1. (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:

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

   2. (b) the purchase of a package:

      1. (i) with a defined number of classes or sessions; and
      2. (ii) for which the health spa may not hold more than $150 worth of a consumer's unused credit;
   3. (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;

   4. (d) an installment contract that:

      1. (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
      2. (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
   5. (e) a combination of fitness center services described in Subsections (1)(a) through (d).
2. (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. (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