California legislators have given final approval to a bill that would modernize the state's long-standing cap on health club membership fees, a change the fitness industry says better reflects how full-service facilities operate today.
Assembly Bill 2402, authored by Assemblymember Tasha Boerner (D), amends Section 1812.86 of the state's Civil Code to exempt what the bill defines as a "multiservice health club studio" from California's existing $4,400 limit on total payments a member can be charged under a health studio services contract. That cap — in place for contracts signed since 2010, with the underlying fee structure dating to 2005 — has not kept pace with the range of services many clubs now offer, according to bill supporters.
To qualify for the exemption, a facility must offer at least three amenities from a list that includes individualized training, on-demand or digital fitness content, group fitness classes, coworking space, childcare, a swimming pool, a steam room, laundry service, onsite food and beverage, spa treatments, sports programming and locker rooms. Facilities that don't meet that threshold would remain subject to the existing fee cap and consumer protections under the Health Studio Services Act.
The bill cleared the Legislature after passing the Senate unanimously by a 39-0 vote and was enrolled and presented to Gov. Gavin Newsom on Aug. 24. It now awaits his signature.
The Health & Fitness Association (HFA), which co-sponsored the legislation, praised its passage and is pressing Newsom to sign it into law. The association noted the fee limits have remained static even as California's fitness and wellness industry — home to an estimated 12,400 gyms and health clubs statewide — has evolved well beyond the traditional gym model the original law was written for.
"California's fitness industry has changed dramatically since these limits were last updated," HFA interim President and CEO Greta Wagner said, calling the bill a "commonsense modernization" that expands consumer choice while preserving core protections.
HFA is pursuing similar changes elsewhere. In New York, where the state's $3,600 annual health club fee cap has been unchanged since 1991, lawmakers have passed legislation adjusting that limit for inflation; the bill awaits delivery to Gov. Kathy Hochul.
If signed, AB 2402 would leave existing consumer protections and oversight in place for traditional gyms while giving multiservice operators — a growing segment of the market that blends fitness with hospitality, wellness and workspace
