Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 1009 (2021S1)

Sponsor

Rep. Dunnigan, J.

Final action

Governor Signed 5/28/2021

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• amends provisions regarding contracts for health spa services;
• amends requirements for a health spa to qualify for an exemption from a bond, letter of credit, or certificate of deposit; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

HEALTH SPA SERVICES PROTECTION ACT AMENDMENTS
FIRST SPECIAL SESSION
STATE OF UTAH
Chief Sponsor: James A. Dunnigan
Senate Sponsor: 
Curtis S. Bramble
LONG TITLE
General Description:
This bill amends provisions of the Health Spa Services Protection Act.
Highlighted Provisions:
This bill:
▸ amends provisions regarding contracts for health spa services;
▸ amends requirements for a health spa to qualify for an exemption from a bond, letter
of credit, or certificate of deposit; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
 This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
13-23-3
, as last amended by Laws of Utah 2021, Chapter 266
13-23-4
, as last amended by Laws of Utah 2021, Chapter 266
13-23-6
, as last amended by Laws of Utah 2021, Chapter 266
63I-2-213
, as enacted by Laws of Utah 2011, Chapter 18
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
13-23-3
 is amended to read:
13-23-3.
Contracts for health spa services.
(1) (a) A contract for the purchase of a health spa service shall be in writing.
(b) The written contract described in Subsection (1)(a) shall constitute the entire
agreement between the consumer and the health spa.
(2) (a) The health spa shall provide the consumer with a fully completed copy of the
contract required by Subsection (1):
(i) at the time of the contract's execution; and
(ii) at any time, upon the consumer's request.
(b) The copy described in Subsection (2)(a) shall show:
(i) the date of the transaction;
(ii) the name and address of the health spa;
(iii) the name, address, and telephone number of the consumer; and
(iv) the consumer's primary location.
(3) (a) A contract described in Subsection (1):
(i) may not have a term in excess of 36 months; and
(ii) 
subject to Subsection (3)(b),
 may include an automatic renewal provision[
,
]
.
(b) An automatic renewal provision described in Subsection (3)(a) is effective
 if notice
of the automatic renewal provision is provided to the consumer no sooner than 60 days before,
and no later than 30 days before, the day on which the contract automatically renews.
[
(b)
] 
(c)
 Except for a lifetime membership sold before May 1, 1995, a health spa may
not offer a lifetime membership.
(4) A contract described in Subsection (1) or an attachment to the contract shall clearly
state each rule of the health spa that applies to:
(a) the consumer's use of the health spa's facilities and services; and
(b) cancellation and refund policies of the health spa.
(5) A contract described in Subsection (1) shall specify which equipment or facility of
the health spa:
(a) is omitted from the contract's coverage; or
(b) may be changed at the health spa's discretion.
(6) A contract described in Subsection (1) shall clearly:
(a) state the consumer's rescission rights under Section 
13-23-4
; and
(b) provide an email address and a mailing address where the consumer can send the
health spa a notice of intent to rescind the contract.
(7) [
A
] 
(a) Except as permitted under Subsection (7)(b), a
 health spa may not assign a
contract for a health spa service 
to a health spa that requires the consumer to obtain a
contracted health spa service at a health spa facility farther than five miles from the consumer's
primary location,
 unless the health spa:
[
(a)
] 
(i)
 provides the consumer the option to cancel the contract; and
[
(b)
] 
(ii)
 receives approval from the consumer to assign the contract.
(b) A health spa may assign a consumer's contract for a health spa service without
complying with Subsection (7)(a), if:
(i) during the 60-day period immediately before the day on which the health spa
assigns the consumer's contract, the consumer uses a health spa facility operated by the
assignee more frequently than the consumer's primary location;
(ii) the assignee changes the consumer's primary location to the health spa facility
described in Subsection (7)(b)(i); and
(iii) the health spa has a reciprocity agreement with the assignee.
(8) [
Before
] 
(a) Except as permitted under Subsection (8)(b), before
 a health spa
changes a consumer's primary location 
to a health spa facility farther than five miles from the
consumer's primary location
, the health spa shall provide the consumer the option to:
[
(a)
] 
(i)
 cancel the contract for 
a
 health spa [
services
] 
service
; or
[
(b) (i)
] 
(ii) (A)
 continue the contract at the new [
location
] 
health spa facility
; and
[
(ii)
] 
(B)
 designate the [
newly located
] 
new
 health spa facility as the consumer's
primary location.
(b) A health spa may change a consumer's primary location without providing the
consumer the option described in Subsection (8)(a), if:
(i) during the 60-day period immediately before the day on which the health spa
