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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of health spas by the secretary of state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 702.155, Occupations Code, is amended to |
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read as follows: |
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Sec. 702.155. DURATION OF SECURITY. A certificate holder |
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shall maintain the security filed or posted under Section 702.151 |
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in effect until the earlier [later] of: |
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(1) the second anniversary of the date the certificate |
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holder's health spa closes; or |
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(2) the date the secretary of state determines that |
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each claim filed against the security has been satisfied or |
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foreclosed by law. |
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SECTION 2. Section 702.156, Occupations Code, is amended to |
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read as follows: |
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Sec. 702.156. NOTICE OF CANCELLATION OF SECURITY. [(a)] A |
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surety or obligor of security filed or posted under this subchapter |
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shall provide to the secretary of state, not later than the 60th day |
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before the date the security is canceled, written notice of the |
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cancellation. |
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[(b)
If the security filed or posted under this subchapter
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by a certificate holder is canceled, the secretary of state shall:
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[(1)
suspend the certificate holder's certificate of
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registration on the date of cancellation; and
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[(2)
maintain other security on file with the
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secretary until the later of:
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[(A)
the second anniversary of the date the
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certificate holder's health spa closes; or
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[(B)
the date the secretary determines that each
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claim filed against the security has been satisfied or foreclosed
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by law.] |
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SECTION 3. Section 702.207, Occupations Code, is amended to |
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read as follows: |
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Sec. 702.207. DENIAL AND REVOCATION OF EXEMPTION. After |
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notice and opportunity for hearing, the secretary of state may deny |
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an application for an exemption or permanently revoke a certificate |
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holder's certificate of exemption if the secretary finds that the |
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applicant or certificate holder: |
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(1) provided false information on the application for |
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an exemption; or |
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(2) is no longer eligible for an exemption. |
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SECTION 4. Section 702.251, Occupations Code, is amended to |
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read as follows: |
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Sec. 702.251. FILING OF SECURITY CLAIM. A member may file a |
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claim against the security filed or posted under this subchapter by |
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providing [sending] to the secretary of state [by certified mail] a |
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copy of the contract between the member and certificate holder who |
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filed or posted the security, accompanied by proof of payment made |
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under the contract, if the certificate holder's health spa: |
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(1) closes and fails to provide alternative facilities |
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not more than 10 miles from the location of the health spa; or |
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(2) relocates more than 10 miles from its location |
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preceding the relocation. |
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SECTION 5. Section 702.254, Occupations Code, is amended to |
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read as follows: |
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Sec. 702.254. CLAIM BARRED. The secretary of state may not |
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consider a claim filed under Section 702.251 if the claim is |
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received later than the 90th day after the date notice of the |
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closure or relocation is first posted on the secretary of state's |
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Internet website under Section 702.452(c) [702.452]. |
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SECTION 6. Subsection (a), Section 702.304, Occupations |
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Code, is amended to read as follows: |
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(a) Except as provided by Subsection (b), a contract must |
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state in at least 10-point type that is boldfaced, capitalized, |
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underlined, or otherwise conspicuously distinguished from |
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surrounding written material: |
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(1) "NOTICE TO PURCHASER: DO NOT SIGN THIS CONTRACT |
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UNTIL YOU READ IT OR IF IT CONTAINS BLANK SPACES." |
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(2) "IF YOU DECIDE YOU DO NOT WISH TO REMAIN A MEMBER |
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OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY MAILING TO THE |
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HEALTH SPA BY MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DAY YOU |
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SIGN THIS CONTRACT A NOTICE STATING YOUR DESIRE TO CANCEL THIS |
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CONTRACT. THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO |
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THE FOLLOWING ADDRESS: |
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(Address of the health spa home office)." |
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(3) "IF THE HEALTH SPA GOES OUT OF BUSINESS AND DOES |
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NOT PROVIDE FACILITIES WITHIN 10 MILES OF THE FACILITY IN WHICH YOU |
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ARE ENROLLED OR IF THE HEALTH SPA MOVES MORE THAN 10 MILES FROM THE |
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FACILITY IN WHICH YOU ARE ENROLLED, YOU MAY: |
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(A) CANCEL THIS CONTRACT BY MAILING BY CERTIFIED |
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MAIL A WRITTEN NOTICE STATING YOUR DESIRE TO CANCEL THIS CONTRACT, |
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ACCOMPANIED BY PROOF OF PAYMENT ON THE CONTRACT TO THE HEALTH SPA AT |
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THE FOLLOWING ADDRESS: |
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(Address of the health spa home office); AND |
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(B) FILE A CLAIM FOR A REFUND OF YOUR UNUSED |
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MEMBERSHIP FEES AGAINST THE BOND OR OTHER SECURITY POSTED BY THE |
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HEALTH SPA WITH THE TEXAS SECRETARY OF STATE. TO MAKE A CLAIM |
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AGAINST THE SECURITY PROVIDE [SEND] A COPY OF YOUR CONTRACT |
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TOGETHER WITH PROOF OF PAYMENTS MADE ON THE CONTRACT TO THE TEXAS |
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SECRETARY OF STATE. THE REQUIRED CLAIM INFORMATION [WRITTEN
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NOTICE] MUST BE RECEIVED BY [MAILED BY CERTIFIED MAIL TO] THE |
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SECRETARY OF STATE NOT LATER THAN THE 90TH DAY AFTER THE DATE NOTICE |
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OF THE CLOSURE OR RELOCATION IS FIRST POSTED ON THE SECRETARY OF |
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STATE'S INTERNET WEBSITE [FOLLOWING ADDRESS:
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OFFICE OF THE SECRETARY OF STATE
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STATUTORY DOCUMENTS SECTION
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P.O. BOX 12887
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AUSTIN, TEXAS 78711-2887]." |
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(4) "IF YOU DIE OR BECOME TOTALLY AND PERMANENTLY |
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DISABLED AFTER THE DATE THIS CONTRACT TAKES EFFECT, YOU OR YOUR |
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ESTATE MAY CANCEL THIS CONTRACT AND RECEIVE A PARTIAL REFUND OF YOUR |
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UNUSED MEMBERSHIP FEE BY MAILING A NOTICE TO THE HEALTH SPA STATING |
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YOUR DESIRE TO CANCEL THIS CONTRACT. THE HEALTH SPA MAY REQUIRE |
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PROOF OF DISABILITY OR DEATH. THE WRITTEN NOTICE MUST BE MAILED BY |
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CERTIFIED MAIL TO THE FOLLOWING ADDRESS: |
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(Address of the health spa home office)." |
