PRIOR PRINTER'S NO. 826 PRINTER'S NO. 1530
No. 762 Session of 1989
INTRODUCED BY GREENLEAF, BELL, AFFLERBACH, REIBMAN, PECORA AND
PORTERFIELD, MARCH 31, 1989
SENATOR BELL, CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, AS
AMENDED, SEPTEMBER 26, 1989
AN ACT
1 Providing for the regulation of travel promoters; requiring that
2 certain bonds be secured for the benefit of customers;
3 requiring bank deposits; and providing penalties.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Travel
8 Promoters Regulation Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Adequate bond." A corporate bond of an amount at least
14 equal to the amount required under the contract between the
15 travel promoter and the transportation carrier or company or
16 person providing any other services in conjunction with such
17 transportation.
18 "Advertise." To make any representation in the solicitation
1 of air, sea or land transportation and includes communication
2 with other members of the same partnership, corporation, joint
3 venture, association, organization, group or other entity.
4 "Air carrier." A transporter by air of persons subject to
5 regulation as such by any governmental agency.
6 "Land carrier." A transporter by land of persons subject to
7 regulation as such by any governmental agency.
8 "Passenger." A person on whose behalf money or other
9 consideration has been given or is to be given to another,
10 including another member of the same partnership, corporation,
11 joint venture, association, organization, group or other entity,
12 for travel by air, land or sea.
13 "Travel promoter." A person or any business entity who for a
14 fee, commission or salary, sells, provides, furnishes, contracts
15 for, arranges or advertises that he can or may arrange, or has
16 arranged air, land or sea transportation either separately or in
17 conjunction with other services, including, but not limited to,
18 lodging, food, tour guides or instruction. Travel promoter does
19 not include:
20 (1) an air carrier;
21 (2) an ocean carrier;
22 (3) a land carrier; or
23 (4) an officially appointed agent of an air or land
24 carrier or ocean carrier.
25 Section 3. Legislative findings.
26 The General Assembly finds and declares that certain
27 advertising, sales and business practices of travel promoters
28 have worked financial hardship upon the people of this
29 Commonwealth; that the travel business has a significant impact
30 upon the economy and well-being of this Commonwealth and its
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1 people; that problems have arisen which are peculiar to the
2 travel promoter business; and that the public welfare requires
3 regulation of travel promoters in order to eliminate unfair
4 advertising, sales and business practices; and that standards
5 are needed which will safeguard the people against financial
6 hardship and to encourage competition, fair dealing and
7 prosperity in the travel business.
8 Section 4. Certain advertisement restricted.
9 A travel promoter shall not advertise that air, land or sea
10 transportation, or any combination thereof, is or may be
11 available unless he has, prior to such advertisement, contracted
12 for the transportation advertised with an air, land or sea
13 carrier.
14 Section 5. Information required.
15 A travel promoter shall not receive money or other valuable
16 consideration in payment for air, land or sea transportation or
17 any other services offered by the travel promoter in conjunction
18 with such transportation unless at the time of such receipt the
19 travel promoter furnishes to the person making such payment a
20 written statement conspicuously setting forth the following
21 information:
22 (1) The name, business address and telephone number of
23 the travel promoter.
24 (2) The amount paid, the date of such payment, the
25 purpose of the payment made and an itemized statement of the
26 balance due, if any.
27 (3) The location and number of the trust account or bond
28 required by this act.
29 (4) The name of the carrier with which the travel
30 promoter has contracted to provide the transportation, the
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1 type of equipment to be used, and the date, time and place of
2 each departure.
3 (5) The conditions, if any, upon which the contract
4 between the travel promoter and the passenger may be
5 canceled, and the rights and obligations of all parties in
6 the event of such cancellation.
7 (6) The conditions, if any, upon which the contract
8 between the travel promoter and the carrier may be canceled,
9 and the rights and obligations of all parties in the event of
10 such cancellation.
11 (7) A statement in eight point boldface type that upon
12 cancellation of the transportation through no fault of the
13 passenger, all sums paid to the travel promoter for services
14 not performed in accordance with the contract between the
15 travel promoter and the passenger will be, unless the
16 passenger otherwise advises the travel promoter in writing,
17 promptly refunded by the travel promoter to the passenger or
18 the party who contracted for the passenger.
19 Section 6. Cancellation and refunds.
20 (a) Refunds.--In the event the transportation contracted for
21 is canceled through no fault of the passenger, and unless the
22 passenger otherwise advises the travel promoter in writing, the
23 travel promoter shall promptly return to the passenger all
24 moneys paid for services not performed and goods not delivered
25 in accordance with the contract.
26 (b) Misrepresentation.--Any misrepresentation with regard to
27 the date, time, place of all departures or arrivals or type of
28 aircraft or land or ocean carrier or similar occurrence shall be
29 deemed to be a cancellation necessitating the refund required by
30 this section.
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1 Section 7. Bond required.
2 (a) Condition of engaging in business.--A travel promoter
3 who elects not to establish a trust account under section 8
4 shall maintain an adequate bond in force in the proper amount as
5 a condition of continuing to engage in business.
