13-23-105. Exemptions from surety bond or certificate of deposit requirement.

353 words·~2 min read·/ut/title-13/chapter-23/13-23-105

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 is exempt from Subsections 13-23-104(7) through

(10)for a fitness center facility, if the fitness center only offers access to a fitness center service at the fitness center facility through:

(a)the purchase of an individual class or session;

(b)the purchase of a package:

(i)with a defined number of classes or sessions; and

(ii)for which the health spa may not hold more than $150 worth of a consumer's unused credit;

(c)the purchase of a monthly membership or pass, payment for which the fitness center does not collect from a consumer more than two months in advance;

(d)an installment contract that:

(i)provides for the consumer to make all payments due under the contract, including a down payment, an enrollment fee, a membership fee, or any other payment to the fitness center, in equal monthly installments spread over the entire term of the contract; and

(ii)contains the following clause: "If this fitness center ceases operations at or changes the consumer's primary location in violation of Utah Code Subsection 13-23-102(7) ,

(8), or

(9), no further payments under this contract shall be due to anyone, including any assignee of the contract or purchaser of any note associated with or contained in this contract."; or

(e)a combination of fitness center services described in Subsections (1)(a) through

(d).

(2)For purposes of finding the principal amount for the surety bond or certificate of deposit required under Section 13-23-104 , a fitness center is not required to include in the calculation described in Subsection 13-23-104(8) a contract that offers access to a fitness center service as described in Subsection

(1).

(3)A fitness center that claims exemption from Subsections 13-23-104(7) through

(10)or that a contract should be excluded from the calculation described in Subsection 13-23-104(8) bears the burden of proving to the division that the health spa or contract meets the relevant criteria described in Subsection

(1)or

(2).

Renumbered and Amended by Chapter 95 , 2026 General Session