| Introduced By: Senator John O'Leary |
| Date Introduced: February 13, 1997 |
| Referred To: Senate Committee on Corporations |
It is enacted by the General Assembly as follows
SECTION 1. Chapter 5-52 of the General Laws entitled "Travel Agencies" is hereby repealed in its entirety.
{DEL5-52-1. Definitions. -- DEL} {DEL The following words and phrases
when used in this chapter shall be construed as follows:
(A) "Department" shall mean the department of business regulation.
(B) "License" shall mean a license issued by the state pursuant to this chapter.
(C) "Travel agency" means any resident or nonresident person, firm, corporation, or business entity maintaining a business location or branch office in this state who offers for sale, directly or indirectly, at wholesale or retail, including advertisements as defined herein, prearranged travel services for individuals or groups, in exchange for a fee, commission, or other consideration. "Travel agency" includes any business entity offering membership in a travel club or travel service for an advance fee or payment, even if no travel contracts or certificates or vacation or tour packages are sold by the business entity and also includes a for-profit organization which acts as a travel promoter marketing or offering for sale a coupon book or the like for travel services.
(D) "Travel agent" or "travel manager" means any person employed by a travel agency whose principal duties include consulting with and advising persons concerning travel arrangements or accommodations but does not include a salaried employee of a licensed travel agency who does not arrange the purchase, accommodations or sale of travel services.
(E) "Travel services" includes but are not limited to car rentals, transfers, lodging and all other such services which are reasonably related to air, sea, rail, motor coach, or other transportation, or accommodations for which a traveler obtains directly or indirectly from a travel agency, whether offered or sold on a wholesale or retail basis.
(F) "Advertisements" includes, but is not limited, to any written or graphic representation in any card, brochure, newspaper, magazine, directory listing, or display if the listing or display is obtained in exchange for valuable consideration as any oral, written or graphic representations made by radio, television, or cable broadcast. DEL}
{DEL5-52-2. Qualifications for a travel agency's license. -- DEL}
{DEL In order to be eligible for a travel agency license under this
chapter, a person, firm or corporation shall:
(1) If an individual:
(i) Be not less than eighteen (18) years of age and a citizen of the United States; and
(ii) Be a person who has a good reputation for honesty, truthfulness and fair dealing and who is competent and financially qualified to conduct the business of a travel agency in such a manner as to safeguard the interest of the public; and
(iii) Have not been convicted in any state of a felony involving violence, theft, fraud, or breach of a fiduciary relationship; and
(iv) Hold a valid travel manager's license as issued by the department.
(2) If a firm or corporation, it must employ an individual holding a valid travel manager's license as issued by the department.
(3) All applicants for a travel agency license shall at all times maintain proper bond and a fixed office as required by sections 5-52-4 and 5-52-4.1. DEL}
{DEL5-52-2.1. Qualifications for a travel manager license. -- DEL}
{DEL In order to be eligible for a travel manager license under this
chapter, a person shall:
(1) Be not less than eighteen (18) years of age; and
(2) Be a person who has a good reputation for honesty, truthfulness and fair dealing and who is competent and financially qualified to conduct the business of a travel agency in such a manner as to safeguard the interest of the public; and
(3) Have been a travel agent for at least one (1) year prior to applying for a travel manager license during which year the applicant's time shall have been devoted to sales work within an agency for not less than thirty-five (35) hours per week; or shall furnish evidence satisfactory to the director that the applicant has been certified to have completed a course of study leading to qualification as a travel agency at a recognized educational institution; and
(4) Have not been convicted in any state of a felony involving theft, fraud, or breach of a fiduciary relationship. DEL}
{DEL5-52-3. Qualifications for a travel agent license. -- DEL} {DEL In
order to be eligible for a travel agent license under this chapter, a
person shall:
(1) Be not less than eighteen (18) years of age; and
(2) Be a person who has a good reputation for honesty, truthfulness and fair dealing and who is competent to act as a travel agent in such a manner as to safeguard the interest of the public; and
(3) Have not been convicted in any state of a felony involving theft, fraud, or breach of a fiduciary relationship; and
(4) Be an apprentice with a licensed travel agency or furnish evidence satisfactory to the director that the applicant has been certified to have completed a course of study leading to qualification as a travel agent at a recognized educational institution, or provide such other evidence as the director may deem satisfactory. DEL}
{DEL5-52-4. License required -- Duplicate licenses -- Bond for
travel agencies.-- DEL} {DEL (a) No person, firm, or corporation shall act
or hold himself or herself out as a travel agency or travel agent or
travel manager unless he or she holds an unsuspended, unrevoked
license issued by the department pursuant to the provisions of this
chapter and rules and regulations adopted pursuant thereto which shall
be conspicuously posted in the place of business. Duplicate licenses
shall be issued by the department without additional fees to valid
license holders operating more than one office.
