HB 281 – AS INTRODUCED
2007 SESSION
05/09
HOUSE BILL 281
AN ACT relative to the cancellation of buying club memberships.
SPONSORS: Rep. Bergin, Hills 6; Rep. Leishman, Hills 6; Rep. Dokmo, Hills 6; Sen. Bragdon, Dist 11
This bill eliminates a general provision permitting the pro rata cancellation of buying club memberships. The bill limits pro rata refunds to situations where the club moves at least 20 miles farther away from the member’s residence.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0494
05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to the cancellation of buying club memberships.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Cancellation of Buying Club Membership; General Pro Rata Refund Deleted. Amend RSA 358-J:2, I to read as follows:
I. Any person who has elected to become a member of a club may cancel such membership by[:
(a)] giving written notice any time before midnight of the third business day following the date on which membership was attained. Such cancellation shall be without liability on the part of the member and shall entitle the member to a refund of the entire consideration paid for the contract[; or
(b) Giving written notice any time after the third business day following the date on which membership was attained. Such cancellation shall be on a pro rata daily basis, the member being responsible only for that portion of the contract consideration representing the time elapsed on the contract and being entitled to a refund of that portion of the fee representing the days remaining on the contract at date of cancellation. If the contract duration is for the life of the member, the daily value shall be determined by standard actuarial tables].
2 New Paragraph; Pro Rata Refund of Buying Club Membership for Geographic Relocation of Club Only. Amend RSA 358-J:2 by inserting after paragraph V the following new paragraph:
VI. If a club removes its place of business, or if it conducts business at more than one location, that place of business which is geographically closest to the member’s residence indicated on the face of the contract, more than 20 miles farther from the member’s residence than it was at the time the member joined the club, the club shall offer rescission and a pro rata refund to the member, based on the amount of time for which the person has been a member of the club.
3 Effective Date. This act shall take effect January 1, 2008.