CS/HB 671

1
A bill to be entitled
2An act relating to sellers of travel; amending s. 559.927,
3F.S.; revising the definition of "prearranged travel,
4tourist-related services, or tour-guide services";
5defining "certifying party" and "terrorist state";
6amending s. 559.928, F.S.; revising provisions relating to
7registration as a seller of travel; revising registration
8fees; creating s. 559.9285, F.S.; requiring a seller of
9travel to annually certify to the Department of
10Agriculture and Consumer Services the scope of its
11business activities by filing a disclosure statement;
12categorizing certifying parties; providing requirements of
13a certifying party that changes its scope of business;
14requiring such certifying party to provide the department
15with appropriate bond; requiring the department to specify
16by rule the form of certification; specifying required
17certification information; amending s. 559.929, F.S.;
18revising requirements with respect to the performance bond
19which must accompany registration or an application for
20registration as a seller of travel; specifying amounts of
21bonds for certification categories; eliminating
22alternative means of satisfying security requirements;
23providing for priority of payment with respect to such
24bonds; revising conditions under which the department may
25annually waive the bond; precluding specified
26certification categories from waiver of bond; amending s.
27559.9335, F.S.; providing that it is a violation of the
28Florida Sellers of Travel Act to offer to sell, at
29wholesale or retail, prearranged travel, tourist-related
30services, or tour-guide services for individuals or groups
31directly to any terrorist state which originate in Florida  
32without disclosing such business activities in a
33certification filed with the department and to violate any
34state or federal law restricting or prohibiting commerce
35with terrorist states; amending s. 559.935, F.S.; revising
36provisions which exempt certain sellers of travel and
37affiliates thereof from specified registration, security,
38disclosure, and recordkeeping requirements; amending s.
39559.9355, F.S.; imposing an administrative fine for each
40act or omission in violation of the prohibited offer to
41sell, at wholesale or retail, prearranged travel, tourist-
42related services, or tour-guide services for individuals
43or groups directly to any terrorist state which originate
44in Florida without disclosing such business activities in
45a certification or in violation of any state or federal
46law restricting or prohibiting commerce with terrorist
47states; amending s. 559.936, F.S.; authorizing the
48department to seek a specified civil penalty for each act
49or omission in violation of the prohibited offer to sell,
50at wholesale or retail, prearranged travel, tourist-
51related services, or tour-guide services for individuals
52or groups directly to any terrorist state which originate
53in Florida without disclosing such business activities in
54a certification or in violation of any state or federal
55law restricting or prohibiting commerce with terrorist
56states; amending s. 559.937, F.S.; providing a criminal
57penalty for a violation of the Florida Sellers of Travel
58Act which directly or indirectly pertains to an offer to
59sell, at wholesale or retail, prearranged travel, tourist-
60related services, or tour-guide services for individuals
61or groups directly to any terrorist state which originate
62in Florida; providing an effective date.
63
64Be It Enacted by the Legislature of the State of Florida:
65
66     Section 1.  Subsections (2) through (5), (7) through (10),
67and (11) of section 559.927, Florida Statutes, are renumbered as
68subsections (3) through (6), (8) through (11), and (13),
69respectively, subsection (6) is renumbered as subsection (7) and
70amended, and new subsections (2) and (12) are added to that
71section, to read:
72     559.927  Definitions.--For the purposes of this part, the
73term:
74     (2)  "Certifying party" means a seller of travel
75registering under s. 559.928 or a seller of travel who is exempt
76under s. 559.935(2) or (3).
77     (7)(6)  "Prearranged travel, tourist-related services, or
78tour-guide services" includes, but is not limited to, car
79rentals, lodging, transfers, and sightseeing tours and all other
80such services which are reasonably related to air, sea, rail,
81motor coach, or other medium of transportation, or
82accommodations for which a purchaser receives a premium or
83contracts or pays prior to or after departure. These terms also
84include services for which a purchaser, whose legal residence is
85outside the United States, contracts or pays prior to departure,
86and any arrangement by which a purchaser prepays for, receives a
87reservation or any other commitment to provide services prior to
88departure for, or otherwise arranges for travel directly to a
89terrorist state and which originates in Florida.
