BILL NUMBER: S8015

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to multi-service
health clubs

 
PURPOSE:

The purpose of this bill is to carve out boutique health club member-
ships from the current annual membership cost ceiling enforced by the
office of the New York State Attorney General and in statute pursuant to
section 623 of the general business law

 
SUMMARY OF PROVISIONS:

Section 1 amends section 623 of the general business law to include
"multiservice health clubs" and in a new subdivision 6 defines "multi-
service health clubs" as offering three or more services or amenities
(on-demand classes, individualized training, fitness instructor train-
ing, spa treatments, co-working space, childcare, laundry service, steam
              

rooms, swimming pools and/or on-site food and beverage.

Section 2 sets the effective date.

 
JUSTIFICATION:

The New York Health Club Services Act was enacted in 1978 in reaction to
deceptive practices by a few health club operators in the then nascent
health club industry.

To protect consumers, the New York State legislature passed a series of
laws to regulate contracts between consumers and health clubs.  Since
the Act's adoption new types of specialty and luxury health clubs have
entered the marketplace alongside more traditional gyms that offer a
lower price point for dues. These luxury health clubs provide premium
health club services and amenities that can exceed the $3,600 annual
cap, which was established in 1991 but has not been adjusted for
inflation in over 30 years.

With the passage of over three decades, the Health Club Services act is
in need of updating so that it will recognize the diverse, changing, and
competitive landscape of health club services, consumer preferences and
demand, and differentiate between the types of services being offered by
the many operators within what is now a mature health club industry,
such as all- inclusive luxury gym memberships with non-traditional and
modern amenities such as spas, digital platforms, childcare and nutri-
tion.  It has also failed to keep pace with the increasing costs of
providing such services, which enables competition and consumer choice
at all levels, and which provides New Yorkers with health club options
at multiple price points. This bill will allow for the health club
industry to be able to provide services that are in such high demand
from consumers, allowing for multi-service health clubs to provide more
than a basic gym membership.

 
FISCAL IMPLICATIONS:

None.
 
EFFECTIVE DATE:
This act shall take effect immediately.