BILL REQ. #:  S-1361.1 

Read first time 02/08/2005.   Referred to Committee on Financial Institutions, Housing & Consumer Protection.

     AN ACT Relating to health studio services; and amending RCW 19.142.040.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 19.142.040 and 1990 c 55 s 2 are each amended to read as follows:
     (1) A contract for health studio services shall include all of the following:
     (((1))) (a) The name and address of the health studio facilities operator;
     (((2))) (b) The date the buyer signed the contract;
     (((3))) (c) A description of the health studio services and general equipment to be provided, or acknowledgement in a conspicuous form that the buyer has received a written description of the health studio services and equipment to be provided. If any of the health studio services or equipment are to be delivered at a planned facility, at a facility under construction, or through substantial improvements to an existing facility, the description shall include a date for completion of the facility, construction, or improvement. Health studio services must begin within twelve months from the date the contract is signed unless the completion of the facility, construction, or improvement is delayed due to war, or fire, flood, or other natural disaster;
     (((4))) (d) A statement of the duration of the contract. No contract for health studio services may require payments or financing by the buyer over a period in excess of thirty-six months from the date of the contract, nor may any contract term be measured by or be for the life of the buyer;
     (((5))) (e) The use fees or dues to be paid by the buyer and if such fees are subject to periodic adjustment. Use fees or dues may not be raised more than once in any calendar year;
     (((6))) (f) A complete statement of the rules of the health studio or an acknowledgement in a conspicuous form that the buyer has received a copy of the rules;
     (((7))) (g) Clauses which notify the buyer of the right to cancel:
     (((a))) (i) If the buyer dies or becomes totally disabled. The contract may require that the disability be confirmed by an examination of a physician agreeable to the buyer and the health studio;
     (((b)(i))) (ii)(A) Subject to (((b)))(ii)(B) of this subsection, if the buyer moves his or her permanent residence to a location more than twenty-five miles from the health studio or an affiliated health studio offering the same or similar services and facilities at no additional expense to the buyer and the buyer cancels after one year from signing the contract if the contract extends for more than one year. The health studio may require reasonable evidence of relocation;
     (((ii))) (B) If at the time of signing the contract requiring payment of an initiation or membership fee the buyer lived more than twenty-five miles from the health studio, the buyer may cancel under (((7)(b)(i))) (g)(ii)(A) of this ((section)) subsection only if the buyer moves an additional five miles or more from the health studio((.));
     (((c))) (iii) If a contract extends for more than one year, the buyer may cancel the contract for any reason upon thirty days' written notice to the health studio;
     (((d))) (iv) If the health studio facilities are permanently closed and comparable facilities owned and operated by the seller are not made available within a ten-mile radius of the closed facility;
     (((e))) (v) If a facility, construction, or improvement is not completed by the date represented by the contract;
     (((f))) (vi) If the contract for health studio services was sold prior to the opening of the facility, the buyer may cancel within the first five business days the facility opens for use of the buyer and the health studio begins to provide the agreed upon health studio services;
     (((8))) (h) Clauses explaining the buyer's right to a refund and relief from future payment obligations after cancellation of the contract;
     (((9))) (i) A provision under a conspicuous caption in capital letters and boldface type stating substantially the following:

     If you wish to cancel this contract without penalty, you may cancel it by delivering or mailing a written notice to the health studio. The notice must say that you do not wish to be bound by the contract and must be delivered or mailed before midnight of the third business day after you sign this contract. The notice must be mailed to . . . . . . (insert name and mailing address of health studio). If you cancel within the three days, the health studio will return to you within thirty days all amounts you have paid."