79R314 YDB-D

By:  Solomons                                                     H.B. No. 135



A BILL TO BE ENTITLED

AN ACT

relating to regulation of health spas.                                        
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 702, Occupations Code, is 
amended by adding Section 702.107 to read as follows:
	Sec. 702.107.  SALES TAX PERMIT; PROOF OF REGISTRATION 
REQUIRED.  (a) A health spa operator shall submit to the comptroller 
a copy of the operator's certificate of registration at the time the 
operator applies for a sales tax permit.
	(b)  The comptroller may not issue a sales tax permit to a 
health spa operator who fails to comply with this section.  The 
secretary of state shall assist the comptroller in determining 
whether a business is a health spa under this chapter.
	SECTION 2.  Section 702.151, Occupations Code, is amended to 
read as follows:
	Sec. 702.151.  SECURITY REQUIRED.  (a) Except as provided by 
Subchapter E, the secretary of state may not issue a health spa 
operator's certificate of registration to an applicant unless the 
applicant files a surety bond, or posts other security as 
prescribed by the secretary, in the amount prescribed by the 
secretary under Subsection (b) [of $20,000].
	(b)  The secretary of state shall prescribe the amount of 
security required for an applicant in the amount determined 
sufficient by the secretary to protect the health spa's total 
membership, but not less than $20,000.
	SECTION 3.  Subchapter D, Chapter 702, Occupations Code, is 
amended by adding Section 702.158 to read as follows:
	Sec. 702.158.  REVIEW OF SECURITY AMOUNT.  (a)  At least once 
every five years, the secretary of state shall review the amount of 
security a health spa operator is required to post under Section 
702.151 to determine whether the amount is sufficient to protect 
the health spa's total membership.   The secretary may increase the 
amount required if the secretary determines that the increase is 
necessary to protect that membership.
	(b)  The secretary of state may adopt procedures necessary to 
implement this section, including:
		(1)  establishing a schedule to review the amount of 
security posted by each health spa operator; and
		(2)  requiring each health spa operator to submit 
periodically a written statement of the health spa's total 
membership.
	SECTION 4.  Subchapter I, Chapter 702, Occupations Code, is 
amended by adding Section 702.404 to read as follows:
	Sec. 702.404.  INFORMATION REQUIRED IN ADVERTISEMENT.  A 
health spa operator may not advertise in any print or electronic 
medium unless the advertisement includes the health spa operator's 
certificate of registration number.
	SECTION 5.  Not later than January 1, 2006, the comptroller 
of public accounts shall provide the secretary of state with the 
name and address of each person that holds a sales tax permit issued 
before September 1, 2005, and provides services that may require 
the person to hold a health spa operator's certificate of 
registration under Chapter 702, Occupations Code.
	SECTION 6.  This Act takes effect September 1, 2005.