Health Spa Organizations

Health spa means a business enterprise that provides access to a facility for a charge or fee and for the development or preservation of physical fitness or well-being through exercise, weight control, or athletics.

• What is not considered a health spa for purposes of registration with the Division? A health spa does not include:
• A licensed physician who operates a facility at which the physician engages in the practice of medicine
• A hospital, intermediate care facility, or skill nursing care facility
• A public or private school, college, or university
• The state or a political subdivision of the United States
• A person offering instruction if the person does not utilize an employee or independent contract or grant a consumer the use of a facility containing exercise equipment
• A business enterprise, the primary operation of which is to teach self-defense or a martial art, including kickboxing, judo or karate
• A business enterprise, the primary operation of which is to teach or allow an individual to develop a specific skill rather than develop or preserve physical fitness, including gymnastics, tennis, rocking climbing, or a winter sport
• A business enterprise the primary operation of which is to teach or allow an individual to practice yoga or Pilates
• A private employer who owns and operates a facility exclusively for the benefit of the employer’s employees, retirees, or family members, if the operation of the facility is only incidental to the overall function and purpose of the employer’s business and is offered on a nonprofit basis
• An individual providing professional services within the scope of the individual's license with the Division of Occupational and Professional Licensing
• A country club
• A nonprofit religious, ethnic, or community organization
• A residential weight reduction center
• A business enterprise that only offers virtual services
• A business enterprise that only offers a credit for a service that a separate business enterprise offers
• The owner of a lodging establishment as defined in Section 29-2-102, if the owner only provides access to the lodging establishment's facility to a guest, as defined in Section 29-2-102; or an operator or employee of the lodging establishment
• An association, declarant, owner, lessor, or developer of a residential housing complex, planned community, or development, if at least 80% of the individuals accessing the facility reside in the housing complex, planned community, or development
• A person offering a personal training service exclusively as an employee or independent contractor of a health spa

A health spa may NOT operate a health spa facility in this state unless the health spa registers the health spa facility with the Division. Registration as a health spa facility is effective for one year. Failure to register may result in administrative action by the Division, including fines.

The division may, on behalf of a consumer or on the Division's own behalf, file an action for injunctive relief, damages, or both to enforce this chapter.

In addition to any relief granted, the Division is entitled to an award for reasonable attorney's fees, court costs, and reasonable investigative expenses.

A person who willfully violates a provision of this chapter, either by failing to comply with any requirement or by doing any act prohibited in this chapter, is guilty of a class B misdemeanor.

Each day a violation described in § 13-23-7(2)(a) is committed or permitted to continue constitutes a separate punishable offense.

In the case of a second offense, the person is guilty of a class A misdemeanor.

In the case of a third or subsequent offense, the person is guilty of a third-degree felony.

In addition to any other penalty available under this chapter, a person who violates this chapter is subject to: a cease and desist order; and an administrative fine of up to $2,500 for each separate violation that is not a violation described in Subsection 13-23-5(2)(d) up to $10,000 for any series of violations arising out of the same operative facts.

The Division may impose a fine against a health spa that fails to comply with the surety requirements of up to $100 per day that the health spa remains out of compliance.

Yes. A contract for the purchase of a health spa service shall be in writing. The written contract shall constitute the entire agreement between the consumer and the health spa. The health spa shall provide the consumer with a fully completed copy of the contract at the time of the contract's execution and at any time, upon the consumer's request. Please review the Health Spa Services Protection Act and Rules located on the website for more information.

A contract may not have a term in excess of 36 months and may include an automatic renewal provision, if notice of the automatic renewal provision is provided to the consumer no sooner than 60 days before, and no later than 30 days before, the day on which the contract automatically renews.

A contract shall clearly state each rule of the health spa that applies to: the consumer's use of the health spa's facilities and services and cancellation and refund policies of the health spa. A contract shall specify which equipment or facility of the health spa is omitted from the contract's coverage or may be changed at the health spa's discretion.

A contract shall clearly state the consumer's rescission rights and provide an email address and a mailing address where the consumer can send the health spa a notice of intent to rescind the contract. This policy must be in all CAPS, bold, and at least 12-point type.

If a health spa wishes to preserve the ability or wants the ability to assign a contract or change the consumer's primary location within five driving miles of the health spa facility, the Health Spa Services Protection Act requires certain language to be included in the contract. It is up to the health spa to preserve this ability because it is not required. Please review the 2022 legislative amendment to the Health Spa Services Protection Act at: https://le.utah.gov/~2022/bills/hbillenr/HB0436.pdf. The specific section is 13-23-3(7). Because this provision is not required, the Division will not be reviewing this portion of the contract. We encourage you to seek assistance from an attorney in drafting these provisions.

Additionally, please review 13-23-3(8) and (9).

Yes. The contract shall clearly state the consumer's rescission rights and provide an email address and a mailing address where the consumer can send the health spa a notice of intent to rescind the contract.

A consumer may rescind a contract for the purchase of a health spa service by emailing and mailing written notice of the consumer's intent to rescind to the email and mailing address the health spa provided in the contract and before midnight of the third business day after the day on which the consumer and health spa execute the contract, as recorded by timestamp or postmark or if a consumer and health spa execute the contract when the consumer's primary location is not fully operational and available for use, before midnight of the third business day after the day on which the consumer's primary location becomes fully operational and available for use, as recorded by timestamp or postmark.

A consumer who rescinds a contract is entitled to a refund of every payment the consumer made, less the reasonable value of any health spa service the consumer actually received. The preparation and processing of the contract or another document is not a health spa service that is deductible from any refundable amount.

The rescission policy must be bold, 12-point type and all CAPS. The rescission of a contract is effective upon the health spa's receipt of written notice of the consumer's intent to rescind the contract.

