1

A bill to be entitled

2

An act relating to sellers of travel; amending s. 559.927,

3

F.S.; revising the definition of "prearranged travel,

4

tourist-related services, or tour-guide services";

5

defining "certifying party" and "terrorist state";

6

amending s. 559.928, F.S.; revising provisions relating to

7

registration as a seller of travel; revising registration

8

fees; revising conditions for denial of or refusal to

9

renew the registration of any seller of travel by the

10

Department of Agriculture and Consumer Services; creating

11

s. 559.9285, F.S.; requiring a seller of travel to

12

annually certify to the department the scope of its

13

business activities by filing a disclosure statement;

14

categorizing certifying parties; requiring the department

15

to specify by rule the form of certification; specifying

16

required certification information; amending s. 559.929,

17

F.S.; revising requirements with respect to the

18

performance bond that must accompany registration or an

19

application for registration as a seller of travel;

20

specifying amounts of bonds for certification categories;

21

eliminating alternative means of satisfying security

22

requirements; providing for priority of payment with

23

respect to such bonds; revising conditions under which the

24

department may annually waive the bond; precluding

25

specified certification categories from waiver of bond;

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amending s. 559.9335, F.S.; providing that it is a

27

violation of the Florida Sellers of Travel Act to offer to

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sell travel or provide any travel-related service to a

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purchaser traveling to or from any terrorist state without

30

disclosing such business activities in a certification

31

filed with the department and to violate any state or

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federal law restricting or prohibiting commerce with

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terrorist states; amending s. 559.935, F.S.; revising

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provisions that exempt certain sellers of travel and

35

affiliates thereof from specified registration, security,

36

disclosure, and recordkeeping requirements; revising

37

conditions under which the department may revoke such

38

exemptions; amending s. 559.9355, F.S.; imposing an

39

administrative fine for each act or omission directly or

40

indirectly pertaining to an offer to sell travel or

41

provide any travel-related service to purchasers traveling

42

to or from any terrorist state; amending s. 559.936, F.S.;

43

authorizing the department to seek a specified civil

44

penalty for each act or omission directly or indirectly

45

pertaining to an offer to sell travel or provide any

46

travel-related service to a purchaser traveling to or from

47

any terrorist state; amending s. 559.937, F.S.; providing

48

a criminal penalty for a violation of the Florida Sellers

49

of Travel Act which directly or indirectly pertains to an

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offer to sell travel or provide any travel-related service

51

to a purchaser traveling to or from any terrorist state;

52

providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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56

     Section 1.  Subsections (2) through (5), (7) through (10),

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and (11) of section 559.927, Florida Statutes, are renumbered as

58

subsections (3) through (6), (8) through (11), and (13),

59

respectively, subsection (6) is renumbered as subsection (7) and

60

amended, and new subsections (2) and (12) are added to that

61

section, to read:

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     559.927  Definitions.--For the purposes of this part, the

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term:

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     (2) "Certifying party" means a seller of travel registering

65

under s. 559.928 or a seller of travel who is exempt under s.

66

559.935(2) or (3).

67

     (7)(6) "Prearranged travel, tourist-related services, or

68

tour-guide services" includes, but is not limited to, car

69

rentals, lodging, transfers, and sightseeing tours and all other

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such services which are reasonably related to air, sea, rail,

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motor coach, or other medium of transportation, or accommodations

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for which a purchaser receives a premium or contracts or pays

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prior to or after departure. These terms also include services

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for which a purchaser, whose legal residence is outside the

75

United States, contracts or pays prior to departure, and any

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arrangement by which a purchaser prepays for, receives a

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reservation or any other commitment to provide services prior to

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departure for, or otherwise arranges for travel to or from a

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terrorist state directly from Florida or through one or more

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intermediate states, countries, or nations.

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     (12) "Terrorist state" means any state, country, or nation

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designated by the United States Department of State as a state

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sponsor of terrorism.

