PRINTER'S NO. 2426
No. 1981 Session of 1981
INTRODUCED BY JOHNSON, CAPPABIANCA, SALVATORE, ALDEN, PISTELLA,
MRKONIC, E. Z. TAYLOR, BOWSER AND WOGAN, OCTOBER 21, 1981
REFERRED TO COMMITTEE ON STATE GOVERNMENT, OCTOBER 21, 1981
AN ACT
1 Regulating travel agents and other sellers of travel, providing
2 for the registration thereof with the Department of State,
3 requiring the furnishing of financial security, providing
4 equitable remedies, providing for hearings and appeals,
5 establishing a departmental advisory board in the Department
6 of State and providing penalties.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 TABLE OF CONTENTS
10 Section 1. Short title.
11 Section 2. Definitions.
12 Section 3. Registration.
13 Section 4. Evidence of financial security.
14 Section 5. Registration information.
15 Section 6. Exclusions.
16 Section 7. Certificate of registration.
17 Section 8. Notice of changes.
18 Section 9. Suspension and revocation of registration.
19 Section 10. Hearings.
1 Section 11. Emergency suspension of registration.
2 Section 12. Advisory committee.
3 Section 13. Remedies preserved.
4 Section 14. Contracts with unregistered sellers voidable.
5 Section 15. Employment of certain persons.
6 Section 16. Service of process.
7 Section 17. Penalty.
8 Section 18. Effective date.
9 Section 1. Short title.
10 This act shall be known and may be cited as the "Travel
11 Agents Act."
12 Section 2. Definitions.
13 The following words and phrases when used in this act shall
14 have, unless the context clearly indicates otherwise, the
15 meanings given to them in this section:
16 "Department." The Department of State.
17 "Offer for sale." Includes holding out, directly or
18 indirectly, whether as principal, agent or otherwise, as being
19 able, or offering or undertaking by any means or method, to
20 acquire or provide for a fee, commission or other valuable
21 consideration from any source, transportation or transportation-
22 related services.
23 "Secretary." The Secretary of the Commonwealth.
24 "Seller of travel" or "seller." Any resident or nonresident
25 person who offers for sale, directly or indirectly, at wholesale
26 or retail transportation or transportation-related services.
27 "Transportation-related services." Includes car rentals,
28 lodging, transfers, sight-seeing tours and all other such
29 services which are reasonably related to air, sea, rail, motor
30 coach or other medium of transportation and accommodations.
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1 Section 3. Registration.
2 Every seller of travel doing or intending to do business
3 within the Commonwealth shall register each location for the
4 transaction of business with the department before continuing or
5 commencing to do business. The department shall require a fee
6 for registration which shall be in an amount such that the fees
7 collected shall not exceed the cost of administering this act.
8 The amount of this fee shall not exceed $50 for the first
9 registration or $10 for each additional registration for
10 additional locations for each two-year registration period.
11 Section 4. Evidence of financial security.
12 (a) Documents to be filed.--Along with the registration fee
13 each seller of travel shall file any one of the following:
14 (1) When the seller of travel is engaged exclusively in
15 the sale of charter air transportation and transportation-
16 related services in connection with charter air
17 transportation, a copy of the seller's application to the
18 Civil Aeronautics Board for each offering to the public by
19 the seller filed with the Civil Aeronautics Board, a copy of
20 the Civil Aeronautics Board's notice of receipt of such
21 application and a statement by the seller that the
22 application was not disapproved within the approval period.
23 After the initial filing and the payment of the registration
24 fee, the seller shall pay a $5 fee for each additional
25 filing.
26 (2) A bond or bonds issued by a surety licensed to do
27 business in the Commonwealth in an aggregate amount at least
28 equal to the amount required under all contracts between the
29 seller and persons providing transportation or
30 transportation-related services.
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1 (3) A bond issued by a surety licensed to do business in
2 the Commonwealth in the amount of $50,000 for a seller
3 offering for sale interstate or international transportation
4 or transportation-related services. If, however, the seller
5 offers for sale only intrastate transportation or
6 transportation-related services, the amount of the bond shall
7 be $10,000.
8 (4) A certified copy of the official approval and
9 appointment of the seller from the Air Traffic Conference of
10 the Air Transportation Association of America or the
11 International Air Transport Association.
12 (b) Nature of bonds.--The bonds referred to in subsection
13 (a)(2) and (3) shall be in favor of the Commonwealth for the
14 use, benefit and protection of any person who is injured by the
15 fraud, misrepresentation or financial failure of a seller of
16 travel. It is not, however, the purpose of this section to alter
17 the standards by which the legal liability of the seller is
18 determined. The principal of the bonds shall be accessible only
19 if all other assets of the seller are insufficient to satisfy
20 any judgment. The bonds shall not limit or impair any right of
21 recovery otherwise available pursuant to law.
