BILL NUMBER: AB 693 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Eggman
FEBRUARY 25, 2015
An act to amend Section 2852 of the Public Utilities
Code, relating to renewable energy resources. Sections
1812.84 and 1812.85 of the Civil Code, relating to health studio
services.
LEGISLATIVE COUNSEL'S DIGEST
AB 693, as amended, Eggman. Renewable energy: solar
energy systems: low-income residential housing. Health
studio services: cancellation.
Existing law authorizes a consumer to cancel a contract for health
studio services within specified timeframes after the contract is
executed, if the health studio fails to provide the specific
facilities advertised or offered, or if the health studio eliminates
or reduces the scope of the facilities, as specified.
The bill would specify that a contract for health studio services
may be canceled by the buyer in person or via first-class mail. The
bill would make other conforming changes.
Under existing law, the Public Utilities Commission (PUC) has
regulatory authority over public utilities, including electrical
corporations, as defined. A decision of the PUC adopted the
California Solar Initiative. Existing law requires the PUC to
undertake certain steps in implementing the California Solar
Initiative for low-income residential housing.
The bill would make a nonsubstantive change to that provision.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1812.84 of the Civil
Code is amended to read:
1812.84. (a) A contract for health studio services may not
require payments or financing by the buyer to exceed the term of the
contract, nor may the term of the contract exceed three years. This
subdivision does not apply to a member's obligation to pay valid,
outstanding moneys due under the contract, including moneys to be
paid pursuant to a termination notice period in the contract in which
the termination notice period does not exceed 30 days.
(b) A contract for health studio services shall include a
statement printed in a size at least 14-point type that discloses the
length of the term of the contract. This statement shall be placed
above the space reserved for the signature of the buyer.
(c) At any time a cancellation is authorized by this title, a
contract for health studio services may be canceled by the buyer in
person or via first-class mail.
SEC. 2. Section 1812.85 of the Civil
Code is amended to read:
1812.85. (a) Every contract for health studio services shall
provide that performance of the agreed-upon services will begin
within six months after the date the contract is entered into. The
consumer may cancel the contract and receive a pro rata refund if the
health studio fails to provide the specific facilities advertised or
offered in writing by the time indicated. If no time is indicated in
the contract, the consumer may cancel the contract within six months
after the execution of the contract and shall receive a pro rata
refund. If a health studio fails to meet a timeline set forth in this
section, the consumer may cancel the contract at any time after the
expiration of the timeline. However, if following the expiration of
the timeline, the health studio provides the advertised or
agreed-upon services, the consumer may cancel the contract up to 10
days after those services are provided.
(b) (1) Every contract for health studio services shall, in
addition, contain on its face, and in close proximity to the space
reserved for the signature of the buyer, a conspicuous statement in a
size equal to at least 10-point boldface type, as follows:
"You, the buyer, may choose to cancel this agreement at
any time prior to midnight of the fifth business day of the health
studio after the date of this agreement, excluding Sundays and
holidays. To cancel this agreement, mail or deliver a signed and
dated notice, or send a telegram which notice
that states that you, the buyer, are canceling this agreement,
or words of similar effect. The notice shall be sent via first
-class mail or delivered in person to,
__________________________________
(Name of health studio operator)
at __________________________
(Address of health studio
_____________
operator).''
(2) The contract for health studio services shall contain on the
first page, in a type size no smaller than that generally used in the
body of the document, the following: (A) the name and address of the
health studio operator to which the notice of cancellation is to be
mailed, and (B) the date the buyer signed the contract.
(3) The contract shall provide a description of the services,
facilities, and hours of access to which the consumer is entitled.
Any services, facilities, and hours of access that are not described
in the contract shall be considered optional services, and these
optional services shall be considered as separate contracts for the
purposes of this title and Section 1812.83.
(4) Until the health studio operator has complied with this
section, the buyer may cancel the contract for health studio
services.
(5) All moneys paid pursuant to a contract for health studio
services shall be refunded within 10 days after receipt of the notice
of cancellation, except that payment shall be made for any health
studio services received prior to cancellation.
(c) If at any time during the term of the contract, including a
transfer of the contractual obligation, the health studio eliminates
or substantially reduces the scope of the facilities, such as
swimming pools or tennis courts, that were described in the contract,
in an advertisement relating to the specific location, or in a
written offer, and available to the consumer upon execution of the
contract, the consumer may cancel the contract and receive a pro rata
refund. The consumer may not cancel the contract pursuant to this
subdivision if the health studio, after giving reasonable notice to
its members, temporarily takes facilities out of operation for
reasonable repairs, modifications, substitutions, or improvements.
This subdivision shall not be interpreted to give the consumer the
right to cancel a contract because of changes to the type or quantity
of classes or equipment offered, provided the consumer is informed
in the contract that the health studio reserves the right to make
changes to the type or quantity of classes or equipment offered and
the changes to the type or quantity of classes or equipment offered
are reasonable under the circumstances.
(d) (1) If a contract for health studio services requires payment
of one thousand five hundred dollars ($1,500) to two thousand dollars
($2,000), inclusive, including initiation fees or initial membership
fees, by the person receiving the services or the use of the
facility, the person shall have the right to cancel the contract
within 20 days after the contract is executed.
(2) If a contract for health studio services requires payment of
two thousand one dollars ($2,001) to two thousand five hundred
dollars ($2,500), inclusive, including initiation fees or initial
membership fees, by the person receiving the services or the use of
the facility, the person shall have the right to cancel the contract
within 30 days after the contract is executed.