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     Section 2.  Subsections (1), (2), and (9) of section

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559.928, Florida Statutes, are amended to read:

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     559.928  Registration.--

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     (1)  Each seller of travel shall annually register with the

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department, providing: its legal business or trade name, mailing

89

address, and business locations; the full names, addresses,

90

telephone numbers, and social security numbers of its owners or

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corporate officers and directors and the Florida agent of the

92

corporation; a statement whether it is a domestic or foreign

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corporation, its state and date of incorporation, its charter

94

number, and, if a foreign corporation, the date it registered

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with the State of Florida, and occupational license where

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applicable; the date on which a seller of travel registered its

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fictitious name if the seller of travel is operating under a

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fictitious or trade name; the name of all other corporations,

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business entities, and trade names through which each owner of

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the seller of travel operated, was known, or did business as a

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seller of travel within the preceding 5 years; a list of all

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authorized independent agents, including the agent's trade name,

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full name, mailing address, business address, telephone numbers,

104

and social security number; the business location and address of

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each branch office and full name and address of the manager or

106

supervisor; the certification required under s. 559.9285; and

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proof of purchase of adequate bond or establishment of a letter

108

of credit or certificate of deposit as required in this part. A

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certificate evidencing proof of registration shall be issued by

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the department and must be prominently displayed in the seller of

111

travel's primary place of business.

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     (2)(a) Registration fees shall be as follows:

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     1. Three hundred dollars $300 per year per registrant

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certifying its business activities under s. 559.9285(1)(a).

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     2. One thousand dollars per year per registrant certifying

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its business activities under s. 559.9285(1)(b).

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     3. Twenty-five hundred dollars per year per registrant

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certifying its business activities under s. 559.9285(1)(c).

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     (b) All amounts collected shall be deposited by the Chief

120

Financial Officer to the credit of the General Inspection Trust

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Fund of the Department of Agriculture and Consumer Services

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pursuant to s. 570.20, for the sole purpose of administration of

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this part.

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     (9)  The department may deny or refuse to renew the

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registration of any seller of travel based upon a determination

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that the seller of travel, or any of its directors, officers,

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owners, or general partners:

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     (a)  Has failed to meet the requirements for registration as

129

provided in this part;

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     (b)  Has been convicted of a crime involving fraud,

131

dishonest dealing, or any other violation punishable as a crime

132

under state or federal law or any other act of moral turpitude;

133

     (c)  Has not satisfied a civil fine or penalty arising out

134

of any administrative or enforcement action brought by any

135

governmental agency or private person based upon conduct

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involving fraud, dishonest dealing, or any violation of this

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part;

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     (d)  Has pending against her or him any criminal,

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administrative, or enforcement proceedings in any jurisdiction,

140

based upon any violation of state or federal law conduct

141

involving fraud, dishonest dealing, or any other act of moral

142

turpitude; or

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     (e)  Has had a judgment entered against her or him in any

144

action brought by the department or the Department of Legal

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Affairs pursuant to ss. 501.201-501.213 or this part.

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     Section 3.  Section 559.9285, Florida Statutes, is created

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to read:

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     559.9285 Certification of business activities.--

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     (1) Each certifying party, as defined in s. 559.927(2):

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     (a) Which does not offer for sale, directly or indirectly,

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at wholesale or retail, prearranged travel, tourist-related

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services, or tour-guide services for individuals or groups to or

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from any terrorist state;

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     (b) Which only offers for sale, directly or indirectly, at

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wholesale or retail, prearranged travel, tourist-related

156

services, or tour-guide services for individuals or groups to or

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from any terrorist state but engages in no other business

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dealings or commerce with any terrorist state; or

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     (c) Which offers for sale, directly or indirectly, at

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wholesale or retail, prearranged travel, tourist-related

161

services, or tour-guide services for individuals or groups to or

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from any terrorist state and also engages in any other business

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dealings or commerce with any terrorist state,

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shall annually certify its business activities by filing a

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disclosure statement with the department that accurately

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represents the scope of the seller's business activities

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according to the criteria provided in either paragraph (a),

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paragraph (b), or paragraph (c).

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     (2) The department shall specify by rule the form of each

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certification under this section, which shall include the

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following information:

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     (a) The legal name, any trade names or fictitious names,

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mailing address, physical address, telephone number or numbers,

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fax number or numbers, all Internet and electronic contact

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information, and registration number, if applicable, of the

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certifying party.

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     (b) Each terrorist state with which the certifying party

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engages in any business or commerce.

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     (c) Each intermediate state, country, or nation through

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which the certifying party engages in any business or commerce

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with any terrorist state.

