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CHAPTER 722

AN ACT to amend the general business law, in relation to health club

bonding requirements

Became a law July 31, 1992, with the approval of the Governor.

Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision 1 of section 621 of the general business law is amended by adding two new paragraphs (8) and (h) to read as follows:

(8) Contracts for programs which provide instruction for improving tennis skills, and are of eight weeks duration or less where the full fee does not exceed two hundred fifty dollars.

(h) Contracts relating solely to the seasonal use of tennis facilities.

§ 2. Subdivision 10 of section 622-a of the general business law as amended by chapter 84 of the laws of 1988, is amended to read as follows:

10. Health clubs shall be excluded from the requirement to file a bond, letter of credit, or certificate of deposit if all payments for which the buyer is obligated including, but not limited to down payments, initiation fees, enrollment fees, membership fees or any other direct payments to the health club do not exceed one hundred fifty dollars (and if the term of the contract, including but not limited to any complimentary, compensatory or other extensions of the term incident to the contract does not exceed three months). A health club shall also be excluded from the requirement to file a bond, letter of credit or certificate of deposit, if it offers its buyers a monthly dues payment option for each dues payment plan it offers to customers, provided that: (a) both the annual and the monthly membership options are disclosed to customers prior to entering into any membership contract; (b) that the monthly dues, including any initiation fee or other charge, do not exceed

hundred fifty dollars; (c) that the paid in full fee is not discounted by more than ten percent of the sum of the initiation fee and the monthly dues payments; and (d) that the term of either option be no more than twelve months and that the membership contract not contain automatic renewal

provision Additionally, any health club which owns five or more acres of real property which is used directly for the purpose for which the club is formed, and any health club the use of which is exclusively restricted to residents of a homeowners' association, cooperative condominium and which is owned by and operated on the premises of such homeowners' association, cooperative condominium, shall be excluded from the requirement to file a bond, letter of credit or certificate of deposit.

§ 3. Section 622-a of the general business law is amended by adding three new subdivisions 11, 12 and 13 to read as follows:

11. (a) Every health club shall post, in at least two conspicuous areas within the club, including, if applicable, an entrance area where buyers required to register a sign no smaller than nine inches by fourteen inches that sets forth

the following notice clearly and conspicuously:

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IMPORTANT NOTICE FOR HEALTH CLUB MEMBERS

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New York State law requires certain health clubs to have a bond or other form of financial security to protect members in the event the club closes. This club (insert whichever term is applicable)

has posted the financial security required by law.

is exempt from this requirement. YOU MAY ASR A REPRESENTATIVE OF THE CLUB FOR PROOF OF THE CLUB'S COM PLIANCE WITH THIS LAW. YOU MAY ALSO OBTAIN THIS INFORMATION FROM THE NEW YORK STATE DEPARTMENT OF STATE, DIVISION OF LICENSING SERVICES, 162 WASHINGTON AVENUE, ALBANY, N.Y. 12231.

(b) Health clubs that operate at two or more locations shall post notices in compliance with paragraph (a) of this subdivision at each

such location.

12. The notice required by subdivision eleven of this section shall be incorporated into any contract for services executed by a health club in at least ten point bold type. 13.

Every contract for services which offers the consumer the option to pay in installments shall contain the following notice, written in at least ten point bold type and placed directly above the space reserved for the signature of the buyer:

THIS NOTICE PROVIDES IMPORTANT INFORMATION ABOUT YOUR PAYMENT OPTIONS

You may make payments on an installment basis or in a single payment. Paying the full amount may be less expensive, but may involve financial risks to you. Read this notice carefully before making a decision.

New York State law requires certain health clubs to post a bond or other financial security to protect members in the event the club closes. This club is exempt from this requirement since it gives members the option of paying on an installment basis, therefore it need not post & bond or other form of financial security.

In deciding whether to make your payments on an installment basis, you should be aware that if the club closes, although the club will remain legally, liable for a refund, you may risk losing your money if the club is unable to meet its financial obligations to members.

§ 4. This act shall take effect immediately.

CHAPTER 723

AN ACT to establish a library district in the town of Saugerties,

Ulster county
Became a law July 31, 1992, with the approval of the Governor.

Passed by a majority vote, three-fifths being present. The People of the State of New York, represented in Senate and Assenbly, do enact as follows:

Section 1. Notwithstanding the provisions of any general, special or local law to the contrary there is hereby created and established in the town of Saugerties, county of Ulster a public library district which shall consist of the town of Saugerties.

