California Legislature Passes Multiservice Health Club/Studio Bill

On August 25, the California Senate unanimously passed AB 2402, the multiservice health club studio bill, by a 39-0 vote. HFA co-sponsored the legislation and has advocated for its passage throughout the legislative process. The bill now heads to Gov. Gavin Newsom for his signature.

AB 2402 will remove the existing $4,400 membership fee cap for facilities that qualify as a “multiservice health club studio” by offering at least three additional services, including digital platforms, individualized training programming, fitness instructor training, group fitness classes, coworking space, childcare, a swimming pool, a steam room, laundry services, or onsite food and beverages.

“California’s fitness industry has changed dramatically since these limits were last updated more than two decades ago,” says Greta Wagner, HFA interim president and CEO. “AB 2402 recognizes the wide range of services today’s fitness facilities provide and gives consumers greater freedom to choose the fitness and wellness experiences that work for them, while maintaining important consumer protections. We appreciate the Legislature’s strong bipartisan support and urge Gov. Newsom to sign this commonsense modernization into law.”

The legislation would preserve existing consumer protection requirements and oversight for traditional gyms while recognizing the expanded business models of multiservice facilities.

Keeping Up With the Realities of a Changing Industry

California is home to approximately 12,400 gyms and health clubs. Yet membership fee limits under the state’s Health Studio Services Act have remained unchanged since 2005, even as the fitness and wellness industry and the services that facilities provide have evolved significantly. This legislation addresses the real-life evolution of membership services in an industry that is increasingly providing holistic and lifestyle services to its members. HFA is also supporting similar modernization efforts in New York, where lawmakers recently passed legislation to adjust the state’s $3,600 annual health club fee cap to take inflation into account; it has remained unchanged since 1991. The bill is awaiting delivery to Gov. Kathy Hochul for her signature. If you are a California operator and are interested in sending an email to Gov. Newsom urging him to sign the bill, please contact Cassie Losey, HFA senior manager of state affairs.