S T A T E O F N E W Y O R K
________________________________________________________________________
8291
2017-2018 Regular Sessions
I N A S S E M B L Y
June 6, 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 agents 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. Section 157 of the general business law is amended by
adding three new subdivisions 6, 7 and 8 to read as follows:
6. "TRAVEL AGENT" MEANS ANY TRAVEL PROMOTER OR TRAVEL CONSULTANT
HAVING A PLACE OF BUSINESS IN THIS STATE OR OFFERING TRAVEL SERVICES TO
ANY PERSON IN THIS STATE. THE TERM "TRAVEL AGENT" SHALL NOT INCLUDE:
A. ANY TRAVEL PROMOTER OR TRAVEL CONSULTANT WHO IS PROVIDING SERVICES
EXCLUSIVELY FOR MEMBERS IN A MEMBERSHIP ORGANIZATION;
B. ANY TRAVEL PROMOTER OR TRAVEL CONSULTANT WHO IS PROVIDING SERVICES
EXCLUSIVELY FOR EMPLOYEES OR AGENTS OF A BUSINESS ENTITY REGISTERED WITH
THE DEPARTMENT;
C. AN EMPLOYEE, WHO IN CONNECTION WITH THE BUSINESS OF BEING THE
DIRECT SUPPLIER OF ACCOMMODATIONS, ALSO PROVIDES OTHER LOCAL TRAVEL
SERVICES THAT ARE PURCHASED FROM ANOTHER PERSON OR BUSINESS;
D. ANY PERSON ENGAGED SOLELY IN THE BUSINESS OF RENTING MOTOR VEHI-
CLES; OR
E. ANY PERSON, FIRM, CORPORATION, LIMITED LIABILITY COMPANY, PARTNER-
SHIP OR ASSOCIATION, OR EMPLOYEE THEREOF, WHICH ONLY SELLS OR OFFERS FOR
SALE TRAVEL SERVICES THAT ARE PROVIDED BY SUCH PERSON, FIRM, CORPO-
RATION, LIMITED LIABILITY COMPANY, PARTNERSHIP OR ASSOCIATION, OR ANY
AFFILIATE THEREOF.
7. "DEPARTMENT" MEANS THE DEPARTMENT OF STATE.
8. "SECRETARY" MEANS THE SECRETARY OF STATE.
§ 2. The general business law is amended by adding four new sections
157-b, 157-c, 157-d and 157-e to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11452-02-7
A. 8291 2
§ 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.
2. THE DEPARTMENT SHALL PROVIDE EACH REGISTERED TRAVEL AGENT WITH A
UNIQUE REGISTRATION NUMBER. EVERY REGISTERED TRAVEL AGENT 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 TRAV-
EL 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, 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;
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
SHALL BE SATISFIED OF THE GOOD CHARACTER, COMPETENCY AND INTEGRITY 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 ACCORDANCE WITH THE
PROVISIONS OF THIS ARTICLE. THE SECRETARY SHALL TRANSMIT SUCH REGISTRA-
TION TO THE REGISTRANT AND FILE A COPY THEREOF WITH THE DEPARTMENT.
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 SHALL APPROVE OR
DENY EVERY APPLICATION FOR REGISTRATION WITHIN ONE HUNDRED FIFTY DAYS
FROM THE FILING THEREOF. THE DEPARTMENT 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, THE REGISTRANT SHALL
NOTIFY THE SECRETARY IN WRITING WITHIN TEN BUSINESS DAYS.
3. A REGISTRATION GRANTED UNDER THE PROVISIONS OF THIS ARTICLE MAY BE
RENEWED BY THE DEPARTMENT UPON APPLICATION THEREFOR BY THE REGISTRANT,
IN SUCH FORM AS THE DEPARTMENT MAY PRESCRIBE, ACCOMPANIED BY THE NON-RE-
FUNDABLE RENEWAL PROCESSING FEE. NO REGISTRANT SHALL CARRY ON ANY BUSI-
NESS 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 INFORMA-
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TION, STATEMENT, CERTIFICATION AND SWORN AFFIRMATION REQUIRED BY SECTION
3-503 OF THE GENERAL OBLIGATIONS LAW, UNLESS WAIVED BY THE DEPARTMENT.
4. THE DEPARTMENT 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'S TRAVEL AGENT REGISTRATION
DATABASE.
§ 157-E. GROUNDS FOR DENIAL, SUSPENSION OR REVOCATION OF REGISTRATION.
1. THE SECRETARY SHALL HAVE THE POWER TO SUSPEND OR REVOKE A REGISTRA-
TION OR, IN LIEU THEREOF, TO IMPOSE A FINE NOT EXCEEDING ONE THOUSAND
DOLLARS PAYABLE TO THE DEPARTMENT, 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 AND RENEWAL THEREOF 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 SHALL HAVE AUTHORITY TO REINSTATE A SUSPENDED
REGISTRATION OR TO ISSUE A NEW REGISTRATION TO A REGISTRANT WHOSE REGIS-
TRATION SHALL HAVE BEEN REVOKED IF NO FACT OR CONDITION THEN EXISTS
WHICH WOULD HAVE WARRANTED THE SECRETARY IN REFUSING ORIGINALLY TO ISSUE
SUCH REGISTRATION UNDER THIS ARTICLE.
3. WHENEVER THE SECRETARY SHALL REVOKE OR SUSPEND A REGISTRATION
ISSUED PURSUANT TO THIS ARTICLE, HE OR SHE SHALL IMMEDIATELY EXECUTE A
WRITTEN ORDER TO THAT EFFECT. THE SECRETARY SHALL FILE SUCH ORDER IN THE
OFFICE OF THE DEPARTMENT 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 REGISTRATION THAT HAS BEEN SUSPENDED OR
REVOKED SHALL BE PROHIBITED AFTER SUCH SUSPENSION OR REVOCATION.
§ 3. Section 159 of the general business law is amended by adding
three new subdivisions 2-a, 5 and 6 to read as follows:
2-A. EXCEPT AS OTHERWISE PROVIDED BY LAW, ANY TRAVEL AGENT, WHO SHALL
KNOWINGLY VIOLATE THE TERMS OF SECTION ONE HUNDRED FIFTY-SEVEN-B OF THIS
ARTICLE, SHALL BE GUILTY OF A MISDEMEANOR.
5. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
DEPARTMENT, SHALL, BEFORE SUSPENDING OR REVOKING A LICENSE, NOTIFY THE
REGISTRANT IN WRITING THAT A VIOLATION OF THIS ARTICLE HAS OCCURRED, AND
SHALL AFFORD THE REGISTRANT AN OPPORTUNITY TO BE HEARD IN PERSON OR BY
COUNSEL AT AN ADMINISTRATIVE 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.
6. ADMINISTRATIVE HEARINGS HELD PURSUANT TO THIS SECTION SHALL BE
CONDUCTED BY THE OFFICE OF ADMINISTRATIVE HEARINGS OF THE DEPARTMENT
PURSUANT TO PART FOUR HUNDRED OF TITLE NINETEEN OF THE NEW YORK STATE
CODES, RULES AND REGULATIONS AND SUBJECT TO THE RULES PROVIDED THEREIN.
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ANY NOTICE ISSUED PURSUANT TO THIS SECTION SHALL BE SERVED AT LEAST TEN
DAYS PRIOR TO THE DATE SET FOR THE ADMINISTRATIVE HEARING.
§ 4. 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.
§ 5. 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, two and three of this act, on the effective
date of this act.