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Bill

AB 2402

Health studio contracts: fee limits: multiservice health club studio.

2025-2026 Regular Session Introduced by Tasha Boerner

Multiservice health club studios would be exempt from the current health-studio contract price cap, allowing higher upfront or ongoing fees.

Read second time. Ordered to third reading.
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Bill Summary · AB 2402

Summary of AB 2402 (2025-2026) – California Health Studio Contracts: Fee Limits for Multiservice Health Club Studio

Purpose and intent

  • AB 2402 proposes an exemption from existing statutory fee limits on health studio contracts for a specific type of facility.
  • The bill aims to define and carve out “multiservice health club studios” from the general contract payment cap, allowing such studios to charge more than the standard statutory limits.

Key provisions and changes

  • Current law (baseline): Since 2010, contracts for health studio services generally cannot require payments exceeding $4,400 (combining initiation/initial membership fees; excluding interest or finance charges). This applies to the person receiving services or using the facilities.
  • Amendment to Civil Code Section 1812.86(a)-(b):
    • (a) The existing payment limit remains in place for standard health studios, with two tiers:
    • On and after January 1, 2006: up to $3,000
    • On and after January 1, 2010: up to $4,400
    • (b) Exemption for multiservice health club studios:
    • A contract for health studio services with a multiservice health club studio is exempt from the payment limit described in (a).
    • A “multiservice health club studio” is defined as a studio that offers three or more of the following amenities:
      • Digital platform services (e.g., on-demand classes)
      • Individualized training programming
      • Fitness instructor training or certification
      • Group fitness classes (recurring)
      • Coworking space
      • Childcare
      • Swimming pool
      • Steam room
      • Laundry services
      • Onsite food and beverage
      • Spa treatments
      • Adult or youth sports programming
      • Locker rooms

Who or what would be affected

  • Multiservice health club studios: These facilities would be exempt from the existing fee cap ($3,000/$4,400) for contracts governing health studio services.
  • Other health studios: Remain subject to the current fee limits; no change to the cap for traditional health studios that do not meet the multiservice criteria.

Procedural and timeline aspects

  • Intro/Progress: AB 2402 was introduced February 20, 2026, by Assembly Member Boerner, with co-sponsorship from Assembly Member Tasha Boerner.
  • Committee history:
    • Referred to the Assembly Committee on Business and Professions (B. & P.) on March 9, 2026.
    • The bill has been amended in committee and re-referred to B. & P. as of the latest action noted (April 9, 2026).
  • Amendments: The text indicates author’s amendments were incorporated; the bill is amended and re-referred within B. & P. for further consideration.

Fiscal impact

  • The bill does not create an additional appropriation; the fiscal committee is listed as not applicable. Local program impact is also listed as no.

Plain-language takeaway

  • If passed, AB 2402 would allow multiservice health clubs—defined as facilities offering at least three specified services (such as on-demand classes, childcare, pools, spa, coworking, etc.)—to set health-studio contract prices above the current statutory cap. Traditional health studios would remain subject to the existing cap, while multiservice facilities could structure higher upfront or ongoing fees under contract. The bill provides a clear definition of what constitutes a multiservice health club studio to determine eligibility for the exemption.

Compiled from official sources — confirm details with the bill’s official record.

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