90     (12)  "Terrorist state" means any state, country, or nation
91designated by the United States Department of State as a state
92sponsor of terrorism.
93     Section 2.  Subsections (1) and (2) of section 559.928,
94Florida Statutes, are amended to read:
95     559.928  Registration.--
96     (1)  Each seller of travel shall annually register with the
97department, providing: its legal business or trade name, mailing
98address, and business locations; the full names, addresses, and
99telephone numbers, and social security numbers of its owners or
100corporate officers and directors and the Florida agent of the
101corporation; a statement whether it is a domestic or foreign
102corporation, its state and date of incorporation, its charter
103number, and, if a foreign corporation, the date it registered
104with the State of Florida, and occupational license where
105applicable; the date on which a seller of travel registered its
106fictitious name if the seller of travel is operating under a
107fictitious or trade name; the name of all other corporations,
108business entities, and trade names through which each owner of
109the seller of travel operated, was known, or did business as a
110seller of travel within the preceding 5 years; a list of all
111authorized independent agents, including the agent's trade name,
112full name, mailing address, business address, and telephone
113numbers, and social security number; the business location and
114address of each branch office and full name and address of the
115manager or supervisor; the certification required under s.
116559.9285; and proof of purchase of adequate bond or
117establishment of a letter of credit or certificate of deposit as
118required in this part. A certificate evidencing proof of
119registration shall be issued by the department and must be
120prominently displayed in the seller of travel's primary place of
121business.
122     (2)(a)  Registration fees shall be as follows:
123     1.  Three hundred dollars $300 per year per registrant
124certifying its business activities under s. 559.9285(1)(a).
125     2.  One thousand dollars per year per registrant certifying
126its business activities under s. 559.9285(1)(b).
127     3.  Twenty-five hundred dollars per year per registrant
128certifying its business activities under s. 559.9285(1)(c).
129     (b)  All amounts collected shall be deposited by the Chief
130Financial Officer to the credit of the General Inspection Trust
131Fund of the Department of Agriculture and Consumer Services
132pursuant to s. 570.20, for the sole purpose of administration of
133this part.
134     Section 3.  Section 559.9285, Florida Statutes, is created
135to read:
136     559.9285  Certification of business activities.--
137     (1)  Each certifying party, as defined in s. 559.927(2):
138     (a)  Which does not offer for sale, at wholesale or retail,
139prearranged travel, tourist-related services, or tour-guide
140services for individuals or groups directly to any terrorist
141state and which originate in Florida;
142     (b)  Which only offers for sale, at wholesale or retail,
143prearranged travel, tourist-related services, or tour-guide
144services for individuals or groups directly to any terrorist
145state and which originate in Florida, but engages in no other
146business dealings or commerce with any terrorist state; or
147     (c)  Which offers for sale, at wholesale or retail,
148prearranged travel, tourist-related services, or tour-guide
149services for individuals or groups directly to any terrorist
150state and which originate in Florida, and also engages in any
151other business dealings or commerce with any terrorist state,
152
153shall annually certify its business activities by filing a
154disclosure statement with the department that accurately
155represents the scope of the seller's business activities
156according to the criteria provided in either paragraph (a),
157paragraph (b), or paragraph (c).
158     (2)(a)  If a certifying party changes the scope of the
159business activities certified pursuant to subsection (1), the
160certifying party shall file the following with the department no
161later than 15 days from the change in activities:
162     1.  An amended certificate pursuant to subsection (1); and
163     2.  The applicable registration fee pursuant to s. 559.928.
164     (b)  Within 15 days of filing the amended certificate, the
165certifying party shall provide the department with a bond in the
166proper amount for the certified business activity pursuant to s.
167559.929.
168     (3)  The department shall specify by rule the form of each
169certification under this section, which shall include the
170following information:
171     (a)  The legal name, any trade names or fictitious names,
172mailing address, physical address, telephone number or numbers,
173fax number or numbers, all Internet and electronic contact
174information, and registration number, if applicable, of the
175certifying party.
176     (b)  Each terrorist state with which the certifying party
177engages in any business or commerce.
