are not involved in the administration or enforcement of this rule or its related statute, and should not be affected by the change.

 

other persons:

Consumers who use health spas will bear less risk that their health spas will relocate more than five miles away, decreasing their potential transportation costs.

 

Compliance costs for affected persons:

Health spas that want to relocate and avoid certain legal obligations will have to relocate to a location within five miles.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

This change may impose an additional burden on health spas that choose to relocate, but will provide a similar benefit to patrons of those health spas. This change is mandated by H.B. 186 (2005). Francine Giani, Executive Director

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

 

Direct questions regarding this rule to:

Thad LeVar at the above address, by phone at 801-530-6929, by FAX at 801-530-6001, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/17/2005

 

This rule may become effective on:

10/18/2005

 

Authorized by:

Francine Giani, Director

 

 

RULE TEXT

R152. Commerce, Consumer Protection.

R152-23. Utah Health Spa Services.

R152-23-4. Registration Requirements and Contracts for Health Spa Services.

A. Prior to selling or attempting to sell a Membership Contract, a health spa facility must file the following documentation with the Division:

1. A completed application on the form prescribed and furnished by the Division which shall include:

a. Name, addresses, and telephone numbers of owner(s) of the Health Spa Facility and the facility address, telephone number, and name of contact person at the facility.

b. A check or money order for a $100 non-refundable application fee.

c. A current pricing structure for membership services.

d. A copy of the contract(s) utilized by the facility containing the language required by the Act.

e. The original or certified copy of the surety bond, letter of credit, or certificate of deposit in the required amount or, if applicable, the information set out in the application as the basis for a claim of exemption from registration.

f. The number of membership contracts that relate to each facility.

2. Notice of intent to sell memberships.

B. Each Membership Contract shall contain a provision, printed in all capital letters which reads substantially as follows: "IN THE EVENT THE HEALTH SPA FACILITY CLOSES AND ANOTHER HEALTH SPA FACILITY OPERATED BY THE SELLER, OR ASSIGNS OF THE SELLER, OF THIS CONTRACT IS NOT AVAILABLE WITHIN A [TEN (10)]FIVE (5) MILE RADIUS OF THE LOCATION THE MEMBER INTENDS TO PATRONIZE, SELLER WILL REFUND TO MEMBER A PRORATA SHARE OF THE MEMBERSHIP COST, BASED UPON THE UNUSED MEMBERSHIP TIME REMAINING ACCORDING TO THE CONTRACT."

C. All Membership Contracts shall specify what items of equipment or services provided by the health spa facility on the date of the execution of the membership contract are subject to deletion or change at the discretion of the facility.

D. All Membership Contracts sold prior to opening of the health spa facility shall allow the buyer a three (3) day right of rescission in accordance with Section 13-23-4 of the Act, or Section 13-11-4(m) of the Utah Consumer Sales Practices Act.

E. The dollar value of a Membership Contract shall be clearly stated on the face of the contract.

F. In any event, no Membership Contract shall be sold which provides a membership term of longer than thirty-six (36) months.

G. The purchaser of a Health Spa Facility shall replace the Seller as a party to any unexpired Membership Contract and shall honor all Membership Contracts of the purchased facility in effect at the time of purchase, pursuant to Section 13-23-5(2) of the Act. In the event a Health Spa Facility shall be sold under circumstances which will result in its closure and the purchaser shall not operate a Health Spa Facility within [10]5 miles thereof, purchaser must notify Members of such closure in writing within 10 days of the date of sale. Members may cancel their outstanding Membership Contracts or may choose to continue their Membership Contract in force. Notice of such election shall be in writing mailed to the purchaser within 30 days of the receipt of notice of closure of the acquired Health Spa Facility.

H. A separate registration shall be required for each separate location maintained by a health spa business.

 

KEY: consumer protection, health spas

[July 30, 2001]

Notice of Continuation October 30, 2002

63-46a-3

13-2-5

13-23-1