Bill Text: NY S00932 | 2023-2024 | General Assembly | Amended
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--D Cal. No. 111 2023-2024 Regular Sessions IN SENATE January 9, 2023 ___________ Introduced by Sens. PERSAUD, JACKSON, SEPULVEDA -- 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 -- ordered to second report, ordered to a third reading, passed by Senate and delivered to the Assembly, recalled, vote reconsidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading 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] EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01730-19-4S. 932--D 2 1 twelve point bold type: CONSUMERS RIGHT TO CANCELLATION. YOU MAY CANCEL 2 THIS CONTRACT WITHOUT ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3) 3 BUSINESS DAYS FROM THIS DATE . . . . . . Notice of cancellation shall be 4 in writing subscribed by the buyer and mailed by [registered or certi-5fied] United States mail or electronic mail to the seller at the address 6 or e-mail address specified in such form. Such notice shall be accompa- 7 nied by the contract forms, membership cards and any other documents or 8 evidence of membership previously delivered to the buyer. All moneys 9 paid pursuant to such contract shall be refunded within [fifteen] ten 10 business days of receipt of such notice of cancellation. If the buyer 11 has executed any credit or loan agreement to pay for all or part of 12 health club services, any such negotiable instrument executed by the 13 buyer shall also be returned within [fifteen] ten business days. 14 3. (a) Every contract for services shall provide that after such three 15 business day period for cancellation as provided in subdivision two of 16 this section, the buyer's estate may cancel a contract for services if 17 the buyer dies. The buyer may also cancel after three business days if 18 the buyer becomes significantly physically disabled for a period in 19 excess of [six] three months, or moves [his] their residence to a 20 location more than twenty-five miles from a health club operated by the 21 seller, or after the services are no longer available or substantially 22 available as provided in the contract because of the seller's permanent 23 discontinuance of operation or substantial change in operation. Nothing 24 contained herein shall restrict or prohibit the seller from offering or 25 providing in such contract additional or broader reasons for cancella- 26 tion. The seller may require reasonable evidence for a cancellation 27 pursuant to this subdivision. 28 (b) Such contract shall contain the following notice captioned in at 29 least [ten] twelve point bold type: 30 ADDITIONAL RIGHTS TO CANCELLATION: 31 You may also cancel this contract for any of the following reasons: 32 If upon a doctor's order, you cannot physically receive the services 33 because of significant physical disability for a period in excess of 34 [six] three months. 35 If you die, your estate shall be relieved of any further obligation 36 for payment under the contract not then due and owing. 37 If you move your residence more than twenty-five miles from any health 38 club operated by seller. 39 If the services cease to be offered as stated in the contract. 40 (c) All moneys paid pursuant to such contract cancelled for the 41 reasons contained in this subdivision shall be refunded within [fifteen] 42 ten business days of receipt of such notice of cancellation; provided 43 however that the seller may retain the expenses incurred and the portion 44 of the total price representing the services used or completed, and 45 further provided that the seller may demand the reasonable cost of goods 46 and services which the buyer has consumed or wishes to retain after 47 cancellation of the contract. In no instance shall the seller demand 48 more than the full contract price from the buyer. If the buyer has 49 executed any credit or loan agreement to pay for all or part of health 50 club services, any such negotiable instrument executed by the buyer 51 shall also be returned within [fifteen] ten business days. 52 4. (a) Every contract for services shall provide that such health club 53 shall accept cancellation of a membership by the buyer or the buyer's 54 estate, as provided in this section, no later than three business days 55 after receiving notice of the cancellation.S. 932--D 3 1 (b) Where a contract for services is due for renewal on an annual 2 basis, such contract for services following the initial contract shall 3 provide that such health club shall accept cancellation of renewal of a 4 membership, by the buyer or the buyer's estate, provided such request is 5 made within fifteen business days after such renewal takes effect. Where 6 a contract for service is due for renewal on a monthly basis, such 7 contract for services following the initial contract shall provide that 8 such health club shall accept cancellation of renewal of a monthly 9 membership, by the buyer or the buyer's estate provided such request is 10 made within three business days after such renewal takes effect. 11 (c) Such health club shall accept notice of cancellation of a member- 12 ship through methods including, but not limited to, website, electronic 13 mail, telephone, mail, or in person. 14 (d) If a health club allows a buyer to enter into a contract for 15 services through a website, such health club shall accept a notice of 16 cancellation of such contract through such website in addition to the 17 methods provided pursuant to paragraph (c) of this subdivision. 18 § 2. This act shall take effect on the ninetieth day after it shall 19 have become a law.
