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S1388 TR
SENATE, No. 1388
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Senator JOSEPH A. LAGANA
District 38 (Bergen)
Senator NICHOLAS P. SCUTARI
District 22 (Somerset and Union)
Co-Sponsored by:
Senator Bramnick
SYNOPSIS
���� Prohibits health club services contracts from
limiting liability for injuries caused by negligence of health club.
CURRENT VERSION OF TEXT
���� As reported by the Senate Commerce Committee with
technical review.
��
An Act
concerning health club services contracts and amending
P.L.1987, c.238.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 4 of P.L.1987,
c.238 (C.56:8-42) is amended to read as follows:
���� 4.��� a.�� Every contract for
health club services shall be in writing.� A copy of the written contract shall
be given to the buyer at the time the buyer signs the contract.
���� b.��� A health club services
contract shall specifically set forth in a conspicuous manner on the first page
of the contract the buyer's total payment obligation for health club services
to be received pursuant to the contract.
���� c.���� A health club services
contract of a health club facility which maintains a bond, irrevocable letter
of credit or securities, moneys or other security pursuant to subsection a. of
section 3 of this act shall set forth that a bond, irrevocable letter of credit
or securities, moneys or other security is filed or deposited with the Director
of the Division of Consumer Affairs to protect buyers of these contracts who
are damaged or suffer any loss by reason of breach of contract or bankruptcy by
the seller.
���� d.��� Services to be rendered
to the buyer under the contract shall not obligate the buyer for more than
three years from the date the contract is signed by the buyer.
���� e.���� A contract for new or
increased health club services may be cancelled by the buyer for any reason at
any time before midnight of the third operating day after the buyer receives a
copy of the contract.� In order to cancel a contract the buyer shall notify the
health club of cancellation in writing, by registered or certified mail, return
receipt requested, or personal delivery, to the address specified in the
contract. All moneys paid pursuant to the cancelled contract shall be fully
refunded within 30 days of receipt of the notice of cancellation.� If the
customer has executed any credit or loan agreement through the health club to
pay all or part of health club services, the negotiable instrument executed by
the buyer shall also be returned within 30 days.� The contract shall contain a
conspicuous notice printed in at least 10-point bold-faced type as follows:
"NOTICE
TO CUSTOMER"
���� You are entitled to a copy of
this contract at the time you sign it.
���� You may cancel this contract
at any time before midnight of the third operating day after receiving a copy
of this contract. If you choose to cancel this contract, you must either:
���� 1.��� Send a signed and dated
written notice of cancellation by registered or certified mail, return receipt
requested; or
���� 2.��� Personally deliver a
signed and dated written notice of cancellation to:
..................................... (Name of health club)�
..................................... (Address of health club)
���� If you cancel this contract
within the three-day period, you are entitled to a full refund of your money.�
If the third operating day falls on a Sunday or holiday, notice is timely given
if it is mailed or delivered as specified in this notice on the next operating
day.� Refunds must be made within 30 days of receipt of the cancellation notice
to the health club.�
���� 'Operating day' means any
calendar day on which patrons may inspect and use the health club's facilities
and services during a period of at least eight hours, except holidays and
Sundays."
���� f.���� A health club services
contract shall provide that it is subject to cancellation by notice sent by
registered or certified mail, return receipt requested, or personally
delivered, to the address of the health club specified in the contract upon the
buyer's death or permanent disability, if the permanent disability is fully
described and confirmed to the health club by a physician.� In a cancellation
under this subsection, the health club may retain the portion of the total
contract price representing the services used plus reimbursement for expenses
incurred in an amount not to exceed 10% of the total contract price.
���� g.��� A health club services
contract shall provide that it is subject to cancellation by notice sent by
registered or certified mail, return receipt requested, or personally
delivered, to the address of the health club specified in the contract upon the
buyer's change of permanent residence to a location more than 25 miles from the
health club or an affiliated health club offering the same or similar services
and facilities at no additional expense to the buyer.� In a cancellation under
this subsection, the health club may require proof of the new permanent
residence and may retain a prorated share of the total contract price based
upon the date the notice was received plus reimbursement for expenses incurred
in an amount not to exceed 10% of the total contract price.
���� h.��� A health club services
contract shall provide that if a health club facility is closed for a period
longer than 30 days through no fault of the buyer of the health club services
contract, the buyer is entitled to either extend the contract for a period equal
to that during which the facility is closed or to receive a prorated refund of
the amount paid by the buyer under the contract.
���� i.���� A health club services
contract shall not obligate the buyer to renew the contract.
���� j.���� If a health club
facility is not in existence on the date the contract is executed, the health
club services contract shall provide that a buyer of a contract may cancel the
contract if the facility is not open for business on a date which shall be set
forth in the contract and receive a full refund of any deposit or payment on
the contract.
���� k.��� As used in this section:
���� "Automatic renewal"
means a plan or arrangement in which a health club services contract is
automatically renewed at the end of a definite term for a subsequent term.
���� "Clear and
conspicuous" means in larger type than the surrounding text, or in
contrasting type, font, or color to the surrounding text of the same size, or
set off from the surrounding text of the same size by symbols or other marks,
in a manner that clearly calls attention to the language.
����
l.���� A health club
services contract shall not limit the liability of the health club to a buyer
for injuries caused by or resulting from the negligence of the owner or
operator, or an agent or employee of the owner or operator, of the health club.
(cf: P.L.2023, c.241, s.2)
���� 2.��� This act shall take
effect on the first day of the ninth month next following the date of enactment.