AB 2402 would modernize outdated pricing rules for multiservice health club studios while maintaining existing consumer protections. 

Washington, DC–August 25, 2026–The Health & Fitness Association (HFA) applauds the California Legislature’s passage of AB 2402, legislation that would modernize the state’s decades-old membership fee restrictions for multiservice health club studios.

The bill passed the California Senate unanimously this week by a 39-0 vote and now heads to Gov. Gavin Newsom for his signature. HFA co-sponsored the legislation and has advocated for its passage throughout the legislative process.
AB 2402 would remove the existing $4,400 membership fee cap for facilities that qualify as a “multiservice health club studio” by offering at least three additional services, including digital platforms, individualized training programming, fitness instructor training, group fitness classes, coworking space, childcare, a swimming pool, a steam room, laundry services, or onsite food and beverages.

“California’s fitness industry has changed dramatically since these limits were last updated more than two decades ago,” said Greta Wagner, interim president and CEO of the Health & Fitness Association. “AB 2402 recognizes the wide range of services today’s fitness facilities provide and gives consumers greater freedom to choose the fitness and wellness experiences that work for them, while maintaining important consumer protections. We appreciate the Legislature’s strong bipartisan support and urge Gov. Newsom to sign this commonsense modernization into law.”

California is home to approximately 12,400 gyms and health clubs. Yet membership fee limits under the state’s Health Studio Services Act have remained unchanged since 2005, even as the fitness and wellness industry and the services that facilities provide have evolved significantly.

HFA is also supporting similar modernization efforts in New York, where lawmakers recently passed legislation to adjust the state’s $3,600 annual health club fee cap, which has remained unchanged since 1991, for inflation. The bill is awaiting delivery to Gov. Kathy Hochul for her signature.

The legislation would preserve existing consumer protection requirements and oversight for traditional gyms while recognizing the expanded business models of multiservice facilities.

HFA is encouraging its California members to join the association in urging Gov. Newsom to sign AB 2402.

About the Health & Fitness Association

The Health & Fitness Association (formerly IHRSA), a global community of industry leaders, is the only worldwide trade association providing a unified voice for the community of leaders who operate health and fitness facilities, offer professional guidance on physical activity, and provide the tools and equipment to do so to the millions of fitness facility members who understand that exercise improves their physical and mental health. Through advocacy, education, and research, the association speaks to opportunities, challenges, and changes that are moving the industry into a new era.

Founded in 1981, the association publishes a monthly magazine, Health & Fitness Business, and operates The HFA Show, the HFA European Congress, and the Fly-In and Advocacy Summit. The association also partners on events around the world, including Fitness Brasil, ChinaFit, and Wellness & Fitness LATAM. Follow the Health & Fitness Association on Facebook, Instagram, LinkedIn, X and YouTube.