3314                                          LAWS OF MARYLAND                      Ch. 838

(a)  A health club services agreement may not contain an
automatic renewal clause, unless the agreement provides for a
renewal option for continued membership which must be accepted AT
THE TERMINATION OF THE CONTRACT by the buyer.

(b)  (1) [A] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, A buyer described in § 14-12B-01(b)(1)(i) of this
subtitle may cancel a health club services agreement within 3
business days after receipt of a copy of the agreement by
notifying the health club in writing. Written notification shall
be delivered in person or by certified mail, return receipt
requested, bearing a postmark from the United States Postal
Service, and if mailed shall be postmarked by midnight of the
third business day.

(2) [The health club facility shall conspicuously
disclose in the health services agreement the buyer's right to
cancel within 3 business days] A BUYER WHO PURCHASES HEALTH CLUB
SERVICES FOR A PLANNED FACILITY OR A FACILITY UNDER CONSTRUCTION
MAY CANCEL THE CONTRACT AT ANY TIME PRIOR TO 5 BUSINESS DAYS
AFTER THE OPENING OF THE FACILITY, OR AFTER RECEIVING NOTICE OF
THE OPENING OF THE FACILITY, WHICHEVER COMES LATER.

(3) (2) If the buyer cancels [within 3 business
days] UNDER PARAGRAPH (1) OR (2) OF THIS SUBSECTION, the
health club facility shall refund any deposit, down payment, or
payment on the agreement INCLUDING ANY INITIATION, DEPOSIT,
MEMBERSHIP, OR OTHER FEES.

(4) (3) AT THE TIME THE BUYER SIGNS ANY CONTRACT
FOR HEALTH CLUB SERVICES, EACH SELLER OF HEALTH CLUB SERVICES
SHALL FURNISH TO THE BUYER AND HAVE THE BUYER SIGN A SEPARATE
FORM IN DUPLICATE ENTITLED "NOTICE OF CONSUMER RIGHTS", WHICH
CLEARLY AND CONSPICUOUSLY DISCLOSES IN A FORM ACCEPTABLE TO THE
DIVISION EACH CONTRACT FOR HEALTH CLUB SERVICES SHALL
CONSPICUOUSLY DISCLOSE UNDER THE HEADING "NOTICE OF CONSUMER
RIGHTS":

(I)  THE SELLER'S HEALTH CLUB REGISTRATION
NUMBER WITH THE DIVISION;

(II)  A DESCRIPTION OF WHETHER THE SELLER IS
BONDED AND THE AMOUNT OF THE BOND OR, IF NOT BONDED, AN
EXPLANATION OF THE BASIS FOR THE SELLER'S EXEMPTION FROM THE
BONDING REQUIREMENTS : ;

(III)  THE BUYER'S RIGHT TO CANCEL AS DEFINED IN
§ 14-12B-05 § 14-12B-06 OF THIS SUBTITLE; AND

(IV)  THE BUYER'S RIGHTS IN THE EVENT OF A
DISABILITY OR TEMPORARY CLOSING UNDER § 14-12B-04.

(5) (4) EACH CONTRACT FOR THE SALE OF HEALTH CLUB
SERVICES SHALL CONTAIN IN A FORM ACCEPTABLE TO THE DIVISION: