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History
- Referred to consumer protection
- Referred to consumer protection
Companion bill
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Eliminates price controls on health club contracts: annual and limited duration tennis
In Assembly Committee · Tourism, Parks, Arts And Sports Development · Sponsor Joseph Morelle
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.