(b) The travel agency's license issued to any corporation, partnership or association shall designate the name of the one principal active officer of the corporation, partnership, or association for whom that license shall be valid and every other employee of that corporation, partnership, or association other than salaried employees who do not arrange the purchase, accommodations or sale of travel services, shall be obliged to obtain an individual license as a travel agent or manager.
(c) All offices of travel agencies shall be managed by a person holding a valid travel manager license.
(d) Each travel agency pursuant to the provisions of this chapter shall deliver and file with the department of business regulation before a license is issued or reissued, a surety company bond, written by a company recognized and approved by the commissioner of insurance, and approved by the department with respect to its form, manner of execution, and sufficiency in due form to the state, in the principal sum of ten thousand dollars ($10,000), provided however the liability of the surety on the bond shall be limited to indemnify the claimant only for his or her actual damage. The bond shall not limit or impair any right of recovery otherwise available pursuant to law nor shall the amount of the bond be relevant in determining the amount of damage or other relief to which any claimant shall be entitled. The bond shall be accessible only after all other legal remedies have been exhausted.
(e) In the event the bond is exhausted, the travel agency shall immediately notify the department which shall cause such public notice as it deems appropriate to be given forthwith. DEL}
{DEL5-52-4.1. Fixed office for travel agency required. -- DEL}
{DEL (a) Each licensed travel agency shall maintain a fixed office within
this state which shall be so located as to conform with zoning laws.
(b) Each travel agency and travel agent shall state in each of its advertisements its name and license number.
(c) Subsection (b) shall take effect on July 1, 1991. DEL}
{DEL5-52-4.2. Examination of Applicants -- Fee. -- DEL} {DEL (a) The
director shall require any applicant for a travel agency or travel
agent's license to submit to a written examination to show the
applicant's knowledge of reading, writing, spelling, elementary
arithmetic, geography, and in general the means and method to arrange
or book travel reservations or accommodations, tickets for domestic or
foreign travel by air, rail, ship, bus, or other medium of
transportation, or hotel or other lodging accommodations, and of the
state and federal statutes and regulations relating to the same. An
applicant for a travel agency or travel agent's license, prior to the
taking of the examination, shall pay to the director an examination
fee of ten dollars ($10.00).
(b) A person shall be permitted to apply for re-examination at any time upon payment of the required fee as above provided; the director may require that applicant to present evidence of further study and preparation, prior to permitting a re-examination.
(c) Any travel agency and travel agent holding a valid license on July 1, 1981 shall be exempt from the examination provisions of this section. DEL}
{DEL5-52-4.3. Apprentice Permits. -- DEL} {DEL The department is
authorized to issue an apprentice permit to any person, without
examination, but who is otherwise qualified by reason of age and
reputation, to assist in the performance of a travel agency while
under the strict supervision of that travel agency or of a travel
agent, for whose performance that travel agency and/or travel agent
shall be liable as if that performance was undertaken by such travel
agency or travel agent. An apprentice permit shall be valid for a
period of six (6) months from the date of issue and may be renewed for
cause shown upon proper application to the director. The fee for an
apprentice permit and for each renewal shall be ten dollars
($10.00). DEL}
{DEL5-52-5. License fees -- Transfer and renewal of licenses. -- DEL}
{DEL (a) All licenses issued under this chapter shall be for a period of
one year. No license shall be issued until all license fees due are
paid in full.
(b) The per annum fee for the issuance of a travel agency license for any person, firm, partnership, or corporation shall be one hundred dollars ($100).
(c) The per annum fee for the issuance of a travel agent or travel manager license shall be thirty dollars ($30.00). The fee for a travel agent or manager license to be transferred to another travel agency shall be fifteen dollars ($15.00). License fee for a duplicate license that is destroyed or mutilated shall be five dollars ($5.00).
(d) No license shall be assignable or transferable except on the prior approval of the department of business regulation.
