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Wednesday
Feb012012

IHRSA Opposes Harmful Bonding Proposal

Earlier today, IHRSA submitted testimony on behalf of IHRSA members to the South Carolina state legislature, currently considering a proposed regulation that would likely increase bond amounts for health clubs. The proposal increases the maximum bond amount possible and also redefines how the bond amount is determined—increasing the likelihood that clubs will have to purchase larger bonds.

IHRSA testified that the increased bonds would raise costs for businesses and ultimately penalize consumers attempting to engage in healthy lifestyles. Furthermore, the negative impact the proposed change would have on businesses outweighs the minimal additional protection it would offer consumers.

To read the full testimony, click here (PDF).

Attempting to increase or alter state bonding requirements is a popular trend in the US. Last year, harmful bonding bills accounted for 6 percent of the total number of bills IHRSA fought.  IHRSA opposes bonding legislation that creates an undue burden on club businesses, while failing to safeguard the consumer.

The South Carolina proposal is currently before the Committee on Medical, Military, Public and Municipal Affairs, and IHRSA is watching it closely. We will alert members to any updates.

For questions, please email IHRSA’s Senior Legislative Analyst, Tim Sullivan or call (800) 228-4472.

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