S T A T E O F N E W Y O R K
________________________________________________________________________
7239
2017-2018 Regular Sessions
I N A S S E M B L Y
April 12, 2017
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Introduced by M. of A. GJONAJ -- read once and referred to the Committee
on Economic Development
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
AGENT 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. EVERY REGISTERED TRAVEL AGENT SHALL CONSPICUOUSLY PRINT UPON EVERY
DOCUMENT CREATED FOR SUCH AGENT, THE REGISTRATION NUMBER ASSIGNED TO THE
TRAVEL AGENT BY THE DEPARTMENT OF STATE. FOR THE PURPOSES OF THIS
SUBDIVISION, "DOCUMENT" SHALL INCLUDE BUSINESS CARDS, PERSONALIZED
STATIONERY AND EVERY OTHER DOCUMENT CREATED BY THE TRAVEL AGENT SPECIF-
ICALLY FOR AN INDIVIDUAL CLIENT OR CUSTOMER. FURTHERMORE, EVERY TRAVEL
AGENT SHALL CONSPICUOUSLY POST HIS OR HER REGISTRATION NUMBER AT HIS OR
HER PLACE OF BUSINESS AT A LOCATION REGULARLY 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.
LBD00048-03-7
A. 7239 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
AGENT, 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 AGENT IN ACCORD-
ANCE 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 REGISTRA-
TION WITHIN ONE HUNDRED FIFTY DAYS FROM THE FILING THEREOF. THE DEPART-
MENT 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 ONE YEAR 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
AGENT:
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 AGENT
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
A. 7239 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] WHO KNOWINGLY VIOLATES THE PROVISIONS of this arti-
cle 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 THOU-
SAND 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
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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 AGENTS REGISTERED BY THE DEPARTMENT OF
STATE PURSUANT TO ARTICLE TEN-A OF THE GENERAL 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; provided that, effec-
tive 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.