44-1793

44-1793. Contract form; conspicuous statement
of costs; duration and cancellation

A. Every contract for health spa services shall be in writing and subject to the
provisions of this article. A copy of the written contract shall be given to the
customer at the time the customer signs the contract.

B. A contract for health spa services shall specifically set forth in a conspicuous
manner on the top of the first page of the contract the customer's total payment
obligation for health spa services to be received pursuant to the contract.

C. Services to be rendered to the customer under the contract shall not extend for
more than three years from the date the contract is signed by the customer.

D. A contract for new or increased health spa services may be cancelled by the
customer for any reason at any time before midnight of the third operating day after the
customer received a copy of the contract. In order to cancel a contract the customer
shall notify the health spa of cancellation in writing, by certified mail, return receipt
requested, or by personal delivery, to the address specified in the contract. All monies
paid pursuant to the cancelled contract shall be fully refunded within thirty days of
receipt of the notice of cancellation. If the customer has executed any credit or loan
agreement through the health spa to pay for all or part of health spa services, any such
negotiable instrument executed by the customer shall also be returned within thirty
days. The contract shall contain a conspicuous notice printed in at least ten-point
bold-faced type as follows:

"Notice to customer

You are entitled to a copy of this contract at the time you sign it.

You may cancel this contract at any time before midnight of the third
operating day after receiving a copy of this contract. If you choose to
cancel this contract, you must either:

1. Send a signed and dated written notice of cancellation by certified
mail, return receipt requested; or

2. Personally deliver a signed and dated written notice of cancellation
to:

(name of health spa)

(address of health spa).

If you cancel this contract within the three-day period, you are entitled
to a full refund of your money. If the third operating day falls on a Sunday
or holiday, notice is timely given if it is mailed or delivered as specified
in this notice on the next operating day. Refunds must be made within thirty
operating days of receipt of the cancellation notice by the health spa.

'Operating day' means any calendar day on which patrons may inspect and
use the facilities and services of the health spa during a period of at least
eight hours."

E. A contract for health spa services shall provide that it is subject to
cancellation by notice sent by certified mail, return receipt requested, or personally
delivered to the address of the health spa specified in the contract upon the customer's
death or permanent disability.

F. A contract for health spa services shall provide that it is subject to
cancellation by notice sent by certified mail, return receipt requested, or personally
delivered, to the address of the health spa specified in the contract upon the customer's
change of permanent residence to a location more than twenty-five miles from the health
spa or an affiliated health spa offering the same or similar services and facilities at
no additional expense to the customer.

G. A contract for health spa services shall provide that it is subject to
cancellation or suspension by notice sent by certified mail, return receipt requested, or
personally delivered, to the address of the health spa specified in the contract if the
customer is a member of the United States military, including a member of the national
guard or a reserve unit, and is serving on federal active duty and deployed outside this
state. The request for cancellation or suspension must be made by the member or the
member's legally designated representative, must include a copy of the member's official
military orders or a written verification from the member's commanding officer and must
be made within ninety days after the member receives notice of serving on federal active
duty and deployment outside this state. If the contract is suspended under this
subsection, the health spa shall not charge any fees to reinstate the contract and shall
maintain the original payment obligations set forth in the original contract. A contract
that is suspended under this subsection is subject to cancellation two years after the
date of suspension if the customer fails to reinstate the contract.

H. In a cancellation under subsection E, F or G, the health spa may retain the
portion of the total contract price representing the services used plus reimbursement for
the expenses incurred in an amount not to exceed twenty-five per cent of the total
contract price.