House Bill hb1725

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    Florida House of Representatives - 2001                HB 1725

        By the Fiscal Responsibility Council and Representative
    Dockery





  1                      A bill to be entitled

  2         An act relating to health studios; amending s.

  3         205.1969, F.S.; removing a requirement for the

  4         issuance of an occupational license to a health

  5         studio; repealing ss. 501.012, 501.014,

  6         501.015, and 501.016, F.S., relating to the

  7         regulation of health studios by the Department

  8         of Agriculture and Consumer Services; amending

  9         s. 501.0125, F.S., to correct a cross reference

10         and delete unnecessary definitions; amending s.

11         501.013, F.S.; removing requirement of certain

12         filings with the Department of Agriculture and

13         Consumer Services by certain entities exempt

14         from health studio requirements; correcting a

15         cross reference; amending s. 501.017, F.S.;

16         requiring each health studio to provide certain

17         notice in its contracts; amending s. 501.019,

18         F.S.; correcting a cross reference; deleting

19         criminal and administrative penalties for

20         violating provisions repealed by this act;

21         removing enforcement authority of the

22         Department of Agriculture and Consumer Services

23         relating to health studios; providing an

24         effective date.

25

26  Be It Enacted by the Legislature of the State of Florida:

27

28         Section 1.  Section 205.1969, Florida Statutes, is

29  amended to read:

30         205.1969  Health studios; consumer protection.--No

31  county or municipality shall issue or renew an occupational

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  1  license for the operation of a health studio pursuant to ss.

  2  501.012-501.019 or ballroom dance studio pursuant to s.

  3  501.143, unless such business exhibits a current license,

  4  registration, or letter of exemption from the Department of

  5  Agriculture and Consumer Services.

  6         Section 2.  Sections 501.012, 501.014, 501.015, and

  7  501.016, Florida Statutes, are repealed.

  8         Section 3.  Section 501.0125, Florida Statutes, is

  9  amended to read:

10         501.0125  Health studios; definitions.--For purposes of

11  ss. 501.0125-501.019 501.012-501.019, the following terms

12  shall have the following meanings:

13         (1)  "Health studio" means any person who is engaged in

14  the sale of services for instruction, training, or assistance

15  in a program of physical exercise or in the sale of services

16  for the right or privilege to use equipment or facilities in

17  furtherance of a program of physical exercise.

18         (2)  "Health studio services" means privileges or

19  rights offered for sale or provided by a health studio.

20         (3)  "Business location" means any place where health

21  studio services are performed by a health studio.

22         (4)  "Department" means the Department of Agriculture

23  and Consumer Services.

24         (5)  "Reasonable and fair service fee" means no more

25  than 10 percent of the total contract price for contracts.

26  Service fee includes, but is not limited to, registration fee,

27  membership fee, and processing or startup fee.

28         Section 4.  Section 501.013, Florida Statutes, is

29  amended to read:

30         501.013  Health studios; exemptions.--The following

31  businesses or activities are may be declared exempt from the

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  1  provisions of ss. 501.0125-501.019 501.012-501.019 upon the

  2  filing of an affidavit with the department establishing that

  3  the stated qualifications are met:

  4         (1)  A bona fide nonprofit organization which has been

  5  granted tax-exempt status by the Internal Revenue Service.

  6         (2)  A gymnastics school which engages only in

  7  instruction and training and in which exercise is only

  8  incidental to such instruction and training.

  9         (3)  A golf, tennis, or racquetball club in which

10  sports play is the only activity offered by the club.  If the

11  facility offers the use of physical exercise equipment, this

12  exemption shall not apply.

13         (4)  A program or facility which is offered and used

14  solely for the purpose of dance, aerobic exercise, or martial

15  arts, and which utilizes no physical exercise equipment.

16         (5)  A country club that has as its primary function

17  the provision of a social life and recreational amenities to

18  its members, and for which a program of physical exercise is

19  merely incidental to membership.  As used in this subsection,

20  the term "country club" means a facility that offers its

21  members a variety of services that may include, but need not

22  be limited to, social activities; dining, banquet, catering,

23  and lounge facilities; swimming; yachting; golf; tennis; card

24  games such as bridge and canasta; and special programs for

25  members' children.  Upon the filing of an affidavit with the

26  department establishing that the stated qualifications of this

27  subsection were met before July 1, 1997, this subsection will

28  apply retroactively to the date that the country club met

29  these qualifications.

