Substitute Bill No. 693 Summary

Health Club Contracts

• Allows cancellation notices to be sent by electronic mail in addition to certified/registered mail effective October 1, 2021
• Requires health club contracts to be renewed on or after October 1, 2021 to include electronic mail cancellation provisions
• Limits contract terms to maximum 24 months and caps upfront payments at 50% for contracts over 12 months

Automobile Lemon Law

• Expands manufacturer buyback title branding to include the term "LEMON" and requires stamping within 30 days of title receipt instead of 10 days
• Establishes a new $3 per-vehicle surcharge on all motor vehicle sales/leases to fund the "new automobile warranties account" for lemon law administration
• Imposes fines up to $1,000 per day on manufacturers failing to comply with arbitration awards by the specified performance date

Arbitration Procedures

• Requires Department of Consumer Protection to verify that manufacturers maintain certified informal dispute settlement procedures
• Modifies arbitration procedures to include new filing requirements and allows de novo appeals from manufacturer settlement decisions

Effective Date

• All amendments take effect October 1, 2021