Registration -- Bond, letter of credit, or certificate of deposit required -- Penalties.
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(1)
(a)
(i) A health spa may not operate a health spa facility in this state unless the health spa registers the health spa facility with the division in accordance with this section.
(ii) Registration of a health spa facility under this chapter is effective for one year.
(iii) To renew a health spa facility registration under this section, the health spa shall submit a registration renewal application to the division at least 30 days before the day on which the health spa facility's registration expires.
(iv) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division may establish:
(A) the initial health spa facility registration process, including the content of any forms;
(B) the health spa facility registration renewal process, including the content of any forms; and
(C) a surety exemption process, including the content of any forms.
(b) Each health spa registering a health spa facility in this state shall designate a registered agent for receiving service of process.
(c) A health spa's registered agent shall be reasonably available from 8 a.m. until 5 p.m. during normal working days.
(d) The division shall charge and collect a fee for registration and registration renewal under guidelines provided in Section 63J-1-504.
(e) If a health spa fails to submit a complete registration renewal application before the day on which a health spa facility's registration expires, the health spa shall pay a fee of $25 for each month or part of a month that passes:
(i) after the day on which the registration expires; and
(ii) before the day on which the health spa submits a complete registration renewal application.
(f) The fee described in Subsection (1)(e) is in addition to the registration renewal fee described in Subsection (1)(d).
(g) A health spa registering or renewing a registration shall provide the division a copy of the liability insurance policy that:
(i) covers the health spa; and
(ii) is in effect at the time of the registration or registration renewal.
(h) If information in an application to register or renew the registration of a health spa facility materially changes or becomes incorrect or incomplete, the applicant shall, within 30 days after the day on which the information changes or becomes incorrect or incomplete, correct the application or submit the correct information to the division in a manner that the division establishes by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2)
(a) Except as provided in Section 13-23-6, for each health spa facility a health spa operates, the health spa shall obtain and maintain:
(i) a performance bond issued by a surety authorized to transact surety business in this state;
(ii) an irrevocable letter of credit issued by a financial institution authorized to do business in this state; or
(iii) a certificate of deposit.
(b) The bond, letter of credit, or certificate of deposit described in Subsection (2)(a) shall be payable to the division for the benefit of a consumer who incurs damages as the result of the health spa:
(i) violating this chapter; or
(ii) going out of business.
(c)
(i) After each consumer has fully recovered damages, the division may recover from the bond, letter of credit, or certificate of deposit described in Subsection (2)(a) the costs of collecting and distributing funds under this section, in an amount up to 10% of the face value of the bond, letter of credit, or certificate of deposit.
(ii) The total liability of the issuer of the bond, letter of credit, or certificate of deposit described in this Subsection (2) may not exceed the amount of the bond, letter of credit, or certificate of deposit.
(iii) A health spa shall maintain a bond, letter of credit, or certificate of deposit described in this Subsection (2) in force for one year after the day on which the health spa notifies the division in writing that the health spa has ceased all activities regulated under this chapter at the health spa facility.
(d)
(i) The division may impose a fine against a health spa that fails to comply with the requirements of this Subsection (2) of up to $100 per day that the health spa remains out of compliance.
(ii) The division shall deposit each fine the division collects under this Subsection (2)(d) into the Consumer Protection Education and Training Fund created in Section 13-2-8.
(3)
(a) In accordance with the schedule established in Subsection (3)(b), a health spa shall base the minimum principal amount of the bond, letter of credit, or certificate of deposit required under Subsection (2) on:
(i) the number of unexpired contracts for a health spa service, at the time the health spa submits the health spa facility registration or registration renewal application, that designate the health spa facility as the consumer's primary location; or
(ii) if at the time the health spa submits the health spa facility registration application the health spa has not executed a contract for a health spa service that designates the health spa facility as a consumer's primary location, the number of contracts for a health spa service designating the health spa facility as a consumer's primary location that the health spa reasonably expects to execute during the health spa facility's first year of registration.
(b)
Principal Amount of Bond, Letter of Credit, or Certificate of DepositNumber of Contracts
$5,000100 or fewer
$10,000101 to 250
$15,000251 to 500
35,000501 to 1,500
50,0001,501 to 3,000
75,0003,001 or more
(c) A health spa that is not exempt under Section 13-23-6 shall comply with Subsections (3)(a) and (b) with respect to all of the health spa's unexpired contracts for a health spa service, regardless of whether a portion of those contracts satisfies the criteria in Section 13-23-6.
(4) A health spa shall furnish a copy of the current bond, letter of credit, or certificate of deposit to the division before selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any contract to provide a health spa service.
(5) A health spa shall:
(a) maintain accurate records of:
(i) the bond, letter of credit, or certificate of deposit; and
(ii) of each payment made, due, or to become due to the issuer; and
(b) open the records described in Subsection (5)(a) to inspection by the division at any time during normal business hours.
(6)
(a) A health spa with a health spa facility registered under this section shall submit a new initial registration for the health spa facility, if the health spa:
(i) changes ownership;
(ii) permanently ceases and then again commences operation at the health spa facility; or
(iii) relocates the health spa facility.
(b) The former owner of a health spa may not release, cancel, or terminate the owner's liability under any bond, letter of credit, or certificate of deposit previously filed with the division, unless:
(i) the new owner has filed a new bond, letter of credit, or certificate of deposit for the benefit of consumers covered under the previous owner's bond, letter of credit, or certificate of deposit; or
(ii) the former owner has refunded all unearned payments to consumers.
(7) If a health spa permanently ceases operation or relocates a health spa facility, the health spa shall provide the division notice at least 45 days before the day on which health spa permanently ceases operation or relocates the health spa facility.