AB 693,
as amended, Eggman. begin deleteRenewable energy: solar energy systems: low-income residential housing. end deletebegin insertHealth studio services: cancellation.end insert
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.
end insertbegin insertThe bill would specify that a contract for health studio services may be canceled by the buyer in person or via first-class mail. The bill would make other conforming changes.
end insertUnder existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations, as defined. A decision of the PUC adopted the California Solar Initiative. Existing law requires the PUC to undertake certain steps in implementing the California Solar Initiative for low-income residential housing.
end deleteThe bill would make a nonsubstantive change to that provision.
end deleteVote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 1812.84 of the end insertbegin insertCivil Codeend insertbegin insert is amended to
2read:end insert
(a) A contract for health studio services may not
4require payments or financing by the buyer to exceed the term of
5the contract, nor may the term of the contract exceed three years.
6This subdivision does not apply to a member’s obligation to pay
7valid, outstanding moneys due under the contract, including
8moneys to be paid pursuant to a termination notice period in the
9contract in which the termination notice period does not exceed
1030 days.
11(b) A contract for health studio services shall include a statement
12printed in a size at least 14-point type that discloses the length of
13the term of the contract. This statement shall be placed above the
14space reserved for the signature of the buyer.
15(c) At any time a cancellation is authorized by this title, a
16contract for health studio services may be canceled by the buyer
17in person or via first-class mail.
begin insertSection 1812.85 of the end insertbegin insertCivil Codeend insertbegin insert is amended to read:end insert
(a) Every contract for health studio services shall
20provide that performance of the agreed-upon services will begin
21within six months after the date the contract is entered into. The
22consumer may cancel the contract and receive a pro rata refund if
23the health studio fails to provide the specific facilities advertised
24or offered in writing by the time indicated. If no time is indicated
25in the contract, the consumer may cancel the contract within six
26months after the execution of the contract and shall receive a pro
27rata refund. If a health studio fails to meet a timeline set forth in
28this section, the consumer may cancel the contract at any time after
29the expiration of the timeline. However, if following the expiration
30of the timeline, the health studio provides the advertised or
31
agreed-upon services, the consumer may cancel the contract up to
3210 days after those services are provided.
33(b) (1) Every contract for health studio services shall, in
34addition, contain on its face, and in close proximity to the space
P3 1reserved for the signature of the buyer, a conspicuous statement
2in a size equal to at least 10-point boldface type, as follows:
3“You, the buyer, maybegin insert choose toend insert cancel this agreement at any
4time prior to midnight of the fifth business day of the health studio
5after the date of this agreement, excluding Sundays and holidays.
6To cancel this agreement, mail or deliver a signed and datedbegin delete notice, begin insert
notice thatend insert
states that you, the buyer, are
7or send a telegram whichend delete
8canceling this agreement, or words of similar effect. The notice
9shall be sentbegin insert via firstend insertbegin insert-class mail or delivered in personend insert to,
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16(2) The contract for health studio services shall contain on the
17first page, in a type size no smaller than that generally used in the
18body of the document, the following: (A) the name and address
19of the health studio operator to which the notice of cancellation is
20to be mailed, and (B) the date the buyer signed the contract.
21(3) The contract shall provide a description of the services,
22facilities, and hours of access to which the consumer is entitled.
23Any services, facilities, and hours of access that are not described
24in the contract shall be considered optional services, and these
25optional services shall be considered as separate contracts for the
26purposes of this title and Section 1812.83.
27(4) Until
the health studio operator has complied with this
28section, the buyer may cancel the contract for health studio
29services.
30(5) All moneys paid pursuant to a contract for health studio
31services shall be refunded within 10 days after receipt of the notice
32of cancellation, except that payment shall be made for any health
33studio services received prior to cancellation.
34(c) If at any time during the term of the contract, including a
35transfer of the contractual obligation, the health studio eliminates
36or substantially reduces the scope of the facilities, such as
37swimming pools or tennis courts, that were described in the
38contract, in an advertisement relating to the specific location, or
39in a written offer, and available to the consumer upon execution
40of the contract, the consumer may cancel the contract and receive
P4 1a pro rata refund. The consumer may not cancel the contract
2pursuant to
this subdivision if the health studio, after giving
3reasonable notice to its members, temporarily takes facilities out
4of operation for reasonable repairs, modifications, substitutions,
5or improvements. This subdivision shall not be interpreted to give
6the consumer the right to cancel a contract because of changes to
7the type or quantity of classes or equipment offered, provided the
8consumer is informed in the contract that the health studio reserves
9the right to make changes to the type or quantity of classes or
10equipment offered and the changes to the type or quantity of classes
11or equipment offered are reasonable under the circumstances.
12(d) (1) If a contract for health studio services requires payment
13of one thousand five hundred dollars ($1,500) to two thousand
14dollars ($2,000), inclusive, including initiation fees or initial
15membership fees, by the person receiving the services or the use
16of the facility, the person
shall have the right to cancel the contract
17within 20 days after the contract is executed.
18(2) If a contract for health studio services requires payment of
19two thousand one dollars ($2,001) to two thousand five hundred
20dollars ($2,500), inclusive, including initiation fees or initial
21membership fees, by the person receiving the services or the use
22of the facility, the person shall have the right to cancel the contract
23within 30 days after the contract is executed.
24(3) If a contract for health studio services requires payment of
25two thousand five hundred one dollars ($2,501) or more, including
26initiation fees or initial membership fees, by the person receiving
27the services or the use of the facility, the person shall have the
28right to cancel the contract within 45 days after the contract is
29executed.
30(4) The right of
cancellation provided in this subdivision shall
31be set out in the membership contract.
