NY State Senate Bill 2011-S4558

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to consumer protection
Apr 12, 2011	referred to consumer protection

2011-S4558 (ACTIVE) - Details

See Assembly Version of this Bill:: A6402
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §§621, 623, Gen Bus L
Versions Introduced in 2009-2010 Legislative Session:: A2052

2011-S4558 (ACTIVE) - Summary

Eliminates price controls on health club contracts: annual and limited duration tennis.

2011-S4558 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S4558

TITLE OF BILL:
An act
to amend the general business law, in relation to health club fees

PURPOSE OF BILL:
To reform New York's statutes that mandate price
controls for health club subscriptions.

SUMMARY OF PROVISIONS:
Section 1: Amends General Business Law section
621 (1) (g) to eliminate the $250 threshold before contracts that
provide for instruction for improving tennis skills are exempted
from the provisions of this act.

Section 2: Amends General Business Law section 623 (1) to eliminate a
prohibition for health clubs to charge more than $3,600 per year
for health club memberships. Adds a provision that every contract
for services shall contain a warning statement regarding the use
of steroids.

Section 3:Amends General Business Law section 624 (3) to decrease the
time in which a buyer may cancel a contract should the buyer be
come significantly disabled from the current "in excess of six months"
to "in excess of three months". Additionally the amended language

allows the three-month cancellation threshold to apply when a
buyer's business moves. Current law applies only when a buyer's
residence moves.

JUSTIFICATION:
When price controls were first instituted over 25 years
ago, arguably, there may have been some monopoly practices and
price fixing with regard to health club subscription fees. However,
since 1978, there has been a proliferation of health clubs. Health
club subscription rates should be deregulated because there is now
many more health clubs and a competitive market now exists. In
addition, the current cap on health club subscription rates of
$3,600 per year has not been raised since 1978. Since 1978, new types
of specialty and luxury health clubs have been established which
provide services that cannot be provided for less than $ 3,600, so
consequently, those types of services cannot economically be provided
in New York. This bill would expand the scope of health club
services that can be provided. Additionally this bill addresses
consumer protection weaknesses in the current law by requiring measures
to make it easier for those who become ill or move to cancel their
contracts and by requiring a prominent warning of the health risks
of steroid use be included in all contracts.

LEGISLATIVE HISTORY:

A.8407/S.3379 of 2005-2006
A.2464/S.5096 of 2007/2008 - Reported to Codes
A.2052 of 2009/2010 - Reported to Codes

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

2011-S4558 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4558

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 12, 2011
                               ___________

Introduced  by  Sen.  ROBACH -- 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  health  club
  fees

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (g) of subdivision 1 of section 621 of the gener-
al business law, as added by chapter 722 of the laws of 1992, is amended
to read as follows:
  (g) Contracts for programs which  provide  instruction  for  improving
tennis  skills,  and are of eight weeks duration or less [where the full
fee does not exceed two hundred fifty dollars].
  S 2. Section 623 of the general business law, as added by chapter  630
of the laws of 1978, subdivision 1 as amended by chapter 660 of the laws
of 1990, is amended to read as follows:
  S  623.  Contract  PROVISIONS  AND  restrictions.  1. [No contract for
services shall require payment by the person receiving  service  or  the
use  of the facilities of a total amount in excess of three thousand six
hundred dollars per annum,  provided,  however,  that  this  subdivision
shall not apply to contracts relating solely to the use of tennis, plat-
form tennis or racquet ball facilities.
  2.]  No  contract  for  services  shall provide for a term longer than
thirty-six months. No contract for services shall  require  payments  or
financing  by  the  buyer over a period in excess of thirty-seven months
from the date the contract is entered into, nor shall the  term  of  any
such contract be measured by or be for the life of the buyer.  Provided,
however,  that  the  services  to  be  rendered  to  the buyer under the
contract may extend over a period not to exceed  three  years  from  the
date the contract is entered into with the right to renew, at the option
of the buyer for a like period. The buyer may have thirty days after the
expiration  to  renew the contract. The installment payments shall be in

