Amended in Assembly April 18, 2016

Amended in Assembly April 11, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2810


Introduced by Assembly Member Eggman

February 19, 2016


An act to amend Sections 1812.84 and 1812.85 of the Civil Code, relating to health studio services.

LEGISLATIVE COUNSEL’S DIGEST

AB 2810, 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 inbegin delete personend deletebegin insert person, via email end insertbegin insertfrom an email address on file with the health studio,end insert or via first-class mail. 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:

P1    1

SECTION 1.  

Section 1812.84 of the Civil Code is amended
2to read:

P2    1

1812.84.  

(a) A contract for health studio services may not
2require payments or financing by the buyer to exceed the term of
3the contract, nor may the term of the contract exceed three years.
4This subdivision does not apply to a member’s obligation to pay
5valid, outstanding moneys due under the contract, including
6moneys to be paid pursuant to a termination notice period in the
7contract in which the termination notice period does not exceed
830 days.

9(b) A contract for health studio services shall include a statement
10printed in a size at least 14-point type that discloses the length of
11the term of the contract. This statement shall be placed above the
12space reserved for the signature of the buyer.

13(c) At any time a cancellation is authorized by this title, a
14contract for health studio services may be canceled by the buyer
15inbegin delete personend deletebegin insert person, via email from an email address on file with the
16health studio,end insert
or via first-class mail.

17

SEC. 2.  

Section 1812.85 of the Civil Code is amended to read:

18

1812.85.  

(a) Every contract for health studio services shall
19provide that performance of the agreed-upon services will begin
20within six months after the date the contract is entered into. The
21consumer may cancel the contract and receive a pro rata refund if
22the health studio fails to provide the specific facilities advertised
23or offered in writing by the time indicated. If no time is indicated
24in the contract, the consumer may cancel the contract within six
25months after the execution of the contract and shall receive a pro
26rata refund. If a health studio fails to meet a timeline set forth in
27this section, the consumer may cancel the contract at any time after
28the expiration of the timeline. However, if following the expiration
29of the timeline, the health studio provides the advertised or
30 agreed-upon services, the consumer may cancel the contract up to
3110 days after those services are provided.

32(b) (1) Every contract for health studio services shall, in
33addition, contain on its face, and in close proximity to the space
34reserved for the signature of the buyer, a conspicuous statement
35in a size equal to at least 10-point boldface type, as follows:

36“You, the buyer, may choose to cancel this agreement at any
37time prior to midnight of the fifth business day of the health studio
38after the date of this agreement, excluding Sundays and holidays.
39To cancel this agreement,begin delete mailend deletebegin insert mail, email,end insert or deliver a signed and
40dated notice that states that you, the buyer, are canceling this
P3    1agreement, or words of similar effect. The notice shall be sent via
2first-classbegin delete mailend deletebegin insert mail, via email from an email address on file with
3the health studio,end insert
or delivered in personbegin delete to,end deletebegin insert toend insert


4

 

   

(Name of health studio operator)

at    

(Address begin insert and email address end insertof health studio operator).”

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10(2) The contract for health studio services shall contain on the
11first page, in a type size no smaller than that generally used in the
12body of the document, the following: (A) the name and address
13of the health studio operator to which the notice of cancellation is
14to be mailed, and (B) the date the buyer signed the contract.

15(3) The contract shall provide a description of the services,
16facilities, and hours of access to which the consumer is entitled.
17Any services, facilities, and hours of access that are not described
18in the contract shall be considered optional services, and these
19optional services shall be considered as separate contracts for the
20purposes of this title and Section 1812.83.

21(4) Until the health studio operator has complied with this
22section, the buyer may cancel the contract for health studio
23services.

24(5) All moneys paid pursuant to a contract for health studio
25services shall be refunded within 10 days after receipt of the notice
26of cancellation, except that payment shall be made for any health
27studio services received prior to cancellation.

28(c) If at any time during the term of the contract, including a
29transfer of the contractual obligation, the health studio eliminates
30or substantially reduces the scope of the facilities, such as
31swimming pools or tennis courts, that were described in the
32contract, in an advertisement relating to the specific location, or
33in a written offer, and available to the consumer upon execution
34of the contract, the consumer may cancel the contract and receive
35a pro rata refund. The consumer may not cancel the contract
36pursuant to this subdivision if the health studio, after giving
37reasonable notice to its members, temporarily takes facilities out
38of operation for reasonable repairs, modifications, substitutions,
39or improvements. This subdivision shall not be interpreted to give
40the consumer the right to cancel a contract because of changes to
P4    1the type or quantity of classes or equipment offered, provided the
2consumer is informed in the contract that the health studio reserves
3the right to make changes to the type or quantity of classes or
4equipment offered and the changes to the type or quantity of classes
5or equipment offered are reasonable under the circumstances.

6(d) (1) If a contract for health studio services requires payment
7of one thousand five hundred dollars ($1,500) to two thousand
8dollars ($2,000), inclusive, including initiation fees or initial
9membership fees, by the person receiving the services or the use
10of the facility, the person shall have the right to cancel the contract
11within 20 days after the contract is executed.

12(2) If a contract for health studio services requires payment of
13two thousand one dollars ($2,001) to two thousand five hundred
14dollars ($2,500), 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 30 days after the contract is executed.

18(3) If a contract for health studio services requires payment of
19two thousand five hundred one dollars ($2,501) or more, including
20initiation fees or initial membership fees, by the person receiving
21the services or the use of the facility, the person shall have the
22right to cancel the contract within 45 days after the contract is
23executed.

24(4) The right of cancellation provided in this subdivision shall
25be set out in the membership contract.

26(5) The rights and remedies under this paragraph are cumulative
27to any rights and remedies under other law.

28(6) A health studio entering into a contract for health studio
29services that requires a payment of less than one thousand five
30hundred dollars ($1,500), including initiation or initial membership
31fees and exclusive of interest or finance charges, by the person
32receiving the services or the use of the facilities, is not required to
33comply with paragraph (1), (2), or (3).

34(e) Upon cancellation, the consumer shall be liable only for that
35portion of the total contract payment, including initiation fees and
36other charges however denominated, that has been available for
37use by the consumer, based upon a pro rata calculation over the
P5    1term of the contract. The remaining portion of the contract payment
2shall be returned to the consumer by the health studio.



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