S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8860
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 18, 2019
                                ___________
 
 Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
   Committee on Consumer Affairs and 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, as added by  chap-
 ter 630 of the laws of 1978, is amended to read as follows:
   §  624.  Rights  of  cancellation of contracts for services. 1.  Every
 contract for services at a planned health club or a  health  club  under
 construction shall, at the option of the buyer, be voidable in the event
 that  the  health  club and the services to be provided pursuant to such
 contract are not available within one year from the date the contract is
 executed by the buyer.
   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  at  the
 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 to  the  seller  at
 the  address specified in such form. Such notice shall be accompanied by
 the contract forms,] A BUYER WHO CANCELS  A  CONTRACT  PURSUANT  TO  THE
 PROVISIONS OF THIS SUBDIVISION SHALL RETURN ALL 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]  FORTY-EIGHT  HOURS 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 nego-
 tiable  instrument  executed  by the buyer shall also be returned within
 [fifteen days] FORTY-EIGHT HOURS.
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13632-01-9

 A. 8860                             2
 
   3. (A) 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  significantly  physically  disabled  for  a period in excess of
 [six] THREE months, or moves his OR HER residence  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.
   (B) EVERY CONTRACT FOR SERVICES SHALL PROVIDE THAT  AFTER  SUCH  THREE
 DAY  PERIOD  FOR  CANCELLATION  AS  PROVIDED  IN SUBDIVISION TWO OF THIS
 SECTION, THE BUYER MAY CANCEL THE CONTRACT UPON THIRTY DAYS' NOTICE.
   (C) 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 more than twenty-five miles from any health
 club operated by seller.
   If the services cease to be offered as stated in the contract.
   FOR ANY REASON UPON THIRTY DAYS' NOTICE.
   (D) All moneys paid  pursuant  to  such  contract  cancelled  for  the
 reasons  contained in this subdivision shall be refunded within [fifteen
 days] FORTY-EIGHT HOURS 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 the seller may demand the reason-
 able cost of goods and services which the buyer has consumed  or  wishes
 to  retain  after  cancellation  of  the  contract. THE SELLER SHALL NOT
 DEMAND MORE THAN ONE MONTH'S FEE OR THE EQUIVALENT THEREOF FROM A  BUYER
 WHO CANCELS A CONTRACT PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION. 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 within  [fifteen
 days] FORTY-EIGHT HOURS.
   4. (A) EVERY CONTRACT FOR SERVICES SHALL PROVIDE THAT SUCH HEALTH CLUB
 SHALL ACCEPT NOTICE OF CANCELLATION OF SUCH CONTRACT IN PERSON, BY MAIL,
 OVER THE PHONE OR BY ELECTRONIC MAIL.
   (B)  IF  A  HEALTH  CLUB  ALLOWS  A BUYER TO ENTER INTO A CONTRACT FOR
 SERVICES THROUGH A WEBSITE, SUCH HEALTH CLUB SHALL ACCEPT  A  NOTICE  OF
 CANCELLATION  OF  SUCH  CONTRACT THROUGH SUCH WEBSITE IN ADDITION TO THE
 METHODS PROVIDED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
   § 2. This act shall take effect immediately; provided that section one
 of this act shall apply to  contracts  entered  into,  issued,  renewed,
 modified, altered, or amended on or after such effective date.