SECTION 1. Sections 5-52-1, 5-52-2, 5-52-3, 5-52-4, 5-52-5, 5-52-8, 5-52-9, and 5-52-11 of the General Laws in Chapter 5-52 entitled "Travel Agencies" are hereby amended to read as follows:

{ADD 5-52-1. Definitions. -- ADD} 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) "icense"shall mean a license issued by the state pursuant to this chapter.

{DEL (C) "Travel agency" means any person, firm or corporation who holds out directly or indirectly that they are able or offering or undertaking by any means or method, including advertisements as defined herein, 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 for a fee, commission or other valuable consideration. DEL}

{ADD (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. ADD}

(D) "Travel agent" {ADD or "travel manager" ADD} 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 {DEL transportation by air, sea, or rail, ground transportation, hotel accommodations, or package tours, DEL} {ADD 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, ADD} 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.

{ADD 5-52-2. Qualifications for a travel agency's license. -- ADD} In order to be eligible for a travel agency license under this chapter, a person {ADD , firm or corporation ADD} shall:

{ADD (a) If an individual: ADD}

(1) Be not less than eighteen (18) years of age {DEL . DEL} {ADD ; and ADD}

(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 {DEL . DEL} {ADD ; and ADD}

{DEL (3) Have been a travel agent for at least one (1) year prior to applying for a travel agency 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. DEL}

{ADD (3) Have not been convicted in any state of a felony involving theft, fraud or breach of a fiduciary relationship; and

(4) Hold a valid travel manager's license as issued by the department; and

(b) If a firm or corporation, it must employ an individual holding a valid travel manager's license as issued by the department.

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. ADD}

{ADD 5-52-3. Qualifications for a travel agent license. -- ADD} 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,

{ADD (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. ADD}

{ADD 5-52-4. License required -- Duplicate licenses -- Bond for travel agencies.-- ADD} No person, firm, or corporation shall act or hold himself out as a travel agency or travel agent {ADD or travel manager ADD} unless he 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 (1) office.

{ADD The travel agency's license issued to any corporation, partnership or association shall designate the name of the one (1) 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.

All offices of travel agencies shall be managed by a person holding a valid travel manager license. ADD}

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 of Rhode Island, 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 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.

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.

{ADD 5-52-5. License fees -- Transfer and renewal of licenses. -- ADD} (1) All licenses issued under this chapter shall be for a period of one (1) year. No license shall be issued until all license fees due are paid in full.

(2) The per annum fee for the issuance of a {ADD travel agency ADD} license for any person, firm, partnership or corporation shall be one hundred dollars ($100).

(3) The per annum fee for the issuance of a travel agent {ADD or travel manager ADD} license shall be thirty dollars ($30.00). {ADD The fee for a travel agent or manager license to be transferred to another travel agency shall be fifteen dollars ($15.00). ADD} License fee for a duplicate license that is destroyed or mutilated shall be five dollars ($5.00).

(4) No license shall be assignable or transferable except on the prior approval of the department of business regulation.

(5) 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 will not carry out his 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.

{ADD 5-52-8. Report of agents employed to department of business regulation. -- ADD} 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.

{ADD 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. Willful 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). ADD}

{ADD 5-52-9. Penalty for operating without license. -- ADD} Any person {ADD , firm or corporation ADD} 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).

{ADD 5-52-11. Persons exempt. -- ADD} {ADD (a) ADD} This chapter shall not prohibit any {ADD group or association from conducting four (4) or less tours within a year nor shall this chapter prohibit any ADD} school system, fraternal organization or similar type of group to conduct a tour where tours are conducted without remuneration in any form to the organization {ADD or to any individual ADD} and does not include the general public; provided however, that said 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. {ADD Remuneration shall include but not be limited to: commissions, free trips, reduced rates for future trips, rebates and bonuses or any other valuable consideration. ADD} {DEL Further, the provisions of this chapter shall not apply to direct common carriers or employees of direct common carriers when engaged in the business of their employers. DEL} {ADD 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.

Nothing herein shall prohibit a licensed travel agent or manager from conducting a tour and receiving remuneration.

(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. ADD}

SECTION 2. Chapter 5-52 of the General Laws entitled "Travel Agencies" is hereby amended by adding thereto the following sections:

{ADD 5-52-2.1. Qualifications for a travel manager license. -- ADD} {ADD 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. ADD}

{ADD 5-52-7.3. Nonresident travel agencies. -- ADD} {ADD 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. ADD}

{ADD 5-52-6.1. Administrative remedies -- Penalties. -- ADD} {ADD (a) The department may, after opportunity for hearing, enter an order imposing one (1) 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 paragraph (b) shall be governed by the administrative procedures act, title 42, chapter 35 of the general laws. ADD}

{ADD 5-52-15. Commission -- Creation -- Composition -- Appointment and terms of members. -- ADD} {ADD (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 (1) 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 (1) member shall be a licensed travel tour operator to be appointed by the governor. Two (2) members shall be appointed for one (1) 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 chairperson. 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 the effective date of this act shall be exempt from the continuing education requirements set forth in this chapter. ADD}

SECTION 3. This act shall take effect upon passage."