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; revising conditions for denial of or refusal to
9renew the registration of any seller of travel by the
10Department of Agriculture and Consumer Services; creating
11s. 559.9285, F.S.; requiring a seller of travel to
12annually certify to the department the scope of its
13business activities by filing a disclosure statement;
14categorizing certifying parties; requiring the department
15to specify by rule the form of certification; specifying
16required certification information; amending s. 559.929,
17F.S.; revising requirements with respect to the
18performance bond which must accompany registration or an
19application for registration as a seller of travel;
20specifying amounts of bonds for certification categories;
21eliminating alternative means of satisfying security
22requirements; providing for priority of payment with
23respect to such bonds; revising conditions under which the
24department may annually waive the bond; precluding
25specified certification categories from waiver of bond;
26amending s. 559.9335, F.S.; providing that it is a
27violation of the Florida Sellers of Travel Act to offer to
28sell travel or provide any travel-related service to a
29purchaser traveling to or from any terrorist state without
30disclosing such business activities in a certification
31filed with the department and to violate any state or
32federal law restricting or prohibiting commerce with
33terrorist states; amending s. 559.935, F.S.; revising
34provisions which exempt certain sellers of travel and
35affiliates thereof from specified registration, security,
36disclosure, and recordkeeping requirements; revising
37conditions under which the department may revoke such
38exemptions; amending s. 559.9355, F.S.; imposing an
39administrative fine for each act or omission directly or
40indirectly pertaining to an offer to sell travel or
41provide any travel-related service to purchasers traveling
42to or from any terrorist state; amending s. 559.936, F.S.;
43authorizing the department to seek a specified civil
44penalty for each act or omission directly or indirectly
45pertaining to an offer to sell travel or provide any
46travel-related service to a purchaser traveling to or from
47any terrorist state; amending s. 559.937, F.S.; providing
48a criminal penalty for a violation of the Florida Sellers
49of Travel Act which directly or indirectly pertains to an
50offer to sell travel or provide any travel-related service
51to a purchaser traveling to or from any terrorist state;
52providing an effective date.
53
54Be It Enacted by the Legislature of the State of Florida:
55
56     Section 1.  Subsections (2) through (5), (7) through (10),
57and (11) of section 559.927, Florida Statutes, are renumbered as
58subsections (3) through (6), (8) through (11), and (13),
59respectively, subsection (6) is renumbered as subsection (7) and
60amended, and new subsections (2) and (12) are added to that
61section, to read:
62     559.927  Definitions.--For the purposes of this part, the
63term:
64     (2)  "Certifying party" means a seller of travel
65registering under s. 559.928 or a seller of travel who is exempt
66under s. 559.935(2) or (3).
67     (7)(6)  "Prearranged travel, tourist-related services, or
68tour-guide services" includes, but is not limited to, car
69rentals, lodging, transfers, and sightseeing tours and all other
70such services which are reasonably related to air, sea, rail,
71motor coach, or other medium of transportation, or
72accommodations for which a purchaser receives a premium or
73contracts or pays prior to or after departure. These terms also
74include services for which a purchaser, whose legal residence is
75outside the United States, contracts or pays prior to departure,
76and any arrangement by which a purchaser prepays for, receives a
77reservation or any other commitment to provide services prior to
78departure for, or otherwise arranges for travel to or from a
79terrorist state directly from Florida or through one or more
80intermediate states, countries, or nations.
81     (12)  "Terrorist state" means any state, country, or nation
82designated by the United States Department of State as a state
83sponsor of terrorism.
