States of Action: California and Oregon

HFA is pressing forward on multiple legislative fronts on the West Coast. First, in California, HFA is supporting three bills in the state Assembly while preparing for its inaugural California State Advocacy Fly-In on May 18–19 in Sacramento.

On April 17, Cassie Losey, HFA senior manager of state affairs, testified before the California State Assembly in support of AB 2330, the Cold Spa Modernization Act, a bill sponsored by HFA and authored by Assemblymember Tasha Boerner of District 77. The legislation would establish formal legal definitions for cold plunge tubs and cold spas in California, drawing a clear regulatory distinction between those immersion facilities and conventional recreational pools and hot tubs. Losey testified at two separate Assembly hearings advancing the bill, underscoring HFA’s active role in shepherding the measure through committee.

Alongside AB 2330, HFA is a co-sponsor of AB 2402, the CA Price Caps Bill, which would eliminate the existing annual $4,400 ceiling on multi-service health club memberships. Proponents argue that the cap, a holdover from an earlier regulatory era, no longer reflects the breadth and cost of modern fitness and wellness programming. Removing it would give operators and consumers greater flexibility in structuring and purchasing club memberships going forward.

The third bill, AB 2533, known as the CA PHIT Act, marks a milestone in California legislative history. Introduced by Assemblymember David Tangipa, it is the first bill ever introduced and heard in a California Assembly committee that creates a tax incentive specifically tied to physical fitness. HFA is the primary sponsor.

The legislation would exclude employer-provided fitness benefits—including gym memberships and fitness class expenses—from an employee’s state taxable gross income. By treating those benefits as tax-free compensation, the bill is designed to encourage employers to subsidize fitness access and reduce the out-of-pocket cost to workers. Bob Rodger, CEO of ENDO Fitness, and Andrew Mock, MD, appeared before the committee in support of the measure.

On a separate regulatory track, Charles Regnante, HFA senior manager of government affairs, participated directly in a rulemaking hearing focused on reforming the Private Attorneys General Act (PAGA). The California law allows employees to file suit against employers and collect civil penalties on behalf of the state for alleged labor code violations. Although it was enacted to bolster enforcement of labor standards, PAGA has increasingly been used in litigation targeting fitness industry operators. Regnante engaged in the proceedings to push for reforms that would reduce exposure to what HFA describes as predatory legal action against clubs and studios.

The legislative activity sets the stage for HFA’s California State Advocacy Fly‑In, taking place May 18–19 during National Physical Fitness and Sports Month. The event will include an Assembly floor resolution presentation, a legislator luncheon and reception, a morning workout, and a full day of meetings with legislators who serve on the tax and health committees considering HFA‑supported bills. Together with the three bills moving through the legislature, the Fly‑In marks an expansion of HFA’s commitment to shaping California’s policy environment as the fitness and wellness industry evolves.