NY State Senate Bill 2023-S511

Senate Bill S511

2023-2024 Legislative Session

Requires travel consultants and travel promoters to be registered with the department of state, and provides for the regulation thereof

download bill text pdf

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to consumer protection
Jan 04, 2023	referred to consumer protection

2023-S511 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §§157-b - 157-e, amd §159, Gen Bus L; amd §154, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7944
2011-2012: S2791
2013-2014: S38
2015-2016: S1265
2017-2018: S462
2019-2020: S7903
2021-2022: S141

2023-S511 (ACTIVE) - Summary

Requires travel consultants and travel promoters to be registered with the department of state; provides for the regulation thereof.

2023-S511 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S511

SPONSOR: THOMAS
 
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

 
PURPOSE OR GENERAL IDEA OF BILL:

To ensure that the travel consultant and promotion business is of high
quality by licensing travel consultants and promoters.

 
SUMMARY OF PROVISIONS:

Section one amends the general business law to require travel consult-
ants or promoters to be registered by the department of state before
conducting business. This section also outlines the process for licens-
ing a travel consultant or promoter, which includes information about
applicants such as their name and business location. The applicant is

required to show good character, competency and integrity. The applicant
is also required to comply with section 3-503 of the general obligations
law. Licenses are active for two years after which applicants must renew
the application to continue operating. This section also requires the
department of state to create and make available a public website that
provides the names, registration number, business name and location of
registered individuals. The applicant may be denied registration if they
violate this article or the rules or regulations promulgated pursuant to
this purpose, if the applicant or registrant has knowingly practiced
fraud, decided or misrepresentation, or if the applicant has made a
material misstatement in the application for or renewal of the appli-
cant's registration. The secretary of state may reinstate or revoke
registration under certain circumstances.

Section two amends the general business law by subjecting travel promo-
ters to violation penalties of up to one thousand dollars if they know-
ingly violate the provisions of the Truth in Travel Act.  This section
also requires the Department of State to notify the registrant in writ-
ing that a violation of this article has occurred and that the regis-
trant has the opportunity to be heard at an administrative hearing.

Section three amends the Economic Development Law by requiring that a
listing of all registered travel consultants and promoters and their
registration numbers be included on the state marketing internet
website.

Section four states the effective date.

 
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.

Recent events have shed light on the existence of fraud in the travel
consultant and promotion industry. In December of 2019, a Pennsylvania
woman posed as a fake travel agent and promised travel deals to prospec-
tive customers stealing $400,000 from 82 people before she was caught.
Additionally, an ABC 7 news report stated that more than 100 people were
stolen from when they bought fake tickets to China, which were collec-
tively valued at over $260,000. These acts of fraud are costly, and
cause significant harm to victims.

This bill, which would require the licensure and registration of travel
consultants and promoters, would help to prevent future instances of
fraud. To operate as a consultant or promoter, applicants must provide
information testifying to their character, fitness and their experience
working in the travel consultant and promotion business. At the same
time, these licensing requirements do not significantly burden ethical
individuals working in these industries. Creating this licensing
requirement will not only protect consumers from fraud, but it will
ensure travel consultants and promoters who operate ethically are not
disadvantaged by wrongdoers.

 
PRIOR LEGISLATIVE HISTORY:

2021-22: S.141 (Thomas) - Referred to Consumer Protection.

2019-20: S.7903 (Thomas) - Referred to Consumer Protection.

 
FISCAL IMPLICATIONS:

No cost to state or local governments.

 
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 imme-
diately, the Department of State and the Secretary of State are author-
ized and directed to complete any and all actions necessary to implement
the provisions of article 10-A of the general business law, as amended
by sections one and two of this act, on the effective date of this act.

