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





                                                   HOUSE AMENDMENT

    556-159X-32                                   Bill No. HB 3785

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Ogles and Melvin offered the following:

12

13         Amendment (with title amendment) 

14         On page 9, lines 1 and 2,

15  remove from the bill:  all of said lines,

16

17  and insert in lieu thereof:

18         Section 11.  (1)  Short title.--This section may be

19  cited as the "Travel Agency Fair Treatment Act."

20         (2)  Definitions.--As used in this act, unless the

21  context otherwise requires, the following words and phrases

22  shall have the following meanings:

23         (a)  "Appointment" means a written contract or

24  agreement by which one or more travel service suppliers,

25  directly or through an intermediary, grants to one or more

26  persons the right to sell or distribute air travel services in

27  which there is a community of interest in the business of

28  offering, selling, or distributing such services at retail.

29  The term shall also include agencies, distributorships,

30  franchises, dealerships, and other distribution arrangements,

31  regardless of how denominated.

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                                                   HOUSE AMENDMENT

    556-159X-32                                   Bill No. HB 3785

    Amendment No.     (for drafter's use only)





 1         (b)  "Community of interest" means a continuing

 2  financial interest between the travel service supplier and the

 3  travel agency in either the operation of the retail business

 4  or the marketing of services.

 5         (c)  "Good cause" means the failure of a travel agency

 6  to substantially comply with essential and reasonable

 7  requirements imposed, or sought to be imposed, upon the travel

 8  agency by a travel service, which requirements are not

 9  discriminatory, either by their terms or in the manner of

10  their enforcement, when compared to requirements imposed on

11  other similarly situated travel agencies or requirements and

12  practices under which the travel service supplier conducts its

13  own activities that are in competition with the travel agency.

14         (d)  "Travel service supplier" means an air carrier.

15         (e)  "Person" means a natural person, partnership,

16  joint venture, corporation, or other entity.

17         (f)  "Travel agency" means a seller of travel, as

18  defined in s. 559.927(10), Florida Statutes, with a principal

19  place of business in this state or organized under the laws of

20  this state, who is the grantee of one or more appointments as

21  defined in paragraph (a). A person may, at the same time, be a

22  travel agency with respect to more than one travel service

23  supplier.

24         (3)  Purposes; rules of construction; variation by

25  contract.--

26         (a)  The underlying purposes of this act are:

27         1.  To promote the compelling public interest in fair

28  business relations between travel agencies and travel service

29  suppliers, and in the continuation of appointments on a fair

30  basis.

31         2.  To protect travel agencies against unfair treatment

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                                                   HOUSE AMENDMENT

    556-159X-32                                   Bill No. HB 3785

    Amendment No.     (for drafter's use only)





 1  by travel service suppliers who inherently have superior

 2  economic power and superior bargaining power in the granting

 3  of appointments.

 4         3.  To provide travel agencies with rights and remedies

 5  in addition to those existing by contract or common law.

 6         4.  To govern all appointments, including any renewals

 7  or amendments, to the full extent consistent with the

 8  constitutions of this state and the United States.

 9         5.  To preserve for the public the convenience and

10  efficiency of access to multiple sources for travel and

11  travel-related services.

12         6.  To recognize and protect travel agencies'

13  investments of time and effort in creating goodwill for their

14  travel service suppliers.

15         (b)  This act shall be liberally construed and applied

16  to promote its underlying remedial purposes and policies. The

17  effect of this act may not be varied by contract or agreement.

18  Any contract or agreement purporting to do so is void and

19  unenforceable to that extent only.

20         (4)  Cancellation and alteration of appointments.--No

21  travel service supplier, directly or through any officer,

22  agent, employee or other representative, shall terminate,

23  cancel, fail to renew, or substantially change the competitive

24  circumstances of an appointment without good cause. The burden

25  of proving good cause is on the travel service supplier. For

26  the purposes of this act, the terms "terminate," "cancel," and

27  "fail to renew" shall mean either actual or constructive

28  termination, cancellation, or failure to renew.

