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Bill

S 6038

Prohibits the charging of membership fees during a state disaster emergency

2025 Regular Session Introduced by Kevin Parker

New York bill prohibits businesses from charging membership fees during state disaster emergencies to improve consumer access to essential services during crises.

REFERRED TO CONSUMER PROTECTION
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Bill Summary · S 6038

Legislative bill overview

S 6038 prohibits businesses from charging membership fees to customers during declared state disaster emergencies in New York. The bill would make it illegal to impose, collect, or attempt to collect membership fees while a disaster emergency declaration is in effect, with potential penalties for violations.

Why is this important

During disaster emergencies—such as hurricanes, floods, or other crises—vulnerable residents may need immediate access to essential services and goods. Preventing membership fee charges during these periods could reduce financial barriers for affected populations attempting to access critical supplies and services when they're most needed.

Potential points of contention

  • Business impact and scope: The definition of "membership fees" and which business types are covered remains unclear; gyms, warehouses (like Costco), streaming services, and utilities may be affected differently, raising questions about fairness and economic burden on different sectors.
  • Duration and triggers: The bill doesn't specify how long the prohibition lasts after an emergency is declared or how it applies to recurring billings already scheduled during the emergency period.
  • Enforcement and compliance: Determining how this would be enforced, who monitors violations, and what constitutes an "attempt to collect" could create administrative challenges and litigation over business practices.

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

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