32(5) The rights and remedies under this paragraph are cumulative
33to any rights and remedies under other law.
34(6) A health studio entering into a contract for health studio
35services that requires a payment of less than one thousand five
36hundred dollars ($1,500), including initiation or initial membership
37fees and exclusive of interest or finance charges, by the person
38receiving the services or the use of the facilities, is not required to
39comply with paragraph (1), (2), or (3).
P5 1(e) Upon cancellation, the consumer shall be liable only for that
2portion of the total contract payment, including initiation fees and
3other charges however denominated, that has been available for
4use by the consumer, based upon a pro rata calculation over
the
5term of the contract. The remaining portion of the contract payment
6shall be returned to the consumer by the health studio.
Section 2852 of the Public Utilities Code is
8amended to read:
(a) As used in this section, the following terms have the
10following meanings:
11(1) “Affordable housing cost,” “affordable rent,” and “lower
12income households” have the same meanings as in those set forth
13in Chapter 2 (commencing with Section 50050) of Part 1 of
14Division 31 of the Health and Safety Code.
15(2) “California Solar Initiative” means the program providing
16ratepayer-funded incentives for eligible solar energy systems
17adopted by the Public Utilities Commission in Decision 05-12-044
18and Decision 06-01-024.
19(3) “Low-income residential housing” means any of the
20following:
21(A) A multifamily residential complex financed with
22low-income housing tax credits, tax-exempt mortgage revenue
23bonds, general obligation bonds, or local, state, or federal loans
24or grants, and for which either of the following applies:
25(i) The rents of the occupants who are lower income households
26do not exceed those prescribed by deed restrictions or regulatory
27agreements pursuant to the terms of the financing or financial
28assistance.
29(ii) The affordable units have been or will be initially sold at an
30affordable housing cost to a lower income household and those
31units are subject to a resale restriction or equity sharing agreement
32pursuant to the terms of the financing or financial assistance.
33(B) A multifamily residential complex in which
20 percent or
34more of the total housing units are sold or rented to lower income
35households and either of the following applies:
36(i) The rental housing units targeted for lower income
37households are subject to a deed restriction or affordability
38covenant with a public entity or nonprofit housing provider
39organized under Section 501(c)(3) of the Internal Revenue Code
40that has as its stated purpose in its articles of incorporation on file
P6 1with the office of the Secretary of State to provide affordable
2housing to lower income households that ensures that the units
3will be available at an affordable rent for a period of at least 30
4years.
5(ii) The housing units have been or will be initially sold at an
6affordable cost to a lower income household and those units are
7subject to a
resale restriction or equity sharing agreement, for
8which the homeowner does not receive a greater share of equity
9than described in paragraph (2) of subdivision (c) of Section 65915
10of the Government Code, with a public entity or nonprofit housing
11provider organized under Section 501(c)(3) of the Internal Revenue
12Code that has as its stated purpose in its articles of incorporation
13on file with the office of the Secretary of State to provide affordable
14housing to lower income households.
15(C) An individual residence sold at an affordable housing cost
16to a lower income household that is subject to a resale restriction
17or equity sharing agreement, for which the homeowner does not
18receive a greater share of equity than described in paragraph (2)
19of subdivision (c) of Section 65915 of the Government Code, with
20a public entity or nonprofit housing provider organized under
21Section 501(c)(3) of the Internal Revenue Code that has as its
22stated purpose
in its articles of incorporation on file with the office
23of the Secretary of State to provide affordable housing to lower
24income households.
25(4) “Solar energy system” means a solar energy device that has
26the primary purpose of providing for the collection and distribution
27of solar energy for the generation of electricity, that produces at
28least one kilowatt, and produces not more than five megawatts,
29alternating current rated peak electricity, and that meets or exceeds
30the eligibility criteria established by the commission or the Energy
31Commission.
32(b) In establishing the California Solar Initiative, no moneys
33shall be diverted from any existing programs for low-income
34ratepayers, or from cost-effective energy efficiency or demand
35response programs.
36(c) (1) The commission shall ensure that not
less than 10 percent
37of the funds for the California Solar Initiative, as specified in
38subdivision (e) of, or moneys collected pursuant to subdivision (f)
39of, Section 2851, are utilized for the installation of solar energy
40systems on low-income residential housing. Notwithstanding any
P7 1other law, the commission may modify the monetary incentives
2made available pursuant to the California Solar Initiative to
3accommodate the limited financial resources of low-income
4residential housing.
5(2) The commission may incorporate a revolving loan or loan
6guarantee program into the California Solar Initiative for
7low-income residential housing. All loans outstanding as of January
81, 2022, shall continue to be repaid consistent with the terms and
9conditions of the program adopted and implemented by the
10commission pursuant to this subdivision, until repaid in full.
11(3) All moneys set aside for
the purpose of funding the
12installation of solar energy systems on low-income residential
13housing that are unexpended and unencumbered on January 1,
142022, and all moneys thereafter repaid pursuant to paragraph (2),
15except to the extent those moneys are encumbered pursuant to this
16section, shall be utilized to augment existing cost-effective energy
17efficiency measures in low-income residential housing that benefit
18ratepayers.
19(d) In supervising a program implementing the California Solar
20Initiative pursuant to this section, the commission shall ensure that
21the program does all of the following:
22(1) Is designed to maximize the overall benefit to ratepayers.
23(2) Requires participants who receive monetary incentives to
24enroll in the Energy Savings Assistance Program established
25pursuant to Section 382, if eligible.
26(3) Provides job training and employment opportunities in the
27solar energy and energy efficiency sectors of the economy.
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