Bill Text: NY S00932 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Requires health clubs accept cancellation of a membership within ten business days of receiving notice of the cancellation.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed) 2024-05-20 - SUBSTITUTED BY A4667B [S00932 Detail]

Download: New_York-2023-S00932-Amended.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                         932--C
            Cal. No. 111

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 9, 2023
                                       ___________

        Introduced  by Sens. PERSAUD, JACKSON -- 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  --  recommitted to the
          Committee on Consumer Protection in accordance  with  Senate  Rule  6,
          sec.  8  --  committee  discharged, bill amended, ordered reprinted as
          amended and recommitted to said committee -- reported  favorably  from
          said  committee,  ordered  to  first  report, amended on first report,
          ordered to a second report and ordered reprinted, retaining its  place
          in the order of second report

        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, as added by chap-
     2  ter 630 of the laws of 1978, is amended to read as follows:
     3    §  624.  Rights  of  cancellation of contracts for services. 1.  Every
     4  contract for services at a planned health club or a  health  club  under
     5  construction shall, at the option of the buyer, be voidable in the event
     6  that  the  health  club and the services to be provided pursuant to such
     7  contract are not available within one year from the date the contract is
     8  executed by the buyer.
     9    2. Every contract for services shall provide that such contract may be
    10  cancelled within three business days after the date of  receipt  by  the
    11  buyer of a copy of the written contract. Notice of cancellation shall be
    12  delivered  by [certified or registered] United States mail or electronic
    13  mail at the address or e-mail address specified in  the  contract.  Such
    14  contract  shall  contain  the following written notice in at least [ten]
    15  twelve point bold type: CONSUMERS RIGHT TO CANCELLATION. YOU MAY  CANCEL
    16  THIS CONTRACT WITHOUT ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3)
    17  BUSINESS DAYS FROM THIS DATE . . . . . . Notice of cancellation shall be

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01730-14-4
        S. 932--C                           2

     1  in  writing  subscribed by the buyer and mailed by [registered or certi-
     2  fied] United States mail or electronic mail to the seller at the address
     3  or e-mail address specified in such form. Such notice shall be  accompa-
     4  nied  by the contract forms, membership cards and any other documents or
     5  evidence of membership previously delivered to the buyer.    All  moneys
     6  paid  pursuant to such contract shall be refunded within [fifteen] three
     7  business days of receipt of such notice of cancellation.   If the  buyer
     8  has  executed  any  credit  or  loan agreement to pay for all or part of
     9  health club services, any such negotiable  instrument  executed  by  the
    10  buyer shall also be returned within [fifteen] three business days.
    11    3. (a) Every contract for services shall provide that after such three
    12  business  day  period for cancellation as provided in subdivision two of
    13  this section, the buyer's estate may cancel a contract for  services  if
    14  the  buyer  dies. The buyer may also cancel after three business days if
    15  the buyer becomes significantly physically  disabled  for  a  period  in
    16  excess  of  [six]  three  months,  or  moves  [his] their residence to a
    17  location more than twenty-five miles from a health club operated by  the
    18  seller,  or  after the services are no longer available or substantially
    19  available as provided in the contract because of the seller's  permanent
    20  discontinuance  of operation or substantial change in operation. Nothing
    21  contained herein shall restrict or prohibit the seller from offering  or
    22  providing  in  such contract additional or broader reasons for cancella-
    23  tion. The seller may require  reasonable  evidence  for  a  cancellation
    24  pursuant to this subdivision.
    25    (b)  Such  contract shall contain the following notice captioned in at
    26  least [ten] twelve point bold type:
    27  ADDITIONAL RIGHTS TO CANCELLATION:
    28    You may also cancel this contract for any of the following reasons:
    29    If upon a doctor's order, you cannot physically receive  the  services
    30  because  of  significant  physical  disability for a period in excess of
    31  [six] three months.
    32    If you die, your estate shall be relieved of  any  further  obligation
    33  for payment under the contract not then due and owing.
    34    If you move your residence more than twenty-five miles from any health
    35  club operated by seller.
    36    If the services cease to be offered as stated in the contract.
    37    (c)  All  moneys  paid  pursuant  to  such  contract cancelled for the
    38  reasons contained in this subdivision shall be refunded within [fifteen]
    39  three business days of receipt of such notice of cancellation;  provided
    40  however that the seller may retain the expenses incurred and the portion
    41  of  the  total  price  representing  the services used or completed, and
    42  further provided that the seller may demand the reasonable cost of goods
    43  and services which the buyer has consumed  or  wishes  to  retain  after
    44  cancellation  of  the  contract.  In no instance shall the seller demand
    45  more than the full contract price from  the  buyer.  If  the  buyer  has
    46  executed  any  credit or loan agreement to pay for all or part of health
    47  club services, any such negotiable  instrument  executed  by  the  buyer
    48  shall also be returned within [fifteen] three business days.
    49    4. (a) Every contract for services shall provide that such health club
    50  shall  accept  cancellation  of a membership by the buyer or the buyer's
    51  estate, as provided in this section, no later than three  business  days
    52  of receiving notice of the cancellation.
    53    (b)  Where  a  contract  for  services is due for renewal on an annual
    54  basis, such contract for services following the initial  contract  shall
    55  provide  that such health club shall accept cancellation of renewal of a
    56  membership, by the buyer or the buyer's estate, provided such request is
        S. 932--C                           3

     1  made within fifteen business days after such renewal takes effect. Where
     2  a contract for service is due for  renewal  on  a  monthly  basis,  such
     3  contract  for services following the initial contract shall provide that
     4  such  health  club  shall  accept  cancellation  of renewal of a monthly
     5  membership, by the buyer or the buyer's estate provided such request  is
     6  made within three business days after such renewal takes effect.
     7    (c)  Such health club shall accept notice of cancellation of a member-
     8  ship through methods including, but not limited to, website,  electronic
     9  mail, telephone, mail, or in person.
    10    (d)  If  a  health  club  allows  a buyer to enter into a contract for
    11  services through a website, such health club shall accept  a  notice  of
    12  cancellation  of  such  contract through such website in addition to the
    13  methods provided pursuant to paragraph (c) of this subdivision.
    14    § 2. This act shall take effect on the ninetieth day  after  it  shall
    15  have become a law.