Section 75-83-3 - Registration of health spa; bond requiredAny person, corporation, partnership, association or group intending to open or operate a health spa shall:
(a) File a registration statement with the Attorney General's Division of Consumer Protection prior to the sale of any memberships. Such a registration statement shall contain the name and address of the health spa; the names and addresses of the officers, directors and stockholders of the health spa and its parent corporation, if such an entity exists; the types of available facilities; approximate size of the health spa measured in square feet; the type of membership plans to be offered and their cost; and a full and complete disclosure of any completed or pending litigation initiated against the health spa and any of its officers and directors within the last three (3) years.(b) Every health spa shall maintain a bond issued by a surety company authorized to do business in this state. The principal sum of the bond shall be Twenty-five Thousand Dollars ($25,000.00).(c) A copy of such bond shall be filed with the Office of the State Treasurer. If the person in whose name the bond is issued severs his relationship with the bonded health spa, the new owner shall, as a condition of doing business, notify the Office of the State Treasurer of the change of ownership and of proof of compliance with this chapter.(d) The bond required by this section shall be in favor of the State of Mississippi for the benefit of any person who, after entering into contract with a health spa, is damaged by fraud or dishonesty or failure to provide services of the health spa in performance of the contract. Any person claiming against the bondsman maintains an action at law against the health spa and surety.(e) The aggregate liability of the surety to all persons for all breaches of the conditions of the bonds provided herein shall in no event exceed the amount of the bond.(f) In lieu of furnishing the bond required by this section, the health spa may deposit with the Office of the State Treasurer a cash deposit in a like amount. This cash deposit may be satisfied by any of the following: (i) Certificates of deposit payable to the Office of the State Treasurer issued by banks doing business in this state and insured by the Federal Deposit Insurance Corporation.(ii) Investment certificates or share accounts assigned to the Office of the State Treasurer and issued by a savings and loan association doing business in the state.(iii) Bearer bonds issued by the United States Government or by this state.(iv) Cash deposit with the Office of the State Treasurer.Laws, 1985, ch. 496, § 2, eff. 7/1/1985.