22 (c) Security in lieu of bond.--In lieu of any bond or
23 guarantee required by this section, a seller may deposit with
24 the department cash, securities or a statement from a licensed
25 financial institution guaranteeing the performance of the seller
26 in a like amount or evidence satisfactory to the department of
27 the deposit of such collateral to be held or applied to the
28 purposes to which the proceeds of the bond would otherwise be
29 applied.
30 Section 5. Registration information.
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1 The information required from each applicant for registration
2 shall include:
3 (1) The name and address of each owner and of the chief
4 executive and each operating officer of the applicant.
5 (2) With respect to a corporation, the application shall
6 be signed by the president, secretary and treasurer of the
7 corporation and the application shall specify the name, date
8 and place of incorporation of the applicant. If the applicant
9 is a publicly-held corporation, the voting stock of which is
10 traded on a recognized exchange or over-the-counter, the
11 applicant may satisfy the requirement to specify the name of
12 each owner by specifying the name of any person owning or
13 controlling 10% or more of the voting stock of the applicant.
14 Section 6. Exclusions.
15 The registration and evidence of financial security required
16 by sections 3, 4 and 5 shall not apply to:
17 (1) Bona fide employees of sellers registered under this
18 act engaged solely in the business of their employers.
19 (2) Persons involved solely in the rental, leasing or
20 sale of transportation vehicles.
21 (3) Common carriers of passengers regulated by an agency
22 of the Federal Government or employees of such carriers when
23 engaged solely in the transportation business of the carriers
24 as defined in the carriers' certificate of public convenience
25 and necessity.
26 (4) Intrastate common carriers or employees of such
27 carriers when engaged solely in the transportation business
28 of the carriers as defined in the applicable state or local
29 registration or certification.
30 (5) Hotels, motels or other places of public
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1 accommodation or their employees when engaged solely in
2 making arrangements for lodging accommodations or local
3 sight-seeing tours.
4 (6) Persons engaged in making travel arrangements for
5 the employees of their own business for which not fee,
6 commission or other valuable consideration is received,
7 directly or indirectly, from the supplier of such travel
8 arrangements.
9 Section 7. Certificate of registration.
10 Upon compliance with the provisions of this act, the
11 department shall issue to the applicant a certificate of
12 registration which shall be valid for a period of two years and
13 which shall include the name of the registrant, the business
14 address of the location registered and the date of expiration of
15 the certificate. The department shall issue duplicate
16 certificates upon evidence satisfactory that the original of
17 such certificate has been destroyed or cannot be found upon
18 payment of the fee required therefore which shall not exceed the
19 fee for registration of a branch location. Every registrant
20 shall display in a prominent public place in the location where
21 the travel business is carried out, a currently valid
22 certificate of registration.
23 Section 8. Notice of changes.
24 (a) Notice to department.--Every registered seller shall,
25 promptly and in any event not later than 30 days of occurrence,
26 notify the department when information with respect to its
27 registration has changed.
28 (b) Notice relating to financial security.--Every registered
29 seller shall, promptly and in any event within five days after
30 the seller no longer possesses the appointment, guarantee, or
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1 bond required by section 4, notify the department. The
2 department shall, upon such notice, cancel the registration of
3 the disqualified seller.
4 Section 9. Suspension and revocation of registration.
5 A registration issued pursuant to this act may be suspended
6 or revoked by the department for any one or more of the
7 following courses:
8 (1) Fraud or bribery in securing a registration
9 certificate issued pursuant to this act.
10 (2) The making of any false statement as to a material
11 matter in any application or other statement or certificate
12 required hereunder.
13 (3) Failure to display the registration certificate as
14 prescribed herein.
15 (4) Failure to maintain the appointment, guarantee or
16 bond required by this act.
17 (5) Violation of any provision of this act, or of any
18 regulation adopted hereunder.
19 (6) Intentional fraud or fraudulent practice in the
20 operation and conduct of the business including, but not
21 limited to, intentionally misleading advertising, and, as to
22 any material facts, intentional deception, misrepresentation,
23 concealment, suppression, false pretense or false promise.
24 (7) Conviction of a felony, or of a misdemeanor
25 concerning activities prohibited by this act.
