NY State Senate Bill 2017-S1793

Archive: Last 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 10, 2017	referred to consumer protection

2017-S1793 (ACTIVE) - Details

See Senate Version of this Bill:: S7032
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §§157-a & 159, add §157-b, Gen Bus L
Versions Introduced in 2015-2016 Legislative Session:: S6068

2017-S1793 (ACTIVE) - Summary

Requires travel consultants to furnish written or electronic travel agreements to consumers; requires written or electronic disclosure of terms of such agreement at the time such agreement is entered into; increases penalties for relevant violations.

2017-S1793 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1793

 TITLE OF BILL :

An act to amend the general business law, in relation to travel
agreements

 PURPOSE OR GENERAL IDEA OF BILL :

To require travel agencies to be more transparent about the terms of
their services and to hold them accountable when causing financial
harm to consumers.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends subdivision 1 of section 157-a of the general
business law by requiring travel promoters to provide written or
electronic disclosure of terms of purchase at the time or prior to
receipt of payment. Currently, travel promoters must provide written
disclosure within five business days.

Section 2 amends Article 10-A of the general business law by adding a
new section 157-b requiring travel consultants to provide written or
electronic disclosure of terms of purchase at the time or prior to
receipt of payment. Currently, only travel promoters are required to
provide such disclosure.

Section 3 amends subdivisions 1 and 2 of section 159 of the general
business law by establishing a Class E felony when a travel agency
causes a consumer financial loss of five thousand dollars or more.

Section 4 amends subdivision 4 of section 159 of the general business
law by allowing a court to impose a civil penalty based on the amount
of financial loss to the consumer.

Section 5 establishes the effective date.

 JUSTIFICATION :

This legislation comes in response to the recent exploitation of
hundreds of would-be travelers and their relatives in Chinatown which
resulted in losses totaling more than $1 million. Community members
expressed difficulty proving they were victims due to lack of service
documentation. Current law requires only "travel promoters" to give
written disclosure of terms of agreement in five business days. This
bill requires all travel agents, "travel promoters" and "travel
consultants," to provide written or electronic receipts at the time of
purchase for services like travel tickets, so consumers have proof of
purchase to help combat fraud.

This legislation also makes penalties more appropriate for the level
of fraud when travel agents violate existing law. Deception that
leaves consumers, especially those facing language barriers, stranded
cannot be tolerated. New York State law must provide greater
protections against the fraudulent activities of dishonest travel
agencies.

 PRIOR LEGISLATIVE HISTORY :

2016: S6068 - REFERRED TO CONSUMER PROTECTION
2015: S6068 - REFERRED

2017-S1793 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1793
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2017
                                ___________
 
 Introduced  by Sen. SQUADRON -- 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, in relation to  travel  agree-
   ments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision 1 of section 157-a of the general business law,
 as added by chapter 754 of the laws of  1990,  is  amended  to  read  as
 follows:
   1.  When  a  person  agrees, in response to a solicitation by a travel
 promoter which is directed  to  the  person  individually,  to  purchase
 membership  in  a  travel  club  or  to  enter  into any travel services
 contract or other agreement to accept transportation, lodging, an inter-
 est or investment in a time share plan,  travel  investments,  or  other
 travel  services,  the  travel promoter must provide such purchaser with
 written OR ELECTRONIC disclosure of all limitations on and terms of such
 purchase or agreement [within five business days  of  the  date  of  the
 agreement]  AT THE TIME OR PRIOR TO THE RECEIPT OF PAYMENT. Such disclo-
 sure shall clearly and conspicuously include:
   a. the name, business address  and  telephone  number  of  the  travel
 promoter;
   b. the amount due, the date of payment, the purpose of the payment and
 an itemized statement of the balance due, if any;
   c.  the  name  of  the  carrier  with  which  the  travel promoter has
 contracted to provide the transportation, the type and size  of  carrier
 to be used, and the date, time and place of each departure;
   d.  a  detailed description of any other services provided in conjunc-
 tion with the transportation;
   e. conditions, if any, upon which the travel services contract between
 the travel promoter and the traveler may be cancelled,  and  the  rights
 and obligations of all parties in the event of such cancellation;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04415-01-7

