HARRY HUGHES, Governor
3303
THE RECORDS DESCRIBED IN PARAGRAPHS (1) AND (2) OF THIS SECTION
SUBSECTION.
(H) (1) EACH PERSON WHO SELLS HEALTH CLUB SERVICES TO BE
OFFERED AT A PLANNED FACILITY OR A FACILITY UNDER CONSTRUCTION
SHALL:
(I) REGISTER UNDER SUBSECTION (A) OF THIS
SECTION BEFORE CONDUCTING ANY SALES ACTIVITIES; AND
(II) MAINTAIN A SURETY BOND IN AN AMOUNT NOT
LESS THAN $50,000 UNTIL THE VALUE OF OBLIGATIONS TO CONSUMERS
EXCEEDS THAT AMOUNT.
(2) UNTIL THE TIME A PERSON OPENS A HEALTH CLUB
SERVICES FACILITY, THE AMOUNT OF THE BOND SHALL BE INCREASED AS
NECESSARY TO TAKE INTO ACCOUNT INCREASES IN THE PERSON'S
OUTSTANDING LIABILITIES WITH A FINAL ADJUSTMENT TO BE MADE AT THE
TIME OF OPENING.
(3) UPON OPENING THE FACILITY, THE PERSON IS SUBJECT
TO THE PROVISIONS OF SUBSECTIONS (A) THROUGH (E) OF THIS SECTION.
(I) FOR PURPOSES OF SUBSECTIONS (E) AND (F) OF THIS
SECTION, ANY INITIATION FEE, OR OTHER FEE, THAT EXCEEDS $50 $200
AND THAT IS NOT IDENTIFIED AS A PAYMENT FOR SPECIFIC FUTURE
SERVICES WILL BE DEEMED TO BE A PAYMENT FOR SERVICES TO BE
DELIVERED DURING THE INITIAL 2 YEARS OF THE BUYER'S MEMBERSHIP
TERM.
14-12B-03.
(A) THERE IS A HEALTH CLUB ADMINISTRATION FUND WHICH IS
ESTABLISHED FOR THE PURPOSE OF PAYING THE EXPENSES INCURRED IN
THE ADMINISTRATION AND ENFORCEMENT OF THE HEALTH CLUB SERVICES
ACT.
(B) THE FUND SHALL BE ADMINISTERED BY THE DIVISION.
[14-12B-03.] 14-12B-04.
(a) (1) If a buyer described in § 14-12B-01(b)(1)(i) of
this subtitle becomes disabled during the membership term, the
buyer is entitled to extend the membership contract for a period
equal to the duration of the disability.
(2) IN CASES OF PERMANENT DISABILITY, THE BUYER MAY
CANCEL THE MEMBERSHIP CONTRACT AND RECEIVE A PRO RATA REFUND OF
ANY MONEY PAID FOR SERVICES THAT HAD NOT BEEN DELIVERED.
(b) The provisions of subsection (a) of this section do not
apply unless the disability is confirmed by a physician and is
for a period longer than 3 months.
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