South Carolina Code of Regulations › Chapter 28 - DEPARTMENT OF CONSUMER AFFAIRS › Section 28-100 - Physical Fitness Services Center-Certificates of Authority and Financial Responsibility

Current through Register Vol. 48, No. 6, June 28, 2024
A. Definitions
Definitions shall be those contained in the South Carolina
			 Physical Fitness Services Act ("the Act"), S.C. Code Ann. Section
			 44-79-20
			 et seq. and the following:
Cash price --The price at which goods or services are offered for
			 sale by the seller to cash buyers in the ordinary course of business, and may
			 include applicable sales tax and the cash price of accessories or related
			 services. The cash price stated by the seller to the buyer in the physical
			 fitness agreement is presumed to be the cash price. The term does not include
			 any finance charge.
Time price differential --The difference between the price paid
			 in installments (time-price) and the cash price. Discounts for the purpose of
			 inducing payment by a means other than the use of credit will be considered
			 finance charge. For example, a physical fitness services provider offers
			 contracts of $1,000.00 each. If the buyer pays cash, the price is $900.00, but
			 if the buyer pays for the contract with the physical fitness provider in
			 installments over time, the price is $1,000.00. The $100.00 difference is a
			 finance charge for those who buy the agreement on credit. This definition does
			 not apply to the use of a credit card.
B. Certificate of Authority and Financial
		  Responsibility
(1) All organizations wishing
		  to provide physical fitness services in this State must first obtain a
		  Certificate of Authority from the Administrator of the Department of Consumer
		  Affairs. Initial applications for the Certificate will be made on the form
		  prescribed by the Administrator and accompanied by a fee of $50 per
		  outlet.
(2) Certificates of
		  Authority expire on December 31. Renewal applications will be accepted November
		  1 through December 31 of each year. Renewal applications shall be made on a
		  form prescribed by the Administrator and accompanied by a renewal fee of $50
		  per outlet. If a complete renewal application is not postmarked on or before
		  December 31, the center shall be required to submit an initial application per
		  item (1) above.
(3) Issuance of a
		  Certificate of Authority does not indicate approval or acceptance of the terms
		  of any contract, agreement or other document submitted in support of the
		  application. No organization providing physical fitness services shall in any
		  way represent that its services, payment schedules or terms of membership are
		  approved by the State or any state agency.
(4)
(a)
		  Physical fitness centers presenting a surety bond or other evidence of
		  financial responsibility in accordance with Section
		  44-79-80
		  of the Act must do so in accordance with the following value schedule:
Members
Amount
1,500 or more
$50,000
1,000 to 1,499
$40,000
500 to 999
$30,000
100 to 499
$20,000
1 to 99
$10,000
(b) Any
		  variation from the value schedule must be approved by the Administrator or a
		  designee.
(5) Within 45
		  days of a membership or outlet increase that puts the physical fitness
		  center(s) into a new financial responsibility category, the physical fitness
		  center(s) must present financial responsibility in the new amount to the
		  Administrator. Failure to provide amended evidence of financial responsibility
		  as required by this subsection will be regarded as a violation of the
		  Act.
(6) Each physical fitness
		  center must notify the Administrator upon substantial change of its financial
		  status within ten business days after the occurrence of any of the following
		  events:
(a) the institution of a revocation,
		  suspension, or other proceeding against the center by a governmental authority
		  which is related to the center's physical fitness services in any
		  state;
(b) the institution of a
		  civil action against the center. The center shall advise the Administrator
		  within thirty days of the action being dismissed, settled or otherwise
		  resolved;
(c) the filing of
		  bankruptcy, reorganization, or receivership proceedings by or against the
		  center;
(d) the center's opening or
		  closing of a new physical fitness center or outlet within the State;
		  or
(e) felony indictments or
		  convictions involving breach of trust, moral turpitude, fraud, or dishonest
		  dealing.