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S4096
SENATE, No. 4096
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 4, 2026
Sponsored by:
Senator� ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
���� Requires health club services contract contain
certain provisions regarding procedures during outbreak of infectious disease.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
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 by telephone to the health club facility location
where the contract was entered into or online, if the contract was entered into
online; by regular, registered, or certified mail received within the three-day
period, 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 take any one
of the following actions:
���� 1���� Send a signed and dated
written notice of cancellation by regular, registered, or certified mail,
return receipt requested;�
���� 2.��� Personally deliver a
signed and dated written notice of cancellation to:
..................................... (Name of health club)
..................................... (Address of health club);
���� 3.��� Personally place a
telephone call to the health club facility location where the agreement was
initially entered into; or
���� 4.��� If you entered into the
contract online, use either the direct link on the health club facility's
Internet website, the user settings on your smartphone or tablet, or a
termination email formatted and provided by the health club facility to cancel
the contract online.
���� 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 telephone or
written notice online, if the contract was entered into online; sent by
regular, 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%
]
10 percent
�of the total contract price.
���� g.��� A health club services
contract shall provide that it is subject to cancellation by telephone or
written notice online if the contract was entered into online; sent by regular,
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%
]
10 percent
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. A buyer who
entered into a health club services contract online shall be provided with the
option to terminate the automatic renewal of the health club services contract online
through a direct link or button on the health club facility's Internet website.
The link or button shall be in a prominent location on the health club
facility's Internet website and in clear and conspicuous text.
���� 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.���
A health club
services contract shall provide that if a health club facility is closed due to
a state of emergency or public health emergency declared by the Governor in
response to an outbreak of infectious disease occurring in or out of the State:
����
(1)�� the health club
facility shall provide notice to the buyer regarding the closing and reopening
of the facility and the buyer�s payment obligation;
����
(2)�� the buyer may elect
to place the buyer�s health club membership on hold until the state of
emergency or public health emergency is lifted by the Governor, during which
time any recurring payment obligation shall be waived by the health club
facility;
����
(3)�� the buyer may elect
to cancel the buyer�s health club facility membership due to health concerns;
and
����
(4)�� if the buyer elects
to cancel the buyer�s health club facility membership due to health concerns,
the health club facility shall not charge the buyer any cancellation fee or
termination penalty.�
����
As used in this subsection,
�outbreak� means any unusual occurrence of disease or any disease above
background or endemic levels.
����
l.
���� 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.
���� �
Outbreak� means any
unusual occurrence of disease or any disease above background or endemic
levels.
(cf: P.L.2023, c.241, s.2)
���� 2.��� This act shall take
effect immediately.�
STATEMENT
���� This bill requires health club
services contracts contain provisions regarding procedures during an outbreak
of infectious disease.
���� Under the bill, a health club
services contract is to provide that if a health club facility is closed due to
a state of emergency or public health emergency declared by the Governor in
response to an outbreak of infectious disease occurring in or out of the State:
�
the health club
facility is to provide notice to the buyer regarding the closing and reopening
of the facility and the buyer�s payment obligations;
�
the buyer may
elect to place the buyer�s health club membership on hold until the state of
emergency or public health emergency is lifted by the Governor, during which
time any recurring payment obligation is to be waived by the health club
facility;
�
the buyer may
cancel the buyer�s health club facility membership due to health concerns; and
�
if the buyer
elects to cancel the buyer�s health club facility membership due to health
concerns, the health club facility is not to charge the buyer any cancellation
fee or termination penalty.
�
���� The bill defines �outbreak� to
mean any unusual occurrence of disease or any disease above background or
endemic levels.