§ 2. Election. 1. The public library district herein described shall not come into existence unless and until it is approved and the initial proposed budget is approved by a vote of the majority of the qualified voters voting in an election held pursuant to the following provisions. Upon receipt of a petition signed by not less than twenty-five voters qualified to vote at à general town election, the board of trustees the Saugerties library shall give notice of an election to be conducted on the first Thursday in September of 1992. At said election the issues shall be:

(a) whether the public library district herein described shall be created or not;

(b) whether' the budget therefor proposed by the board of trustees of the Saugerties library shall be approved or disapproved; and

(c) the election of eleven trustees as hereinafter provided. The trustees of the Saugerties library shall give notice of said election by the publication of a notice in one or more newspapers having a general circulation in the town of Saugerties. The first publication of such notice shall be not less than thirteen days and not more than twenty days prior to the date of such election. In addition, the board of trustees of the Saugerties library, shall cause copies of such notice to be posted conspicuously in five public places in the town at least thirteen days prior to the date of such election. Such notice shall specify EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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the time when and the place where such election will be held, the issues to be decided at said election and the hours during which the polls will be open for receipt of ballots. The board of trustees of the Saugerties library shall prepare the ballots for such elections and the polls shall remain open for the receipt thereof at all elections from seven o'clock p.m. until ten o'clock p.m. , and such additional consecutive hours prior thereto as the board of trustees may have determined and specified in the notice thereof. The board of trustees shall designate a resident taxpayer of such district to act as chairman of any election of such district and shall designate not less than two nor more than four resident taxpayers to act as election inspectors and ballot clerks at such elections. No trustee shall serve as such chairman or as an election inspector or ballot clerk. The board of trustees may adopt resolution providing that such chairman, election inspectors and ballot clerks shall be paid for their respective services at the initial election or at any annual election

at any subsequent special election. Such resolution, if adopted, may fix reasonable compensation for the services of each such official. Every voter of the town of Saugerties otherwise qualified to vote at a general town election shall be qualified to vote at said election. After the polls have been closed at said election, the election inspectors and ballot clerks shall immediately canvass publicly the ballots cast and the chairman of the election shall publicly announce the result. Within seventy-two hours thereafter, the chairman, election inspectors and ballot clerks shall execute and file a certificate of the result of the canvass with the board of trustees and with the town clerk of the town of Saugerties.

2. In the event that the district is created, then there shall be an annual election conducted by the board in accordance with the provisions of subdivision 1 of this section, at a time to be set by the board, at which election vacancies on the board of trustees shall be filled and at which only the proposed budget which the board shall determine to submit to the voters pursuant to section four of this act shall be submitted to the voters.

3. Candidates for the office of member of the board of trustees shall be nominated by petition. No vacancy upon the board of trustees to

be filled shall be considered a separate specific office. A separate petition shall be required to nominate each candidate for a vacancy. the board. Each petition shall be directed to the secretary of the district, shall be signed by at least twenty-five qualified voters of the dis; trict, two percent of the voters who voted in the previous annual election of the members of the board of trustees, whichever is greater, (such number to be determined by the number of persons recorded on the poll list as having yoted at such' election) shall state the residence of each signer, and shall state the name and residence of the candidate. In the event that any such nominee shall withdraw his candidacy prior to the election, such person shall not be considered a candidate unless a new petition nominating such person in the same manner and within the same time limitations applicable to other candidates is filed with the secretary of the district. Each petition shall be filed in the office of the secretary of the district between the hours of nine o'clock a. m. and five o'clock p.m. not later than the thirtieth day preceding the election at which the candidates nominated are to be elected. If a vacancy occurs on the board of trustees, the board of trustees may appoint

an individual to serve until the next annual election, at which time the remainder of the term shall be filled by a candidate duly elected at such election.

4. At any election in such district, the voters may adopt a proposition providing that, in all subsequent elections, vacancies

upon the board of trustees shall be considered separate specific offices and that the nominating petitions shall describe the specific vacancy upon the board of trustees for which the candidate is nominated, which description shall include at least the length of the term of office and the name of the last incumbent, if any. No person shall be nominated for more than one specific office. Such procedure shall be followed with respect to all nominations and elections in subsequent years until and unless such proposition is repealed by the electors of the district at a Š 3.

Organization and structuredistrict shall be managed, operated and controlled by a board of trustees consisting of eleven members. These trustees shall at the first regular meeting of the board determine by lot the year in which each of their terms office expire, and the terms shall expire as follows: After

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one year - two trustees; after two years - three trustees; after three years two trustees; after four years - two trustees; after five years

two trustees. As vacancies occur trustees shall be elected at the nual election, wherein provided for to serve for five year terms by the voters of the library district hereby created, said terms to commence on the first day of October next following the election. Only qualified voters of the district shall be eligible for election to the board of trustees. The board of trustees at its first meeting each year shall elect or appoint a president and vice-president who shall be members of the board and a clerk, treasurer and such other officers as they deem necessary. If the board so determines, the offices of clerk and treasurer may be held by individuals who are not members of the board of trustees, and in that event, these officers may, if the board so determines, receive compensation as fixed by resolution of the board.

§ 4. Finances. 1. The initial budget for the Saugerties public library district shall be approved by a yote of the voters of the district in the initial election as hereinafter provided for. All future budgets that increase or decrease the appropriation last approved by the voters shall be submitted to the residents of the library district' for approval by a majority of those residents voting at the annual election of trustees held pursuant to section two of this act. Funds voted for library purposes at the initial election and at all future budget elections shall, unless otherwise directed by such vote, be considered as annual appropriations therefor until changed by future vote and shall be levied and collected yearly in the same manner and at the same time as other town charges.

