SECTION 102.32. Amount of Security Required

(a) For purposes of this section, the term "total membership" in §702.151 and §702.158 of the Health Spa Act (Act) means the health spa's total prepaid memberships. The total amount paid for all prepaid memberships determines the amount of the security that must be filed or posted.

(b) "Prepaid membership" means any membership for which a member pays consideration in advance for a term that exceeds 31 days.

(c) An application for registration or any renewal from a health spa operator, not exempt under §702.202 of the Act, shall include a written statement from the health spa operator that specifies:

(1) the total number of prepaid memberships at the health spa location; and

(2) the total amount paid for all such prepaid memberships.

(d) The health spa operator shall file a security for each of the operator's health spa locations in the following amounts:

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Source Note: The provisions of this §102.32 adopted to be effective January 4, 2006, 30 TexReg 8851; amended to be effective April 20, 2009, 34 TexReg 2375