84     Section 2.  Subsections (1), (2), and (9) of section
85559.928, Florida Statutes, are amended to read:
86     559.928  Registration.--
87     (1)  Each seller of travel shall annually register with the
88department, providing: its legal business or trade name, mailing
89address, and business locations; the full names, addresses,
90telephone numbers, and social security numbers of its owners or
91corporate officers and directors and the Florida agent of the
92corporation; a statement whether it is a domestic or foreign
93corporation, its state and date of incorporation, its charter
94number, and, if a foreign corporation, the date it registered
95with the State of Florida, and occupational license where
96applicable; the date on which a seller of travel registered its
97fictitious name if the seller of travel is operating under a
98fictitious or trade name; the name of all other corporations,
99business entities, and trade names through which each owner of
100the seller of travel operated, was known, or did business as a
101seller of travel within the preceding 5 years; a list of all
102authorized independent agents, including the agent's trade name,
103full name, mailing address, business address, telephone numbers,
104and social security number; the business location and address of
105each branch office and full name and address of the manager or
106supervisor; the certification required under s. 559.9285; and
107proof of purchase of adequate bond or establishment of a letter
108of credit or certificate of deposit as required in this part. A
109certificate evidencing proof of registration shall be issued by
110the department and must be prominently displayed in the seller
111of travel's primary place of business.
112     (2)(a)  Registration fees shall be as follows:
113     1.  Three hundred dollars $300 per year per registrant
114certifying its business activities under s. 559.9285(1)(a).
115     2.  One thousand dollars per year per registrant certifying
116its business activities under s. 559.9285(1)(b).
117     3.  Twenty-five hundred dollars per year per registrant
118certifying its business activities under s. 559.9285(1)(c).
119     (b)  All amounts collected shall be deposited by the Chief
120Financial Officer to the credit of the General Inspection Trust
121Fund of the Department of Agriculture and Consumer Services
122pursuant to s. 570.20, for the sole purpose of administration of
123this part.
124     (9)  The department may deny or refuse to renew the
125registration of any seller of travel based upon a determination
126that the seller of travel, or any of its directors, officers,
127owners, or general partners:
128     (a)  Has failed to meet the requirements for registration
129as provided in this part;
130     (b)  Has been convicted of a crime involving fraud,
131dishonest dealing, or any other violation punishable as a crime
132under state or federal law or any other act of moral turpitude;
133     (c)  Has not satisfied a civil fine or penalty arising out
134of any administrative or enforcement action brought by any
135governmental agency or private person based upon conduct
136involving fraud, dishonest dealing, or any violation of this
137part;
138     (d)  Has pending against her or him any criminal,
139administrative, or enforcement proceedings in any jurisdiction,
140based upon any violation of state or federal law conduct
141involving fraud, dishonest dealing, or any other act of moral
142turpitude; or
143     (e)  Has had a judgment entered against her or him in any
144action brought by the department or the Department of Legal
145Affairs pursuant to ss. 501.201-501.213 or this part.
146     Section 3.  Section 559.9285, Florida Statutes, is created
147to read:
148     559.9285  Certification of business activities.--
149     (1)  Each certifying party, as defined in s. 559.927(2):
150     (a)  Which does not offer for sale, directly or indirectly,
151at wholesale or retail, prearranged travel, tourist-related
152services, or tour-guide services for individuals or groups to or
153from any terrorist state;
154     (b)  Which only offers for sale, directly or indirectly, at
155wholesale or retail, prearranged travel, tourist-related
156services, or tour-guide services for individuals or groups to or
157from any terrorist state but engages in no other business
158dealings or commerce with any terrorist state; or
159     (c)  Which offers for sale, directly or indirectly, at
160wholesale or retail, prearranged travel, tourist-related
161services, or tour-guide services for individuals or groups to or
162from any terrorist state and also engages in any other business
163dealings or commerce with any terrorist state,
164
165shall annually certify its business activities by filing a
166disclosure statement with the department that accurately
167represents the scope of the seller's business activities
168according to the criteria provided in either paragraph (a),
169paragraph (b), or paragraph (c).
170     (2)  The department shall specify by rule the form of each
171certification under this section, which shall include the
172following information:
173     (a)  The legal name, any trade names or fictitious names,
174mailing address, physical address, telephone number or numbers,
175fax number or numbers, all Internet and electronic contact
176information, and registration number, if applicable, of the
177certifying party.
178     (b)  Each terrorist state with which the certifying party
179engages in any business or commerce.
180     (c)  Each intermediate state, country, or nation through
181which the certifying party engages in any business or commerce
182with any terrorist state.
