Requires travel agents to be registered with the department of state, and provides for the regulation thereof; repealer

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 10A: -Section 155 establishes that the promotion of travel is at such a volume that all travel agents be subject to an annual registration and monitoring by the Department of State.

-Section 155-a sets forth definitions used in this article.

-Section 156 establishes that a travel agent shall not operate or do business in New York 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 157-a states prohibited practices by travel consultants.

-Section 157-b states prohibited practices by travel promoters.

-Section 158 sets forth applicable violations and penalties.

-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 sets forth 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 of any type of travel or vacation plans or arrangements. 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 businesses engaging in fraudulent travel agency activities. 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 travel agents who carry false credentials obtained by questionable means. These travel agents should not be able to remain in business.

This bill provides for the creation of a registry of travel agents operating or 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, a person or business that sells travel must go through a level of vetting by the Department of State. The intention is to provide consumers with a mechanism by which to assess if a travel agent is properly operating within New York. 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.

Prior legislative history

2013-2014 - S.38 2011-12: S.2791 2010: S.7944 referred to consumer protection; A.11336 referred to economic development.

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 a law; provided that, effective immediately, the Department of State and the Secretary of State are authorized and directed to complete any and all actions necessary to implement the provisions of article 10-A of the general business law, as added by section one of this act, on its effective date.