(e) Application for renewal of a license must be received by the licensing authority no less than twenty-one (21) days prior to expiration date, subject to the right of the licensing authority to permit late filing upon good cause shown. Any renewal of a license shall be subject to the same provisions covering issuance, suspension, and revocation of any license originally issued. The licensing authority may refuse to renew a license for any of the grounds set forth in section 5-52-7 and, where the past conduct of the applicant affords reasonable grounds for belief that he or she will not carry out his or her duties in accordance with law and with integrity and honesty. The authority shall promptly notify the licensee in writing by certified mail of its intent to refuse to renew the license. The licensee may within twenty-one (21) days after receipt of that notice of intent, request a hearing on the refusal. The licensee shall be permitted to honor commitments already made to its customers provided that no new commitments are incurred, unless said new commitments are completely bonded to insure that the general public is protected from loss of monies paid to the licensee. Where an applicant does not request a hearing in accordance with section 42-35-14, the licensing authority may carry out the proposal stated in its notice. DEL}
{DEL5-52-6. Obligations of a travel agency. -- DEL} {DEL (a) A travel
agency shall be obligated to perform its duties reasonably and with
ordinary care in providing travel services. A travel agency shall
notify or make reasonable or good faith efforts to notify the
purchaser of travel services of any change or variation of the travel
services purchase. The notice shall be given immediately, or as soon
thereafter as practicable possible, after the travel agency is
notified of each change or variation of the travel services purchased.
Provided, however, that a travel agency shall notify, or make
reasonable and good faith efforts to notify, the purchaser of travel
services of any change or variation of the travel services purchased.
The notice shall be given within a reasonable time after the travel
agency is notified of such change or variation of the travel services
purchased. Any such travel agency shall refund to any person with whom
it contracts for a trip, moneys lost by that person as a result of the
breach of the duty of care pursuant to this section. The refund shall
be made within forty-five (45) days from the date it is requested.
(b) Provided however, that nothing contained herein shall restrict the right of a travel agency to refuse the refund and to require ordinary civil adjudication of the dispute. However, this section shall not limit the right of the travel agency to recover from, or be indemnified by, any other party which was responsible for the failure of all or part of the monies it refunded to the consumer pursuant to this section. DEL}
{DEL5-52-6.1. Administrative remedies -- Penalties. -- DEL} {DEL (a) The
department may, after opportunity for hearing, enter an order imposing
one or more of the penalties set forth in subsection (b) if the
department finds that a travel agency, agent, or manager has:
(1) Violated or is operating in violation of any of the provisions of this chapter or of the rules and regulations adopted or orders issued pursuant to this chapter;
(2) Made a material false statement in any application, document, or record required to be submitted or retained pursuant to this chapter or order or regulation of the department;
(3) Refused or failed, or any of its principal officers has refused or failed, after notice, to produce any document or record or disclose any information required to be produced or disclosed under this chapter or order or regulation of the department; or
(4) Made a material false statement in response to any request or investigation by the department or the department of attorney general.
(b) Upon a finding as set forth in subsection (a) the department may order one (1) or more of the following:
(1) Imposing an administrative fine not less than one hundred dollars ($100) nor more than five hundred dollars ($500) for each act or omission which constitutes a violation of this chapter or the rules and regulations of the department;
(2) Directing that the travel agency, agent, or manager cease and desist specified activities;
(3) Refusing to register or cancelling or suspending a registration;
(4) Placing the registrant on probation for a period of time, subject to such conditions as the department may specify;
(5) Cancelling an exemption granted under section 5-52-11.
