Amended in Senate June 30, 2016

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 Sectionsbegin delete 1812.84end deletebegin insert 1812.82, 1812.84,end insert and 1812.85 of the Civil Code, relating to health studio services.

LEGISLATIVE COUNSEL’S DIGEST

AB 2810, as amended, Eggman. Health studio services:begin insert contracts:end insert cancellation.

Existing lawbegin delete authorizesend deletebegin insert requires every health studio services contract to be in writing and that a copy of the written contract be given to the customer at the time he or she signs the contract.end insert

begin insert

This bill would, in the alternative, require that the contract be delivered by email to the customer at the time he or she signs the contract.

end insert
begin insert

Existing law requires the contract to include a statement that discloses the length of the term of the contract in at least 14-point type and requires the contract to contain on the first page the name and address of the health studio operator to which a notice of cancellation can be mailed and the date the buyer signed the contract.

end insert
begin insert

This bill would, instead, require the contract to disclose the initial or minimum length of the term of the contract and would, in the alternative, require the contract to be presented in an electronic format that is as equally legible as the printed contract.

end insert
begin insert

Existing law requires the contract to provide a description of the services, facilities, and hours of access that the consumer is entitled to and provides that any services, facilities, and hours of access that are not described in the contract are to be considered optional services and as separate contracts, as specified.

end insert
begin insert

This bill would, in the alternative, require a contract to state where the description of services, facilities, and hours of access that the consumer is entitled to is available on the health studio operator’s Internet Web site and would provide that any services, facilities, and hours of access that are not described in the contract or on the health studio operator’s Internet Web site are to be considered optional services and as separate contracts, as specified.

end insert

begin insertExisting law authorizesend insert 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.

begin delete

The

end delete

begin insertThisend insert bill would specify that a contract for health studio services may be canceled by the buyer in person, via email from an email address on file with the health studio, or via first-classbegin delete mail.end deletebegin insert mail, and would require that the email address to which a notice of cancellation email is to be sent be on the first page of the contract.end insert 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:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1812.82 of the end insertbegin insertCivil Codeend insertbegin insert is amended to
2read:end insert

3

1812.82.  

Every contract for health studio services shall be in
4writing and shall be subject to the provisions of this title. A copy
5of the written contract shall bebegin insert physicallyend insert given tobegin insert or delivered by
6email toend insert
the customer at the time hebegin insert or sheend insert signs the contract.

7

begin deleteSECTION 1.end delete
8
begin insertSEC. 2.end insert  

Section 1812.84 of the Civil Code is amended to read:

P3    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 typebegin insert or presented in an equally
11 legible electronic formatend insert
that discloses thebegin insert initial or minimumend insert
12 length of the term of the contract. This statement shall be placed
13above the space reserved for the signature of the buyer.

14(c) At any time a cancellation is authorized by this title, a
15contract for health studio services may be canceled by the buyer
16in person, via email from an email address on file with the health
17studio, or via first-class mail.

18

begin deleteSEC. 2.end delete
19
begin insertSEC. 3.end insert  

Section 1812.85 of the Civil Code is amended to read:

20

1812.85.  

(a) Every contract for health studio services shall
21provide that performance of the agreed-upon services will begin
22within six months after the date the contract is entered into. The
23consumer may cancel the contract and receive a pro rata refund if
24the health studio fails to provide the specific facilities advertised
25or offered in writing by the time indicated. If no time is indicated
26in the contract, the consumer may cancel the contract within six
27months after the execution of the contract and shall receive a pro
28rata refund. If a health studio fails to meet a timeline set forth in
29this section, the consumer may cancel the contract at any time after
30the expiration of the timeline. However, if following the expiration
31of the timeline, the health studio provides the advertised or
32 agreed-upon services, the consumer may cancel the contract up to
3310 days after those services are provided.