30         Section 5.  Subsection (2) of section 501.017, Florida

31  Statutes, is amended to read:

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  1         501.017  Health studios; contracts.--

  2         (2)  Every health studio exempt from the requirements

  3  of s. 501.016(1) and (2) shall include in all of its contracts

  4  for health studio services, in the same manner as provided in

  5  subsection (1) of this section, the following disclosure:

  6

  7         SHOULD YOU (THE BUYER) CHOOSE TO PAY FOR MORE

  8         THAN 1 MONTH OF THIS AGREEMENT IN ADVANCE, BE

  9         AWARE THAT YOU ARE PAYING FOR FUTURE SERVICES

10         AND MAY BE RISKING LOSS OF YOUR MONEY IN THE

11         EVENT THIS HEALTH STUDIO AND/OR THIS BUSINESS

12         LOCATION CEASES TO OPERATE. THIS HEALTH STUDIO

13         IS NOT REQUIRED BY FLORIDA LAW TO PROVIDE ANY

14         SECURITY, AND THERE MAY NOT BE OTHER

15         PROTECTIONS PROVIDED TO YOU SHOULD YOU CHOOSE

16         TO PAY IN ADVANCE.

17

18         Section 6.  Section 501.019, Florida Statutes, is

19  amended to read:

20         501.019  Health studios; penalties.--

21         (1)  Any health studio or any owner or manager thereof,

22  or, in the case of corporate ownership, any substantial

23  stockholder of the corporation owning the health studio, who

24  is convicted of a violation of the provisions of ss.

25  501.0125-501.019 501.012-501.019 is guilty of a misdemeanor of

26  the first degree, punishable as provided in s. 775.082 or s.

27  775.083.

28         (2)  Any health studio owner or, in the case of

29  corporate ownership, any officer of the corporation, or any

30  manager of a health studio or health studio's business

31  location, who knowingly makes a false representation to the

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  1  department with the intent to obtain an exemption of any kind

  2  from the requirements of s. 501.016 commits a felony of the

  3  third degree, punishable as provided in s. 775.082, s.

  4  775.083, or s. 775.084.

  5         (3)  The department may institute proceedings in the

  6  appropriate circuit court to recover any penalties or damages

  7  allowed in this section and for injunctive relief to enforce

  8  compliance with ss. 501.012-501.019 or any rule or order of

  9  the department.  The department may seek a civil penalty of up

10  to $5,000 for each violation of this section.

11         (4)(a)  The department may enter an order imposing one

12  or more of the penalties set forth in paragraph (b) if the

13  department finds that a health studio:

14         1.  Violated or is operating in violation of any of the

15  provisions of this part or of the rules adopted or orders

16  issued thereunder;

17         2.  Made a material false statement in any application,

18  document, or record required to be submitted or retained under

19  this part;

20         3.  Refused or failed, or any of its principal officers

21  has refused or failed, after notice, to produce any document

22  or record or disclose any information required to be produced

23  or disclosed under this part or the rules of the department;

24         4.  Made a material false statement in response to any

25  request or investigation by the department, the Department of

26  Legal Affairs, or the state attorney; or

27         5.  Has intentionally defrauded the public through

28  dishonest or deceptive means.

29         (b)  Upon a finding as set forth in paragraph (a), the

30  department may enter an order doing one or more of the

31  following:

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  1         1.  Issuing a notice of noncompliance pursuant to s.

  2  120.695.

  3         2.  For a violation of s. 501.015 or s. 501.016,

  4  imposing an administrative fine not to exceed $5,000 per

  5  violation.

  6         3.  For a violation of s. 501.013, s. 501.017, or s.

  7  501.018, imposing an administrative fine not to exceed $500

  8  per violation.

  9         4.  Directing that the health studio cease and desist

10  specified activities.

11         5.  Refusing to register or revoking or suspending a

12  registration.

13         6.  Placing the registrant on probation for a period of

14  5 years, subject to such conditions as the department may

15  specify by rule.

16         (c)  The administrative proceedings which could result

17  in the entry of an order imposing any of the penalties

18  specified in paragraph (b) shall be conducted in accordance

19  with chapter 120.

20         (5)  All moneys collected pursuant to this section

21  shall be deposited into the General Inspection Trust Fund.

22         Section 7.  This act shall take effect July 1, 2001.

23

24            *****************************************

25                          HOUSE SUMMARY

26
      Removes the registration requirement for health studios
27    and the regulation of such health studios by the
      Department of Agriculture and Consumer Services.
28

29

30

31

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