183     (d)  The legal name, any trade names or fictitious names,
184mailing address, physical address, telephone number or numbers,
185fax number or numbers, and all Internet and electronic contact
186information of every other entity with which the certifying
187party engages in business or commerce that is related in any way
188to the certifying party's business or commerce with any
189terrorist state.
190     (e)  The type of all prearranged travel, tourist-related
191services, or tour-guide services the certifying party offers for
192sale to individuals or groups traveling to, from, or within any
193terrorist state and the frequency with which such services are
194offered.
195     Section 4.  Section 559.929, Florida Statutes, is amended
196to read:
197     559.929  Security requirements.--
198     (1)  An application must be accompanied by a performance
199bond in an amount set by the department under paragraph (a),
200paragraph (b), or paragraph (c) not to exceed $25,000, or in the
201amount of $50,000 if the seller of travel is offering vacation
202certificates. The surety on such bond shall be a surety company
203authorized to do business in the state.
204     (a)  Each seller of travel which certifies its business
205activities under s. 559.9285(1)(a) shall provide a performance
206bond in an amount not to exceed $25,000, or in the amount of
207$50,000 if the seller of travel is offering vacation
208certificates.
209     (b)  Each seller of travel which certifies its business
210activities under s. 559.9285(1)(b) shall provide a performance
211bond in an amount not to exceed $100,000, or in the amount of
212$150,000 if the seller of travel is offering vacation
213certificates.
214     (c)  Each seller of travel which certifies its business
215activities under s. 559.9285(1)(c) shall provide a performance
216bond in an amount not to exceed $250,000, or in the amount of
217$300,000 if the seller of travel is offering vacation
218certificates.
219     (2)  In lieu of the performance bond required in this part,
220a registrant or applicant for registration may establish a
221certificate of deposit or an irrevocable letter of credit in a
222Florida banking institution in the amount of the performance
223bond. The department shall be the beneficiary to this
224certificate of deposit, and the original shall be filed with the
225department. Any such letter of credit shall provide that the
226issuer will give the department not less than 120 days written
227notice prior to terminating or refusing to renew the letter of
228credit.
229     (2)(3)  The bond, letter of credit, or certificate of
230deposit shall be in favor of the department for the use and
231benefit of any traveler who is injured by the fraud,
232misrepresentation, breach of contract, financial failure, or
233violation of any provision of this part by the seller of travel.
234Such liability may be enforced either by proceeding in an
235administrative action as specified in subsection (3)(4) or by
236filing a judicial suit at law in a court of competent
237jurisdiction. However, in such court suit the bond, letter of
238credit, or certificate of deposit posted with the department
239shall not be amenable or subject to any judgment or other legal
240process issuing out of or from such court in connection with
241such lawsuit, but such bond, letter of credit, or certificate of
242deposit shall be amenable to and enforceable only by and through
243administrative proceedings before the department. It is the
244intent of the Legislature that such bond, letter of credit, or
245certificate of deposit shall be applicable and liable only for
246the payment of claims duly adjudicated by order of the
247department. The bond, letter of credit, or certificate of
248deposit shall be open to successive claims, but the aggregate
249amount may not exceed the amount of the bond, letter of credit,
250or certificate of deposit. In addition to the foregoing, a bond
251provided by a registrant or applicant for registration which
252certifies its business activities under s. 559.9285(1)(b) or (c)
253shall be in favor of the department, with payment in the
254following order of priority:
255     (a)  All expenses for prosecuting the registrant or
256applicant in any administrative or civil action, including fees
257for attorneys and other professionals, court costs or other
258costs of the proceedings, and all other expenses incidental to
259the action.
260     (b)  All costs and expenses of investigation prior to the
261commencement of an administrative or civil action.
262     (c)  Any unpaid administrative fine imposed by final order
263or any unpaid civil penalty imposed by final judgment.
264     (d)  Damages or compensation for any traveler injured as
265provided in this subsection.
266     (3)(4)  Any traveler may file a claim against the bond,
267letter of credit, or certificate of deposit which shall be made
268in writing to the department within 120 days after an alleged
269injury has occurred or is discovered to have occurred. The
270proceedings shall be held in accordance with ss. 120.569 and
271120.57.