Surety Compliance means that a health spa has presented proof of surety coverage in the form of a bond, letter of credit, or certificate of deposit in respect to all of the health spa's unexpired contracts for a health spa service that do not satisfy the criteria in Section 13-23-6.

The bond, letter of credit, or certificate of deposit shall be payable to the division for the benefit of a consumer who incurs damages as the result of the health spa: violating Chapter 23; or going out of business. After each consumer has fully recovered damages, the division may recover from the bond, letter of credit, or certificate of deposit the costs of collecting and distributing funds under this section, in an amount up to 10% of the face value of the bond, letter of credit, or certificate of deposit.

The total liability of the issuer of the bond, letter of credit, or certificate of deposit may not exceed the amount of the bond, letter of credit, or certificate of deposit. A health spa shall maintain a bond, letter of credit, or certificate of deposit in force for one year after the day on which the health spa notifies the division in writing that the health spa has ceased all activities regulated under this chapter at the health spa facility.

Surety forms are located on the Division's website in the health spa section Apply for Registration tab / Manual Forms.

The Division may impose a fine against a health spa that fails to comply with the surety requirements of 13-23-5(2) up to $100 per day that the health spa remains out of compliance.

The health spa must comply with the surety requirements with respect to all of the health spa’s unexpired contracts for a health spa service that do not satisfy the criteria in Section § 13-23-6.

The surety schedule is as follows:

A health spa that claims exemption from the surety requirements in § 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 exemption criteria below:

A health spa facility is exempt from surety if the health spa only offers access to a health spa service at the health spa facility through:

1. the purchase of an individual class or session;
2. the purchase of a package with a defined number of classes or sessions and for which the health spa may not hold more than $150 worth of a consumer's unused credit
3. 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;
4. an installment contract that 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 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
5. a combination of 1-4.

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).

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).

Please refer to the Health Spa Services Protection Act.

The Division only accepts three types of surety which are: an irrevocable letter of credit, a certificate of deposit, or a surety bond. All of the forms are located in the Apply for Registration Tab / Manual forms of the health spa section of the website. No other form will be accepted. Additionally, the company you use to obtain surety can NOT change the form.

If a health spa wishes to preserve the ability or wants the ability to assign a contract or change the consumer's primary location within five driving miles of the health spa facility, the Health Spa Services Protection Act requires certain language to be included in the contract. It is up to the health spa to preserve this ability because it is not required. Please review the 2022 legislative amendment to the Health Spa Services Protection Act at: https://le.utah.gov/~2022/bills/hbillenr/HB0436.pdf. The specific section is 13-23-3(7). Because this provision is not required, the Division will not be reviewing this portion of the contract. We encourage you to seek assistance from an attorney in drafting these provisions.

Additionally, please review 13-23-3(8) and (9).

30 days prior to expiration.

The Division will assess a late fee of $25 for each month or portion of the month your application is late. For facilities with surety, failure to file proof of surety on time can result in a fine of up to $100 per day that the health spa remains out of compliance.

Yes. If information in an application to register or renew the registration of a health spa facility materially changes or becomes incorrect or incomplete, the applicant shall, within 30 days after the day on which the information changes or becomes incorrect or incomplete, correct the application or submit the correct information to the Division in a manner that the Division establishes by rule.

The former owner of a health spa my not release, cancel, or terminate the owner's liability under any bond, letter of credit, or certificate of deposit, previously filed with the division unless the new owner has filed a new bond, letter of credit, or certificate of deposit or the former owner has refunded all unearned payments to consumers. Additionally, a new initial registration must be submitted for the new owner.

If a health spa permanently ceases operation or relocates a health spa facility, the health spa shall provide the division notice at least 45 days before the day on which the health spa permanently ceases operation or relocates the health spa facility.

A health spa shall maintain a bond, letter of credit, or certificate or deposit in force for one year after the day on which the health spa notifies the division in writing that the health spa has ceased all activities regulated by § 13-23 at the health spa facility.

A health spa with a health spa facility registered shall submit a new initial registration for the health spa facility, if the health spa changes ownership, permanently ceases and then again commences operation at the health spa facility or relocates the health spa facility.

If a health spa wishes to preserve the ability or wants the ability to assign a contract or change the consumer's primary location within five driving miles of the health spa facility, the Health Spa Services Protection Act requires certain language to be included in the contract. It is up to the health spa to preserve this ability because it is not required. Please review the 2022 legislative amendment to the Health Spa Services Protection Act at: https://le.utah.gov/~2022/bills/hbillenr/HB0436.pdf . The specific section is 13-23-3(7). Because this provision is not required, the Division will not be reviewing this portion of the contract. We encourage you to seek assistance from an attorney in drafting these provisions.

Additionally, please review 13-23-3(8) and (9).

Yes. A new initial registration must be submitted to the Division.

A health spa with a health spa facility registered shall submit a new initial registration for the health spa facility, if the health spa changes ownership, permanently ceases and then again commences operation at the health spa facility or relocates the health spa facility.

If a health spa permanently ceases operate or relocates, the health spa shall provide the division notice at least 45 days before the day on which the health spa permanently ceases operation or relocates the health spa facility.

If a health spa permanently ceases operate or relocates, the health spa shall provide the division notice at least 45 days before the day on which the health spa permanently ceases operation or relocates the health spa facility.

The former owner of a health spa may not release, cancel, or terminate the owner's liability under any bond, letter of credit, or certificate of deposit previously filed with the division, unless: the new owner has filed a new bond, letter of credit, or certificate of deposit for the benefit of consumers covered under the previous owner's bond, letter of credit, or certificate of deposit; or the former owner has refunded all unearned payments to consumers.

The registration fee is $100.