SACRAMENTO, CA — Health clubs in California may soon see some changes due to a new law governing club contracts. California Assembly Bill 2664 states that if a health club enters into a contract with a member for $1,500 or less, the club would not be required to comply with the 20-, 30- and 45-day contract cancellation provisions during which a member can cancel his or her contract. The $1,500 payment includes initiation fees or initial membership fees, but it does not apply to interest or finance charges.
The bill made technical clarifications to Senate Bill 581, which was enacted last September to increase the price cap on the financial terms of health club contracts. Before Senate Bill 581 was passed, the health club contract law in California had not been changed since 1980, according to a report by the Senate Rules Committee.
The new law clarifies the provisions of the law and provides sufficient guidance to health club operators, according to the International Health, Racquet and Sportsclub Association, 24 Hour Fitness, Bally Total Fitness and Leisure Sports Club, the supporters of the bill.
For more information about the bill, visit http://www.aroundthecapitol.com/Bills/AB_2664/