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     (d) The legal name, any trade names or fictitious names,

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mailing address, physical address, telephone number or numbers,

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fax number or numbers, and all Internet and electronic contact

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information of every other entity with which the certifying party

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engages in business or commerce that is related in any way to the

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certifying party's business or commerce with any terrorist state.

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     (e) The type of all prearranged travel, tourist-related

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services, or tour-guide services the certifying party offers for

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sale to individuals or groups traveling to, from, or within any

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terrorist state and the frequency with which such services are

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offered.

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     Section 4.  Section 559.929, Florida Statutes, is amended to

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read:

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     559.929  Security requirements.--

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     (1)  An application must be accompanied by a performance

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bond in an amount set by the department under paragraph (a),

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paragraph (b), or paragraph (c) not to exceed $25,000, or in the

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amount of $50,000 if the seller of travel is offering vacation

201

certificates. The surety on such bond shall be a surety company

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authorized to do business in the state.

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     (a) Each seller of travel which certifies its business

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activities under s. 559.9285(1)(a) shall provide a performance

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bond in an amount not to exceed $25,000, or in the amount of

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$50,000 if the seller of travel is offering vacation

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certificates.

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     (b) Each seller of travel which certifies its business

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activities under s. 559.9285(1)(b) shall provide a performance

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bond in an amount not to exceed $100,000, or in the amount of

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$150,000 if the seller of travel is offering vacation

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certificates.

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     (c) Each seller of travel which certifies its business

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activities under s. 559.9285(1)(c) shall provide a performance

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bond in an amount not to exceed $250,000, or in the amount of

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$300,000 if the seller of travel is offering vacation

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certificates.

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     (2) In lieu of the performance bond required in this part,

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a registrant or applicant for registration may establish a

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certificate of deposit or an irrevocable letter of credit in a

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Florida banking institution in the amount of the performance

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bond. The department shall be the beneficiary to this certificate

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of deposit, and the original shall be filed with the department.

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Any such letter of credit shall provide that the issuer will give

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the department not less than 120 days written notice prior to

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terminating or refusing to renew the letter of credit.

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     (2)(3) The bond, letter of credit, or certificate of

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deposit shall be in favor of the department for the use and

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benefit of any traveler who is injured by the fraud,

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misrepresentation, breach of contract, financial failure, or

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violation of any provision of this part by the seller of travel.

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Such liability may be enforced either by proceeding in an

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administrative action as specified in subsection (3) (4) or by

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filing a judicial suit at law in a court of competent

235

jurisdiction. However, in such court suit the bond, letter of

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credit, or certificate of deposit posted with the department

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shall not be amenable or subject to any judgment or other legal

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process issuing out of or from such court in connection with such

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lawsuit, but such bond, letter of credit, or certificate of

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deposit shall be amenable to and enforceable only by and through

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administrative proceedings before the department. It is the

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intent of the Legislature that such bond, letter of credit, or

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certificate of deposit shall be applicable and liable only for

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the payment of claims duly adjudicated by order of the

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department. The bond, letter of credit, or certificate of deposit

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shall be open to successive claims, but the aggregate amount may

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not exceed the amount of the bond, letter of credit, or

248

certificate of deposit. In addition to the foregoing, a bond

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provided by a registrant or applicant for registration which

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certifies its business activities under s. 559.9285(1)(b) or (c)

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shall be in favor of the department, with payment in the

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following order of priority:

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     (a) All expenses for prosecuting the registrant or

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applicant in any administrative or civil action, including fees

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for attorneys and other professionals, court costs or other costs

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of the proceedings, and all other expenses incidental to the

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action.

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     (b) All costs and expenses of investigation prior to the

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commencement of an administrative or civil action.

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     (c) Any unpaid administrative fine imposed by final order

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or any unpaid civil penalty imposed by final judgment.

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     (d) Damages or compensation for any traveler injured as

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provided in this subsection.

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     (3)(4) Any traveler may file a claim against the bond,

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letter of credit, or certificate of deposit which shall be made

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in writing to the department within 120 days after an alleged

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injury has occurred or is discovered to have occurred. The

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proceedings shall be held in accordance with ss. 120.569 and

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120.57.