272     (4)(5)  In any situation in which the seller of travel is
273currently the subject of an administrative, civil, or criminal
274action by either the department, the Department of Legal
275Affairs, or the state attorney concerning compliance with this
276part, the right to proceed against the bond, letter of credit,
277or certificate of deposit, as provided in subsection (3)(4),
278shall be suspended until after any enforcement action becomes
279final.
280     (5)(6)  The department may waive the bond, letter of
281credit, or certificate of deposit requirement on an annual basis
282if the seller of travel has had 5 or more consecutive years of
283experience as a seller of travel in Florida in compliance with
284this part, has not had any civil, criminal, or administrative
285action instituted against the seller of travel in the vacation
286and travel business by any governmental agency or any action
287involving fraud, theft, misappropriation of property, or
288violation of any statute pertaining to business or commerce with
289any terrorist state, moral turpitude, and has a satisfactory
290consumer complaint history with the department, and certifies
291its business activities under s. 559.9285. Such waiver may be
292revoked if the seller of travel violates any provision of this
293part. A seller of travel which certifies its business activities
294under ss. 559.9285(1)(b) or (c) shall not be entitled to the
295waiver provided in this subsection.
296     Section 5.  Subsection (2) of section 559.9335, Florida
297Statutes, is amended, subsections (22), (23), and (24) are
298renumbered as subsections (24), (25), and (26), respectively,
299and new subsections (22) and (23) are added to that section, to
300read:
301     559.9335  Violations.--It is a violation of this part for
302any person:
303     (2)  To conduct business as a seller of travel without an
304annual purchase of a performance bond or establishment of a
305letter of credit or certificate of deposit in the amount set by
306the department unless exempt pursuant to s. 559.935.
307     (22)  To offer to sell travel or provide any travel-related
308service to purchasers traveling to or from any terrorist state
309without disclosing such business activities in a certification
310filed under ss. 559.9285(1)(b) or (c).
311     (23)  To violate any state or federal law restricting or
312prohibiting commerce with terrorist states.
313     Section 6.  Subsections (2), (3), and (4) of section
314559.935, Florida Statutes, are amended to read:
315     559.935  Exemptions.--
316     (2)  Sections 559.928, 559.929, 559.9295, 559.931, and
317559.932 shall not apply to:
318     (a)  Sellers of travel directly issuing airline tickets who
319have contracted with the Airlines Reporting Corporation for the
320most recent consecutive 3 years or more under the same ownership
321and control, and who do not offer vacation certificates, and who
322annually certify their business activities under s.
323559.9285(1)(a); or
324     (b)  Sellers of travel offering vacation certificates who
325have contracted with the Airlines Reporting Corporation for the
326most recent consecutive 5 years or more under the same ownership
327and control and who annually certify their business activities
328under s. 559.9285(1)(a).
329
330This exemption does not apply to sellers of travel certifying
331their business activities under ss. 559.9285(1)(b) or (c).
332     (3)  Sections 559.928, 559.929, 559.9295, 559.931, and
333559.932 shall also not apply to a seller of travel that is an
334affiliate of an entity exempt pursuant to subsection (2) subject
335to the following conditions:
336     (a)  In the event the department finds the affiliate does
337not have a satisfactory consumer complaint history or the
338affiliate fails to respond to a consumer complaint within 30
339days, the related seller of travel exempt pursuant to subsection
340(2) shall be liable for the actions of the affiliate, subject to
341the remedies provided in ss. 559.9355 and 559.936.
342     (b)  In the event the department is unable to locate an
343affiliate, the related seller of travel exempt pursuant to
344subsection (2) shall be fully liable for the actions of the
345affiliate, subject to the remedies provided in ss. 559.9355 and
346559.936.
347     (c)  In order to obtain an exemption under this subsection,
348the affiliate shall file an affidavit of exemption on a form
349prescribed by the department and shall certify its business
350activities under s. 559.9285(1)(a). The affidavit of exemption
351shall be executed by a person who exercises identical control
352over the seller of travel exempt pursuant to subsection (2) and
353the affiliate. Failure to file an affidavit of exemption or
354certification under s. 559.9285(1)(a) prior to engaging in
355seller of travel activities shall subject the affiliate to the
356remedies provided in ss. 559.9355 and 559.936.
