77R9922 GJH-F                           
         By Woolley                                            H.B. No. 3332
         Substitute the following for H.B. No. 3332:
         By Woolley                                        C.S.H.B. No. 3332
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation of certain health spas.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 702.253, Occupations Code, is amended to
 1-5     read as follows:
 1-6           Sec. 702.253. ADJUDICATION ON PRO RATA BASIS.  [(a)]  If the
 1-7     total amount of actual financial losses computed under Section
 1-8     702.252 for all claims filed under Section 702.251 exceeds the
 1-9     amount of available security, the secretary of state shall reduce
1-10     the amount of each recovery under Section 702.252 on a pro rata
1-11     basis and shall compute the amount of each recovery by:
1-12                 (1)  dividing the amount of available security by the
1-13     total amount of actual financial losses computed under Section
1-14     702.252 for all claims; and
1-15                 (2)  multiplying the results computed under Subdivision
1-16     (1) by the amount of the recovery.
1-17           [(b)  For purposes of this section, the amount of available
1-18     security is computed by subtracting the costs incurred in
1-19     publishing notice under Section 702.452 from the amount of the
1-20     security filed or posted for the health spa.]
1-21           SECTION 2. Section 702.254, Occupations Code, is amended to
1-22     read as follows:
1-23           Sec. 702.254.  CLAIM BARRED.  The secretary of state may not
1-24     consider a claim filed under Section 702.251 if the claim is
 2-1     received later than the 90th day after the [first] date notice is
 2-2     first posted [published] under Section 702.452.
 2-3           SECTION 3. Section 702.452, Occupations Code, is amended to
 2-4     read as follows:
 2-5           Sec. 702.452. NOTICE OF CLOSED HEALTH SPA. (a) Not later than
 2-6     the third [45th] day after the date [the secretary of state
 2-7     discovers that] a health spa is closed, the certificate holder
 2-8     [secretary] shall contemporaneously:
 2-9                 (1)  post, at the health spa location [publish for two
2-10     consecutive Saturdays and Sundays in a newspaper of general
2-11     circulation in the county in which the health spa is located, or
2-12     the county nearest to the location of the health spa], a notice
2-13     stating:
2-14                       (A)  that the health spa is closed;
2-15                       (B)  that a member of the health spa may, not
2-16     later than the 90th day after the date the [first] notice is first
2-17     posted [published], file with the secretary of state a claim to
2-18     recover actual financial loss suffered by the member as a result of
2-19     the health spa closing; and
2-20                       (C)  the procedures for perfecting a security
2-21     claim; and
2-22                 (2)  notify the secretary of state of the health spa
2-23     closing and the date that the notice was first posted.
2-24           (b)  The notice posted under Subsection (a)(1) must be:
2-25                 (1)  at least 8-1/2 by 11 inches in size;
2-26                 (2)  posted in a place that is readily accessible to
2-27     the general public during the former operating hours of the health
 3-1     spa; and
 3-2                 (3)  posted continuously for at least 14 days.
 3-3           (c)  If the certificate holder fails to post the notice
 3-4     required by Subsection (a)(1) within the time specified, the
 3-5     secretary of state, not later than the 30th day after the date the
 3-6     secretary discovers that a health spa is closed, shall post the
 3-7     notice required under Subsection (a)(1).
 3-8           (d)  After receiving a notice under Subsection (a)(2) or
 3-9     otherwise discovering that a health spa is closed, the secretary of
3-10     state shall post on the secretary of state's Internet website a
3-11     notice containing the information specified in Subsection (a)(1).
3-12     The notice must be posted continuously for at least 30 days.
3-13           (e)  The secretary of state shall, not later than the 10th
3-14     day after the date the secretary receives notice or otherwise
3-15     discovers that a health spa is closed, notify the appropriate
3-16     surety company or obligor of the administrative proceedings pending
3-17     under Subsection (a)(1) [Subdivision (1)].
3-18           SECTION 4.  Section 702.453, Occupations Code, is repealed.
3-19           SECTION 5.  This Act takes effect September 1, 2001, and
3-20     applies only to a health spa that closes on or after that date.  A
3-21     health spa that closes before that date is governed by the law in
3-22     effect immediately before September 1, 2001,  and the former law is
3-23     continued in effect for that purpose.