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     (4)(5) In any situation in which the seller of travel is

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currently the subject of an administrative, civil, or criminal

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action by either the department, the Department of Legal Affairs,

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or the state attorney concerning compliance with this part, the

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right to proceed against the bond, letter of credit, or

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certificate of deposit, as provided in subsection (3) (4), shall

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be suspended until after any enforcement action becomes final.

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     (5)(6) The department may waive the bond, letter of credit,

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or certificate of deposit requirement on an annual basis if the

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seller of travel has had 5 or more consecutive years of

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experience as a seller of travel in Florida in compliance with

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this part, has not had any civil, criminal, or administrative

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action instituted against the seller of travel in the vacation

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and travel business by any governmental agency or any action

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involving fraud, theft, misappropriation of property, or

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violation of any statute pertaining to business or commerce with

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any terrorist state, moral turpitude, and has a satisfactory

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consumer complaint history with the department, and certifies its

288

business activities under s. 559.9285. Such waiver may be revoked

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if the seller of travel violates any provision of this part. A

290

seller of travel which certifies its business activities under s.

291

559.9285(1)(b) or (c) shall not be entitled to the waiver

292

provided in this subsection.

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     Section 5.  Subsection (2) of section 559.9335, Florida

294

Statutes, is amended, subsections (22), (23), and (24) are

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renumbered as subsections (24), (25), and (26), respectively, and

296

new subsections (22) and (23) are added to that section, to read:

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     559.9335  Violations.--It is a violation of this part for

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any person:

299

     (2)  To conduct business as a seller of travel without an

300

annual purchase of a performance bond or establishment of a

301

letter of credit or certificate of deposit in the amount set by

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the department unless exempt pursuant to s. 559.935.

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     (22) To offer to sell travel or provide any travel-related

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service to purchasers traveling to or from any terrorist state

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without disclosing such business activities in a certification

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filed under s. 559.9285(1)(b) or (c).

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     (23) To violate any state or federal law restricting or

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prohibiting commerce with terrorist states.

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     Section 6.  Subsections (2), (3), and (4) of section

310

559.935, Florida Statutes, are amended to read:

311

     559.935  Exemptions.--

312

     (2)  Sections 559.928, 559.929, 559.9295, 559.931, and

313

559.932 shall not apply to:

314

     (a)  Sellers of travel directly issuing airline tickets who

315

have contracted with the Airlines Reporting Corporation for the

316

most recent consecutive 3 years or more under the same ownership

317

and control, and who do not offer vacation certificates, and who

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annually certify their business activities under s.

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559.9285(1)(a); or

320

     (b)  Sellers of travel offering vacation certificates who

321

have contracted with the Airlines Reporting Corporation for the

322

most recent consecutive 5 years or more under the same ownership

323

and control and who annually certify their business activities

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under s. 559.9285(1)(a).

325

326

This exemption does not apply to sellers of travel certifying

327

their business activities under s. 559.9285(1)(b) or (c).

328

     (3)  Sections 559.928, 559.929, 559.9295, 559.931, and

329

559.932 shall also not apply to a seller of travel that is an

330

affiliate of an entity exempt pursuant to subsection (2) subject

331

to the following conditions:

332

     (a)  In the event the department finds the affiliate does

333

not have a satisfactory consumer complaint history or the

334

affiliate fails to respond to a consumer complaint within 30

335

days, the related seller of travel exempt pursuant to subsection

336

(2) shall be liable for the actions of the affiliate, subject to

337

the remedies provided in ss. 559.9355 and 559.936.

338

     (b)  In the event the department is unable to locate an

339

affiliate, the related seller of travel exempt pursuant to

340

subsection (2) shall be fully liable for the actions of the

341

affiliate, subject to the remedies provided in ss. 559.9355 and

342

559.936.

343

     (c)  In order to obtain an exemption under this subsection,

344

the affiliate shall file an affidavit of exemption on a form

345

prescribed by the department and shall certify its business

346

activities under s. 559.9285(1)(a). The affidavit of exemption

347

shall be executed by a person who exercises identical control

348

over the seller of travel exempt pursuant to subsection (2) and

349

the affiliate. Failure to file an affidavit of exemption or

350

certification under s. 559.9285(1)(a) prior to engaging in seller

351

of travel activities shall subject the affiliate to the remedies

352

provided in ss. 559.9355 and 559.936.

