BILL NUMBER: S8015B
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the general business law, in relation to the calculation
of the maximum fee for health clubs
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to adjust the current annual membership cost
ceiling enforced by the office of the New York State Attorney General
and in statute pursuant to section 623 of the general business law, to
account for changes in costs due to inflation.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends section 623 of the general business law to include
adjustments for inflation, and in a new subdivision 6 stipulates that
the annual price cap will be "adjusted for inflation based upon the US
Consumer Price 8 Index".
Section 2 sets the effective date.
 
JUSTIFICATION:
The New York Health Club Services Act was enacted in 1978 in reaction to
deceptive practices by a few health club operators in the then-nascent
health club industry. To protect consumers, the New York State legisla-
ture passed a series of laws to regulate contracts between consumers and
health clubs. Since the Act's adoption established a $3,600 annual cap
in 1991, but this has not been adjusted for inflation in over 30 years.
With the passage of over three decades, the Health Club Services act is
in need of updating so that it will recognize the overall rise in prices
in the state economy and the changing, competitive landscape of health
club services. It has failed to keep pace with the increasing costs of
providing such services, which enables competition and consumer choice
at all levels. This bill will allow for the health club industry to
remain economically viable in the face of rising costs.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8015: 623 general business law, 623(1) general business law
S8015A: 623 general business law, 623(1) general business law
S8015B: 623 general business law, 623(1) general business law