2023-S511 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    511
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 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
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is  amended  by  adding  four  new
 sections 157-b, 157-c, 157-d and 157-e to read as follows:
   §  157-B. DOING BUSINESS WITHOUT REGISTRATION PROHIBITED. 1. NO TRAVEL
 CONSULTANT OR TRAVEL PROMOTER SHALL OPERATE OR DO BUSINESS IN THIS STATE
 EXCEPT AS AUTHORIZED BY THIS ARTICLE AND WITHOUT FIRST BEING  REGISTERED
 BY THE DEPARTMENT OF STATE.
   2.  THE  DEPARTMENT  OF  STATE  SHALL  PROVIDE  EACH REGISTERED TRAVEL
 CONSULTANT AND TRAVEL PROMOTER WITH A UNIQUE REGISTRATION NUMBER.  EVERY
 REGISTERED  TRAVEL CONSULTANT AND TRAVEL PROMOTER SHALL PRINT HIS OR HER
 REGISTRATION NUMBER ON  ALL  BUSINESS  CARDS,  AND  SHALL  PROVIDE  EACH
 CUSTOMER  WITH  A  COPY  OF HIS OR HER REGISTRATION NUMBER. EVERY TRAVEL
 CONSULTANT AND TRAVEL PROMOTER  SHALL  CONSPICUOUSLY  POST  HIS  OR  HER
 REGISTRATION  NUMBER AT HIS OR HER PLACE OF BUSINESS AT A LOCATION REGU-
 LARLY OPEN TO THE PUBLIC.
   § 157-C. APPLICATION FOR REGISTRATION. 1. APPLICATION FOR A  REGISTRA-
 TION REQUIRED UNDER THIS ARTICLE SHALL BE IN WRITING, UNDER OATH, AND IN
 THE  FORM  PRESCRIBED  BY  THE SECRETARY OF STATE, AND SHALL CONTAIN THE
 FOLLOWING:
   A. THE EXACT NAME AND THE RESIDENCE OF THE APPLICANT;
   B. THE COMPLETE ADDRESS WHERE THE BUSINESS OF THE APPLICANT IS  TO  BE
 CONDUCTED;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01654-01-3
 S. 511                              2

