Senate approves Health Spa Services Protection Act after debate on lifetime memberships

The Utah Senate passed SB54, the Health Spa Services Protection Act, after extended floor debate focused on prohibiting future lifetime memberships and requiring performance bonds for health-spa locations.

Sponsor Senator Watson described repeated instances where operators sold lifetime memberships and then businesses failed, leaving members without remedy. The bill requires each health-spa location to hold a performance bond sized to membership counts so consumers could be reimbursed if a business closes. Watson said the change targets “abuse of lifetime memberships” and aims to protect consumers.

Senator Brent Richards, who said he personally holds a lifetime gym membership, moved to delete the ban on offering lifetime memberships and asked for explicit grandfathering language to protect current holders. Richards argued the change could jeopardize existing memberships and urged a grandfathering amendment. "There are literally tens of thousands of people in the state that currently hold lifetime memberships," Richards said.

Supporters emphasized consumer protection and noted the bill includes a sliding scale of bond amounts (examples cited during debate included bond thresholds such as $35,000 and $75,000 depending on membership counts). Senator Reese asked whether insurance markets can write the bonds; sponsors replied that bonds have been obtainable without reported problems.

The Senate voted on the motion to delete the lifetime-membership ban (the motion failed); senators then voted to pass SB54 by a recorded voice showing 23 ayes, 2 nays and 4 absent, and the bill was sent to the House for further action. Senators also approved a motion to 'circle' the bill so staff could draft explicit grandfathering language to be considered later.

Senators said the next steps are drafting any clarified grandfathering language and House consideration.