Bond, filed with attorney general, amount, exceptions
A health spa that asks people to pay ahead of time must file a bond or letter of credit with the attorney general's office before doing so. Each separate location needs its own bond, but one owner never has to file more than $75,000 total. A health spa without a bond can still sell contracts up to 36 months, as long as the monthly charge stays within a certain limit. Bonds must be renewed every year, and if a bond is cancelled, 30 days written notice is required. Anyone making a claim against the bond has 90 days after it ends or is cancelled to do so.
407.339. , filed with , amount, exceptions — separate locations, bond required for each — against, of, when. — 1. Before entering into any , every except any health spa which has been engaged in such business in any county of the first or second class or in any city not located within a county for at least three years prior to August 13, 1988, and except in any county of the third or fourth class for at least one year prior to August 13, 1988, shall file and maintain with the office of the attorney general, in form and substance satisfactory to him, a bond with , from a company to transact business in this state or a from a bank by the in the amounts indicated below:
2. Each separate location where health spas services are offered shall be considered a separate health spa and shall file a separate bond or letter of credit with respect , even though the separate locations are owned or operated by the same owner; but, no owner shall be required to file with the office of the attorney general bonds or letters of in excess of seventy-five thousand dollars. If the seventy-five thousand dollar limit is applicable, then the bonds or letters of credit filed by such owner shall apply to all health spas owned or operated by the same owner.
3. A health spa which has not filed a bond or letter of credit may nevertheless sell s of up to thirty-six months' duration so long as the amount of payment actually charged, due or received each month by the health spa or any of its health spa contracts does not exceed the monthly fee calculated the definition thereof in section 407.325.
4. The bond required by 1 of this section shall be renewed annually. No bond required of any health spa under the of sections 407.325 to 407.340 shall be by either without thirty days written notice prior to the intended cancellation date. All claims against the holder of the bond must be made within ninety days after the expiration or cancellation of the bond.
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Source & history notes
(L. 1988 S.B. 486 § 9)
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