357     (d)  Revocation by the department of an exemption provided
358to a seller of travel under subsection (2) shall constitute
359automatic revocation by law of an exemption obtained by an
360affiliate under the subsection.
361     (e)  This subsection shall not apply to:
362     1.  An affiliate that independently qualifies for another
363exemption under this section s. 559.935.
364     2.  An affiliate that sells, or offers for sale, vacation
365certificates.
366     3.  An affiliate that certifies its business activities
367under s. 559.9285(1)(b) or (c).
368     (f)  For purposes of this section, an "affiliate" means an
369entity that meets the following:
370     1.  The entity has the identical ownership as the seller of
371travel that is exempt under subsection (2).
372     2.  The ownership controlling the seller of travel that is
373exempt under subsection (2) also exercises identical control
374over the entity.
375     3.  The owners of the affiliate hold the identical
376percentage of voting shares as they hold in the seller of travel
377that is exempt under subsection (2).
378     (4)  The department may revoke the exemption provided in
379subsection (2) or subsection (3) if the department finds that
380the seller of travel does not have a satisfactory consumer
381complaint history, has been convicted of a crime involving
382fraud, theft, misappropriation of property, or deceptive or
383unfair trade practices, has been in violation of any statute
384pertaining to business or commerce with any terrorist state, or
385moral turpitude, or has not complied with the terms of any order
386or settlement agreement arising out of an administrative or
387enforcement action brought by a governmental agency or private
388person based on conduct involving fraud, theft, misappropriation
389of property, deceptive or unfair trade practices, or a violation
390of any statute pertaining to business or commerce with any
391terrorist state moral turpitude.
392     Section 7.  Section 559.9355, Florida Statutes, is amended
393to read:
394     559.9355  Administrative remedies; penalties.--
395     (1)  The department may enter an order doing one or more of
396the following if the department finds that a person has violated
397or is operating in violation of any of the provisions of this
398part or the rules or orders issued thereunder:
399     (a)  Issuing a notice of noncompliance pursuant to s.
400120.695.
401     (b)  Imposing an administrative fine not to exceed $5,000
402for each act or omission.
403     (c)  Imposing an administrative fine not to exceed $10,000
404for each act or omission directly or indirectly pertaining to an
405offer to sell travel or provide any travel-related service to
406purchasers traveling to or from any terrorist state.
407     (d)(c)  Directing that the person cease and desist
408specified activities.
409     (e)(d)  Refusing to register or canceling or suspending a
410registration.
411     (f)(e)  Placing the registrant on probation for a period of
412time, subject to such conditions as the department may specify.
413     (g)(f)  Canceling an exemption granted under s. 559.935.
414     (2)  The administrative proceedings which could result in
415the entry of an order imposing any of the penalties specified in
416subsection (1) are governed by chapter 120.
417     (3)  The department has the authority to adopt rules
418pursuant to chapter 120 to implement this section and ss.
419559.928, 559.929, 559.934, and 559.935.
420     Section 8.  Subsections (3) through (6) of section 559.936,
421Florida Statutes, are renumbered as subsections (4) through (7),
422respectively, and a new subsection (3) is added to that section,
423to read:
424     559.936  Civil penalties; remedies.--
425     (3)  The department may seek a civil penalty of up to
426$10,000 for each act or omission directly or indirectly
427pertaining to an offer to sell travel or provide any travel-
428related service to a purchaser traveling to or from any
429terrorist state.
430     Section 9.  Section 559.937, Florida Statutes, is amended
431to read:
432     559.937  Criminal penalties.-- Any person or business that
433which violates this part:
434     (1)  Commits a misdemeanor of the first degree, punishable
435as provided in s. 775.082 or s. 775.083.
436     (2)  Which violation directly or indirectly pertains to an
437offer to sell travel or provide any travel-related service to a
438purchaser traveling to or from any terrorist state, commits a
439felony of the third degree, punishable as provided in s. 775.082
440or s. 775.083.
441     Section 10.  This act shall take effect July 1, 2008.


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