178     (c)  The legal name, any trade names or fictitious names,
179mailing address, physical address, telephone number or numbers,
180fax number or numbers, and all Internet and electronic contact
181information of every other entity with which the certifying
182party engages in business or commerce that is related in any way
183to the certifying party's business or commerce with any
184terrorist state.
185     (d)  The type of all prearranged travel, tourist-related
186services, or tour-guide services the certifying party offers for
187sale to individuals or groups traveling directly to any
188terrorist state and which originate in Florida, and the
189frequency with which such services are offered.
190     Section 4.  Section 559.929, Florida Statutes, is amended
191to read:
192     559.929  Security requirements.--
193     (1)  An application must be accompanied by a performance
194bond in an amount set by the department under paragraph (a),
195paragraph (b), or paragraph (c) not to exceed $25,000, or in the
196amount of $50,000 if the seller of travel is offering vacation
197certificates. The surety on such bond shall be a surety company
198authorized to do business in the state.
199     (a)  Each seller of travel which certifies its business
200activities under s. 559.9285(1)(a) shall provide a performance
201bond in an amount not to exceed $25,000, or in the amount of
202$50,000 if the seller of travel is offering vacation
203certificates.
204     (b)  Each seller of travel which certifies its business
205activities under s. 559.9285(1)(b) shall provide a performance
206bond in an amount not to exceed $100,000, or in the amount of
207$150,000 if the seller of travel is offering vacation
208certificates.
209     (c)  Each seller of travel which certifies its business
210activities under s. 559.9285(1)(c) shall provide a performance
211bond in an amount not to exceed $250,000, or in the amount of
212$300,000 if the seller of travel is offering vacation
213certificates.
214     (2)  In lieu of the performance bond required in this part,
215a registrant or applicant for registration may establish a
216certificate of deposit or an irrevocable letter of credit in a
217Florida banking institution in the amount of the performance
218bond. The department shall be the beneficiary to this
219certificate of deposit, and the original shall be filed with the
220department. Any such letter of credit shall provide that the
221issuer will give the department not less than 120 days written
222notice prior to terminating or refusing to renew the letter of
223credit.
224     (2)(3)  The bond, letter of credit, or certificate of
225deposit shall be in favor of the department for the use and
226benefit of any traveler who is injured by the fraud,
227misrepresentation, breach of contract, financial failure, or
228violation of any provision of this part by the seller of travel.
229Such liability may be enforced either by proceeding in an
230administrative action as specified in subsection (3)(4) or by
231filing a judicial suit at law in a court of competent
232jurisdiction. However, in such court suit the bond, letter of
233credit, or certificate of deposit posted with the department
234shall not be amenable or subject to any judgment or other legal
235process issuing out of or from such court in connection with
236such lawsuit, but such bond, letter of credit, or certificate of
237deposit shall be amenable to and enforceable only by and through
238administrative proceedings before the department. It is the
239intent of the Legislature that such bond, letter of credit, or
240certificate of deposit shall be applicable and liable only for
241the payment of claims duly adjudicated by order of the
242department. The bond, letter of credit, or certificate of
243deposit shall be open to successive claims, but the aggregate
244amount may not exceed the amount of the bond, letter of credit,
245or certificate of deposit. In addition to the foregoing, a bond
246provided by a registrant or applicant for registration which
247certifies its business activities under s. 559.9285(1)(b) or (c)
248shall be in favor of the department, with payment in the
249following order of priority:
250     (a)  All expenses for prosecuting the registrant or
251applicant in any administrative or civil action under this part,
252including fees for attorneys and other professionals, court
253costs or other costs of the proceedings, and all other expenses
254incidental to the action.
255     (b)  All costs and expenses of investigation prior to the
256commencement of an administrative or civil action under this
257part.
258     (c)  Any unpaid administrative fine imposed by final order
259or any unpaid civil penalty imposed by final judgment under this
260part.
261     (d)  Damages or compensation for any traveler injured as
262provided in this subsection.
263     (3)(4)  Any traveler may file a claim against the bond,
264letter of credit, or certificate of deposit which shall be made
265in writing to the department within 120 days after an alleged
266injury has occurred or is discovered to have occurred. The
267proceedings shall be held in accordance with ss. 120.569 and
268120.57.