353

     (d)  Revocation by the department of an exemption provided

354

to a seller of travel under subsection (2) shall constitute

355

automatic revocation by law of an exemption obtained by an

356

affiliate under the subsection.

357

     (e)  This subsection shall not apply to:

358

     1.  An affiliate that independently qualifies for another

359

exemption under this section s. 559.935.

360

     2.  An affiliate that sells, or offers for sale, vacation

361

certificates.

362

     3. An affiliate that certifies its business activities

363

under s. 559.9285(1)(b) or (c).

364

     (f)  For purposes of this section, an "affiliate" means an

365

entity that meets the following:

366

     1.  The entity has the identical ownership as the seller of

367

travel that is exempt under subsection (2).

368

     2.  The ownership controlling the seller of travel that is

369

exempt under subsection (2) also exercises identical control over

370

the entity.

371

     3.  The owners of the affiliate hold the identical

372

percentage of voting shares as they hold in the seller of travel

373

that is exempt under subsection (2).

374

     (4)  The department may revoke the exemption provided in

375

subsection (2) or subsection (3) if the department finds that the

376

seller of travel does not have a satisfactory consumer complaint

377

history, has been convicted of a crime involving fraud, theft,

378

misappropriation of property, or deceptive or unfair trade

379

practices, has been in violation of any statute pertaining to

380

business or commerce with any terrorist state, or moral

381

turpitude, or has not complied with the terms of any order or

382

settlement agreement arising out of an administrative or

383

enforcement action brought by a governmental agency or private

384

person based on conduct involving fraud, theft, misappropriation

385

of property, deceptive or unfair trade practices, or a violation

386

of any statute pertaining to business or commerce with any

387

terrorist state moral turpitude.

388

     Section 7.  Section 559.9355, Florida Statutes, is amended

389

to read:

390

     559.9355  Administrative remedies; penalties.--

391

     (1)  The department may enter an order doing one or more of

392

the following if the department finds that a person has violated

393

or is operating in violation of any of the provisions of this

394

part or the rules or orders issued thereunder:

395

     (a)  Issuing a notice of noncompliance pursuant to s.

396

120.695.

397

     (b)  Imposing an administrative fine not to exceed $5,000

398

for each act or omission.

399

     (c) Imposing an administrative fine not to exceed $10,000

400

for each act or omission directly or indirectly pertaining to an

401

offer to sell travel or provide any travel-related service to

402

purchasers traveling to or from any terrorist state.

403

     (d)(c) Directing that the person cease and desist specified

404

activities.

405

     (e)(d) Refusing to register or canceling or suspending a

406

registration.

407

     (f)(e) Placing the registrant on probation for a period of

408

time, subject to such conditions as the department may specify.

409

     (g)(f) Canceling an exemption granted under s. 559.935.

410

     (2)  The administrative proceedings which could result in

411

the entry of an order imposing any of the penalties specified in

412

subsection (1) are governed by chapter 120.

413

     (3)  The department has the authority to adopt rules

414

pursuant to chapter 120 to implement this section and ss.

415

559.928, 559.929, 559.934, and 559.935.

416

     Section 8.  Subsections (3) through (6) of section 559.936,

417

Florida Statutes, are renumbered as subsections (4) through (7),

418

respectively, and a new subsection (3) is added to that section,

419

to read:

420

     559.936  Civil penalties; remedies.--

421

     (3) The department may seek a civil penalty of up to

422

$10,000 for each act or omission directly or indirectly

423

pertaining to an offer to sell travel or provide any travel-

424

related service to a purchaser traveling to or from any terrorist

425

state.

426

     Section 9.  Section 559.937, Florida Statutes, is amended to

427

read:

428

     559.937 Criminal penalties.-- Any person or business that

429

which violates this part:

430

     (1) Commits a misdemeanor of the first degree, punishable

431

as provided in s. 775.082 or s. 775.083.

432

     (2) Which violation directly or indirectly pertains to an

433

offer to sell travel or provide any travel-related service to a

434

purchaser traveling to or from any terrorist state, commits a

435

felony of the third degree, punishable as provided in s. 775.082

436

or s. 775.083.

437

     Section 10.  This act shall take effect July 1, 2008.