changes the consumer's primary location, the consumer uses a health spa facility other than the
consumer's primary location more frequently than the consumer's primary location; and
(ii) the health spa changes the consumer's primary location to the health spa facility
described in Subsection (8)(b)(i).
(9) The provisions of this section apply regardless of when the execution of a contract
described in Subsection (1)(a) occurs.
Section 2. Section 
13-23-4
 is amended to read:
13-23-4.
Rescission.
(1) A consumer may rescind a contract for the purchase of a health spa service by
emailing or mailing written notice of the consumer's intent to rescind:
(a) to the email address or mailing address the health spa provided in the contract, as
described in Subsection 
13-23-4
(6)(b); and
(b) (i) before midnight of the third business day after the day on which the consumer
and health spa execute the contract, as recorded by timestamp or postmark; or
(ii) if a consumer and health spa execute the contract when the consumer's primary
location is not fully operational and available for use, before midnight of the third business day
after the day on which the consumer's primary location becomes fully operational and available
for use, as recorded by timestamp or postmark.
(2) (a) A consumer who rescinds a contract under this section is entitled to a refund of
every payment the consumer made, less the reasonable value of any health spa service the
consumer actually received.
(b) The preparation and processing of the contract or another document is not a health
spa service that is deductible under Subsection (2)(a) from any refundable amount.
(c) In an enforcement action that the division initiates, a health spa has the burden of
proving that any value the health spa retains under Subsection (2)(a) is reasonable.
(3) [
(a)
] The rescission of a contract under this section is effective upon the health spa's
receipt of written notice of the consumer's intent to rescind the contract.
Section 3. Section 
13-23-6
 is amended to read:
13-23-6.
Exemptions from bond, letter of credit, or certificate of deposit
requirement.
(1) A health spa is exempt from Subsections 
13-23-5
(2) through (5) for a health spa
facility, if the health spa only offers access to a health spa service at the health spa facility
through:
(a) the purchase of an individual class or session;
(b) the purchase of a package:
(i) with a defined number of classes or sessions; and
(ii) for which the health spa may not hold more than $150 worth of a consumer's
unused credit;
(c) the purchase of a monthly membership or pass, payment for which the health spa
does not collect from a consumer more than two months in advance;
(d) an installment contract that:
(i) provides for the consumer to make all payments due under the contract, including a
down payment, an enrollment fee, a membership fee, or any other payment to the health spa, in
equal monthly installments spread over the entire term of the contract; and
(ii) contains the following clause: "If this health spa ceases operations at or [
relocates
]
changes
 the consumer's primary location 
in violation of Utah Code Subsection 
13-23-3
(7) or
(8)
, no further payments under this contract shall be due to anyone, including any assignee of
the contract or purchaser of any note associated with or contained in this contract[
, unless the
consumer has been presented with the option to cancel the contract and has agreed to the
assignment or sale of the consumer's contract
]."; or
(e) a combination of health spa services described in Subsections (1)(a) through (d).
(2) A health spa that claims exemption from Subsections 
13-23-5
(2) through (5) bears
the burden of proving to the division that the health spa meets the exemption criteria described
in Subsection (1).
Section 4. Section 
63I-2-213
 is amended to read:
63I-2-213.
Repeal dates -- Title 13.
(1) On July 1, 2022:
(a) Subsection 
13-23-3
(7)(a) is repealed and replaced with the following:
"(a) Except as permitted under Subsection (7)(b), a health spa may not assign a contract
for a health spa service unless the health spa:
(i) provides the consumer the option to cancel the contract; and
(ii) receives approval from the consumer to assign the contract."; and
(b) Subsection 
13-23-3
(8)(a) is repealed and replaced with the following:
"(a) Except as permitted under Subsection (8)(b), before a health spa changes a
consumer's primary location, the health spa shall provide the consumer the option to:
(i) cancel the contract for a health spa service; or
(ii) (A) continue the contract at the new health spa facility; and
(B) designate the new health spa facility as the consumer's primary location."
(2)
 Title 13, Chapter 47, Private Employer Verification Act, is repealed on the program
start date, as defined in Section 
63G-12-102
.
Section 5. 
Retrospective operation.
This bill has retrospective operation to May 5, 2021.
Section 6. 
Effective date.
If approved by two-thirds of all the members elected to each house, this bill takes effect
upon approval by the governor, or the day following the constitutional time limit of Utah
Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
the date of veto override.