SECTION 4. Sections 702.003,
702.101, 702.102, and 702.103, Occupations Code, are amended to read as
follows:
Sec. 702.003. DEFINITIONS.
In this chapter:
(1) "Closed" means
a condition in which:
(A) the facilities of a
health club [spa] are no longer available to the health club's
[spa's] members and equivalent facilities located not more than 10
miles from the health club [spa] have not been made available
to the members;
(B) a certificate holder
sells a registered location and the security filed or posted by the
certificate holder under Subchapter D is:
(i) canceled;
(ii) withdrawn; or
(iii) otherwise unavailable
to the members of the health club [spa]; or
(C) a certificate holder
sells a registered location and the buyer does not adopt or honor the
contracts of existing members of the health club [spa].
(2) "Contract"
means an agreement between a seller and purchaser by which the purchaser
becomes a member of a health club or is granted access to the facilities
of the health club [spa].
(3) "Facilities"
means the equipment, physical structures, improvements, including
improvements to leasehold premises, and other tangible property, including
saunas, whirlpool baths, gymnasiums, running tracks, swimming pools, shower
areas, racquetball courts, martial arts equipment, and exercise equipment,
that are located at a health club [spa] and used to conduct
the business of the health club [spa].
(4) "Health club
[spa]" means a business that offers for sale, or sells,
memberships that provide the members instruction in or the use of
facilities for a physical exercise program. The term does not include:
(A) an organization that is
tax exempt under Section 501 et seq., Internal Revenue Code (26 U.S.C.
Section 501 et seq.);
(B) a private club owned and
operated by its members;
(C) an entity operated
exclusively to:
(i) teach dance, yoga,
or aerobic exercise; or
(ii) provide physical rehabilitation
activity related to an individual's injury or disease;
(D) a person engaged in an
activity authorized under a license issued by the state;
(E) an activity conducted or
sanctioned by a school under the Education Code; [or]
(F) a hospital or clinic
owned or operated by an agency of the state or federal government or by a
political subdivision of this state; or
(G) a specified number of
prepaid personal training sessions.
(5) "Location"
means the physical site of the facilities of a health club [spa].
(6) "Member" means
a person who is entitled to the benefits of membership in a health club
[spa].
(7) "Membership"
means the status of a person under a contract that entitles the person to
use a health club's [spa's] services or facilities.
(8) "Obligor"
means a person, other than a surety, who is obligated to perform if a
certificate holder defaults.
(9) "Open" means
the date each service of a health club [spa] that was advertised
before the opening, or promised to be made available, are available for use
by its members.
(10) "Prepayment"
means consideration paid by a purchaser for membership in a health club
[spa] before the date the health club [spa] opens.
(11) "Purchaser"
means a person who purchases, or applies to purchase, the right to use a
health club's [spa's] services or facilities.
(12) "Registered
location" means a health club [spa] location for which a
health club [spa] operator's certificate of registration is
issued under this chapter.
(13) "Seller"
means a person who:
(A) owns or operates a
health club [spa]; or
(B) offers for sale, or
sells, the right to use a health club's [spa's] services or
facilities.
(14) "Services"
means the programs, plans, guidance, or instruction that a health club
[spa] provides for its members. The term includes [diet
planning,] exercise instruction and programs[,] and
instructional classes.
Sec. 702.101. CERTIFICATE OF
REGISTRATION REQUIRED.
Sec. 702.102. APPLICATION
REQUIREMENTS.
Sec. 702.103. CERTIFICATE OF
REGISTRATION NONTRANSFERABLE; APPLICATION BY NEW OWNER.
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SECTION 4. Sections 702.003,
702.101, 702.102, and 702.103, Occupations Code, are amended to read as
follows:
Sec. 702.003. DEFINITIONS.
In this chapter:
(1) "Closed" means
a condition in which:
(A) the facilities of a
health club [spa] are no longer available to the health club's
[spa's] members and equivalent facilities located not more than 10
miles from the health club [spa] have not been made available
to the members;
(B) a certificate holder
sells a registered location and the security filed or posted by the
certificate holder under Subchapter D is:
(i) canceled;
(ii) withdrawn; or
(iii) otherwise unavailable
to the members of the health club [spa]; or
(C) a certificate holder
sells a registered location and the buyer does not adopt or honor the
contracts of existing members of the health club [spa].
(2) "Contract"
means an agreement between a seller and purchaser by which the purchaser
becomes a member of a health club or is granted access to the facilities
of the health club [spa].
(3) "Facilities"
means the equipment, physical structures, improvements, including
improvements to leasehold premises, and other tangible property, including
saunas, whirlpool baths, gymnasiums, running tracks, swimming pools, shower
areas, racquetball courts, martial arts equipment, and exercise equipment,
that are located at a health club [spa] and used to conduct
the business of the health club [spa].
(4) "Health club
[spa]" means a business that offers for sale, or sells,
memberships that provide the members instruction in or the use of
facilities for a physical exercise program. The term does not include:
(A) an organization that is
tax exempt under Section 501 et seq., Internal Revenue Code (26 U.S.C.
Section 501 et seq.);
(B) a private club owned and
operated by its members;
(C) an entity operated
exclusively to:
(i) teach dance, yoga,
or aerobic exercise; or
(ii) provide physical
rehabilitation activity related to an individual's injury or disease;
(D) a person engaged in an
activity authorized under a license issued by the state;
(E) an activity conducted or
sanctioned by a school under the Education Code; [or]
(F) a hospital or clinic
owned or operated by an agency of the state or federal government or by a
political subdivision of this state;
(G) prepaid personal training services consisting
of a specified number of sessions; or
(H) an outdoor physical exercise program held at a public
facility.
(5) "Location"
means the physical site of the facilities of a health club [spa].
(6) "Member" means
a person who is entitled to the benefits of membership in a health club
[spa].
(7) "Membership"
means the status of a person under a contract that entitles the person to
use a health club's [spa's] services or facilities.
(8) "Obligor"
means a person, other than a surety, who is obligated to perform if a
certificate holder defaults.
(9) "Open" means
the date each service of a health club [spa] that was
advertised before the opening, or promised to be made available, are
available for use by its members.
(10) "Prepayment"
means consideration paid by a purchaser for membership in a health club
[spa] before the date the health club [spa] opens.
(11) "Purchaser"
means a person who purchases, or applies to purchase, the right to use a
health club's [spa's] services or facilities.
(12) "Registered
location" means a health club [spa] location for which a
health club [spa] operator's certificate of registration is
issued under this chapter.
(13) "Seller"
means a person who:
(A) owns or operates a
health club [spa]; or
(B) offers for sale, or
sells, the right to use a health club's [spa's] services or
facilities.
(14) "Services"
means the programs, plans, guidance, or instruction that a health club
[spa] provides for its members. The term includes [diet
planning,] exercise instruction and programs[,] and
instructional classes.
Sec. 702.101. CERTIFICATE OF
REGISTRATION REQUIRED.
Sec. 702.102. APPLICATION
REQUIREMENTS.
Sec. 702.103. CERTIFICATE OF
REGISTRATION NONTRANSFERABLE; APPLICATION BY NEW OWNER.
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