13-23-104. Registration -- Bond or certificate of deposit required -- Penalties.

1,158 words·~5 min read·/ut/title-13/chapter-23/13-23-104

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(1)A fitness center may not operate a fitness center facility in this state unless the fitness center registers the fitness center facility with the division in accordance with this section.

(2)To register or renew a registration for a fitness center facility, a person shall submit to the division a registration application:

(a)in a manner the division determines; and

(b)that includes:

(i)a registration fee in an amount the division determines in accordance with Section 63J-1-504 ;

(ii)a designated registered agent for service of process in the state and the registered agent's:

(A)name;

(B)street address;

(C)mailing address; and

(D)telephone number;

(iii)a copy of the fitness center's liability policy of insurance that:

(A)covers the fitness center; and

(B)is in effect at the time of the registration or registration renewal; and

(iv)any other information that the division requires by rule that the division makes in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(a)A fitness center facility's registration is effective for one year after the day on which the division approves the fitness center's registration application.

(b)To renew a fitness center facility registration under this section, the fitness center shall submit a registration renewal application in accordance with Subsection

(2)at least 30 days before the day on which the fitness center facility's registration expires.

(4)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act , the division may establish:

(a)the initial fitness center facility registration process, including the content of any forms;

(b)the fitness center facility registration renewal process, including the content of any forms; and

(c)a surety exemption process, including the content of any forms.

(5)If a fitness center fails to submit a complete registration renewal application before the day on which a fitness center facility's registration expires, the fitness center shall pay a fee of $25 for each month or part of a month that passes:

(a)after the day on which the registration expires; and

(b)before the day on which the fitness center submits a complete registration renewal application.

(6)The fee described in Subsection

(5)is in addition to the registration renewal fee described in Subsection (2)(b)(i) .

(a)Except as provided in Section 13-23-105 , for each fitness center facility a fitness center operates, the fitness center shall obtain and maintain:

(i)a surety bond issued by a surety authorized to transact surety business in this state; or

(ii)a certificate of deposit in a financial institution authorized under the laws of this state or the United States to accept deposits from the public.

(b)The fitness center shall make the bond or certificate of deposit described in Subsection (7)(a) payable to the division for the benefit of a consumer who incurs damages as the result of the fitness center:

(i)violating this chapter; or

(ii)going out of business.

(c)After each consumer recovers actual damages, the division may recover from the surety bond or certificate of deposit described in Subsection (7)(a) any administrative fine, civil penalty, investigative cost, attorney fees, or other cost of collecting and distributing funds in accordance with this chapter.

(a)In accordance with the schedule established in Subsection (8)(b), a fitness center shall base the minimum principal amount of the bond or certificate of deposit required under Subsection

(7)on:

(i)the number of unexpired contracts for a fitness center service, at the time the fitness center submits the fitness center facility registration or registration renewal application, that designate the fitness center facility as the consumer's primary location; or

(ii)if at the time the fitness center submits the fitness center facility registration application the fitness center has not executed a contract for a fitness center service that designates the fitness center facility as a consumer's primary location, the number of contracts for a fitness center service designating the fitness center facility as a consumer's primary location that the fitness center reasonably expects to execute during the fitness center facility's first year of registration.

Principal Amount of

Surety Bond

or Certificate of Deposit Number of Contracts

$5,000 100 or fewer

$10,000 101 to 250

$15,000 251 to 500

35,000 501 to 1,500

50,000 1,501 to 3,000

75,000 3,001 or more

(c)A fitness center shall comply with Subsections (8)(a) and

(b)with respect to all of the fitness center's unexpired contracts for a fitness center service that do not satisfy the criteria in Section 13-23-105 .

(9)A fitness center shall furnish a copy of the current surety bond or certificate of deposit to the division before selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any contract to provide a fitness center service.

(10)A fitness center shall:

(a)maintain accurate records of:

(i)the surety bond or certificate of deposit; and

(ii)of each payment made, due, or to become due to the issuer; and

(b)open the records described in Subsection (10)(a) to inspection by the division at any time during normal business hours.

(a)A fitness center with a fitness center facility registered under this section shall submit a new initial registration for the fitness center facility, if the fitness center:

(i)changes ownership;

(ii)permanently ceases and then again commences operation at the fitness center facility; or

(iii)relocates the fitness center facility.

(b)The former owner of a fitness center may not release, cancel, or terminate the owner's liability under any surety bond or certificate of deposit previously filed with the division, unless:

(i)the new owner files a new bond or certificate of deposit for the benefit of consumers covered under the previous owner's surety bond or certificate of deposit; or

(ii)the former owner refunds all unearned payments to consumers.

(12)If a fitness center permanently ceases operation or relocates a fitness center facility, the fitness center shall provide the division notice at least 45 days before the day on which fitness center permanently ceases operation or relocates the fitness center facility.

(13)A fitness center may not:

(a)represent that the division or the state endorses or approves the fitness center;

(b)omit from a filing with the division a material statement of fact required by this chapter or rule the division makes in accordance with this chapter; or

(c)include in a filing with the division a material statement of fact that the fitness center or the fitness center's principal knew or should have known to be false, deceptive, inaccurate, or misleading.

(14)A fitness center commits a separate violation of this chapter for each day that the fitness center operates a fitness center facility without registering the fitness center facility with the division in accordance with Subsection

(2).

Renumbered and Amended by Chapter 95 , 2026 General Session