Bill Text: TX SB1835 | 2023-2024 | 88th Legislature | Comm Sub
Bill Title: Relating to certain contract and notice requirements for the cancellation of a health spa membership.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2023-05-24 - Returned to Local & Consent Calendars Comm. [SB1835 Detail]
Download: Texas-2023-SB1835-Comm_Sub.html
88R30810 MPF-D | ||
By: Hinojosa | S.B. No. 1835 | |
(Longoria) | ||
Substitute the following for S.B. No. 1835: No. |
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relating to certain contract and notice requirements for the | ||
cancellation of a health spa membership. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 702.304, Occupations Code, is amended to | ||
read as follows: | ||
Sec. 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 from surrounding written | ||
material: | ||
(1) "NOTICE TO PURCHASER: DO NOT SIGN THIS CONTRACT | ||
UNTIL YOU READ IT OR IF IT CONTAINS BLANK SPACES." | ||
(2) "IF YOU DECIDE YOU DO NOT WISH TO REMAIN A MEMBER | ||
OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY PROVIDING NOTICE | ||
[ |
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AFTER THE DAY YOU SIGN THIS CONTRACT [ |
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TO CANCEL THIS CONTRACT. [ |
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[ |
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(3) "IF AFTER MIDNIGHT OF THE THIRD BUSINESS DAY AFTER | ||
THE DAY YOU SIGN THIS CONTRACT YOU DECIDE YOU DO NOT WISH TO REMAIN A | ||
MEMBER OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY PROVIDING | ||
30 DAYS' NOTICE TO THE HEALTH SPA." | ||
(4) [ |
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DOES NOT PROVIDE FACILITIES WITHIN 10 MILES OF THE FACILITY IN WHICH | ||
YOU ARE ENROLLED OR IF THE HEALTH SPA MOVES MORE THAN 10 MILES FROM | ||
THE FACILITY IN WHICH YOU ARE ENROLLED, YOU MAY: | ||
(A) CANCEL THIS CONTRACT BY PROVIDING [ |
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CONTRACT, ACCOMPANIED BY PROOF OF PAYMENT ON THE CONTRACT TO THE | ||
HEALTH SPA [ |
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[ |
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(B) FILE A CLAIM FOR A REFUND OF YOUR UNUSED | ||
MEMBERSHIP FEES AGAINST THE BOND OR OTHER SECURITY POSTED BY THE | ||
HEALTH SPA WITH THE TEXAS SECRETARY OF STATE. TO MAKE A CLAIM | ||
AGAINST THE SECURITY PROVIDE A COPY OF YOUR CONTRACT TOGETHER WITH | ||
PROOF OF PAYMENTS MADE ON THE CONTRACT TO THE TEXAS SECRETARY OF | ||
STATE. THE REQUIRED CLAIM INFORMATION MUST BE RECEIVED BY THE | ||
SECRETARY OF STATE NOT LATER THAN THE 90TH DAY AFTER THE DATE NOTICE | ||
OF THE CLOSURE OR RELOCATION IS FIRST POSTED ON THE SECRETARY OF | ||
STATE'S INTERNET WEBSITE." | ||
(5) "IF YOU MOVE YOUR RESIDENCE MORE THAN 25 MILES FROM | ||
A HEALTH SPA OPERATED BY (insert: the name of the health spa | ||
registration holder), YOU MAY CANCEL THIS CONTRACT BY PROVIDING | ||
NOTICE TO THE HEALTH SPA STATING YOUR DESIRE TO CANCEL THIS | ||
CONTRACT. THE HEALTH SPA MAY REQUIRE REASONABLE PROOF OF THE MOVE." | ||
(6) "IF ON A DOCTOR'S ORDER, YOU CANNOT PHYSICALLY | ||
RECEIVE THE SERVICES PROVIDED BY THE HEALTH SPA FOR A PERIOD OF MORE | ||
THAN THREE MONTHS BECAUSE OF A SIGNIFICANT PHYSICAL DISABILITY, YOU | ||
MAY CANCEL THIS CONTRACT BY PROVIDING NOTICE TO THE HEALTH SPA. THE | ||
HEALTH SPA MAY REQUIRE REASONABLE PROOF OF THE DISABILITY." | ||
(7) [ |
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PERMANENTLY DISABLED AFTER THE DATE THIS CONTRACT TAKES EFFECT, YOU | ||
OR YOUR ESTATE MAY CANCEL THIS CONTRACT AND RECEIVE A PARTIAL REFUND | ||
OF YOUR UNUSED MEMBERSHIP FEE BY PROVIDING [ |
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HEALTH SPA STATING YOUR DESIRE TO CANCEL THIS CONTRACT. THE HEALTH | ||
SPA MAY REQUIRE REASONABLE PROOF OF DISABILITY OR DEATH. [ |
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[ |
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(b) A health spa operator is required to include the | ||
statement under Subsection (a)(4)(B) [ |
