S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5986
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2017
                                ___________
 
 Introduced  by  Sen. PERALTA -- 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 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

 S. 5986                             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-

 S. 5986                             3
 
 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.

 S. 5986                             4
 
 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.