S 639 Session 110 (1993-1994)
S 0639 General Bill, By T.W. Mitchell and Giese
Similar(H 3835)
A Bill to amend Section 44-79-30, as amended, Code of Laws of South Carolina,
1976, relating to physical fitness service credit contracts, so as to increase
the duration of contracts from one to three months and the amount from fifty
dollars to fifty dollars a month for those contracts that must conform to
statutory requirements; and to amend Section 44-79-80, as amended, relating to
certificates of authority, so as to require the posting of these certificates
within view of the front entrance and to require the posting of the number of
complaints filed against the center.
04/06/93 Senate Introduced and read first time SJ-8
04/06/93 Senate Referred to Committee on Medical Affairs SJ-8
A BILL
TO AMEND SECTION 44-79-30, AS AMENDED, CODE OF LAWS
OF SOUTH CAROLINA, 1976, RELATING TO PHYSICAL FITNESS
SERVICE CREDIT CONTRACTS, SO AS TO INCREASE THE
DURATION OF CONTRACTS FROM ONE TO THREE MONTHS
AND THE AMOUNT FROM FIFTY DOLLARS TO FIFTY
DOLLARS A MONTH FOR THOSE CONTRACTS THAT MUST
CONFORM TO STATUTORY REQUIREMENTS; AND TO AMEND
SECTION 44-79-80, AS AMENDED, RELATING TO
CERTIFICATES OF AUTHORITY, SO AS TO REQUIRE THE POST
OF THESE CERTIFICATES WITHIN VIEW OF THE FRONT
ENTRANCE AND TO REQUIRE POSTING OF THE NUMBER OF
COMPLAINTS FILED AGAINST THE CENTER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 44-79-30 of the 1976 Code, as last amended by
Act 380 of 1992, is further amended to read:
"Section 44-79-30. (A) Every prepaid or credit
contract for physical fitness services of over one month's
three months' duration or over fifty dollars a month in
amount must conform to the following requirements:
(1) the contract must be in writing, and a copy must be given to the
customer at the time he signs it;
(2) the contract shall state clearly the street address or location of
the center and outlets which the member may use at the time the contract
is executed and the major facilities or major services which each offers;
(3) the contract shall reveal the finance charge, if any, which the
member agrees to pay;
(4) if the customer executes a promissory note in connection with
the contract, the contract shall clearly indicate whether the promissory
note is assignable paper and whether it may be discounted and sold to
third parties. Assignment of the promissory note does not affect the right
of the member to cancel the contract or the method by which the
cancellation may be made;
(5) the contract must contain a right to cancel provision in the
following language:
"CUSTOMER'S RIGHT TO CANCEL
(a) You may cancel this contract by sending notice of your wish
to cancel to the center before midnight of the third business day after
you sign the contract. 'Business day' means Monday through Friday
excluding state holidays and federal holidays. This notice must be sent
certified mail to the following:
Within thirty days of receipt of this notice, the center shall return any
payments made and any note or other evidence of indebtedness. If you
use the seller's facilities or services, the center may charge you
deduct a reasonable fee from the payments being
returned based on days of actual use and services rendered.
(b) In addition, you or your estate may also cancel the contract
at any time by written notice to the center at the above address if the
following circumstances occur:
(1) the customer's death;
(2) substantial physical disability, certified by a physician,
which makes it permanently impossible for the customer to use the
center's services;
(3) the customer's permanent relocation to a residence over
fifty miles distant from an outlet operated by the center, if the center is
unable to arrange for the customer's use of another center with
equivalent major facilities and services. The center may require
presentation of information to substantiate that one of these
circumstances has occurred. If the contract is cancelled because of
disability, death, or permanent change of residence, the center shall
return any note or other evidence of indebtedness and unearned
prepayments as follows: For each month that the contract was in effect,
the center is entitled to the rate a month or a treatment which it would
have charged if the contract had initially been one for the number of
months or the number of treatments for which the contract was actually
in effect. The rate is to be determined from a fee schedule in effect on
the date of the contract.
(c) The right of cancellation shall affect only the financial
obligations under the contract and customer's right to use the center's
physical fitness services."
(6) services such as personal training, personal fitness testing,
and daily visitor fees that are not subject to being refunded must be
clearly stated in the contract;
(6) (7) Any contractual provision allowing more
liberal rights of cancellation than set forth in this chapter may be
substituted for the notice required in this chapter.
(B) A contract is not required for personal training, private
consultations, and fitness testing rendered on an hourly basis unless they
are part of a package of over three hundred dollars."
SECTION 2. Section 44-79-80(6) of the 1976 Code, is amended to
read:
"(6) A copy of the Certificate of Authority required by this
chapter must be posted conspicuously in view of the front
entrance at every location where monies or contracts are received
by the center. The certificate shall contain or be accompanied by a
verified document prepared by the Department of Consumer Affairs
containing the number of complaints filed against the facility with the
Department of Consumer Affairs since the facility opened and during the
previous year."
SECTION 3. This act takes effect upon approval by the Governor.
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