Qualifications For Exemption

Sec. 702.202. QUALIFICATIONS FOR EXEMPTION. A certificate holder may apply for an exemption under Section 702.201 if: (1) the certificate holder does not require, or solicit or offer a plan or program that requires, a health spa consumer to: (A) execute a membership contract for a term that exceeds 31 days; (B) execute a note or retail installment contract; (C) authorize a draw or other recurring debit on a financial institution in favor of the certificate holder or the certificate holder's assignee; (D) pay an initiation fee or other fee, not including monthly dues; or (E) prepay for a term that exceeds 31 days; or (2) the certificate holder submits a sworn statement every three years with the secretary of state stating that the certificate holder: (A) has assets based on net book value that exceed $50,000 per registered location; (B) has operated under substantially the same ownership or management for at least five years; and (C) has not been the subject of a complaint relating to the closing of a health spa owned by the certificate holder or the failure of a health spa owned by the certificate holder to open that has been initiated or filed by a member of the health spa with a governmental authority in this state. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999. Amended by: Acts 2005, 79th Leg., Ch. 908 (H.B. 135), Sec. 4, eff. September 1, 2005.