By Woolley                                            H.B. No. 3332
         77R9171 T                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to 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
 2-6     than the 3rd [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)  After receiving notice of the closing the secretary of
2-25     state shall post on the secretary of state's internet website a
2-26     notice containing the information specified in Section
2-27     702.452(a)(1)
 3-1           (c)  The notice posted at the health spa location shall be at
 3-2     least 8 1/2x11 inches, and must be posted at the closed health spa
 3-3     in a place that is readily accessible to the general public at all
 3-4     times that correspond to the former operating hours of the health
 3-5     spa.
 3-6           (d)  The notice at the health spa location shall be
 3-7     continuously posted for at least 14 days.
 3-8           (e)  The notice on the secretary of state's internet site
 3-9     shall be continuously posted for at least 30 days.
3-10           (f)  If the certificate holder fails to post the notice at
3-11     the health spa location within the time specified, the secretary of
3-12     state, not later than the 30th day after the date the secretary
3-13     discovers that a health spa is closed, shall post the notice at the
3-14     health spa location.
3-15           (g)  The secretary of state shall, not later than the 10th
3-16     day after the day the secretary discovers that the health spa is
3-17     closed, notify the appropriate surety company or obligor of the
3-18     administrative proceedings pending under Subdivision (a)(1).
3-19           SECTION 4.  Section 702.453, Occupations Code, is repealed.
3-20           SECTION 5.  This Act takes effect September 1, 2001.