26 Section 10. Hearings.
27 (a) Notice.--Except as provided in section 11, no
28 registration shall be suspended or revoked nor shall any
29 application for registration be denied until after a hearing
30 held before an officer or employee of the department designated
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1 for this purpose by the secretary, upon notice to the registrant
2 or applicant of at least 20 days. The notice shall be served
3 either personally or by certified mail and shall state the date
4 and place of hearing and set forth the ground or grounds
5 constituting the charges against the applicant or registrant.
6 The Attorney General shall also be given notice of the hearing
7 and may appear and present evidence.
8 (b) Decision.--The hearing officer shall make a written
9 report of his findings and a recommendation to the secretary for
10 decision. The secretary shall review such findings and the
11 recommendation and, after due deliberation, shall issue an order
12 accepting, modifying or rejecting such recommendation and
13 dismissing the charges or suspending or revoking the
14 registration or granting or denying the application.
15 (c) Procedure.--Hearings under this system and appeals from
16 decisions of the secretary shall be made in accordance with
17 Title 2 of the Pennsylvania Consolidated Statutes (relating to
18 administrative law and procedure).
19 Section 11. Emergency suspension of registration.
20 (a) Action in equity.--If the department finds that public
21 health, safety or welfare imperatively requires emergency action
22 to prevent immediate and irreparable harm to any person or the
23 public due to any act or practice of a registrant, it may apply,
24 in the name of the people of the State, to any court of
25 competent jurisdiction, on notice, for an order enjoining the
26 continuance of such act or practice and, as appropriate,
27 suspending any registration issued under this act, pending
28 further adjudicatory proceedings in accordance with section 12
29 or any other appropriate law of the Commonwealth. The court may
30 award the relief applied for by the department or so much
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1 thereof as it may deem proper.
2 (b) Construction of section.--This section shall not in any
3 way abridge or alter the remedies and procedures now existing at
4 common law or by statute. Remedies under this section shall be
5 in addition to existing remedies and procedures.
6 Section 12. Advisory committee.
7 (a) Establishment and composition.--There is hereby
8 established an advisory committee which shall consist of five
9 members to be appointed by the secretary. Three members shall be
10 owners or executives of a registered seller of travel in this
11 State with a minimum of five years of experience in the sale of
12 transportation or transportation-related services and employed
13 full time in an executive capacity; two members shall not, at
14 the time of appointment nor for five years prior to the time of
15 appointment, be or have been directly or indirectly interested
16 in or identified with the travel industry. The secretary, or his
17 duly authorized representative, shall be an ex officio member of
18 the advisory committee.
19 (b) Meetings.--The advisory committee shall meet at least
20 once a year, at an appropriate time to be fixed by the
21 secretary.
22 (c) Duty of committee.--It shall be the duty of the advisory
23 committee to advise the secretary on all matters relating to
24 this act and on such other matters as the secretary shall
25 request.
26 (d) Secretary.--The secretary shall designate an employee of
27 the department to act as secretary of the advisory committee,
28 and shall detail to such advisory committee such stenographic or
29 other assistance as may be necessary.
30 (e) Expenses.--The members of the advisory committee shall
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1 serve without compensation but shall be reimbursed their
2 reasonable and necessary travelling and other expenses while
3 engaged in the performance of their duties.
4 Section 13. Remedies preserved.
5 The remedies afforded to purchasers of transportation or
6 transportation-related services by this act shall not be
7 construed in any way to diminish or impair other common law or
8 statutory remedies.
9 Section 14. Contracts with unregistered sellers voidable.
10 A contract for transportation or transportation-related
11 services between the purchaser of the arrangements and an
12 unregistered seller of travel in the Commonwealth in violation
13 of this act shall be voidable at the option of the purchaser.
14 Section 15. Employment of certain persons.
15 No registrant under this act shall knowingly employ or
16 authorize to act as his agent in the sale of transportation or
17 transportation-related services any person who has been
18 convicted of a misdemeanor or a felony in connection with the
19 activities regulated hereunder.
20 Section 16. Service of process.
21 Service of process upon nonresident sellers of travel shall
22 be made under 42 Pa.C.S. Ch.53 Subch.B (relating to interstate
23 and international procedure).
24 Section 17. Penalty.
25 Any person who engages in the sale of transportation of
26 transportation-related services without the registration
27 required by this act shall be guilty of a misdemeanor of the
28 second degree.
29 Section 18. Effective date.
30 This act shall take effect in six months.
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