SENATE BILL REPORT

SB 5538

BYSenator Lee

Changing regulation of health studio services.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 30, 1989; February 6, 1989

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Matson, Murray, Saling, Smitherman, Williams.

Senate Staff:Jonathan Seib (786-7427)

                  February 6, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 6, 1989

BACKGROUND:

The Health Studio Services Act regulates the sale and operation of health studio services in the state.  The act defines "health studio" generally to mean a facility "which purports to assist patrons to improve their physical condition or appearance through physical exercise, body building, weight loss, figure development or any other similar activity."

Under the act, in certain situations, buyers of health studio services are entitled to a pro rata refund of initiation or membership fees.  The refund amount is computed by "dividing the contract price by the number of weeks in the contract term and multiplying the result by the number of weeks remaining in the contract term."

SUMMARY:

Martial arts facilities are explicitly included in the definition of "health studio" and will be subject to regulation under the Health Studio Services Act.

For purposes of computing pro rata refunds, a term of 36 months will be used unless another term is stated in the contract.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Karl Boettner, Attorney General's Office; Dick Knight; Tom Anderson; Bill Thurston