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if the operator is required to post security with the secretary of | ||
state under Subchapter D. | ||
(c) A health spa operator shall include a statement in a | ||
contract that any notice a member provides to cancel a contract may | ||
be given to a health spa: | ||
(1) in person, by e-mail, by certified mail, or by | ||
telephone; or | ||
(2) for a contract entered into through an Internet | ||
website, through an Internet website. | ||
(d) A health spa operator shall include a statement in a | ||
member contract describing the information a member must include in | ||
a notice to cancel the member's contract. | ||
SECTION 2. Section 702.307(a), Occupations Code, is amended | ||
to read as follows: | ||
(a) A member may cancel a contract and receive a full refund | ||
of the payments made under the contract by providing to the | ||
certificate holder for the health spa [ |
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midnight of the third business day after the contract date, | ||
[ |
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made under the contract [ |
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SECTION 3. Section 702.308, Occupations Code, is amended by | ||
amending Subsections (a), (b), and (c) and adding Subsections | ||
(a-1), (a-2), and (a-3) to read as follows: | ||
(a) A member may cancel a contract and receive a refund of | ||
unearned payments made under the contract by providing to the | ||
certificate holder for the health spa 30 days' notice accompanied | ||
by proof of payment made under the contract. | ||
(a-1) A member may cancel a contract and receive a refund of | ||
unearned payments made under the contract by providing [ |
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made under the contract, [ |
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holder for the health spa [ |
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holder: | ||
(1) closes the health spa and fails to provide | ||
alternative facilities not more than 10 miles from the location of | ||
the health spa; | ||
(2) relocates the health spa more than 10 miles from | ||
its location preceding the relocation; or | ||
(3) fails to provide advertised services. | ||
(a-2) Subject to Subsection (a-3), a member may cancel a | ||
contract and receive a refund of unearned payments made under the | ||
contract by providing notice of cancellation, accompanied by proof | ||
of payment made under the contract to the certificate holder for the | ||
health spa, if the member: | ||
(1) moves the member's residence more than 25 miles | ||
from any health spa operated by the seller; or | ||
(2) on a doctor's order, cannot physically receive the | ||
services provided by the health spa for more than three months | ||
because of a significant physical disability. | ||
(a-3) If required by the certificate holder for the health | ||
spa, a member is only entitled to cancel the member's contract and | ||
receive a refund under Subsection (a-2) if the member provides the | ||
required reasonable proof of the move under Subsection (a-2)(1) or | ||
disability under Subsection (a-2)(2), as applicable. | ||
(b) A member who dies or becomes totally and permanently | ||
disabled after the date a contract is entered into, or the member's | ||
estate, may cancel the contract and receive a refund of the unearned | ||
payments made under the contract by providing to the certificate | ||
holder for the health spa [ |
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[ |
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certificate holder may require the member, or the member's estate, | ||
to provide reasonable proof of the member's death or disability. | ||
(c) A certificate holder who receives notice under | ||
Subsection (a), (a-1), (a-2), or (b) shall refund the unearned | ||
payments made under the contract to the member, or the member's | ||
estate, as appropriate, not later than [ |
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date notice is received. | ||
SECTION 4. This Act takes effect September 1, 2023. |