BILL NUMBER: AB 693 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 30, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Eggman
FEBRUARY 25, 2015
An act to amend Sections 1812.84 and 1812.85 of the Civil Code,
relating to health studio services.
LEGISLATIVE COUNSEL'S DIGEST
AB 693, as amended, Eggman. Health studio services: cancellation.
Existing law authorizes a consumer to cancel a contract for health
studio services within specified timeframes after the contract is
executed, if the health studio fails to provide the specific
facilities advertised or offered, or if the health studio eliminates
or reduces the scope of the facilities, as specified.
The bill would specify that a contract for health studio services
may be canceled by the buyer in person or
person, via first-class mail. mail or
from an email address. The bill would make other conforming
changes.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1812.84 of the Civil Code is amended to read:
1812.84. (a) A contract for health studio services may not
require payments or financing by the buyer to exceed the term of the
contract, nor may the term of the contract exceed three years. This
subdivision does not apply to a member's obligation to pay valid,
outstanding moneys due under the contract, including moneys to be
paid pursuant to a termination notice period in the contract in which
the termination notice period does not exceed 30 days.
(b) A contract for health studio services shall include a
statement printed in a size at least 14-point type that discloses the
length of the term of the contract. This statement shall be placed
above the space reserved for the signature of the buyer.
(c) At any time a cancellation is authorized by this title, a
contract for health studio services may be canceled by the buyer in
person or person, via first-class
mail. mail or from an email address on file
with the health studio.
SEC. 2. Section 1812.85 of the Civil Code is amended to read:
1812.85. (a) Every contract for health studio services shall
provide that performance of the agreed-upon services will begin
within six months after the date the contract is entered into. The
consumer may cancel the contract and receive a pro rata refund if the
health studio fails to provide the specific facilities advertised or
offered in writing by the time indicated. If no time is indicated in
the contract, the consumer may cancel the contract within six months
after the execution of the contract and shall receive a pro rata
refund. If a health studio fails to meet a timeline set forth in this
section, the consumer may cancel the contract at any time after the
expiration of the timeline. However, if following the expiration of
the timeline, the health studio provides the advertised or
agreed-upon services, the consumer may cancel the contract up to 10
days after those services are provided.
(b) (1) Every contract for health studio services shall, in
addition, contain on its face, and in close proximity to the space
reserved for the signature of the buyer, a conspicuous statement in a
size equal to at least 10-point boldface type, as follows:
"You, the buyer, may choose to cancel this agreement at any time
prior to midnight of the fifth business day of the health studio
after the date of this agreement, excluding Sundays and holidays. To
cancel this agreement, mail mail, email,
or deliver a signed and dated notice that states that you, the
buyer, are canceling this agreement, or words of similar effect. The
notice shall be sent via first-class mail
mail, from an email address on file with the health studio, or
delivered in person to,
__________________________________
(Name of health studio operator)
at ______________________________________ __
(Address and e-mail address of health
____________________
(Address of health studio operator).''
(2) The contract for health studio services shall contain on the
first page, in a type size no smaller than that generally used in the
body of the document, the following: (A) the name and address of the
health studio operator to which the notice of cancellation is to be
mailed, and (B) the date the buyer signed the contract.
(3) The contract shall provide a description of the services,
facilities, and hours of access to which the consumer is entitled.
Any services, facilities, and hours of access that are not described
in the contract shall be considered optional services, and these
optional services shall be considered as separate contracts for the
purposes of this title and Section 1812.83.
(4) Until the health studio operator has complied with this
section, the buyer may cancel the contract for health studio
services.
(5) All moneys paid pursuant to a contract for health studio
services shall be refunded within 10 days after receipt of the notice
of cancellation, except that payment shall be made for any health
studio services received prior to cancellation.
(c) If at any time during the term of the contract, including a
transfer of the contractual obligation, the health studio eliminates
or substantially reduces the scope of the facilities, such as
swimming pools or tennis courts, that were described in the contract,
in an advertisement relating to the specific location, or in a
written offer, and available to the consumer upon execution of the
contract, the consumer may cancel the contract and receive a pro rata
refund. The consumer may not cancel the contract pursuant to this
subdivision if the health studio, after giving reasonable notice to
its members, temporarily takes facilities out of operation for
reasonable repairs, modifications, substitutions, or improvements.
This subdivision shall not be interpreted to give the consumer the
right to cancel a contract because of changes to the type or quantity
of classes or equipment offered, provided the consumer is informed
in the contract that the health studio reserves the right to make
changes to the type or quantity of classes or equipment offered and
the changes to the type or quantity of classes or equipment offered
are reasonable under the circumstances.
(d) (1) If a contract for health studio services requires payment
of one thousand five hundred dollars ($1,500) to two thousand dollars
($2,000), inclusive, including initiation fees or initial membership
fees, by the person receiving the services or the use of the
facility, the person shall have the right to cancel the contract
within 20 days after the contract is executed.
(2) If a contract for health studio services requires payment of
two thousand one dollars ($2,001) to two thousand five hundred
dollars ($2,500), inclusive, including initiation fees or initial
membership fees, by the person receiving the services or the use of
the facility, the person shall have the right to cancel the contract
within 30 days after the contract is executed.
(3) If a contract for health studio services requires payment of
two thousand five hundred one dollars ($2,501) or more, including
initiation fees or initial membership fees, by the person receiving
the services or the use of the facility, the person shall have the
right to cancel the contract within 45 days after the contract is
executed.
(4) The right of cancellation provided in this subdivision shall
be set out in the membership contract.
(5) The rights and remedies under this paragraph are cumulative to
any rights and remedies under other law.
(6) A health studio entering into a contract for health studio
services that requires a payment of less than one thousand five
hundred dollars ($1,500), including initiation or initial membership
fees and exclusive of interest or finance charges, by the person
receiving the services or the use of the facilities, is not required
to comply with paragraph (1), (2), or (3).
(e) Upon cancellation, the consumer shall be liable only for that
portion of the total contract payment, including initiation fees and
other charges however denominated, that has been available for use by
the consumer, based upon a pro rata calculation over the term of the
contract. The remaining portion of the contract payment shall be
returned to the consumer by the health studio.