   C.  IF  THE APPLICANT HAS ONE OR MORE BRANCHES, SUBSIDIARIES OR AFFIL-
 IATES OPERATING IN THE STATE, THE COMPLETE ADDRESS OF EACH SUCH PLACE OF
 BUSINESS; AND
   D.  THE  INFORMATION,  STATEMENT,  CERTIFICATION AND SWORN AFFIRMATION
 REQUIRED BY SECTION 3-503 OF THE GENERAL OBLIGATIONS LAW.
   2. UPON ORIGINAL APPLICATION FOR A REGISTRATION TO OPERATE AS A TRAVEL
 CONSULTANT OR TRAVEL PROMOTER, THE APPLICANT SHALL  PAY  AN  APPLICATION
 FEE OF ONE HUNDRED DOLLARS. UPON APPLICATION FOR RENEWAL, THE REGISTRANT
 SHALL PAY A RENEWAL PROCESSING FEE OF ONE HUNDRED DOLLARS.
   3.  UPON FILING OF AN APPLICATION FOR A REGISTRATION, IF THE SECRETARY
 OF STATE SHALL BE SATISFIED OF THE GOOD CHARACTER, COMPETENCY AND INTEG-
 RITY OF THE APPLICANT, AND OF THE PRINCIPALS AND  OFFICERS  THEREOF  ARE
 SUCH  AS  TO COMPLY WITH THE PROVISIONS OF THIS ARTICLE, HE OR SHE SHALL
 THEREUPON ISSUE A REGISTRATION TO OPERATE  AS  A  TRAVEL  CONSULTANT  OR
 TRAVEL  PROMOTER  IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE. THE
 SECRETARY OF STATE SHALL TRANSMIT SUCH REGISTRATION  TO  THE  REGISTRANT
 AND FILE A COPY THEREOF WITH THE DEPARTMENT OF STATE.  SUCH REGISTRATION
 SHALL  REMAIN  IN FULL FORCE AND EFFECT FOR A PERIOD OF TWO YEARS UNLESS
 IT IS SURRENDERED BY THE REGISTRANT OR REVOKED OR SUSPENDED AS  PROVIDED
 IN  THIS  ARTICLE.    THE SECRETARY OF STATE SHALL APPROVE OR DENY EVERY
 APPLICATION FOR REGISTRATION WITHIN ONE  HUNDRED  FIFTY  DAYS  FROM  THE
 FILING  THEREOF. THE DEPARTMENT OF STATE SHALL NOTIFY THE APPLICANT OF A
 DENIAL OF REGISTRATION AND THE REASON FOR SUCH DENIAL.
   § 157-D. REGISTRATION. 1. EACH REGISTRATION ISSUED  PURSUANT  TO  THIS
 ARTICLE SHALL STATE THE ADDRESS OR ADDRESSES AT WHICH THE BUSINESS IS TO
 BE  CONDUCTED,  STATE  FULLY  THE NAME OF THE REGISTRANT, THE EXPIRATION
 DATE OF THE REGISTRATION AND THE UNIQUE REGISTRATION NUMBER ASSIGNED  TO
 THE  REGISTRANT. A COPY OF SUCH REGISTRATION SHALL BE PROMINENTLY POSTED
 IN EACH PLACE OF BUSINESS OF THE REGISTRANT. SUCH REGISTRATION SHALL NOT
 BE TRANSFERABLE OR ASSIGNABLE. EVERY REGISTRATION  AND  RENEWAL  THEREOF
 SHALL EXPIRE TWO YEARS AFTER THE DATE OF ITS ISSUANCE.
   2.  IN  THE  EVENT  THAT  THERE SHALL BE ANY CHANGE TO THE INFORMATION
 SUBMITTED BY THE REGISTRANT TO THE DEPARTMENT OF STATE,  THE  REGISTRANT
 SHALL NOTIFY THE SECRETARY OF STATE IN WRITING WITHIN TEN BUSINESS DAYS.
   3.  A REGISTRATION GRANTED UNDER THE PROVISIONS OF THIS ARTICLE MAY BE
 RENEWED BY THE DEPARTMENT OF STATE  UPON  APPLICATION  THEREFOR  BY  THE
 REGISTRANT,  IN  SUCH  FORM  AS  THE  DEPARTMENT OF STATE MAY PRESCRIBE,
 ACCOMPANIED BY THE NON-REFUNDABLE RENEWAL PROCESSING FEE. NO  REGISTRANT
 SHALL  CARRY  ON  ANY BUSINESS SUBJECT TO THIS ARTICLE DURING ANY PERIOD
 WHICH MAY EXIST BETWEEN THE DATE OF EXPIRATION OF A REGISTRATION AND THE
 RENEWAL THEREOF.  EVERY APPLICATION FOR THE RENEWAL  OF  A  REGISTRATION
 SHALL INCLUDE THE INFORMATION, STATEMENT, CERTIFICATION AND SWORN AFFIR-
 MATION  REQUIRED BY SECTION 3-503 OF THE GENERAL OBLIGATIONS LAW, UNLESS
 WAIVED BY THE DEPARTMENT OF STATE.
   4. THE DEPARTMENT OF STATE SHALL POST AND MAKE AVAILABLE TO THE PUBLIC
 ON ITS INTERNET WEBSITE A DATABASE SEARCHABLE BY EACH REGISTERED  TRAVEL
 CONSULTANT AND TRAVEL PROMOTER:
   A. FIRST OR LAST NAME;
   B. REGISTRATION NUMBER;
   C. NAME OF BUSINESS; OR
   D. BUSINESS LOCATION, INCLUDING MUNICIPALITY, COUNTY OR ZIP CODE.
   THE  DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL INCLUDE ON ITS WEBSITE A
 CONSPICUOUSLY PLACED LINK TO THE DEPARTMENT OF STATE'S TRAVEL CONSULTANT
 AND TRAVEL PROMOTER REGISTRATION DATABASE.
   § 157-E. GROUNDS FOR DENIAL, SUSPENSION OR REVOCATION OF REGISTRATION.
 1. THE SECRETARY OF STATE SHALL HAVE THE POWER TO SUSPEND  OR  REVOKE  A
 S. 511                              3
 
