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2004 SESSION

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HB 390 Health Spa Act; requirement for bond or letter of credit.

Introduced by: Kristen J. Amundson | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Virginia Health Spa Act; requirement for bond or letter of credit. Provides that a health spa contract with a term that exceeds one year is to be counted as multiple contracts for purposes of determining the required amount of bond or letter of credit, with each full and any partial year of the term of a contract being counted as a separate contract. This measure applies only to health spa contracts entered into on or after January 1, 2005. This provision does not apply if the number of multi-year contracts that a health spa has in effect is fewer than 10 percent of all of its contracts.

SUMMARY AS PASSED HOUSE:

Virginia Health Spa Act; requirement for bond or letter of credit. Increases the amount of bond or letter of credit that health spas with 1,250 or fewer contracts must file with the Commissioner of Agriculture and Consumer Services. The bill would increase the bond or letter of credit required for health spas with 250 or fewer contracts from $10,000 to $30,000. For each additional 250 contracts, the required bond or letter of credit amount will increase by $5,000, except that no increase is required for health spas with more than 1,250 contracts.

SUMMARY AS INTRODUCED:

Virginia Health Spa Act; requirement for bond or letter of credit. Increases the total amount of bond or letter of credit required for health spas by an additional $65,000. The bill would increase the minimum bond required from $10,000 to $75,000 and the maximum from $100,000 to $165,000 per location based on the number of membership contracts held by the health spa at the location.