29         (5)  Notice of termination or change in appointment.--

30         (a)  Except as provided in paragraph (b), a travel

31  service supplier shall provide a travel agency not less than

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                                                   HOUSE AMENDMENT

    556-159X-32                                   Bill No. HB 3785

    Amendment No.     (for drafter's use only)





 1  90 days' prior written notice of termination, cancellation,

 2  nonrenewal, or substantial change in the competitive

 3  circumstances of an appointment. The notice shall state all

 4  the reasons for termination, cancellation, nonrenewal, or

 5  substantial change in competitive circumstances and shall

 6  provide that the travel agency has 60 days in which to rectify

 7  any claimed deficiency. If the deficiency is rectified within

 8  60 days, the notice shall be void.

 9         (b)1.  The notice provisions of this section shall not

10  apply if the reason for termination, cancellation, nonrenewal,

11  or substantial change in competitive circumstances is

12  insolvency, the occurrence of an assignment for the benefit of

13  creditors, or bankruptcy. If the reason for termination,

14  cancellation, nonrenewal, or substantial change in competitive

15  circumstances is nonpayment of sums due under the appointment,

16  the travel agency shall be entitled to written notice of such

17  default, and shall have 10 days from the date of delivery or

18  posting of such notice in which to remedy such default, or

19  such longer time as is provided for in any written agreement

20  between the travel agency and the travel service supplier or

21  its representative.

22         2.  The notice provisions of this section shall not

23  apply when the travel service supplier asserts that the travel

24  agency has engaged in fraudulent conduct and there is a clear

25  and present danger of substantial loss to the travel service

26  supplier unless action otherwise regulated by the notice

27  provisions of paragraph (a) is taken without giving such

28  notice.

29         (c)  If a proceeding under subsection (7) results in a

30  finding that there was no fraudulent conduct on the part of

31  the travel agency and there was no clear and present danger of

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                                                   HOUSE AMENDMENT

    556-159X-32                                   Bill No. HB 3785

    Amendment No.     (for drafter's use only)





 1  substantial loss to the travel service supplier, the damages

 2  recoverable by the travel agency under subsection (7) shall be

 3  five times the actual damages or $5,000, whichever is greater,

 4  together with actual costs of the action, including reasonable

 5  attorney's fees.

 6         (6)  Application to arbitration agreements.--This act

 7  shall not affect provisions for the binding arbitration of

 8  disputes contained in an appointment if the criteria for

 9  determining whether good cause existed for a termination,

10  cancellation, nonrenewal, or substantial change in competitive

11  circumstances, and the relief provided thereunder, are no less

12  than those provided for in this act.

13         (7)  Action for damages.--Any travel agency who suffers

14  damage as a result of a violation of this act may file a

15  petition or complaint in any court of competent jurisdiction

16  in the state, and, if successful, shall recover three times

17  the actual damages or $1,000, whichever is greater, together

18  with actual costs of the action, including reasonable

19  attorney's fees. Appointments shall continue in effect until

20  final determination of the issues raised in such petition or

21  complaint by the travel agency.

22         (8)  Temporary injunction.--In any action brought by a

23  travel agency against a travel service supplier under this

24  act, any violation of this act by the travel service supplier

25  is deemed an irreparable injury to the travel agency for

26  determining whether a temporary injunction should be issued.

27         (9)  Application.--This act shall apply to all

28  appointments in effect on the effective date of this act.

29         (10)  Severability.--If any provision of this act or

30  the application thereof to any person or circumstance is held

31  invalid, the invalidity shall not affect the other provisions

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                                                   HOUSE AMENDMENT

    556-159X-32                                   Bill No. HB 3785

    Amendment No.     (for drafter's use only)





 1  or applications of the act which can be given effect without

 2  the invalid provision or application, and to this end the

 3  provisions of this act are declared severable.

 4         Section 12.    This act shall take effect October 1 of

 5  the year in which enacted except section (11) shall take

 6  effect upon becoming a law.

 7

 8

 9  ================ T I T L E   A M E N D M E N T ===============

10  And the title is amended as follows:

11         On page 1, line 25,

12  remove from the title:  providing an effective date.

13

14  and insert in lieu thereof:

15         creating the Travel Agency Fair Treatment Act;

16         providing findings and intent; providing

17         definitions; providing purposes of the act;

18         providing for construction; prohibiting the

19         cancellation, failure to renew, or alteration

20         of appointments without good cause; requiring

21         notification of termination or change in

22         appointment; providing contents of notice;

23         providing applicability of notice provisions;

24         providing for damages; providing for

25         applicability with respect to arbitration

26         agreements; providing for temporary injunction;

27         providing application; providing severability;

28         providing effective dates.

29

30

31

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