34(b) (1) Every contract for health studio services shall, in
35addition, contain on its face, and in close proximity to the space
36reserved for the signature of the buyer, a conspicuous statement
37in a size equal to at least 10-point boldface type, as follows:

38“You, the buyer, may choose to cancel this agreement at any
39time prior to midnight of the fifth business day of the health studio
40after the date of this agreement, excluding Sundays and holidays.
P4    1To cancel this agreement, mail, email, or deliver a signed and dated
2notice that states that you, the buyer, are canceling this agreement,
3or words of similar effect. The notice shall be sent via first-class
4 mail, via email from an email address on file with the health studio,
5or delivered in person to


6

 

   

(Name of health studio operator)

at    

(Address and email address of health studio operator).”

P4   11

 

12(2) The contract for health studio services shall contain on the
13first page, in a type size no smaller than that generally used in the
14body of the document, the following: (A) the name andbegin insert mailingend insert
15 address of the health studio operator to which the notice of
16cancellation is to be mailed,begin insert (B) the email address of the health
17studio operator to which a notice of cancellation email is to be
18sent,end insert
andbegin delete (B)end deletebegin insert (C)end insert the date the buyer signed the contract.

19(3) The contract shall provide a description of the services,
20facilities, and hours of access to which the consumer isbegin delete entitled.end delete
21begin insert entitled or state where that information is available on the health
22studio operator’s Internet Web site.end insert
Any services, facilities, and
23hours of access that are not described in the contractbegin insert or on the
24health studio operator’s Internet Web siteend insert
shall be considered
25optional services, and these optional services shall be considered
26as separate contracts for the purposes of this title and Section
271812.83.

28(4) Until the health studio operator has complied with this
29section, the buyer may cancel the contract for health studio
30services.

31(5) All moneys paid pursuant to a contract for health studio
32services shall be refunded within 10 days after receipt of the notice
33of cancellation, except that payment shall be made for any health
34studio services received prior to cancellation.

35(c) If at any time during the term of the contract, including a
36transfer of the contractual obligation, the health studio eliminates
37or substantially reduces the scope of the facilities, such as
38swimming pools or tennis courts, that were described in the
39contract, in an advertisement relating to the specific location, or
40in a written offer, and available to the consumer upon execution
P5    1of the contract, the consumer may cancel the contract and receive
2a pro rata refund. The consumer may not cancel the contract
3pursuant to this subdivision if the health studio, after giving
4reasonable notice to its members, temporarily takes facilities out
5of operation for reasonable repairs, modifications, substitutions,
6or improvements. This subdivision shall not be interpreted to give
7the consumer the right to cancel a contract because of changes to
8the type or quantity of classes or equipment offered, provided the
9consumer is informed in the contract that the health studio reserves
10the right to make changes to the type or quantity of classes or
11equipment offered and the changes to the type or quantity of classes
12or equipment offered are reasonable under the circumstances.

13(d) (1) If a contract for health studio services requires payment
14of one thousand five hundred dollars ($1,500) to two thousand
15dollars ($2,000), inclusive, including initiation fees or initial
16membership fees, by the person receiving the services or the use
17of the facility, the person shall have the right to cancel the contract
18within 20 days after the contract is executed.

19(2) If a contract for health studio services requires payment of
20two thousand one dollars ($2,001) to two thousand five hundred
21dollars ($2,500), inclusive, including initiation fees or initial
22membership fees, by the person receiving the services or the use
23of the facility, the person shall have the right to cancel the contract
24within 30 days after the contract is executed.

25(3) If a contract for health studio services requires payment of
26two thousand five hundred one dollars ($2,501) or more, including
27initiation fees or initial membership fees, by the person receiving
28the services or the use of the facility, the person shall have the
29right to cancel the contract within 45 days after the contract is
30executed.

31(4) The right of cancellation provided in this subdivision shall
32be set out in the membership contract.

33(5) The rights and remedies under this paragraph are cumulative
34to any rights and remedies under other law.

35(6) A health studio entering into a contract for health studio
36services that requires a payment of less than one thousand five
37hundred dollars ($1,500), including initiation or initial membership
38fees and exclusive of interest or finance charges, by the person
39receiving the services or the use of the facilities, is not required to
40comply with paragraph (1), (2), or (3).

P6    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.



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