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A02285 Summary:

BILL NOA02285B
 
SAME ASSAME AS S00106-A
 
SPONSORPerry
 
COSPNSR
 
MLTSPNSR
 
Amd §624, Gen Bus L
 
Requires health clubs accept cancellation of a membership within twenty-four hours of receiving notice of the cancellation.
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A02285 Actions:

BILL NOA02285B
 
01/14/2021referred to consumer affairs and protection
02/17/2021amend and recommit to consumer affairs and protection
02/17/2021print number 2285a
04/16/2021amend and recommit to consumer affairs and protection
04/16/2021print number 2285b
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A02285 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2285B
 
SPONSOR: Perry
  TITLE OF BILL: An act to amend the general business law, in relation to the cancella- tion of a health club contract   PURPOSE: Requires that health club contracts and memberships need not exceed 24 hours in immediate cancellation at the buyer's request and can be canceled online.   SUMMARY OF PROVISIONS: Section one of the bill adds subdivision 4 to § 624 of the general busi- ness law requiring every health club contract to include a provision which requires the health club to accept the cancellation of a member- ship by the buyer or buyer's estate within twenty-four hours of receiv- ing notice of the cancellation through methods which include, but are not limited to, the Internet, telephone, or in person and requires the cancellation to be effective within twenty-four hours. For the cancella- tion of a membership to be accepted within twenty-four hours, the cancellation must be submitted within the first thirty-six hours of the purchase of the membership or after the full term of the membership is completed. Section two of the bill provides the effective date.   JUSTIFICATION: This legislation mandates health clubs' membership cancelation to be effective within the first twenty-four hours. According to the Interna- tional Health, Racquet & Sportsclub Association, there are 2,111 health clubs in New York. On average, 4,383,454 constituents in New York use the health club facilities available. In observance of the New York Health Club Services Act, all health club contracts are cancelable with- in three days of the signing of the contract, and at any time for any of the following reasons: if the health club ceases to offer the services stated in the contract; if the consumer moves 25 miles from any health club operated by the seller; and if upon a doctor's order, the consumer cannot receive the services as stated in the contract because of signif- icant physical disability for a period in excess of six months. Such notices must appear on all health club contracts. The health club must provide refunds within 15 days of such cancella- tion. Clubs are exempted from this requirement if they do not offer pre-paid memberships, if payments do not exceed $150, memberships do not exceed one year, and the contract does not contain an automatic renewal provision. Yet, buyers of health club memberships are still required to pay fees throughout the remainder of a contract year despite wanting immediate cancellation. To add, many of the cancelation processes for health clubs involve in-person meetings to cancel memberships. New York's Health Club Law authorizes gym members to cancel their membership under certain circum- stances, including after the services are no longer available or substantially available as provided in the contract because of the gym's permanent discontinuance of operation or substantial change in operation and require gym owners to offer prorated refunds for such cancellations within 15 days. This bill will allow buyers to feel unrestricted by health club contracts' circumstantial terms and given a chance to discontinue their services online instead of strictly in person.   PRIOR LEGISLATIVE HISTORY: 2020: A.11162/S.9067 - Referred to Consumer Affairs and Protection / Rules FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: Immediately.
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A02285 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2285--B
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 14, 2021
                                       ___________
 
        Introduced  by M. of A. PERRY -- read once and referred to the Committee
          on Consumer Affairs  and  Protection  --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee -- again reported from said  committee  with  amendments,  ordered
          reprinted as amended and recommitted to said committee

        AN  ACT  to amend the general business law, in relation to the cancella-
          tion of a health club contract
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  624  of  the  general business law is amended by
     2  adding a new subdivision 4 to read as follows:
     3    4. Every contract for services shall provide  that  such  health  club
     4  shall  accept  cancellation  of a membership by the buyer or the buyer's
     5  estate within twenty-four hours of receiving notice of the cancellation.
     6  Such health clubs shall accept  cancellation  of  a  membership  through
     7  methods  including,  but  not limited to, the internet, telephone, or in
     8  person. For such cancellation of a  membership  to  be  required  to  be
     9  accepted  within twenty-four hours of receiving notice under this subdi-
    10  vision, the cancellation shall be  submitted  either  within  the  first
    11  thirty-six  hours of the purchase of a membership or after the full term
    12  of the membership is completed.
    13    § 2. This act shall take effect immediately.
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03557-05-1
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