 REGISTRATION  OR,  IN  LIEU  THEREOF, TO IMPOSE A FINE NOT EXCEEDING ONE
 THOUSAND DOLLARS PAYABLE TO THE DEPARTMENT OF STATE,  OR  REPRIMAND  ANY
 REGISTRANT  OR DENY AN APPLICATION FOR A REGISTRATION OR RENEWAL THEREOF
 UPON PROOF:
   A. THAT THE APPLICANT OR REGISTRANT HAS VIOLATED ANY OF THE PROVISIONS
 OF THIS ARTICLE OR THE RULES AND REGULATIONS PROMULGATED PURSUANT THERE-
 TO;
   B. THAT  THE  APPLICANT  OR  REGISTRANT HAS KNOWINGLY PRACTICED FRAUD,
 DECEIT OR MISREPRESENTATION; OR
   C. THAT THE APPLICANT OR REGISTRANT  HAS  KNOWINGLY  MADE  A  MATERIAL
 MISSTATEMENT  IN  THE APPLICATION FOR OR RENEWAL OF HIS OR HER REGISTRA-
 TION.
   2. EVERY REGISTRATION ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN  IN
 FULL  FORCE AND EFFECT FOR A PERIOD OF TWO YEARS UNLESS THE REGISTRATION
 SHALL HAVE BEEN SURRENDERED, REVOKED  OR  SUSPENDED.  THE  SECRETARY  OF
 STATE  SHALL  HAVE AUTHORITY TO REINSTATE A SUSPENDED REGISTRATION OR TO
 ISSUE A NEW REGISTRATION TO A REGISTRANT WHOSE REGISTRATION  SHALL  HAVE
 BEEN  REVOKED  IF  NO  FACT  OR  CONDITION  THEN EXISTS WHICH WOULD HAVE
 WARRANTED THE SECRETARY OF STATE IN REFUSING ORIGINALLY  TO  ISSUE  SUCH
 REGISTRATION UNDER THIS ARTICLE.
   3. WHENEVER THE SECRETARY OF STATE SHALL REVOKE OR SUSPEND A REGISTRA-
 TION  ISSUED  PURSUANT  TO  THIS  ARTICLE,  HE  OR SHE SHALL IMMEDIATELY
 EXECUTE A WRITTEN ORDER TO THAT EFFECT. THE  SECRETARY  OF  STATE  SHALL
 FILE  SUCH  ORDER  IN  THE  OFFICE  OF THE DEPARTMENT OF STATE AND SHALL
 FORTHWITH SERVE A COPY THEREOF UPON THE REGISTRANT. ANY SUCH  ORDER  MAY
 BE REVIEWED IN THE MANNER PROVIDED BY ARTICLE SEVENTY-EIGHT OF THE CIVIL
 PRACTICE  LAW AND RULES.  THE USE OF ANY REGISTRATION NUMBER OF A REGIS-
 TRATION THAT HAS BEEN SUSPENDED OR REVOKED  SHALL  BE  PROHIBITED  AFTER
 SUCH SUSPENSION OR REVOCATION.
   §  2.  Section  159 of the general business law, as amended by chapter
 754 of the laws of 1990, is amended to read as follows:
   § 159. Violations and penalties. 1. Except as  otherwise  provided  by
 law,  any  travel consultant [who shall violate the terms of section one
 hundred fifty-eight] OR  TRAVEL  PROMOTER  WHO  KNOWINGLY  VIOLATES  THE
 PROVISIONS  of  this article shall be guilty of a misdemeanor, OR MAY BE
 SUBJECT TO A CIVIL FINE IMPOSED BY THE DEPARTMENT OF STATE IN AN  AMOUNT
 NOT TO EXCEED ONE THOUSAND DOLLARS.
   2. [Except as otherwise provided by law, any travel promoter who shall
 knowingly violate the terms of section one hundred fifty-eight-a of this
 article shall be guilty of a misdemeanor.
   3.]  The  district  attorney  of any county may bring an action in the
 name of the people of the state to restrain or prevent any violation  of
 this article or any continuance of any such violation.
   [4.] 3. Enforcement; penalties. Whenever there shall be a violation of
 [section  one  hundred  fifty-seven-a,  one  hundred  fifty-eight or one
 hundred fifty-eight-a of] this article, an application may  be  made  by
 the  attorney general in the name of the people of the state of New York
 to a court or justice having jurisdiction by  a  special  proceeding  to
 issue  an  injunction, and upon notice to the defendant of not less than
 five days, to enjoin and restrain the continuance  of  such  violations;
 and  if it shall appear to the satisfaction of the court or justice that
 the defendant has, in fact, violated this article, an injunction may  be
 issued  by  such court or justice, enjoining and restraining any further
 violation, without requiring proof that any person has,  in  fact,  been
 injured  or damaged thereby.  In any such proceeding, the court may make
 allowances to the attorney general  as  provided  in  paragraph  six  of
 S. 511                              4
 
