State Codes and Statutes
Statutes > Utah > Title-13 > Chapter-23 > 13-23-513-23-5. Registration -- Bond, letter of credit, or certificate of deposit required --Penalties.
(1) (a) (i) It is unlawful for any health spa facility to operate in this state unless thefacility is registered with the division.
(ii) Registration is effective for one year. If the health spa facility renews its registration,the registration shall be renewed at least 30 days prior to its expiration.
(iii) The division shall provide by rule for the form, content, application process, andrenewal process of the registration.
(b) Each health spa registering in this state shall designate a registered agent for receivingservice of process. The registered agent shall be reasonably available from 8 a.m. until 5 p.m.during normal working days.
(c) The division shall charge and collect a fee for registration under guidelines providedin Section 63J-1-504.
(d) If an applicant fails to file a registration application or renewal by the due date, orfiles an incomplete registration application or renewal, the applicant shall pay a fee of $25 foreach month or part of a month after the date on which the registration application or renewalwere due to be filed, in addition to the registration fee described in Subsection (1)(c).
(2) (a) Each health spa shall obtain and maintain:
(i) a performance bond issued by a surety authorized to transact surety business in thisstate;
(ii) an irrevocable letter of credit issued by a financial institution authorized to dobusiness in this state; or
(iii) a certificate of deposit.
(b) The bond, letter of credit, or certificate of deposit shall be payable to the division forthe benefit of any consumer who incurs damages as the result of:
(i) the health spa's violation of this chapter; or
(ii) the health spa's going out of business or relocating and failing to offer an alternatelocation within five miles.
(c) (i) The division may recover from the bond, letter of credit, or certificate of depositthe costs of collecting and distributing funds under this section, up to 10% of the face value ofthe bond, letter of credit, or certificate of deposit but only if the consumers have fully recoveredtheir damages first.
(ii) The total liability of the issuer of the bond, letter of credit, or certificate of depositmay not exceed the amount of the bond, letter of credit, or certificate of deposit.
(iii) The health spa shall maintain a bond, letter of credit, or certificate of deposit in forcefor one year after it notifies the division in writing that it has ceased all activities regulated bythis chapter.
(d) A health spa providing services at more than one location shall comply with therequirements of Subsection (2)(a) for each separate location.
(e) The division may impose a fine against a health spa that fails to comply with therequirements of Subsection (2)(a) of up to $100 per day that the health spa remains out ofcompliance. All penalties received shall be deposited into the Consumer Protection Educationand Training Fund created in Section 13-2-8.
(3) (a) The minimum principal amount of the bond, letter of credit, or certificate of creditrequired under Subsection (2) shall be based on the number of unexpired contracts for health spa
services to which the health spa is a party, in accordance with the following schedule:
Principal Amount of Number of Contracts
Bond, Letter of Credit,
or Certificate of Deposit
$15,000 500 or fewer
35,000 501 to 1,500
50,000 1,500 to 3,000
75,000 3,001 or more
(b) A health spa that is not exempt under Section 13-23-6 shall comply with Subsection(3)(a) with respect to all of the health spa's unexpired contracts for health spa services, regardlessof whether a portion of those contracts satisfy the criteria in Section 13-23-6.
(4) Each health spa shall obtain the bond, letter of credit, or certificate of deposit andfurnish a certified copy of the bond, letter of credit, or certificate of deposit to the division priorto selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any contractto provide health spa services. A health spa is considered to be in compliance with this sectiononly if the proof provided to the division shows that the bond, letter of credit, or certificate ofcredit is current.
(5) Each health spa shall:
(a) maintain accurate records of the bond, letter of credit, or certificate of credit and ofany payments made, due, or to become due to the issuer; and
(b) open the records to inspection by the division at any time during normal businesshours.
(6) If a health spa changes ownership, ceases operation, discontinues facilities, orrelocates and fails to offer an alternate location within five miles within 30 days after its closing,the health spa is subject to the requirements of this section as if it were a new health spa cominginto being at the time the health spa changed ownership. The former owner may not release,cancel, or terminate the owner's liability under any bond, letter of credit, or certificate of depositpreviously filed with the division, unless:
(a) the new owner has filed a new bond, letter of credit, or certificate of deposit for thebenefit of consumers covered under the previous owner's bond, letter of credit, or certificate ofdeposit; or
(b) the former owner has refunded all unearned payments to consumers.
(7) If a health spa ceases operation or relocates and fails to offer an alternative locationwithin five miles, the health spa shall provide the division with 45 days prior notice.
Amended by Chapter 183, 2009 General Session