2. The board of trustees shall annually file with the clerk of the town of Saugerties in the time and for the purposes specified in section 104 of the town law an estimate of the proposed budget including costs of library services to be raised by levy for the library district in the year beginning with the succeeding first day of January. The town board shall not make any change in the estimate of revenues expenditures submitted by the board of the library district in preparation of its preliminary budget as required by section 107 of the town law.

3. The town board of Saugerties shall in accordance with section six of this act levy against real property lying within the town of Saugerties for the total expenditures as approved by the voters as hereinbefore provided. The town board may issue tax anticipation notes, anticipation revenue notes, and budget notes pursuant to articlé 2 of the local finance law to obtain the necessary moneys therefor.

4. The town board of the town of Saugerties shall have the power to authorize, sell and issue bonds, notes or other evidences

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indebtedpursuant to the local finance law in order to permit the library district to provide facilities or improved facilities for library purposes. Upon written request from the board of trustees of the library district, the town board shall authorize, sell and issue such bonds notes

or other evidences of indebtedness as are necessary to accomplish the improvements specified in the notice. The proceeds of such bonds, notes, or other evidence of indebtedness shall be paid to the treasurer of thé library district and maintained in a segregated fund in accordance with section 165.00 of the local finance law and expended by the treasurer only on specific authorization by the board of trustees.

5. The board of trustees of the library district may accept on behalf of the district any absolute gift, devise or bequest of real or personal property and such conditional gifts, devises or bequests as it shall by resolution approve.

6. The treasurer of the library district shall be custodian of all funds, of the library district including gifts and trust funds paid over to the trustees. The board of trustees may authorize the investment of funds in the custody of the treasurer in the same manner in which town funds may be invested. Proceeds of obligations received from the town may be invested in accordance with section 165.00 of the local finance law.

The presiding supervisor of the town of Saugerties shall pay over to the library district' all moneys which belong to or are raised for the library district. No moneys shall be disbursed by the treasurer except after audit by the board of trustees. The board of trustees shall audit all claims and shall order the payment thereof, except as otherwise provided by this section. No such claims shall be audited ordered paid by the trustees unless an itemized voucher therefor, certified or EXPLANATION-Matter in italics is new; matter in brackets [] is old law

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verified by or on behalf of the claimant in such form as the board of trustees shall prescribe shall be presented to the board of trustees for audit and allowance. The provisions of this section shall not be applicable to payment of claims of fixed salaries and amounts which the library district' may be required to pay on account of retirement system contributions for past and current services to officers and employees of the library, district. The treasurer shall keep such records and in such manner as the board of trustees may require.

§ 5. Charter, commencement of operations, and transfer of property and employees. The initial trustees shall, within thirty days from the date of approval of the library district by the voters of the district, apply to the board of regents for a charter as a public library.

Upon the granting of such a charter by the board of regents, then title to all personal property, tangible and intangible, now held by the Saugerties library shall be transferred to, vest in, and be acquired by the library district hereby established. Upon the granting of such a charter by the board of regents, all employees of the Saugerties library shall become employees of the library district upon the same terms and conditions of employment and at the same rate of pay as their previous employment by the Saugerties library.

§ 6. Ad valorem levy. The several lots and parcels of land within the area of said public library district are hereby determined to be benefited by the library facilities and services existing as of the effective date of this act and the town board of the town of Saugerties is hereby authorized to assess, levy and collect necessary expenses of operation, maintenance and repair of such facilities and services and such capital improvements including debt service on bonds, notes or other evidences of indebtedness of the town issued for the purpose of such library district as may be hereafter authorized pursuant to the provisions of this act from such lots and parcels of land in the manner and at the same time as other town charges.

§ 7. Education law. Except as otherwise provided by this act, the provisions of the education law relating to public libraries shall be applicable to the public library district herein established.

$ 8. Town law. Except as herein provided, said library district shall constitute an improvement district within the meaning of the town law and shall be subject to all of the provisions thereof relating to improvement districts except such as are inconsistent with the provisions of this act.

§ 9. This act shall take effect immediately.

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CHAPTER 724

AN ACT to amend the town law, the village law and the general city law,

in relation to encouraging towns, villages and cities to undertake cooperative action for comprehensive planning and land use regulation Became a law July 31, 1992, with the approval of the Governor.

Passed by a majority vote, three-fifths being present. The People of the State of New York, represented in Senate and Assenbly, do enact as follows:

Section 1. Section 284 of the town law is renumbered section 285 and a new section 284 is added to read as follows:

§ 284. Intermunicipal cooperation in comprehensive planning and land use regulation. 1. Legislative intent. This section is intended to illustrate the statutory authority that any municipal corporation has under article five-G of the general municipal law to enter into agreements to undertake comprehensive planning and land use regulation. By the enactment of this section the legislature seeks to promote intergovernmental cooperation that could result in increased coordination and effectiveness of comprehensive planning and land use regulation, more efficient

of infrastructure and municipal revenues, as well as the enhanced

protection of community resources, especially where such resources span municipal boundaries.

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