53 N.J.R. 1773(a)

VOLUME 53, ISSUE 20, OCTOBER 18, 2021
RULE PROPOSALS

Reporter
53 N.J.R. 1773(a)
NJ - New Jersey Register  >  2021  >  OCTOBER  >  OCTOBER 18, 2021  >  RULE PROPOSALS  >  LAW AND PUBLIC SAFETY -- DIVISION OF CONSUMER AFFAIRS

Interested Persons Statement 

INTERESTED PERSONS 
Interested persons may submit comments, information or arguments concerning any of the rule proposals in this issue until the date indicated in the proposal. Submissions and any inquiries about submissions should be addressed to the agency officer specified for a particular proposal. 
The required minimum period for comment concerning a proposal is 30 days. A proposing agency may extend the 30-day comment period to accommodate public hearings or to elicit greater public response to a proposed new rule or amendment. Most notices of proposal include a 60-day comment period, in order to qualify the notice for an exception to the rulemaking calendar requirements of  N.J.S.A. 52:14B-3. An extended comment deadline will be noted in the heading of a proposal or appear in a subsequent notice in the Register. 
At the close of the period for comments, the proposing agency may thereafter adopt a proposal, without change, or with changes not in violation of the rulemaking procedures at      N.J.A.C. 1:30-6.3. The adoption becomes effective upon publication in the Register of a notice of adoption, unless otherwise indicated in the adoption notice. Promulgation in the New Jersey Register establishes a new or amended rule as an official part of the New Jersey Administrative Code. 

Agency


LAW AND PUBLIC SAFETY > DIVISION OF CONSUMER AFFAIRS > OFFICE OF THE DIRECTOR

Administrative Code Citation


Proposed Amendment: N.J.A.C. 13:45A-25.2
Text

  Registered Health Club Contracts
Authorized By: Sean Neafsey, Acting Director, Division of Consumer Affairs.
Authority: N.J.S.A. 56:8-48.
Calendar Reference: See Summary below for explanation of exception to calendar requirement.

Proposal Number: PRN 2021-100.

Submit written comments by December 17, 2021, to:

Sean Neafsey, Acting Director
State of New Jersey
Division of Consumer Affairs
Office of the Director
PO Box 45027
Newark, New Jersey 07101

or electronically at:

http://www.njconsumeraffairs.gov/Proposals/Pages/default.aspx

The agency proposal follows:
Summary
The Division of Consumer Affairs (Division) proposes amendments at N.J.A.C. 13:45A-25.2 to require registered sellers of health club services to post a notice at any location where a consumer signs a contract, advising consumers of their cancellation rights, and how to exercise them. The notice would have to be in at least 14-point bold-faced type and would have to be located in the same physical space in which the customer is present when signing. The proposed amendment sets forth the text of the required notice. A registered seller of health club services also would be required to post this notice on its website if it allows consumers to enter into contracts for services online.  

As the Division has provided a 60-day comment period on this notice of proposal, this notice is excepted from the rulemaking calendar requirement pursuant to N.J.A.C. 1:30-3.3.  

Social Impact  
The Division anticipates that the proposed amendment will have a positive impact on consumers who enter into contracts with sellers of health club services. The required notice will inform consumers as to their rights when entering into a contract, including the right to cancel the contract within three days of signing it.  

Economic Impact  
The proposed amendment will have a slight economic impact on registered sellers of health club services. They will bear the cost of producing and posting the required notice at the site where a consumer signs a contract and on their websites if they allow consumers to enter into contracts online. 

Federal Standard Statement  
A Federal standards analysis is not required because the proposed amendment does not involve any Federal standards or requirements.  

Jobs Impact  
The Division does not believe that the proposed amendment will either increase or decrease the number of jobs in New Jersey. 

 
Agriculture Industry Impact  
The Division does not expect the proposed amendment to have any impact on the agriculture industry in the State.  

Regulatory Flexibility Analysis  
Some registered sellers of health club services may employ fewer than 100 individuals and these facilities would be considered "small businesses" under the Regulatory Flexibility Act (the Act), N.J.S.A. 52:14B-16 et seq.  

The economic impact on small businesses will be the same as that imposed on all businesses as detailed in the Economic Impact statement. The Division does not believe that registered sellers of health club services will need to employ any professional services to comply with the requirements of the proposed amendment. The proposed amendment does not impose any recordkeeping or reporting requirements but does impose compliance requirements as detailed in the Summary above.  

The proposed amendment will protect consumers by providing notification as to their rights when entering into a contract for health club services; therefore, no differing compliance requirements are provided to sellers of health club services based upon the size of a business.  

Housing Affordability Impact Analysis  
The proposed amendment will have an insignificant impact on the affordability of housing in New Jersey and there is an extreme unlikelihood that the proposed amendment would evoke a change in the average costs associated with housing because the proposed amendment concerns the notice sellers of health club services must give their customers regarding cancellation of services.  

Smart Growth Development Impact Analysis  
The proposed amendment will have an insignificant impact on smart growth and there is an extreme unlikelihood that the proposed amendment would evoke a change in housing production in Planning Areas 1 or 2, or within designated centers, under the State Development and Redevelopment Plan in New Jersey because the proposed amendment concerns the notice sellers of health club services must give their customers regarding cancellation of services.  

Racial and Ethnic Community Criminal Justice and Public Safety Impact  
The Division has evaluated this rulemaking and determined that it will not have an impact on pretrial detention, sentencing, probation, or parole policies concerning adults and juveniles in the State. Accordingly, no further analysis is required.  

Full text of the proposal follows (additions indicated in boldface   thus; deletions indicated in brackets [thus]):  

SUBCHAPTER 25.  SELLERS OF HEALTH CLUB SERVICES  

13:45A-25.2     Registration; fees  

 
(a)-(g) (No change.)  

(h)   Registered facilities shall post the following notice, which shall be printed in at least 14-point bold-faced type, at any location where a consumer signs a contract:  

NOTICE TO CUSTOMER  

You are entitled to a copy of any contract you sign with this facility at the time you sign it.  
You may cancel this contract at any time before midnight of the third operating day after receiving a copy of this contract. If you choose to cancel this contract, you must either:  
1. Send a signed and dated written notice of cancellation by registered or certified mail, return receipt requested; or  
2. Personally deliver a signed and dated written notice of cancellation to:  
(INSERT NAME OF HEALTH CLUB)  
(INSERT ADDRESS OF HEALTH CLUB)  
If you cancel this contract within the three-day period, you are entitled to a full refund of your money. If the third operating day falls on a Sunday or holiday, notice is timely given if it is mailed or delivered as specified in this notice on the next operating day. Refunds must be made within 30 days of receipt by the health club of the cancellation notice.  
"Operating day" means any calendar day on which patrons may inspect and use the health club's facilities and services during a period of at least eight hours, except holidays and Sundays.  
(i) A registered facility shall post the notice required at (h) above on its website if the facility allows consumers to enter into contracts with the facility online.