269     (4)(5)  In any situation in which the seller of travel is
270currently the subject of an administrative, civil, or criminal
271action by either the department, the Department of Legal
272Affairs, or the state attorney concerning compliance with this
273part, the right to proceed against the bond, letter of credit,
274or certificate of deposit, as provided in subsection (3)(4),
275shall be suspended until after any enforcement action becomes
276final.
277     (5)(6)  The department may waive the bond, letter of
278credit, or certificate of deposit requirement on an annual basis
279if the seller of travel has had 5 or more consecutive years of
280experience as a seller of travel in Florida in compliance with
281this part, has not had any civil, criminal, or administrative
282action instituted against the seller of travel in the vacation
283and travel business by any governmental agency or any action
284involving fraud, theft, misappropriation of property, violation
285of any statute pertaining to business or commerce with any
286terrorist state, or moral turpitude, and has a satisfactory
287consumer complaint history with the department, and certifies
288its business activities under s. 559.9285. Such waiver may be
289revoked if the seller of travel violates any provision of this
290part. A seller of travel which certifies its business activities
291under s. 559.9285(1)(b) or (c) shall not be entitled to the
292waiver provided in this subsection.
293     Section 5.  Subsection (2) of section 559.9335, Florida
294Statutes, is amended, subsections (22), (23), and (24) are
295renumbered as subsections (24), (25), and (26), respectively,
296and new subsections (22) and (23) are added to that section, to
297read:
298     559.9335  Violations.--It is a violation of this part for
299any person:
300     (2)  To conduct business as a seller of travel without an
301annual purchase of a performance bond or establishment of a
302letter of credit or certificate of deposit in the amount set by
303the department unless exempt pursuant to s. 559.935.
304     (22)  To offer to sell, at wholesale or retail, prearranged
305travel, tourist-related services, or tour-guide services for
306individuals or groups directly to any terrorist state and which
307originate in Florida, without disclosing such business
308activities in a certification filed under s. 559.9285(1)(b) or
309(c).
310     (23)  To violate any state or federal law restricting or
311prohibiting commerce with terrorist states.
312     Section 6.  Subsections (2), (3), and (4) of section
313559.935, Florida Statutes, are amended to read:
314     559.935  Exemptions.--
315     (2)  Sections 559.928, 559.929, 559.9295, 559.931, and
316559.932 shall not apply to:
317     (a)  Sellers of travel directly issuing airline tickets who
318have contracted with the Airlines Reporting Corporation for the
319most recent consecutive 3 years or more under the same ownership
320and control, and who do not offer vacation certificates, and who
321annually certify their business activities under s.
322559.9285(1)(a).; or
323     (b)  Sellers of travel offering vacation certificates who
324have contracted with the Airlines Reporting Corporation for the
325most recent consecutive 5 years or more under the same ownership
326and control and who annually certify their business activities
327under s. 559.9285(1)(a).
328
329This exemption does not apply to sellers of travel certifying
330their business activities under s. 559.9285(1)(b) or (c).
331     (3)  Sections 559.928, 559.929, 559.9295, 559.931, and
332559.932 shall also not apply to a seller of travel that is an
333affiliate of an entity exempt pursuant to subsection (2) subject
334to the following conditions:
335     (a)  In the event the department finds the affiliate does
336not have a satisfactory consumer complaint history or the
337affiliate fails to respond to a consumer complaint within 30
338days, the related seller of travel exempt pursuant to subsection
339(2) shall be liable for the actions of the affiliate, subject to
340the remedies provided in ss. 559.9355 and 559.936.
341     (b)  In the event the department is unable to locate an
342affiliate, the related seller of travel exempt pursuant to
343subsection (2) shall be fully liable for the actions of the
344affiliate, subject to the remedies provided in ss. 559.9355 and
345559.936.