(c) Administrative proceedings which may result in the entry of an order imposing any of the sanctions specified in subsection (b) shall be governed by the Administrative Procedures Act, title 42, chapter 35. DEL}
{DEL5-52-7. Grounds for suspension or revocation of licenses. -- DEL}
(1) Conviction of any crime involving moral turpitude;
(2) Fraud or bribery in securing license issued pursuant to this chapter;
(3) Failure to display the license as provided in this chapter;
(4) Violation of any provision of this chapter or of any rule or regulation adopted hereunder;
(5) Publication or circulation of any statement with the intent to deceive, misrepresent, or mislead the public;
(6) Any fraud or fraudulent practice in the operation and conduct of a travel agency business, including, but not limited to, intentionally misleading advertising;
(7) Aiding or abetting any person, firm or corporation not licensed in this state in the business of conducting a travel agency. DEL}
{DEL5-52-7.1. Non-resident travel agency. -- DEL} {DEL Every
non-resident travel agency and travel agent soliciting business in the
state, by mail, telephone, or otherwise, either directly or
indirectly, shall be deemed equivalent to an appointment by that
non-resident of the director of business regulation to be his or her
true and lawful attorney upon whom may be served all lawful processes
in any action or proceeding against that non-resident arising or
growing out of any transaction involving travel and related services
as set forth in section 5-52-1(4). That acceptance or solicitation
shall be a signification of the non-resident's agreement that any such
process against him or her which is served as herein provided shall be
of the same legal force and validity as if served on him or her
personally. DEL}
{DEL5-52-7.2. Service on non-resident. -- DEL} {DEL Service of process
upon a nonresident travel agency or travel agent shall be made by
leaving a copy of the process with a fee of five dollars ($5.00) in
the hands of the director or in his office with some one acting in his
or her stead as the director and that service shall be sufficient
service upon the non-resident; provided, that notice of that service
and a copy of the process shall be sent by registered or certified
mail prior to service or forthwith after service by the plaintiff or
his or her attorney of record to the defendant at the address given by
the non-resident in any solicitation furnished by him or her, and the
sender's post office receipt of sending and the plaintiff's or his or
her attorney's affidavit of compliance herewith are returned with the
process in accordance with applicable procedural rules.
Notwithstanding the foregoing requirements, however, once service has
been made on the director as provided herein, the court shall have the
authority in the event of failure to comply with the requirement of
notice to that non-resident to order that notice as shall be
sufficient to apprise him or her of the pendency of the suit against
him or her, and in addition thereto, may extend the time for answering
by that non-resident. It is also sufficient if that notice and a copy
of the process are served upon the defendant outside the state in
accordance with applicable procedural rules. DEL}
{DEL5-52-7.3. Nonresident travel agencies. -- DEL} {DEL Nonresident
travel agencies who do not maintain a business location or branch
office in this state and who offer for sale, directly or indirectly at
wholesale or retail including advertisements as defined herein,
prearranged travel services for individuals or groups in this state,
in exchange for a fee, commission, or other consideration are not
required to be licensed under the provisions of this chapter. Such
nonresident travel agencies shall include in all advertisements
pertaining to the offering of travel services the following
disclaimer: 'NOTICE. (name of firm) IS NOT LICENSED OR BONDED AS A
TRAVEL AGENCY IN THE STATE OF RHODE ISLAND'. This section shall not
apply to advertisements which are disseminated or distributed on a
national level. DEL}
{DEL5-52-8. Report of agents employed to department of business
regulation. -- DEL} {DEL (a) Any licensed travel agency, within thirty (30)
days after issuance of a license, shall file with the department of
business regulation a list of names and addresses of licensed travel
agents employed by that travel agency. Notice of any change in such
employees shall be given to the department of business regulation
within ten (10) days after that change.
(b) Travel agent or travel manager licenses issued by the department must be surrendered to the department by the agent or manager upon termination of employment. Wilful and knowing refusal upon request of the department or the agency to return an agent or manager license shall be a misdemeanor punishable by a fine of not more than five hundred dollars ($500). DEL}
{DEL5-52-9. Penalty for operating without license. -- DEL} {DEL Any
person, firm, or corporation who engages in the business of conducting
a travel agency or acts as a travel agent without obtaining a license
as provided by this chapter, shall be guilty of a misdemeanor and
shall upon conviction be fined not more than five hundred dollars
($500). DEL}
{DEL5-52-10. Revocation of license for breach of fiduciary
relationship. -- DEL} {DEL If any person recovers any amount in settlement
of a claim or toward satisfaction of a judgment against a licensed
travel agency or travel agent involving the breach of a fiduciary
relationship between the customer and a travel agency or travel agent,
the license of that travel agency or travel agent shall be
automatically revoked and no such travel agency or travel agent shall
be eligible to receive a new license until they have repaid in full. A
discharge of bankruptcy or receivership shall not relieve a person
from the penalties of this section. DEL}
{DEL5-52-11. Persons exempt. -- DEL} {DEL (a)(1) This chapter shall not
prohibit any group or association from conducting four (4) or less
tours within a year nor shall this chapter prohibit any school system,
fraternal organization or similar type of group to conduct a tour
where tours are conducted without renumeration in any form to the
organization or to any individual and does not include the general
public; provided however, that the exempt groups when conducting a
tour shall register with the department and give to each member of the
group such written notice as may be deemed appropriate by the
department to include a warning that the group is not licensed, bonded
or regulated by this chapter. Renumeration shall include but not be
limited to: commissions, free trips, reduced rates for future trips,
rebates, and bonuses or any other valuable consideration. Further,
the provisions of this chapter shall not apply to federal, state,
city, or town-sponsored tours and tours sponsored by regional tourism
development organizations pursuant to any provisions of the general or
public laws or local ordinance.