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SECTION 7. Sections 702.451 and 702.452, Occupations Code, |
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are amended to read as follows: |
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Sec. 702.451. DISCIPLINARY ACTIONS. (a) After notice and |
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opportunity for hearing, the secretary of state may deny an |
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application for a certificate of registration, or may permanently |
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revoke [or suspend for a definite period] a health spa operator's |
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certificate of registration, on a finding by the secretary that the |
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applicant or certificate holder: |
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(1) provided false information on an application or |
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other document filed with the secretary; |
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(2) failed to file or post, or maintain, the security |
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for each health spa location as required by Subchapter D; or |
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(3) failed to provide the contract disclosure language |
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required by Subchapter G. |
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(b) The secretary of state may permanently revoke a |
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certificate of registration under Subsection (a) based on the |
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certificate holder's failure to maintain the required security only |
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after a finding by the secretary that, within the 30-day period |
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following the cancellation or lapse of the security, the |
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certificate holder failed to file or post replacement security in |
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the required amount. |
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Sec. 702.452. NOTICE REQUIREMENT BEFORE HEALTH SPA CLOSING. |
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(a) At least 30 days before the date a health spa is scheduled to |
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close or relocate, the certificate holder shall contemporaneously: |
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(1) post, inside and outside each entrance to the |
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health spa, a notice stating: |
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(A) the date the health spa is scheduled to close |
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or relocate; |
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(B) that a member of the health spa may, not later |
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than the 90th day after the date notice of the closure or relocation |
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is first posted on the secretary of state's Internet website [the
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health spa closes or relocates], file with the secretary of state a |
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claim to recover actual financial loss suffered by the member as a |
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result of the health spa closing; and |
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(C) the procedures for perfecting a security |
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claim; and |
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(2) notify the secretary of state in writing of the |
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health spa closing or relocation and the date that the notice was |
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first posted. |
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(b) The notice posted under Subsection (a)(1) must be: |
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(1) at least 8-1/2 by 11 inches in size; and |
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(2) posted continuously for at least 30 days. |
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(c) [If the certificate holder fails to post the notice
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required by Subsection (a)(1) within the time specified, the
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secretary of state, not later than the 30th day after the date the
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secretary discovers that a health spa is closed, shall post the
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notice required under Subsection (a)(1).
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[(d)] After receiving a notice under Subsection (a)(2) or |
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otherwise discovering that a health spa is closed, the secretary of |
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state shall post on the secretary of state's Internet website a |
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notice containing the information specified in Subsection (a)(1). |
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The notice must be posted continuously for at least 30 days. |
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(d) [(e)] The secretary of state shall, not later than the |
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10th day after the date the secretary receives notice or otherwise |
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discovers that a health spa is closed, notify the appropriate |
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surety company or obligor of the administrative proceedings pending |
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under Subsection (a)(1). |
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(e) [(f)] The notice required under Subsection (a) is not |
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required in the case of a fire, flood, or act of God that is not |
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within the reasonable control of a health spa. |
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SECTION 8. (a) The changes in law made by this Act to |
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Sections 702.155 and 702.156, Occupations Code, apply to security |
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that is filed or posted before, on, or after the effective date of |
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this Act. |
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(b) The change in law made by this Act to Section 702.207, |
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Occupations Code, applies only to an application for exemption that |
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is filed or to the revocation of a certificate of exemption that |
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occurs on or after the effective date of this Act. An application |
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for exemption filed or the revocation of a certificate that occurs |
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before the effective date of this Act is governed by the law in |
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effect immediately before that date, and the former law is |
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continued in effect for that purpose. |
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(c) The changes in law made by this Act to Sections 702.251 |
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and 702.254, Occupations Code, apply only to a claim against |
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security that is received by the secretary of state on or after the |
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effective date of this Act. A claim against security received by |
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the secretary of state before the effective date of this Act is |
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governed by the law in effect immediately before that date, and the |
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former law is continued in effect for that purpose. |
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(d) The change in law made by this Act to Section 702.304, |
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Occupations Code, applies only to a contract that is entered into on |
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or after the effective date of this Act. A contract entered into |
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before the effective date of this Act is governed by the law in |
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effect immediately before that date, and the former law is |
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continued in effect for that purpose. |
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(e) The change in law made by this Act to Section 702.451, |
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Occupations Code, applies to a disciplinary action taken on or |
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after the effective date of this Act. A disciplinary action taken |
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before the effective date of this Act is governed by the law in |
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effect immediately before that date, and the former law is |
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continued in effect for that purpose. |
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(f) The change in law made by this Act to Section 702.452, |
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Occupations Code, applies to the closing or relocation of a health |
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spa that occurs on or after the effective date of this Act. A |
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closing or relocation of a health spa that occurs before the |
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effective date of this Act is governed by the law in effect |
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immediately before that date, and the former law is continued in |
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effect for that purpose. |
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SECTION 9. This Act takes effect September 1, 2011. |
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* * * * * |