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 ownership transfer consent mechanism was restructured from a single opt-in consent rule into two scenarios: (1) if services and prices remain unchanged, the contract is assigned by default unless the buyer actively denies it, with a 26-day post-transfer window to nullify; (2) if services decrease or prices increase, the contract is only assigned if the buyer affirmatively consents within 30 days of transfer, otherwise it is deemed cancelled.
A new requirement mandates that the facility notify buyers at least 60 days in advance of an ownership change (previously no specific advance notice period was required).
A new physical posting requirement obligates the owner to post a notice in a prominent location at the facility at least 15 days before the transfer and for 26 days after, including the new business name, date of change, and the buyer's right to decline assignment.
A refund requirement was added: if any charges were made against a buyer's account during the 26-day post-transfer period (including after the buyer requested nullification), the facility must issue a refund within 10 business days.
The bill's STATEMENT section (a summary paragraph explaining the bill's purpose) was removed in the reprint version.