NY State Senate Bill S932A

Current Bill Status - On Floor Calendar

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
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Signed/Vetoed by Governor

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Actions

view actions (5)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 01, 2023	ordered to third reading cal.1361 committee discharged and committed to rules
May 23, 2023	print number 932a
May 23, 2023	amend and recommit to consumer protection
Jan 09, 2023	referred to consumer protection

Bill Amendments

Original

A (Active)

Original

A (Active)

S932 - Details

See Assembly Version of this Bill:: A4667
Law Section:: General Business Law
Laws Affected:: Amd §624, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S9067, A11162
2021-2022: S106, A2285

S932 - Summary

Requires health clubs accept cancellation of a membership within twenty-four hours of receiving notice of the cancellation if within the first three days or after the completion of the term of membership.

S932 - Sponsor Memo

 
BILL NUMBER: S932

SPONSOR: PERSAUD
 
TITLE OF BILL:

An act to amend the general business law, in relation to the cancella-
tion of a health club contract

 
PURPOSE OF BILL:

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, and such cancellation shall be effective within 24
hours.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 624 of the general business law is amended by adding a new
subdivision 4 to read as follows: every contract for services shall
provide that such health club shall accept cancellation of membership by
the buyer or the buyer's estate within twenty-four hours of receiving
notice of the cancellation

 
JUSTIFICATION:

This legislation mandates health clubs' Membership cancellation to be
effective within the first 24hrs. According to the International 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 within 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 significant 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 exempt from this requirement if they do not offer pre-
paid membership. 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 cancellation 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:
2021-2022: S106A referred to Consumer Protection

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.

S932 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    932
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2023
                                ___________
 
 Introduced  by  Sen. PERSAUD -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 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:
 
   Section 1. Section 624 of the  general  business  law  is  amended  by
 adding a new subdivision 4 to read as follows:
   4.  EVERY  CONTRACT  FOR  SERVICES SHALL PROVIDE THAT SUCH HEALTH CLUB
 SHALL ACCEPT CANCELLATION OF A MEMBERSHIP BY THE BUYER  OR  THE  BUYER'S
 ESTATE WITHIN TWENTY-FOUR HOURS OF RECEIVING NOTICE OF THE CANCELLATION.
 SUCH  HEALTH  CLUBS  SHALL  ACCEPT  CANCELLATION OF A MEMBERSHIP THROUGH
 METHODS INCLUDING, BUT NOT LIMITED TO, THE INTERNET,  TELEPHONE,  OR  IN
 PERSON.  FOR  SUCH  CANCELLATION  OF  A  MEMBERSHIP TO BE REQUIRED TO BE
 ACCEPTED WITHIN TWENTY-FOUR HOURS OF RECEIVING NOTICE UNDER THIS  SUBDI-
 VISION,  THE  CANCELLATION  SHALL  BE  SUBMITTED EITHER WITHIN THE FIRST
 THIRTY-SIX HOURS OF THE PURCHASE OF A MEMBERSHIP OR AFTER THE FULL  TERM
 OF THE MEMBERSHIP IS COMPLETED.
   § 2. This act shall take effect immediately.
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01730-01-3

S932A (ACTIVE) - Details

See Assembly Version of this Bill:: A4667
Law Section:: General Business Law
Laws Affected:: Amd §624, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S9067, A11162
2021-2022: S106, A2285

S932A (ACTIVE) - Summary

S932A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S932A

SPONSOR: PERSAUD
 
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, and such cancellation shall be effective within 24
hours.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends subdivision 2 and adds subdivision 4 to

§ 624 of the general business law. Subdivision two adds email as a meth-
od by which a contract for a health club service may be cancelled by a
buyer if delivered within three days of the buyer receiving a copy of

the contract. Subdivision four requires every health club to accept
cancellation of membership within 24 hours of òreceiving notice when
such notice is submitted within the first 36 hours of attaining
membershipò or after the full term of membership ends. The health club
is required to accept such notice through methods including, but not be
limited to, the Internet, telephone, mail, or in person.

Section two of the bill provides the effective date.

 
JUSTIFICATION:

This legislation mandates health clubs' Membership cancellation to be
effective with it the first 24hrs. According to the International
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 within 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 stat-
ed in the contract; if the consumer moves 25 miles from any health club
operated by the seller; or if upon a doctor's order, the consumer cannot
receive the services as stated in the contract because of significant
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 cancellation. 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 cancellation 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.