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05790-01-1

S. 4558                             2

substantially equal amounts exclusive of the down payment and  shall  be
required  to be made at substantially equal intervals, not to exceed one
month.
  [3]  2.    No contract for services may contain any provisions whereby
the buyer agrees not to assert against the seller  or  any  assignee  or
transferee  of  the  health  club services contract any claim or defense
arising out of the health club services contract.
  [4] 3.  No contract for services may require the buyer  to  execute  a
promissory  note  or  series of promissory notes which, when negotiated,
cuts off as to third parties a defense which the buyer may have  against
the seller.
  [5]  4.    No  contract  may be assigned by one health club to another
health club not located on the same premises without written consent  of
the buyer.
  5.  EVERY  CONTRACT  FOR  SERVICES SHALL CONTAIN THE FOLLOWING WARNING
STATEMENT IN AT LEAST TEN POINT, BOLD FONT:
  WARNING: USE OF STEROIDS TO INCREASE  STRENGTH  OR  GROWTH  CAN  CAUSE
SERIOUS  HEALTH  PROBLEMS.  STEROIDS  CAN KEEP TEENAGERS FROM GROWING TO
THEIR FULL HEIGHT; THEY  CAN  ALSO  CAUSE  HEART  DISEASE,  STROKE,  AND
DAMAGED LIVER FUNCTION. MEN AND WOMEN USING STEROIDS MAY DEVELOP FERTIL-
ITY  PROBLEMS,  PERSONALITY  CHANGES,  AND ACNE. MEN CAN ALSO EXPERIENCE
PREMATURE BALDING AND DEVELOPMENT OF BREAST TISSUE. THESE HEALTH HAZARDS
ARE IN ADDITION TO THE CIVIL AND  CRIMINAL  PENALTIES  FOR  UNAUTHORIZED
SALE, USE, OR EXCHANGE OF ANABOLIC STEROIDS.
  S  3.  Subdivision  3  of  section 624 of the general business law, as
added by chapter 630 of the laws of 1978, is amended to read as follows:
  3. Every contract for services shall provide that after such three day
period for cancellation as provided in subdivision two of this  section,
the buyer's estate may cancel a contract for services if the buyer dies.
The  buyer may also cancel after three days if the buyer becomes signif-
icantly physically disabled for  a  period  in  excess  of  [six]  THREE
months,  or  moves  his  OR HER residence OR BUSINESS to a location more
than twenty-five miles from a health club operated  by  the  seller,  or
after the services are no longer available or substantially available as
provided  in  the  contract because of the seller's permanent discontin-
uance of operation or substantial change in operation. Nothing contained
herein shall restrict or prohibit the seller from offering or  providing
in  such  contract  additional  or broader reasons for cancellation. The
seller may require reasonable evidence for a  cancellation  pursuant  to
this  subdivision.  Such  contract  shall  contain  the following notice
captioned in at least ten point bold type:
ADDITIONAL RIGHTS TO CANCELLATION:
  You may also cancel this contract for any of the following reasons:
  If upon a doctor's order, you cannot physically receive  the  services
because  of  significant  physical  disability for a period in excess of
[six] THREE months.
  If you die, your estate shall be relieved of  any  further  obligation
for payment under the contract not then due and owing.
  If  you  move  your  residence OR BUSINESS more than twenty-five miles
from any health club operated by seller.
  If the services cease to be offered as stated in the contract.
  All moneys paid pursuant to such contract cancelled  for  the  reasons
contained  in  this subdivision shall be refunded within fifteen days of
receipt of such notice of cancellation; provided however that the seller
may retain the expenses incurred and the  portion  of  the  total  price
representing  the  services used or completed, and further provided that

S. 4558                             3

the seller may demand the reasonable cost of goods  and  services  which
the  buyer  has  consumed  or wishes to retain after cancellation of the
contract. In no instance shall the seller  demand  more  than  the  full
contract  price  from the buyer. 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 with-
in fifteen days.
  S  4.  This  act shall take effect immediately; provided that sections
one and two of this act shall apply to contracts entered  into,  issued,
renewed, modified, altered, or amended on or after such effective date.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S4558

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2011-S4558 (ACTIVE) - Details

2011-S4558 (ACTIVE) - Summary

2011-S4558 (ACTIVE) - Sponsor Memo

2011-S4558 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4558

Share this bill

Sponsored By

Joseph E. Robach

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2011-S4558 (ACTIVE) - Details

2011-S4558 (ACTIVE) - Summary

2011-S4558 (ACTIVE) - Sponsor Memo

2011-S4558 (ACTIVE) - Bill Text download pdf

Comments