1. Except as otherwise provided in subsection 5, before advertising its services or conducting business in this State, the owner of a dance studio or a health club must register pursuant to NRS 598.721 and 598.944 and deposit security with the Division pursuant to NRS 598.726. The security must:
(a) Be conditioned on compliance by the owner with the provisions of NRS 598.940 to 598.966, inclusive, and the terms of the contract with a buyer; and
(b) Remain on deposit with the Division until the release of the security is authorized or required pursuant to NRS 598.736, except that the dance studio or health club may change the form of the security as provided in NRS 598.726.
2. Except as otherwise provided in subsection 3, the amount of the security to be deposited must be:
(a) Ten thousand dollars, if the dance studio or health club has less than 400 members;
(b) Fifteen thousand dollars, if the dance studio or health club has 400 members or more but less than 800 members;
(c) Twenty thousand dollars, if the dance studio or health club has 800 members or more but less than 1,200 members;
(d) Twenty-five thousand dollars, if the dance studio or health club has 1,200 members or more but less than 1,500 members;
(e) Thirty-five thousand dollars, if the dance studio or health club has 1,500 members or more but less than 4,000 members;
(f) Fifty thousand dollars, if the dance studio or health club has 4,000 members or more but less than 25,000 members; and
(g) Two hundred and fifty thousand dollars, if the dance studio or health club has 25,000 or more members.
3. If a dance studio or health club conducts any pre-sale of dance lessons, the use of facilities or other services, the amount of the security required by this section is $100,000 unless a greater amount is required pursuant to paragraph (g) of subsection 2.
4. A dance studio or health club shall report to the Division on a quarterly basis the size of its membership and shall, on the basis of any change in the size of that membership, adjust accordingly the amount of the security deposited with the Division.
5. If, on October 1, 2001, a dance studio or health club has not deposited security with the Division pursuant to NRS 598.726 because it was not required to do so pursuant to this section, the dance studio or health club:
(a) Is not required to deposit security with the Division pursuant to NRS 598.726; and
(b) Shall obtain a written acknowledgment from each member and prominently post a notice on its premises stating that no security for refunds or reimbursement has been deposited with the State of Nevada.
(Added to NRS by 1989, 2038; A 1993, 1963; 1997, 3200; 2001, 2152; R temp. 2009, 2732; R temp. 2011, 2652; R temp. 2013, 1054; R temp. 2015, 3653; R temp. 2017, 2254; R temp. 2019, 2501, expires by limitation on June 30, 2021)