3312

LAWS OF MARYLAND

Ch. 838

(2)  ANY PERSON WHO SELLS HEALTH CLUB SERVICES
AGREEMENTS SHALL MAINTAIN ACCURATE RECORDS, UPDATED AS NECESSARY,
OF THE NAME, ADDRESS, CONTRACT TERMS, AND PAYMENTS OF EACH BUYER
OF HEALTH CLUB SERVICES. THESE RECORDS SHALL BE OPEN TO
INSPECTION BY THE DIVISION, UPON REASONABLE NOTICE, AT ANY TIME
DURING NORMAL BUSINESS HOURS.

(3)  IN ADDITION TO ANY REMEDIES OTHERWISE AVAILABLE,
THE DIVISION, AFTER NOTICE AND A SHOW CAUSE HEARING, MAY REVOKE
THE REGISTRATION OF ANY PERSON WHO FAILS TO MAINTAIN OR PRODUCE
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 TO THE MEMBERS 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.

(J) ANY INFORMATION RECEIVED BY THE DIVISION IN THE COURSE
OF ADMINISTERING THE REGISTRATION PROGRAM UNDER THIS SUBTITLE
SHALL BE MADE AVAILABLE TO THE PUBLIC SUBJECT TO THE PROVISIONS
OF THE MARYLAND PUBLIC INFORMATION ACT.

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.