6 (b) Damages.--The people of this Commonwealth and every
7 person injured by the wrongful act of the principal acting in
8 the course and scope of his occupation or business or by any
9 official, agent or employee of such principal acting in the
10 course or scope of his employment or agency, may bring an action
11 on the bond in his own name to recover damages suffered by
12 reason of such willful, malicious or wrongful act.
13 (c) Amount of recovery.--No person so injured may recover
14 upon the bond a sum greater than that which such person paid to
15 the principal, provided that this limitation shall not restrict
16 such person from recovering sums greater than those paid to the
17 principal from sources other than the bond. In no event shall
18 the aggregate liability of the surety company for any and all
19 claims which arise under the bond exceed the amount of the bond.
20 Section 8. Deposit for money paid over.
21 (a) Amount of deposit.--A travel promoter shall deposit 90%
22 of all sums received for air, land or sea transportation or any
23 other services or goods offered by the travel promoter in
24 conjunction with such transportation in a trust account in a
25 Federally insured bank or savings and loan association.
26 (b) Trust account.--The trust account required by this
27 section shall be created and maintained for the benefit of the
28 persons paying money to the travel promoter. The travel promoter
29 shall not in any manner encumber the corpus of such account and
30 shall not withdraw money therefrom except:
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1 (1) in partial or full payment for the goods or services
2 contracted for by the passengers to the carrier or person
3 providing the goods or services offered by the travel
4 promoter; or
5 (2) to make the refunds as required by this act or
6 provided for by written contract between the travel promoter
7 and passengers.
8 (c) Withdrawals from account.--This section shall not
9 prevent the withdrawal from such account of any interest earned
10 and credited to the trust account for the sole benefit of the
11 travel promoter after all goods and services have been provided
12 as contracted for or the withdrawal at such time of any other
13 sums on deposit in such account.
14 (d) Attorney General.--A travel promoter shall file a <--
15 statement with the Attorney General indicating the name and
16 address of the financial institution and the account number of
17 each trust account opened pursuant to this act.
18 (D) REGISTRATION.--ALL TRAVEL PROMOTERS SHALL REGISTER WITH <--
19 THE DIRECTOR OF THE BUREAU OF CONSUMER PROTECTION IN THE OFFICE
20 OF ATTORNEY GENERAL ON A FORM PRESCRIBED BY THE ATTORNEY
21 GENERAL. THE REGISTRATION SHALL INCLUDE THE NAME AND ADDRESS OF
22 THE FINANCIAL INSTITUTION WHERE THE TRUST ACCOUNT HAS BEEN
23 ESTABLISHED, THE ACCOUNT NUMBER OF THE TRUST ACCOUNT AND ANY
24 INFORMATION REQUIRED BY THE ATTORNEY GENERAL REGARDING ANY BOND
25 OBTAINED UNDER THIS ACT. If a travel promoter doing business in
26 this Commonwealth maintains a trust account outside of this
27 Commonwealth, the travel promoter shall file with the Attorney
28 General an irrevocable agreement in writing acceptable to the
29 financial institution in which the trust agreement is maintained
30 allowing the Attorney General, a district attorney, or their
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1 representatives, upon written request, to examine and make
2 copies of all records pertaining to the trust account.
3 (e) Bond.--In lieu of such trust, an adequate bond may be
4 maintained by the travel promoter pursuant to section 7.
5 Section 9. Voucher or ticket required.
6 If the passenger after making full payment of the fee for air
7 or ocean transportation, or any combination thereof, requests
8 the ticket or voucher for such transportation, the promoter
9 shall issue the ticket or voucher for such air, land or ocean
10 transportation, or any combination thereof, and deliver such
11 ticket or voucher to the passenger.
12 Section 10. Penalty. <--
13 SECTION 10. OFFENSES. <--
14 (A) EFFECT OF VIOLATION OF ACT.--A VIOLATION OF THE
15 PROVISIONS OF THIS ACT CONSTITUTES A VIOLATION OF THE ACT OF
16 DECEMBER 17, 1968 (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE
17 PRACTICES AND CONSUMER PROTECTION LAW.
18 (B) CRIMINAL OFFENSE.--A person or business entity violating
19 the provisions of this act commits a misdemeanor of the third
20 degree punishable by a fine not in excess of $2,500 or one year
21 in prison, or both. Any second or subsequent violation is a
22 misdemeanor of the second degree punishable by a fine of not
23 less than $2,500 nor more than $5,000, or two years in prison,
24 or both.
25 (C) VENUE.--A VIOLATION OR AN OFFENSE UNDER THIS SECTION MAY <--
26 BE DEEMED TO HAVE BEEN COMMITTED WHERE THE PRINCIPAL PLACE OF
27 BUSINESS OF A TRAVEL PROMOTER IS LOCATED, WHERE ANY MONEYS WERE
28 PAID TO A TRAVEL PROMOTER OR WHERE ANY AGENTS OF THE TRAVEL
29 PROMOTER WERE ENGAGED IN THE BUSINESS OF SELLING TRAVEL
30 SERVICES.
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1 Section 11. Effective date.
2 This act shall take effect in 90 days.
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