A 4048 — Requires notification to members of health club if club is to be sold and health club services contract assigned to new owner.

A4048 1R2R [First[Second Reprint] ASSEMBLY, No.

  CURRENT VERSION OF TEXT      As reported by the Assembly ConsumerCommerce Affairsand Economic Development Committee on MarchMay 19,14, 2026, with amendments.

  “NOTICE TO CUSTOMER”      You are entitled to a copy of this contract at the time you sign it.

1[A health club services contract shall provide that the] (1) If a1 health club facility 1is to change ownership but the new ownership does not result in contract alterations regarding a decrease in service offerings or increase in price 2, but does result in a change in the name of the business,2 upon the ownership transfer, the facility1 shall notify, by mail or electronically 1and at least 60 days in advance1,advance1 the2; buyer of a 1health club services1 contract:

and again by mail or electronically and at least 30 days in advance2 , the buyer of a 1health club services1 contract:

1that membership rates and services remain the same;1 2[the date of the transfer of ownership;]2 1the business name of the facility under new ownership;1 2the date billing under the new business entity begins;2 and 1a stipulation1 that the contract shall not be assigned to the new owner 1[unless] if1 the buyer of the contract 1[provides written consent.  The written consent may include electronic acknowledgement by a buyer of the contract that is sent, separately from the contract, in advance of any transfer of ownership;the facility ownership.

1theIf businessthe namenew owner fails to obtain written consent from the buyer of the facilitycontract within 30 days of the change in ownership, the contract shall be deemed canceled, unless the buyer subsequently consents to its assignment] denies, through written 2[or],2 electronic 2, or in-person2 communication, assignment of the contract to the new owners 2seven days before the date billing under the new ownership;1entity andbegins 1ain stipulation1which thatto nullify the contract2.  If the buyer of the contract shallallows notthe contract to be assigned to the new ownerowners 1[unless]of if1the health club facility, the buyer shall have up to 2[26] seven2 days 2[after] before2 the 2[transfer of facility ownership] date billing under the contractnew 1[providesentity writtenbegins consent. in Thewhich2 writtento consentnullify maythe includecontract.  electronicIf acknowledgementany bycharges were made against the account of the buyer2,2 including after a buyer requested nullification of thea contract that2[, isduring sent,the separately26-day fromperiod following the contract,transfer inof advanceownership,] ofbut anynot before the request was made2, during the 2[26-day] seven-day2 period 2[following the transfer of ownership] before the date billing under the new business entity begins2, the health club facility ownership.shall have up to 2[10 business] 302 days 2[after the nullification] from the receipt of the request for nullification2 to issue a refund of the charges1.

If     the1(2) new If ownera failshealth toclub obtainfacility writtenis consentto fromchange theownership buyerand ofif thenew contractownership withinresults 30 days of the change in ownership, the contract shallalterations beregarding deemeda canceled,decrease unlessin theservice buyerofferings subsequently consents to its assignment] denies, through written or electronican communication,increase assignmentin ofmembership therates contractupon toownership thetransfer, new owners.  If the buyerfacility ofshall thenotify, contractby allowsmail theor contractelectronically toand beat assignedleast to60 thedays newin ownersadvance of2and theagain healthby clubmail facility,or theelectronically buyerand shallat haveleast up30 to 26 days afterin theadvance2, transfer of facility ownership to nullify the contract.  If any charges were made against the account of the buyer including after a buyer requested nullification of a contract, during the 26-day period following the transfer of ownership, during the 26-day period following the transfer of ownership, the health club facilityservices shallcontract: have up to 10 business days after the nullification to issue a refund of the charges1.

     1(2)  If a health club facility is to change ownership and if new ownership results in contract alterations regarding a decrease in service offerings or an increase in membership rates upon ownership transfer, the facility shall notify, by mail or electronically and at least 60 days in advance, the buyer of a health club services contract:

2[the new membership rates;]2 the change in services 2and, if applicable, the new membership rates;rates and the date when the change in services and the new rates take effect2 ;

the change in services;

the2[the date of the transfer of ownership;ownership;] the date the billing under the new business entity begins2 ;

and that the contract shall be assigned to the new owner if the buyer of the contract consents to the transfer through written 2[or],2  electronic 2, or electronicin-person2 communication to the health club facility within 30 days of the date of transfer.  If the consent is not received by the health club facility within 30 days before the transfer of ownership, the contract will be deemed cancelled.  The buyer of the contract shall have up to 262[26] seven2 days after2[after] before2 the transfer2[transfer of facility ownershipownership] date billing under the new entity begins in which2 to nullify the assignment of the contract.  If any charges were made against the account of the buyer during the 26-day2[26-day] seven-day2 period following2[following] before2 the transfer2[transfer of ownership,ownership] date billing under the new entity begins2 , including after a buyer requested cancellation of a contract,contract 2but not before the request was made2, the health club facility shall have up to 102[10 businessbusiness] 302 days after2[after the cancellationcancellation] from the receipt of the request for cancellation2 to issue a refund of the charges.

     (3)   If a health club facility is to change ownership, the owner of the health club facility shall post a notice, at least 152[15] 302 days in advance of the transfer in ownership and for 26 days after the transfer in ownership, in a prominent location in the facility with the following information:

     (a)  the business2[business name of the facility under the new owner;owner] name of the new business entity2 ;

     (b)  the date of2[of the change of ownership;ownership] billing under the new entity begins2 ;

and      (c)  that the buyer of the contract may, up2[up to 26 days after the transfer,transfer,]2 elect to decline 2or approve2 to have their contract assigned to the new owner.1owner 2for up to the applicable timeframe as set forth in paragraphs (1) and (2) in this subsection2 .1      l.    2(4)  AsParagraphs used(1), (2), and (3) in this section:subsection shall only apply to transfers of ownership and shall not apply to facility closures.2      l.     2If there is no change in ownership of a health club facility but the business entity that owns the facility is to change, the facility shall give notice to buyers of a contract with the facility 30 days prior to the change in business entity.

     "Automaticm.2  renewal"As meansused a plan or arrangement in whichthis asection: health club services contract is automatically renewed at the end of a definite term for a subsequent term.

     "Clear“Automatic andrenewal” conspicuous" means ina largerplan type than the surrounding text, or arrangement in contrastingwhich type,a font,health orclub colorservices tocontract theis surroundingautomatically textrenewed ofat the sameend size, or set off from the surrounding text of thea samedefinite sizeterm byfor symbols or other marks, in a mannersubsequent thatterm. clearly calls attention to the language.

     2“Change in ownership” means a change in the ownership of a health club facility upon completion of a transaction that results in the sale, transfer, assignment, or other disposition of 1) all or substantially all of the assets of a health club facility or 2) 51 percent or more of the outstanding equity of a health club facility, whether in memberships;

shares of capital stock;

or other ownership interests.2      “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.