Utah Code 13-23-6. Exemptions from bond, letter of credit, or certificate of deposit requirement

(1)

A health spa is exempt from Subsections 13-23-5(2) through (5) for a health spa facility, if the health spa only offers access to a health spa service at the health spa facility through:

Terms Used In Utah Code 13-23-6

Consumer: means a purchaser of health spa services for consideration. See Utah Code 13-23-2
Contract: A legal written agreement that becomes binding when signed.
Division: means the Division of Consumer Protection. See Utah Code 13-23-2
Health spa: means a business enterprise that provides access to a facility:

(i)	for a charge or a fee; and

(ii)

for the development or preservation of physical fitness or well-being, through exercise, weight control, or athletics. See Utah Code 13-23-2

Health spa facility: means a facility to which a business entity provides access:

(a)	for a charge or a fee; and

(b)

for the development or preservation of physical fitness or well-being, through exercise, weight control, or athletics. See Utah Code 13-23-2

Health spa service: includes a personal training service. See Utah Code 13-23-2

Primary location: means the health spa facility that a health spa designates in a contract for health spa services as the health spa facility the consumer in the contract will primarily use for health spa services. See Utah Code 13-23-2

Utah Code: means the 1953 recodification of the Utah Code, as amended, unless the text expressly references a portion of the 1953 recodification of the Utah Code as it existed:Utah Code 68-3-12.5

(a)

the purchase of an individual class or session;

(b)

the purchase of a package:

(i)	with a defined number of classes or sessions; and

(ii)	for which the health spa may not hold more than $150 worth of a consumer‘s unused credit;

(c)	the purchase of a monthly membership or pass, payment for which the health spa does not collect from a consumer more than two months in advance;

(d)

an installment contract that:

(i)	provides for the consumer to make all payments due under the contract, including a down payment, an enrollment fee, a membership fee, or any other payment to the health spa, in equal monthly installments spread over the entire term of the contract; and

(ii)

contains the following clause: “If this health spa ceases operations at or changes the consumer’s primary location in violation of Utah Code Subsection 13-23-3(7), (8), or (9), no further payments under this contract shall be due to anyone, including any assignee of the contract or purchaser of any note associated with or contained in this contract.”; or

(e)	a combination of health spa services described in Subsections (1)(a) through (d).

(2)

For purposes of finding the principal amount for the bond, letter of credit, or certificate of deposit required under Section 13-23-5, a health spa is not required to include in the calculation described in Subsection 13-23-5(3) a contract that offers access to a health spa service as described in Subsection (1).

(3)

A health spa that claims exemption from Subsections 13-23-5(2) through (5) or that a contract should be excluded from the calculation described in Subsection 13-23-5(3) bears the burden of proving to the division that the health spa or contract meets the relevant criteria described in Subsection (1) or (2).

Amended by Chapter 400, 2022 General Session

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