S T A T E   O F   N E W   Y O R K
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                                  4667--B
                                                         Cal. No. 129
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 21, 2023
                                ___________
 
 Introduced  by  M. of A. DINOWITZ, ZINERMAN, OTIS, SEAWRIGHT, GALLAGHER,
   STECK, DICKENS, JEAN-PIERRE, RAGA,  HYNDMAN,  L. ROSENTHAL  --  Multi-
   Sponsored  by  --  M.  of  A.  SIMON  -- read once and referred to the
   Committee on Consumer Affairs and Protection -- committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee  --  ordered  to  a  third  reading,  amended  and   ordered
   reprinted, retaining its place on 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:
 
   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 OR ELECTRONIC
 MAIL at the address OR E-MAIL ADDRESS specified in  the  contract.  Such
 contract  shall  contain  the following written notice in at least [ten]
 TWELVE point bold type: CONSUMERS RIGHT TO CANCELLATION. YOU MAY  CANCEL
 THIS CONTRACT WITHOUT ANY PENALTY OR FURTHER OBLIGATION WITHIN THREE (3)
 BUSINESS DAYS FROM THIS DATE . . . . . . Notice of cancellation shall be
 in  writing  subscribed by the buyer and mailed by [registered or certi-
 fied] United States mail OR ELECTRONIC MAIL to the seller at the address
 OR E-MAIL ADDRESS specified in such form. Such notice shall be  accompa-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01730-18-4
 A. 4667--B                          2
 
 nied  by the contract forms, 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] TEN
 business  days  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 negotiable instrument executed by the
 buyer shall also be returned within [fifteen] TEN BUSINESS days.
   3. (A) Every contract for services shall provide that after such three
 BUSINESS 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 BUSINESS  days  if
 the  buyer  becomes  significantly  physically  disabled for a period in
 excess of [six] THREE months,  or  moves  [his]  THEIR  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
 discontinuance 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  cancella-
 tion.  The  seller  may  require  reasonable evidence for a cancellation
 pursuant to this subdivision.
   (B) Such contract shall contain the following notice captioned  in  at
 least [ten] TWELVE 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.
   (C) All moneys paid  pursuant  to  such  contract  cancelled  for  the
 reasons contained in this subdivision shall be refunded within [fifteen]
 TEN  BUSINESS  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 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 within [fifteen] TEN BUSINESS days.
   4. (A) EVERY CONTRACT FOR SERVICES SHALL PROVIDE THAT SUCH HEALTH CLUB
 SHALL ACCEPT CANCELLATION OF A MEMBERSHIP BY THE BUYER  OR  THE  BUYER'S
 ESTATE,  AS  PROVIDED IN THIS SECTION, NO LATER THAN THREE BUSINESS DAYS
 AFTER RECEIVING NOTICE OF THE CANCELLATION.
   (B) WHERE A CONTRACT FOR SERVICES IS DUE  FOR  RENEWAL  ON  AN  ANNUAL
 BASIS,  SUCH  CONTRACT FOR SERVICES FOLLOWING THE INITIAL CONTRACT SHALL
 PROVIDE THAT SUCH HEALTH CLUB SHALL ACCEPT CANCELLATION OF RENEWAL OF  A
 MEMBERSHIP, BY THE BUYER OR THE BUYER'S ESTATE, PROVIDED SUCH REQUEST IS
 MADE WITHIN FIFTEEN BUSINESS DAYS AFTER SUCH RENEWAL TAKES EFFECT. WHERE
 A  CONTRACT  FOR  SERVICE  IS  DUE  FOR RENEWAL ON A MONTHLY BASIS, SUCH
 CONTRACT FOR SERVICES FOLLOWING THE INITIAL CONTRACT SHALL PROVIDE  THAT
 A. 4667--B                          3
 
 SUCH  HEALTH  CLUB  SHALL  ACCEPT  CANCELLATION  OF RENEWAL OF A MONTHLY
 MEMBERSHIP, BY THE BUYER OR THE BUYER'S ESTATE PROVIDED SUCH REQUEST  IS
 MADE WITHIN THREE BUSINESS DAYS AFTER SUCH RENEWAL TAKES EFFECT.
   (C)  SUCH HEALTH CLUB SHALL ACCEPT NOTICE OF CANCELLATION OF A MEMBER-
 SHIP THROUGH METHODS INCLUDING, BUT NOT LIMITED TO, WEBSITE,  ELECTRONIC
 MAIL, TELEPHONE, MAIL, OR IN PERSON.
   (D)  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 (C) OF THIS SUBDIVISION.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.