 S. 1793                             2
 
   f.  the  conditions,  if  any, upon which the travel services contract
 between the travel promoter and the carrier or  other  service  provider
 may  be  cancelled, and the rights and obligations of all parties in the
 event of such cancellation; and
   g.  a  description of all contingencies, limitations and/or conditions
 of the agreement.
   § 2. The general business law is amended by adding a new section 157-b
 to read as follows:
   § 157-B. ADDITIONAL PROHIBITIVE PRACTICES BY TRAVEL  CONSULTANTS.    A
 TRAVEL  CONSULTANT  SHALL  NOT  RECEIVE  PAYMENT  FOR TRAVEL OR SERVICES
 CONNECTED THEREWITH UNLESS AT THE  TIME  OR  PRIOR  TO  THE  RECEIPT  OF
 PAYMENT,  THE  TRAVEL  CONSULTANT PROVIDES THE PURCHASER WITH WRITTEN OR
 ELECTRONIC DISCLOSURE OF THE TERMS  OF  THE  PURCHASE.  SUCH  DISCLOSURE
 SHALL CLEARLY AND CONSPICUOUSLY INCLUDE:
   1.  THE  NAME,  BUSINESS  ADDRESS  AND  TELEPHONE NUMBER OF THE TRAVEL
 CONSULTANT;
   2. THE AMOUNT DUE, THE DATE OF PAYMENT, THE PURPOSE OF THE PAYMENT AND
 AN ITEMIZED STATEMENT OF THE BALANCE DUE, IF ANY;
   3. THE NAME OF THE  CARRIER  WITH  WHICH  THE  TRAVEL  CONSULTANT  HAS
 CONTRACTED  TO  PROVIDE THE TRANSPORTATION, THE TYPE AND SIZE OF CARRIER
 TO BE USED, AND THE DATE, TIME AND PLACE OF EACH DEPARTURE;
   4. A DETAILED DESCRIPTION OF ANY OTHER SERVICES PROVIDED  IN  CONJUNC-
 TION WITH THE TRANSPORTATION;
   5.  CONDITIONS,  IF  ANY,  UPON  WHICH THE SERVICES BETWEEN THE TRAVEL
 CONSULTANT AND THE TRAVELER MAY BE CANCELLED, AND THE RIGHTS  AND  OBLI-
 GATIONS OF ALL PARTIES IN THE EVENT OF SUCH CANCELLATION;
   6. THE CONDITIONS, IF ANY, UPON WHICH THE AGREEMENT BETWEEN THE TRAVEL
 CONSULTANT  AND  THE CARRIER OR OTHER SERVICE PROVIDER MAY BE CANCELLED,
 AND THE RIGHTS AND OBLIGATIONS OF ALL  PARTIES  IN  THE  EVENT  OF  SUCH
 CANCELLATION; AND
   7.  A  DESCRIPTION OF ALL CONTINGENCIES, LIMITATIONS AND/OR CONDITIONS
 OF THE AGREEMENT.
   § 3. Subdivisions 1 and 2 of section 159 of the general business  law,
 as  amended  by  chapter 754 of the laws of 1990, are amended to read as
 follows:
   1. Except as otherwise provided by  law,  any  travel  consultant  who
 shall violate the terms of section one hundred fifty-eight of this arti-
 cle  shall be guilty of a misdemeanor PROVIDED, HOWEVER, THAT WHERE SUCH
 VIOLATION RESULTS IN FIVE THOUSAND DOLLARS OR MORE OF FINANCIAL LOSS  TO
 A CONSUMER, SUCH VIOLATION SHALL CONSTITUTE A CLASS E FELONY.
   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 PROVIDED, HOWEVER,  THAT  WHERE
 SUCH  VIOLATION  RESULTS  IN  FIVE THOUSAND DOLLARS OR MORE OF FINANCIAL
 LOSS TO A CONSUMER, SUCH VIOLATION SHALL CONSTITUTE A CLASS E FELONY.
   § 4. Subdivision 4 of section 159 of  the  general  business  law,  as
 added by chapter 754 of the laws of 1990, is amended to read as follows:
   4.  Enforcement;  penalties.  Whenever  there  shall be a violation of
 section  one  hundred  fifty-seven-a,  ONE  HUNDRED  FIFTY-SEVEN-B,  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 jurisdic-
 tion 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  satisfac-
 tion  of  the court or justice that the defendant has, in fact, violated

 S. 1793                             3

 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 subdivision (a) of section  eighty-three
 hundred  three  of the civil practice law and rules, and direct restitu-
 tion. Whenever the court shall determine that a violation of this  arti-
 cle has occurred, the court may impose a civil penalty [of not more than
 five  hundred  dollars]  BASED  ON  THE  AMOUNT OF FINANCIAL LOSS TO THE
 CONSUMER WHOSE AGREEMENT WAS THE SUBJECT OF  SUCH  PROCEEDING  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.
   § 5. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a law and shall apply to all proceedings for violations of
 article 10-A of the general business law beginning  on  and  after  such
 effective date.

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Senate Bill S1793

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2017-S1793 (ACTIVE) - Details

2017-S1793 (ACTIVE) - Summary

2017-S1793 (ACTIVE) - Sponsor Memo

2017-S1793 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1793

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Sponsored By

Daniel L. Squadron

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2017-S1793 (ACTIVE) - Details

2017-S1793 (ACTIVE) - Summary

2017-S1793 (ACTIVE) - Sponsor Memo

2017-S1793 (ACTIVE) - Bill Text download pdf

Comments