(3) If a contract for health studio services requires payment of
two thousand five hundred one dollars ($2,501) or more, including
initiation fees or initial membership fees, by the person receiving
the services or the use of the facility, the person shall have the
right to cancel the contract within 45 days after the contract is
executed.
(4) The right of cancellation provided in this subdivision shall
be set out in the membership contract.
(5) The rights and remedies under this paragraph are cumulative to
any rights and remedies under other law.
(6) A health studio entering into a contract for health studio
services that requires a payment of less than one thousand five
hundred dollars ($1,500), including initiation or initial membership
fees and exclusive of interest or finance charges, by the person
receiving the services or the use of the facilities, is not required
to comply with paragraph (1), (2), or (3).
(e) Upon cancellation, the consumer shall be liable only for that
portion of the total contract payment, including initiation fees and
other charges however denominated, that has been available for use by
the consumer, based upon a pro rata calculation over the term of the
contract. The remaining portion of the contract payment shall be
returned to the consumer by the health studio.
SECTION 1. Section 2852 of the Public Utilities
Code is amended to read:
2852. (a) As used in this section, the following terms have the
following meanings:
(1) "Affordable housing cost," "affordable rent," and "lower
income households" have the same meanings as in those set forth in
Chapter 2 (commencing with Section 50050) of Part 1 of Division 31 of
the Health and Safety Code.
(2) "California Solar Initiative" means the program providing
ratepayer-funded incentives for eligible solar energy systems adopted
by the Public Utilities Commission in Decision 05-12-044 and
Decision 06-01-024.
(3) "Low-income residential housing" means any of the following:
(A) A multifamily residential complex financed with low-income
housing tax credits, tax-exempt mortgage revenue bonds, general
obligation bonds, or local, state, or federal loans or grants, and
for which either of the following applies:
(i) The rents of the occupants who are lower income households do
not exceed those prescribed by deed restrictions or regulatory
agreements pursuant to the terms of the financing or financial
assistance.
(ii) The affordable units have been or will be initially sold at
an affordable housing cost to a lower income household and those
units are subject to a resale restriction or equity sharing agreement
pursuant to the terms of the financing or financial assistance.
(B) A multifamily residential complex in which 20 percent or more
of the total housing units are sold or rented to lower income
households and either of the following applies:
(i) The rental housing units targeted for lower income households
are subject to a deed restriction or affordability covenant with a
public entity or nonprofit housing provider organized under Section
501(c)(3) of the Internal Revenue Code that has as its stated purpose
in its articles of incorporation on file with the office of the
Secretary of State to provide affordable housing to lower income
households that ensures that the units will be available at an
affordable rent for a period of at least 30 years.
(ii) The housing units have been or will be initially sold at an
affordable cost to a lower income household and those units are
subject to a resale restriction or equity sharing agreement, for
which the homeowner does not receive a greater share of equity than
described in paragraph (2) of subdivision (c) of Section 65915 of the
Government Code, with a public entity or nonprofit housing provider
organized under Section 501(c)(3) of the Internal Revenue Code that
has as its stated purpose in its articles of incorporation on file
with the office of the Secretary of State to provide affordable
housing to lower income households.
(C) An individual residence sold at an affordable housing cost to
a lower income household that is subject to a resale restriction or
equity sharing agreement, for which the homeowner does not receive a
greater share of equity than described in paragraph (2) of
subdivision (c) of Section 65915 of the Government Code, with a
public entity or nonprofit housing provider organized under Section
501(c)(3) of the Internal Revenue Code that has as its stated purpose
in its articles of incorporation on file with the office of the
Secretary of State to provide affordable housing to lower income
households.
(4) "Solar energy system" means a solar energy device that has the
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity, that produces at
least one kilowatt, and produces not more than five megawatts,
alternating current rated peak electricity, and that meets or exceeds
the eligibility criteria established by the commission or the Energy
Commission.
(b) In establishing the California Solar Initiative, no moneys
shall be diverted from any existing programs for low-income
ratepayers, or from cost-effective energy efficiency or demand
response programs.
(c) (1) The commission shall ensure that not less than 10 percent
of the funds for the California Solar Initiative, as specified in
subdivision (e) of, or moneys collected pursuant to subdivision (f)
of, Section 2851, are utilized for the installation of solar energy
systems on low-income residential housing. Notwithstanding any other
law, the commission may modify the monetary incentives made available
pursuant to the California Solar Initiative to accommodate the
limited financial resources of low-income residential housing.
(2) The commission may incorporate a revolving loan or loan
guarantee program into the California Solar Initiative for low-income
residential housing. All loans outstanding as of January 1, 2022,
shall continue to be repaid consistent with the terms and conditions
of the program adopted and implemented by the commission pursuant to
this subdivision, until repaid in full.
(3) All moneys set aside for the purpose of funding the
installation of solar energy systems on low-income residential
housing that are unexpended and unencumbered on January 1, 2022, and
all moneys thereafter repaid pursuant to paragraph (2), except to the
extent those moneys are encumbered pursuant to this section, shall
be utilized to augment existing cost-effective energy efficiency
measures in low-income residential housing that benefit ratepayers.
(d) In supervising a program implementing the California Solar
Initiative pursuant to this section, the commission shall ensure that
the program does all of the following:
(1) Is designed to maximize the overall benefit to ratepayers.
(2) Requires participants who receive monetary incentives to
enroll in the Energy Savings Assistance Program established pursuant
to Section 382, if eligible.
(3) Provides job training and employment opportunities in the
solar energy and energy efficiency sectors of the economy.