Section 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.Amended By Acts 2005, 79th Leg., Ch. 908, Sec. 4, eff. 9/1/2005. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. 9/1/1999.