1-1     By:  Staples                                          S.B. No. 1318
 1-2           (In the Senate - Filed March 8, 2001; March 13, 2001, read
 1-3     first time and referred to Committee on Business and Commerce;
 1-4     March 29, 2001, reported favorably by the following vote:  Yeas 5,
 1-5     Nays 0; March 29, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to health spas.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Section 702.253, Occupations Code, is amended to
1-11     read as follows:
1-12           Sec. 702.253.  Adjudication on Pro Rata Basis.  [(a)]  If the
1-13     total amount of actual financial losses computed under Section
1-14     702.252 for all claims filed under Section 702.251 exceeds the
1-15     amount of available security, the secretary of state shall reduce
1-16     the amount of each recovery under Section 702.252 on a pro rata
1-17     basis and shall compute the amount of each recovery by:
1-18                 (1)  dividing the amount of available security by the
1-19     total amount of actual financial losses computed under Section
1-20     702.252 for all claims; and
1-21                 (2)  multiplying the results computed under Subdivision
1-22     (1) by the amount of the recovery.
1-23           [(b)  For purposes of this section, the amount of available
1-24     security is computed by subtracting the costs incurred in
1-25     publishing notice under Section 702.452 from the amount of the
1-26     security filed or posted for the health spa.]
1-27           SECTION 2.  Section 702.254, Occupations Code, is amended to
1-28     read as follows:
1-29           Sec. 702.254.  Claim Barred.  The secretary of state may not
1-30     consider a claim filed under Section 702.251 if the claim is
1-31     received later than the 90th day after the [first] date notice is
1-32     first posted [published] under Section 702.452.
1-33           SECTION 3.  Section 702.452, Occupations Code, is amended to
1-34     read as follows:
1-35           Sec. 702.452.  Notice of Closed Health Spa.  (a)  Not later
1-36     than the third [45th] day after the date [the secretary of state
1-37     discovers] that a health spa is closed, the certificate holder
1-38     [secretary] shall contemporaneously:
1-39                 (1)  post at the health spa location [publish for two
1-40     consecutive Saturdays and Sundays in a newspaper of general
1-41     circulation in the county in which the health spa is located, or
1-42     the county nearest to the location of the health spa,] a notice
1-43     stating:
1-44                       (A)  that the health spa is closed;
1-45                       (B)  that a member of the health spa may, not
1-46     later than the 90th day after the date the [first] notice is first
1-47     posted [published,] file with the secretary of state a claim to
1-48     recover actual financial loss suffered by the member as a result of
1-49     the health spa closing; and
1-50                       (C)  the procedures for perfecting a security
1-51     claim; and
1-52                 (2)  notify the secretary of state of the health spa
1-53     closing and the date that the notice was first posted.
1-54           (b)  After receiving notice of the closing the secretary of
1-55     state shall post on the secretary of state's Internet website a
1-56     notice containing the information specified in Subsection (a)(1).
1-57           (c)  The notice posted at the health spa location shall be at
1-58     least 8 1/2 x 11 inches and must be posted at the closed health spa
1-59     in a place that is readily accessible to the general public at all
1-60     times that correspond to the former operating hours of the health
1-61     spa.
1-62           (d)  The notice at the health spa location shall be
1-63     continuously posted for at least 14 days.
1-64           (e)  The notice on the secretary of state's Internet website
 2-1     shall be continuously posted for at least 30 days.
 2-2           (f)  If the certificate holder fails to post the notice at
 2-3     the health spa location within the time specified, the secretary of
 2-4     state, not later than the 30th day after the date the secretary
 2-5     discovers that a health spa is closed, shall post the notice at the
 2-6     health spa location.
 2-7           (g)  The secretary of state shall, not later than the 10th
 2-8     day after the day the secretary discovers that the health spa is
 2-9     closed, notify the appropriate surety company or obligor of the
2-10     administrative proceedings pending under Subdivision (a)(1).
2-11           SECTION 4.  Section 702.453, Occupations Code, is repealed.
2-12           SECTION 5.  This Act takes effect September 1, 2001.
2-13                                  * * * * *