(2) Nothing herein shall prohibit a licensed travel agent or manager from conducting a tour and receiving renumeration.
(b) This chapter does not apply to:
(1) Any direct common carrier of passengers or property regulated by an agency of the federal government or employees of such carrier when engaged solely in the transportation business of the carrier as identified in the carrier's certificate;
(2) An intrastate common carrier of passengers or property selling only transportation as defined in the applicable state or local registration or certification, or employees of such carrier when engaged solely in the transportation business of the carrier;
(3) Hotels, motels, or other places of public accommodation selling public accommodations, or employees of such hotels, motels, or other places of public accommodations, when engaged solely in making arrangements for lodging, accommodations, or sightseeing tours within the state, or taking reservations for the traveler with times, dates, locations, and accommodations certain at the time the reservations are made;
(4) Persons involved solely in the rental, leasing, or sale of residential property;
(5) Persons involved solely in the rental, leasing, or sale of transportation vehicles;
(6) Persons who make travel arrangements for themselves or their employees or agents. DEL}
{DEL5-52-12. Restraining orders. -- DEL} {DEL The attorney general of
the state may bring an action on behalf of the state or the general
public to restrain or prevent any violation of this chapter. DEL}
{DEL5-52-13. Regulations promulgated by department. -- DEL} {DEL The
department of business regulation shall make other administrative
regulations and guidelines which they deem necessary to remove fraud
and deception under those covered by this chapter, and for the
examination and determination of the qualification of applicants as
provided in section 5-52-4.2 and section 5-52-4.3. Those regulations
and guidelines shall be established pursuant to chapter 42-35 relating
to administrative procedures. DEL}
{DEL5-52-14. Severability. -- DEL} {DEL If any provision of this chapter
or of any rule or regulation made thereunder, or the application
thereof to any person or circumstances, is held invalid by a court of
competent jurisdiction, the remainder of the chapter, rule, or
regulation, and the application of that provision to other persons or
circumstances, shall not be affected thereby. DEL}
{DEL5-52-15. Commission -- Creation -- Composition -- Appointment
and terms of members. -- DEL} {DEL (a) Within the department of business
regulation, there is hereby created the Rhode Island travel
commission, hereinafter referred to as 'the commission', to consist of
seven (7) persons, one from each county to be appointed by the
governor, and each of whom shall have been a citizen of this state for
at least ten (10) years prior to the date of appointment, and shall
have been engaged as a licensed travel agent or manager in this state
for at least five (5) years prior to the date of appointment. One
member shall be a licensed travel tour operator to be appointed by the
governor. Two (2) members shall be appointed for one year; two (2)
members shall be appointed for two (2) years; and two (2) members
shall be appointed for three (3) years; beginning on December 31,
1994. Successors of all members shall be appointed by the governor
for terms of three (3) years each and until their successors are
appointed and qualify by subscribing to the constitutional oath of
office, which shall be filed with the secretary of state. Members to
fill vacancies shall be appointed for the unexpired term. No member
shall be appointed to succeed himself or herself for more than two (2)
full terms. The director of the department or his/her designee shall
serve as an ex-officio member of the commission and shall have full
voting powers. Upon qualification of the members appointed, the
commission shall organize by selecting from its members a chair. The
members of the commission shall serve without compensation.
(b) The commission shall adopt reasonable rules and regulations to carry out its purposes. The department with the assistance of the commission shall implement a recertification program on or before January 1, 1996 and establish such reasonable rules and regulations as may be appropriate for that program to insure that education and practice requirements of license holders meet the public interest.
(c) All records of the commission shall be open to public inspection under such reasonable rules and regulations as it shall prescribe.
(d) The commission shall have a policy-making role in the preparation and composition of the examinations to be administered by the department. Subsequent to the administration of the examination, the commission shall review the examinations to evaluate their effectiveness. All travel agents and travel agencies licensed as of June 22, 1994 shall be exempt from the continuing education requirements set forth in this chapter. DEL}
SECTION 2. This act shall take effect upon passage.
* * *
This act would repeal in its entirety the act requiring travel agents and travel agencies to be licensed in Rhode Island.
This act would take effect upon passage.
