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History
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Requires travel agents to be registered with the department of state, and provides for the regulation thereof; repealer
In Assembly Committee · Economic Development · Sponsor Hakeem Jeffries
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7944
Title of bill
An act to amend the general business law and the economic development law, in relation to requiring travel consultants and travel promoters located or doing business in this state to be registered with the department of state; and to repeal article 10-A of the general business law relating to the truth in travel act
Purpose or general idea of the bill
As stated in the Legislative intent - the promotion and sale of travel is of such volume that it is in the best interest of the public that all sellers of travel in New York State be required to register with the Department of State for the purpose of safeguarding the public against fraud, false advertising and misrepresentation.
Read the full memo (658 words)
Summary of provisions
Section 1 of this bill repeals article 10-A of the General Business Law - the "Truth in Travel Act" and adds critical consumer protection functions which shall also be included in a new article 10-A:
-Section 155 establishes that the promotion of travel is at such a volume that all agents be subject to an annual registration and monitoring by the Department of State.
-Section 155-a sets forth definitions used in this article including new definitions of "registrant", "travel agent".
-Section 156 establishes that no travel agent shall operate without first being registered with the Department of State.
-Section 156-a sets forth provisions for the application process with the Department of State.
-Section 156-b establishes conditions for registration
-Section 156-c establishes a set of rules pertaining to the registrant
-Section 156-d establishes grounds for denial, suspension or revocation of registration.
-Section 156-e establishes state preemption.
-Section 157 provides regulations for business conduct between consumers and travel agents including that all contracts for travel are voidable by the consumer where a registration number is not provided by the agent.
-Section 158 sets forth applicable penalties and violations resulting from defrauding or misrepresentation.
-Section 159 establishes severability.
Section 2 makes necessary amendments to the state economic development law in relation to new Article 10-A of the general business law
dealing with the establishment of a searchable registry available to the public through the department's tourism website.
Section 3 provides for an effective date of the first of January after it shall have become law.
Justification
Travel agents provide a necessary and valuable function to consumers needing assistance with planning a large vacation or even a simple flight. Travel agents are especially useful to those who are unable to make their own travel plans or prefer not to do so.
In New York, there have been a number of businesses posing as fraudulent travel agencies. The common practice of such a business is to open shop and operate for a few weeks or months only to close without rendering services that have been promised and paid for. Similarly, there are a number of individuals acting as travel agents who carry false credentials obtained by questionable means. These individuals should not be able to remain in business.
This bill provides for the creation of a complete registry of travel agents doing business in New York - those who are deemed travel promoters, travel consultants, and those otherwise in the business of selling travel. To become listed in the registry, any person or business that sells travel must go through a level of vetting by the Department of State. The intention is to prevent any individual or business that has been engaged in any fraudulent activity from being able to register with the Department of State and thus operate a business. Using either the Department of State or the Department of Tourism website, a consumer will be able to validate that their agent is registered and in good standing.
Legislative history
New bill.
Fiscal implications
Undetermined, though it is anticipated to be cost-neutral.
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become law
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.