 
LEGISLATIVE HISTORY:

2021-22: S.106-A/A.2285-B - Consumer Protection / Consumer Affairs and
Protection

2019-20: S.9067/A.11162 - Consumer Protection / Consumer Affairs and
Protection

 
FISCAL IMPACT ON THE STATE:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S932A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  932--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2023
                                ___________
 
 Introduced  by  Sen. PERSAUD -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Consumer  Protection  --
   committee  discharged,  bill amended, 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:
 
   Section 1. Subdivision 2 of section 624 of the general  business  law,
 as added by chapter 630 of the laws of 1978, is amended and a new subdi-
 vision 4 is added to read as follows:
   2. Every contract for services shall provide that such contract may be
 cancelled  within  three  business days after the date of receipt by the
 buyer of a copy of the written contract. Notice of cancellation shall be
 delivered by [certified or registered] United States mail OR  ELECTRONIC
 MAIL  at  the  address OR E-MAIL ADDRESS specified in the contract. Such
 contract shall contain the following written  notice  in  at  least  ten
 point  bold  type:  CONSUMERS RIGHT TO CANCELLATION. YOU MAY CANCEL THIS
 CONTRACT WITHOUT ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3) DAYS
 FROM THIS DATE . . . . . . Notice of cancellation shall  be  in  writing
 subscribed  by  the buyer and mailed by [registered or certified] United
 States mail OR ELECTRONIC MAIL to the seller at the  address  OR  E-MAIL
 ADDRESS  specified in such form. Such notice shall be accompanied by the
 contract forms, membership cards and any other documents or evidence  of
 membership  previously delivered to the buyer.  All moneys paid pursuant
 to such contract shall be  refunded  within  fifteen  business  days  of
 receipt  of  such notice of cancellation.  If the buyer has executed any
 credit or loan agreement to pay for all or part of health club services,
 any such negotiable instrument executed  by  the  buyer  shall  also  be
 returned within fifteen days.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01730-05-3
 S. 932--A                           2

 
   4.  EVERY  CONTRACT  FOR  SERVICES SHALL PROVIDE THAT SUCH HEALTH CLUB
 SHALL ACCEPT CANCELLATION OF A MEMBERSHIP BY THE BUYER  OR  THE  BUYER'S
 ESTATE WITHIN TWENTY-FOUR HOURS OF RECEIVING NOTICE OF THE CANCELLATION.
 FOR  SUCH CANCELLATION OF A MEMBERSHIP TO BE ACCEPTED BY THE HEALTH CLUB
 WITHIN  TWENTY-FOUR HOURS OF RECEIVING NOTICE OF CANCELLATION UNDER THIS
 SUBDIVISION, THE CANCELLATION SHALL BE SUBMITTED EITHER (A)  WITHIN  THE
 FIRST THIRTY-SIX HOURS OF THE PURCHASE OF A MEMBERSHIP, OR (B) AFTER THE
 FULL  TERM  OF  THE  MEMBERSHIP  IS COMPLETED.   SUCH HEALTH CLUBS SHALL
 ACCEPT NOTICE OF CANCELLATION OF A MEMBERSHIP THROUGH METHODS INCLUDING,
 BUT NOT LIMITED TO, THE INTERNET, TELEPHONE, MAIL, OR IN PERSON.
   § 2. This act shall take effect immediately.

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The New York State Senate

senate Bill S932A

Sponsored By

Current Bill Status - On Floor Calendar

Your Voice

Actions

Bill Amendments

S932 - Details

S932 - Summary

S932 - Sponsor Memo

S932 - Bill Text download pdf

S932A (ACTIVE) - Details

S932A (ACTIVE) - Summary

S932A (ACTIVE) - Sponsor Memo

S932A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S932A

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Sponsored By

Roxanne J. Persaud

Current Bill Status - On Floor Calendar

Your Voice

Actions

Bill Amendments

S932 - Details

S932 - Summary

S932 - Sponsor Memo

S932 - Bill Text download pdf

S932A (ACTIVE) - Details

S932A (ACTIVE) - Summary

S932A (ACTIVE) - Sponsor Memo

S932A (ACTIVE) - Bill Text download pdf

Comments