Requires notification to members of health club if club is to be sold and health club services contract assigned to new owner.
What changed between versions
The single written-consent requirement for contract assignment upon ownership change was replaced with a two-track system: if no services decrease or prices increase, the buyer must affirmatively deny assignment (opt-out); if services decrease or prices increase, the buyer must affirmatively consent within 30 days of transfer (opt-in), otherwise the contract is deemed cancelled.
A new subsection (3) requires the facility owner to post a physical notice in a prominent location at least 15 days before and for 26 days after the ownership transfer, including the new business name, date of change, and information that buyers may decline assignment within 26 days.
A 26-day post-transfer nullification window was added: if a buyer allows contract assignment (in the no-change scenario) or consents to it (in the change scenario), they can still cancel within 26 days after the transfer.
The original provision requiring that written consent be sent separately from the contract in advance of any transfer was removed and replaced with the broader opt-out/opt-in framework.
A new requirement that facilities notify buyers by mail or electronically at least 60 days in advance of any ownership change was added to both scenarios.
A refund obligation was added: if charges were made against a buyer's account during the 26-day post-transfer period, including after the buyer requested nullification or cancellation, the facility must issue a refund within 10 business days.
