This bill amends current law regarding health club services contracts by introducing a requirement for health clubs to notify members if the facility is sold and the contracts are to be assigned to a new owner. Specifically, it mandates that health club facilities must inform members by mail or electronically about the change in ownership, the date of the transfer, and that the contract cannot be assigned to the new owner without the member's written consent. This consent can include electronic acknowledgment and must be obtained prior to the transfer of ownership.

Additionally, if the new owner fails to secure written consent from the member within 30 days of the ownership change, the contract will be considered canceled unless the member later agrees to the assignment. The bill aims to enhance consumer protection by ensuring that members have a say in the continuation of their contracts under new ownership, thereby promoting transparency and accountability in health club operations.

Statutes affected:
Introduced: 56:8-42