 subdivision (a) of section eighty-three hundred three of the civil prac-
 tice  law  and  rules, and direct restitution.  Whenever the court shall
 determine that a violation of this article has occurred, the  court  may
 impose  a  civil  penalty of not more than five hundred dollars for each
 violation. In connection with any such proposed application, the  attor-
 ney  general is authorized to take proof and make a determination of the
 relevant facts and to issue subpoenas in accordance with the civil prac-
 tice law and rules.
   4. NOTWITHSTANDING ANY OTHER PROVISION OF LAW  TO  THE  CONTRARY,  THE
 DEPARTMENT  OF  STATE,  SHALL,  BEFORE  IMPOSING  ANY  CIVIL  PENALTY OR
 SUSPENDING OR REVOKING A LICENSE, NOTIFY THE REGISTRANT IN WRITING  THAT
 A  VIOLATION  OF  THIS ARTICLE HAS OCCURRED, AND SHALL AFFORD THE REGIS-
 TRANT AN OPPORTUNITY TO BE HEARD IN PERSON OR BY COUNSEL AT AN  ADMINIS-
 TRATIVE  HEARING.  SUCH  NOTIFICATION  SHALL  BE SERVED PERSONALLY OR BY
 CERTIFIED MAIL TO THE REGISTRANT'S LAST KNOWN ADDRESS OR IN  ANY  MANNER
 AUTHORIZED BY THE CIVIL PRACTICE LAW AND RULES.
   5.  ADMINISTRATIVE  HEARINGS  HELD  PURSUANT  TO THIS SECTION SHALL BE
 CONDUCTED BY THE OFFICE OF ADMINISTRATIVE HEARINGS OF THE DEPARTMENT  OF
 STATE  PURSUANT  TO  PART FOUR HUNDRED OF TITLE NINETEEN OF THE NEW YORK
 STATE CODES, RULES AND REGULATIONS AND SUBJECT  TO  THE  RULES  PROVIDED
 THEREIN.  ANY  NOTICE ISSUED PURSUANT TO THIS SECTION SHALL BE SERVED AT
 LEAST TEN DAYS PRIOR TO THE DATE SET FOR THE ADMINISTRATIVE HEARING.
   § 3. Paragraphs (d) and (e) of subdivision 3 of  section  154  of  the
 economic development law, as added by section 1 of part DD of chapter 59
 of  the  laws  of  2006, are amended and a new paragraph (f) is added to
 read as follows:
   (d) all reports and data required to be  produced  and  maintained  by
 this section; [and]
   (e) any other data deemed appropriate[.]; AND
   (F)  A  LISTING  OF ALL TRAVEL CONSULTANTS AND TRAVEL PROMOTERS REGIS-
 TERED BY THE DEPARTMENT OF STATE PURSUANT TO ARTICLE TEN-A OF THE GENER-
 AL BUSINESS LAW, AND THEIR CORRESPONDING REGISTRATION NUMBERS.
   § 4. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law. 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 amended by
 sections one and two of this act, on the effective date of this act.

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