346     (c)  In order to obtain an exemption under this subsection,
347the affiliate shall file an affidavit of exemption on a form
348prescribed by the department and shall certify its business
349activities under s. 559.9285(1)(a). The affidavit of exemption
350shall be executed by a person who exercises identical control
351over the seller of travel exempt pursuant to subsection (2) and
352the affiliate. Failure to file an affidavit of exemption or
353certification under s. 559.9285(1)(a) prior to engaging in
354seller of travel activities shall subject the affiliate to the
355remedies provided in ss. 559.9355 and 559.936.
356     (d)  Revocation by the department of an exemption provided
357to a seller of travel under subsection (2) shall constitute
358automatic revocation by law of an exemption obtained by an
359affiliate under the subsection.
360     (e)  This subsection shall not apply to:
361     1.  An affiliate that independently qualifies for another
362exemption under this section s. 559.935.
363     2.  An affiliate that sells, or offers for sale, vacation
364certificates.
365     3.  An affiliate that certifies its business activities
366under s. 559.9285(1)(b) or (c).
367     (f)  For purposes of this section, an "affiliate" means an
368entity that meets the following:
369     1.  The entity has the identical ownership as the seller of
370travel that is exempt under subsection (2).
371     2.  The ownership controlling the seller of travel that is
372exempt under subsection (2) also exercises identical control
373over the entity.
374     3.  The owners of the affiliate hold the identical
375percentage of voting shares as they hold in the seller of travel
376that is exempt under subsection (2).
377     (4)  The department may revoke the exemption provided in
378subsection (2) or subsection (3) if the department finds that
379the seller of travel does not have a satisfactory consumer
380complaint history, has been convicted of a crime involving
381fraud, theft, misappropriation of property, deceptive or unfair
382trade practices, or moral turpitude, or has not complied with
383the terms of any order or settlement agreement arising out of an
384administrative or enforcement action brought by a governmental
385agency or private person based on conduct involving fraud,
386theft, misappropriation of property, deceptive or unfair trade
387practices, or moral turpitude.
388     Section 7.  Section 559.9355, Florida Statutes, is amended
389to read:
390     559.9355  Administrative remedies; penalties.--
391     (1)  The department may enter an order doing one or more of
392the following if the department finds that a person has violated
393or is operating in violation of any of the provisions of this
394part or the rules or orders issued thereunder:
395     (a)  Issuing a notice of noncompliance pursuant to s.
396120.695.
397     (b)  Imposing an administrative fine not to exceed $5,000
398for each act or omission.
399     (c)  Imposing an administrative fine not to exceed $10,000
400for each act or omission in violation of s. 559.9335(22) or
401(23).
402     (d)(c)  Directing that the person cease and desist
403specified activities.
404     (e)(d)  Refusing to register or canceling or suspending a
405registration.
406     (f)(e)  Placing the registrant on probation for a period of
407time, subject to such conditions as the department may specify.
408     (g)(f)  Canceling an exemption granted under s. 559.935.
409     (2)  The administrative proceedings which could result in
410the entry of an order imposing any of the penalties specified in
411subsection (1) are governed by chapter 120.
412     (3)  The department has the authority to adopt rules
413pursuant to chapter 120 to implement this section and ss.
414559.928, 559.929, 559.934, and 559.935.
415     Section 8.  Subsections (3) through (6) of section 559.936,
416Florida Statutes, are renumbered as subsections (4) through (7),
417respectively, and a new subsection (3) is added to that section
418to read:
419     559.936  Civil penalties; remedies.--
420     (3)  The department may seek a civil penalty of up to
421$10,000 for each act or omission in violation of s. 559.9335(22)
422or (23).
423     Section 9.  Section 559.937, Florida Statutes, is amended
424to read:
425     559.937  Criminal penalties.-- Any person or business that
426which violates this part:
427     (1)  Commits a misdemeanor of the first degree, punishable
428as provided in s. 775.082 or s. 775.083.
429     (2)  Which violation directly or indirectly pertains to an
430offer to sell, at wholesale or retail, prearranged travel,
431tourist-related services, or tour-guide services for individuals
432or groups directly to any terrorist state and which originate in
433Florida, commits a felony of the third degree, punishable as
434provided in s. 775.082 or s. 775.083.
435     Section 10.  This act shall take effect July 1, 2008.


CODING: Words stricken are deletions; words underlined are additions.