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
1-25 received later than the 90th day after the [first] date notice is
2-1 first posted [published] under Section 702.452.
2-2 SECTION 3. Section 702.452, Occupations Code, is amended to
2-3 read as follows:
2-4 Sec. 702.452. NOTICE OF CLOSED HEALTH SPA. (a) Not later
2-5 than the third [45th] day after the date [the secretary of state
2-6 discovers that] a health spa is closed, the certificate holder
2-7 [secretary] shall contemporaneously:
2-8 (1) post, at the health spa location [publish for two
2-9 consecutive Saturdays and Sundays in a newspaper of general
2-10 circulation in the county in which the health spa is located, or
2-11 the county nearest to the location of the health spa], a notice
2-12 stating:
2-13 (A) that the health spa is closed;
2-14 (B) that a member of the health spa may, not
2-15 later than the 90th day after the date the [first] notice is first
2-16 posted [published], file with the secretary of state a claim to
2-17 recover actual financial loss suffered by the member as a result of
2-18 the health spa closing; and
2-19 (C) the procedures for perfecting a security
2-20 claim; and
2-21 (2) notify the secretary of state of the health spa
2-22 closing and the date that the notice was first posted.
2-23 (b) The notice posted under Subsection (a)(1) must be:
2-24 (1) at least 8-1/2 by 11 inches in size;
2-25 (2) posted in a place that is readily accessible to
2-26 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.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1318 passed the Senate on
April 5, 2001, by the following vote: Yeas 30, Nays 0, one
present, not voting; and that the Senate concurred in House
amendment on May 18, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1318 passed the House, with
amendment, on May 11, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor