| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | ||
| 2 | 2 | ||
| 3 | 3 | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. | |
| 4 | 4 | [Brackets] indicate matter deleted from existing law. | |
| 5 | - | Underlining indicates amendments to bill. | |
| 6 | - | Strike out indicates matter stricken from the bill by amendment or deleted from the law by | |
| 7 | - | amendment. | |
| 8 | 5 | *hb1106* | |
| 9 | 6 | ||
| 10 | 7 | HOUSE BILL 1106 | |
| 11 | 8 | C2 5lr2216 | |
| 12 | 9 | CF SB 922 | |
| 13 | 10 | By: Delegate Boafo | |
| 14 | 11 | Introduced and read first time: February 5, 2025 | |
| 15 | 12 | Assigned to: Economic Matters | |
| 16 | - | Committee Report: Favorable with amendments | |
| 17 | - | House action: Adopted | |
| 18 | - | Read second time: March 6, 2025 | |
| 19 | 13 | ||
| 20 | - | ||
| 14 | + | A BILL ENTITLED | |
| 21 | 15 | ||
| 22 | 16 | AN ACT concerning 1 | |
| 23 | 17 | ||
| 24 | - | Business Regulation – Travel Services – Special Fund, Fees, and Surety 2 | |
| 25 | - | Requirement 3 | |
| 26 | - | (Don’t You Worry (Wurie) Act) 4 | |
| 18 | + | Business Regulation – Travel Services – Surety Requirement 2 | |
| 19 | + | (Don’t You Worry (Wurie) Act) 3 | |
| 27 | 20 | ||
| 28 | - | FOR the purpose of establishing the Sellers of Travel Registration Fund as a special, 5 | |
| 29 | - | nonlapsing fund in the Maryland Department of Labor; requiring that certain 6 | |
| 30 | - | investment earnings be credited to the General Fund of the State; requiring the 7 | |
| 31 | - | Secretary of Labor to annually calculate certain costs; authorizing the Department 8 | |
| 32 | - | to set by regulation certain fees based on certain calculations; prohibiting certain 9 | |
| 33 | - | fees from increasing by more than a certain amount each year; requiring certain 10 | |
| 34 | - | providers of travel services to file with the Department of Labor evidence of financial 11 | |
| 35 | - | security proof of professional liability and errors and omissions liability in at least a 12 | |
| 36 | - | certain amount; and generally relating to the financial security of providers of travel 13 | |
| 37 | - | services. 14 | |
| 21 | + | FOR the purpose of requiring certain providers of travel services to file with the 4 | |
| 22 | + | Department of Labor evidence of financial security; and generally relating to the 5 | |
| 23 | + | financial security of providers of travel services. 6 | |
| 38 | 24 | ||
| 39 | - | BY adding to | |
| 40 | - | Article – Business Regulation | |
| 41 | - | Section | |
| 42 | - | ||
| 43 | - | Annotated Code of Maryland | |
| 44 | - | (2024 Replacement Volume) | |
| 25 | + | BY adding to 7 | |
| 26 | + | Article – Business Regulation 8 | |
| 27 | + | Section 17–2201 through 17–2205 to be under the new subtitle “Subtitle 22. Travel 9 | |
| 28 | + | Services” 10 | |
| 29 | + | Annotated Code of Maryland 11 | |
| 30 | + | (2024 Replacement Volume) 12 | |
| 45 | 31 | ||
| 46 | - | SECTION 1. BE IT ENACTED B Y THE GENERAL ASSEMBLY OF MARYLAND, 21 | |
| 47 | - | That the Laws of Maryland read as follows: 22 | |
| 32 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13 | |
| 33 | + | That the Laws of Maryland read as follows: 14 | |
| 34 | + | ||
| 35 | + | Article – Business Regulation 15 | |
| 36 | + | ||
| 37 | + | SUBTITLE 22. TRAVEL SERVICES. 16 | |
| 38 | + | ||
| 39 | + | 17–2201. 17 | |
| 40 | + | ||
| 41 | + | (A) IN THIS SUBTITLE THE FO LLOWING WORDS HAVE T HE MEANINGS 18 | |
| 42 | + | INDICATED. 19 | |
| 43 | + | ||
| 44 | + | (B) “DIVISION” MEANS THE DIVISION OF CONSUMER PROTECTION OF THE 20 | |
| 45 | + | OFFICE OF THE ATTORNEY GENERAL. 21 | |
| 48 | 46 | 2 HOUSE BILL 1106 | |
| 49 | 47 | ||
| 50 | 48 | ||
| 51 | - | Article – Business Regulation 1 | |
| 49 | + | (C) “INDEPENDENT AGENT ” MEANS A PERSON THAT OFFERS OR 1 | |
| 50 | + | UNDERTAKES TO ARRANG E FOR OR PROVIDE THE TRAVEL SERVICES SPEC IFIED IN 2 | |
| 51 | + | SUBSECTION (D)(1)(II) OF THIS SECTION BUT DOES NOT: 3 | |
| 52 | 52 | ||
| 53 | - | 2–106.17. 2 | |
| 53 | + | (1) RECEIVE MONEY OR OTHER VALUA BLE CONSIDERATION 4 | |
| 54 | + | DIRECTLY FROM THE PU RCHASER FOR THE SALE OF TRAVEL SERVICES O R FROM 5 | |
| 55 | + | THE ULTIMATE TRAVEL SUPPLIER; 6 | |
| 54 | 56 | ||
| 55 | - | ( | |
| 56 | - | ||
| 57 | + | (2) POSSESS AT ANY TIME ANY UNIS SUED TICKET STOCK OR TRAVEL 7 | |
| 58 | + | DOCUMENT; OR 8 | |
| 57 | 59 | ||
| 58 | - | (B) (1) THERE IS A SELLERS OF TRAVEL REGISRATION FUND. 5 | |
| 60 | + | (3) HAVE THE ABILITY TO ISSUE TICKETS, VACATION CERTIFICATE S, 9 | |
| 61 | + | OR ANY OTHER TRAVEL DOCUMENTS . 10 | |
| 59 | 62 | ||
| 60 | - | (2) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 6 | |
| 61 | - | SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7 | |
| 63 | + | (D) (1) “SELLER OF TRAVEL ” MEANS A PERSON THAT : 11 | |
| 62 | 64 | ||
| 63 | - | ( | |
| 64 | - | ||
| 65 | + | (I) IS LOCATED IN THE STATE OR OFFERS TO SE LL TRAVEL 12 | |
| 66 | + | SERVICES TO A PERSON LOCATED IN THE STATE; 13 | |
| 65 | 67 | ||
| 66 | - | ( | |
| 68 | + | (II) OFFERS OR UNDERTAKES TO ARR ANGE OR PROVIDE FOR : 14 | |
| 67 | 69 | ||
| 68 | - | (D) THE FUND SHALL BE USED TO COVER THE ACTUAL DOC UMENTED 11 | |
| 69 | - | DIRECT AND INDIRECT COSTS OF FULFILLING THE STATUTORY AND RE GULATORY 12 | |
| 70 | - | DUTIES OF THE DEPARTMENT UNDER TITLE 17, SUBTITLE 22 OF THIS ARTICLE. 13 | |
| 70 | + | 1. TRAVEL RESERVATIONS OR ACCO MMODATIONS ; 15 | |
| 71 | 71 | ||
| 72 | - | | |
| 73 | - | ||
| 72 | + | 2. TICKETS FOR TRAVEL BY ANY MO DE OF 16 | |
| 73 | + | TRANSPORTATION ; 17 | |
| 74 | 74 | ||
| 75 | - | (F) THE LEGISLATIVE AUDITOR SHALL AUDIT T HE ACCOUNTS AND 16 | |
| 76 | - | TRANSACTIONS OF THE FUND AS PROVIDED IN § 2–1220 OF THE STATE 17 | |
| 77 | - | GOVERNMENT ARTICLE. 18 | |
| 75 | + | 3. HOTEL OR MOTEL ACCOMMODATI ONS; 18 | |
| 78 | 76 | ||
| 79 | - | (G) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE CREDITED TO THE 19 | |
| 80 | - | GENERAL FUND OF THE STATE. 20 | |
| 77 | + | 4. CAR RENTALS; OR 19 | |
| 81 | 78 | ||
| 82 | - | ||
| 79 | + | 5. SIGHTSEEING TOURS; AND 20 | |
| 83 | 80 | ||
| 84 | - | ( | |
| 85 | - | ||
| 86 | - | ||
| 81 | + | (III) RECEIVES VALUABLE CONSIDERATI ON DIRECTLY FROM 21 | |
| 82 | + | THE PURCHASER FOR TH E SALE OF TRAVEL SER VICES OR FROM THE UL TIMATE 22 | |
| 83 | + | TRAVEL SUPPLIER . 23 | |
| 87 | 84 | ||
| 88 | - | (B) THE DEPARTMENT SHALL ESTA BLISH FEES BASED O N THE 25 | |
| 89 | - | CALCULATIONS PROVIDE D BY THE SECRETARY UNDER THIS SECTION. 26 | |
| 85 | + | (2) “SELLER OF TRAVEL ” DOES NOT INCLUDE : 24 | |
| 90 | 86 | ||
| 91 | - | (C) EACH FEE ESTABLISHED BY THE DEPARTMENT UNDER TITLE 17, 27 | |
| 92 | - | SUBTITLE 22 OF THIS ARTICLE MAY NOT BE INCREASED ANN UALLY BY MORE THAN 28 | |
| 93 | - | 12.5% OF THE EXISTING AND CORRESPONDING FEES O F THE DEPARTMENT UNDER 29 | |
| 94 | - | TITLE 17, SUBTITLE 22 OF THIS ARTICLE. 30 | |
| 87 | + | (I) AN AIR CARRIER; 25 | |
| 88 | + | ||
| 89 | + | (II) AN OCEAN CARRIER ; OR 26 | |
| 95 | 90 | HOUSE BILL 1106 3 | |
| 96 | 91 | ||
| 97 | 92 | ||
| 98 | - | SUBTITLE 22. TRAVEL SERVICES. 1 | |
| 93 | + | (III) A HOTEL, MOTEL, OR SIMILAR LODGING E STABLISHMENT 1 | |
| 94 | + | THAT, IN THE COURSE OF SEL LING, PROVIDING, OR ARRANGING TRANSIE NT 2 | |
| 95 | + | LODGING ACCOMMODATIO NS AND RELATED SERVI CES FOR ITS REGISTER ED 3 | |
| 96 | + | GUESTS: 4 | |
| 99 | 97 | ||
| 100 | - | ||
| 98 | + | 1. ARRANGES OR PROVIDES FOR TRAN SPORTATION; AND 5 | |
| 101 | 99 | ||
| 102 | - | (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 3 | |
| 103 | - | INDICATED. 4 | |
| 100 | + | 2. DOES NOT DIRECTLY OR INDIRECT LY RECEIVE MONEY 6 | |
| 101 | + | OR OTHER VALUABLE CO NSIDERATION FOR ARRA NGING OR PROVIDING T HAT 7 | |
| 102 | + | TRANSPORTATION . 8 | |
| 104 | 103 | ||
| 105 | - | (B) “DIVISION” MEANS THE DIVISION OF CONSUMER PROTECTION OF THE 5 | |
| 106 | - | OFFICE OF THE ATTORNEY GENERAL. 6 | |
| 104 | + | 17–2202. 9 | |
| 107 | 105 | ||
| 108 | - | ( | |
| 109 | - | ||
| 110 | - | ||
| 106 | + | (A) (1) EACH SELLER OF TRAVEL OR INDEPENDENT AGENT SH ALL FILE 10 | |
| 107 | + | ANNUALLY WITH THE DEPARTMENT EVIDENCE OF FINANCIA L SECURITY AS 11 | |
| 108 | + | REQUIRED BY THIS SUBTI TLE. 12 | |
| 111 | 109 | ||
| 112 | - | ( | |
| 113 | - | ||
| 114 | - | ||
| 110 | + | (2) EACH SELLER OF TRAVEL SHA LL FILE ANNUALLY WIT H THE 13 | |
| 111 | + | DEPARTMENT A LIST OF INDEPENDEN T AGENTS AFFILIATED WITH THE SELLER OF 14 | |
| 112 | + | TRAVEL. 15 | |
| 115 | 113 | ||
| 116 | - | (2) POSSESS AT ANY TIME ANY UNISSUED TICKET STOCK OR TRAVEL 13 | |
| 117 | - | DOCUMENT ; OR 14 | |
| 114 | + | (3) THE ANNUAL FILING FEE IS $300. 16 | |
| 118 | 115 | ||
| 119 | - | (3) HAVE THE ABILITY TO ISSUE TICKETS, VACATION CERTIFICATE S, 15 | |
| 120 | - | OR ANY OTHER TRAVEL DOCUMENTS . 16 | |
| 116 | + | (B) A PERSON MAY NOT RECEI VE VALUABLE CONSIDER ATION IN PAYMENT 17 | |
| 117 | + | FOR SERVICES OFFERED FOR SALE BY A SELLER OF TRAVEL OR AN INDEPENDENT 18 | |
| 118 | + | AGENT UNLESS , AT THE TIME OF RECEI VING THE PAYMENT , THE SELLER OF TRAVEL 19 | |
| 119 | + | OR INDEPENDENT AGENT HAS MET THE ANNUAL F ILING REQUIREME NTS UNDER 20 | |
| 120 | + | SUBSECTION (A) OF THIS SECTION. 21 | |
| 121 | 121 | ||
| 122 | - | (D) (C) (1) “SELLER OF TRAVEL ” MEANS A PERSON THAT : 17 | |
| 122 | + | (C) IF THERE IS A MATERIAL CHANGE IN THE FINANC IAL SECURITY OF A 22 | |
| 123 | + | SELLER OF TRAVEL OR AN INDEPENDENT AGENT DU RING THE PERIOD BETW EEN 23 | |
| 124 | + | THE ANNUAL FILINGS R EQUIRED UNDER SUBSEC TION (A)(1) OF THIS SECTION, THE 24 | |
| 125 | + | SELLER OF TRAVEL OR AN INDEPENDENT AGENT SHALL FILE AN ADDEND UM WITH 25 | |
| 126 | + | THE DEPARTMENT . 26 | |
| 123 | 127 | ||
| 124 | - | (I) IS LOCATED IN THE STATE OR OFFERS TO SE LL TRAVEL 18 | |
| 125 | - | SERVICES TO A PERSON LOCATED IN THE STATE; 19 | |
| 128 | + | 17–2203. 27 | |
| 126 | 129 | ||
| 127 | - | (II) OFFERS OR UNDERTAKES TO ARRANGE OR PROVID E FOR: 20 | |
| 128 | - | ||
| 129 | - | 1. TRAVEL RESERVATIONS OR ACCOMMODATIONS ; 21 | |
| 130 | - | ||
| 131 | - | 2. TICKETS FOR TRAVEL B Y ANY MODE OF 22 | |
| 132 | - | TRANSPORTATION ; 23 | |
| 133 | - | ||
| 134 | - | 3. HOTEL OR MOTEL ACCOM MODATIONS; 24 | |
| 135 | - | ||
| 136 | - | 4. CAR RENTALS; OR 25 | |
| 137 | - | ||
| 138 | - | 5. SIGHTSEEING TOURS ; AND 26 | |
| 139 | - | ||
| 140 | - | (III) RECEIVES VALUABLE CO NSIDERATION DIRECTLY FROM 27 | |
| 141 | - | THE PURCHASER FOR TH E SALE OF TRAVEL SERVICES O R FROM THE ULTIMATE 28 | |
| 142 | - | TRAVEL SUPPLIER . 29 4 HOUSE BILL 1106 | |
| 130 | + | (A) (1) SUBJECT TO SUBSECTION (B) OF THIS SECTION, EVIDENCE OF THE 28 | |
| 131 | + | FINANCIAL SECURITY REQUIRED UNDER § 17–2202 OF THIS SUBTITLE SHA LL BE A 29 | |
| 132 | + | SURETY OR CASH PERFO RMANCE BOND RELATIVE TO THE ANNU AL GROSS INCOME 30 | |
| 133 | + | OF THE SELLER OF TRA VEL OR INDEPENDENT A GENT IN THE STATE AS FOLLOWS: 31 | |
| 134 | + | 4 HOUSE BILL 1106 | |
| 143 | 135 | ||
| 144 | 136 | ||
| 137 | + | (I) IF THE ANNUAL GROSS INC OME OF BUSINESS COND UCTED 1 | |
| 138 | + | IN THE STATE IS LESS THAN $200,000, THE PRINCIPAL AMOUNT OF THE SURETY 2 | |
| 139 | + | BOND SHALL BE $10,000; 3 | |
| 145 | 140 | ||
| 146 | - | (2) “SELLER OF TRAVEL ” DOES NOT INCLUDE : 1 | |
| 141 | + | (II) IF THE ANNUAL GROSS INC OME OF BUSINESS COND UCTED 4 | |
| 142 | + | IN THE STATE IS $200,000 OR MORE BUT LESS THA N $500,000, THE PRINCIPAL 5 | |
| 143 | + | AMOUNT OF THE SURETY BOND SHALL BE $20,000; 6 | |
| 147 | 144 | ||
| 148 | - | (I) AN AIR CARRIER; 2 | |
| 145 | + | (III) IF THE ANNUAL GROSS INCOME OF BUSINESS CONDUCTE D 7 | |
| 146 | + | IN THE STATE IS $500,000 OR MORE BUT LESS THA N $750,000, THE PRINCIPAL 8 | |
| 147 | + | AMOUNT OF THE SURETY BOND SHALL BE $30,000; 9 | |
| 149 | 148 | ||
| 150 | - | (II) AN OCEAN CARRIER ; OR 3 | |
| 149 | + | (IV) IF THE ANNUAL GROSS INC OME OF BUSINESS COND UCTED 10 | |
| 150 | + | IN THE STATE IS $750,000 OR MORE BUT LESS THA N $1,000,000, THE PRINCIPAL 11 | |
| 151 | + | AMOUNT O F THE SURETY BOND SH ALL BE $40,000; AND 12 | |
| 151 | 152 | ||
| 152 | - | (III) A HOTEL, MOTEL, OR SIMILAR LODGING E STABLISHMENT 4 | |
| 153 | - | THAT, IN THE COURSE OF SEL LING, PROVIDING, OR ARRANGING TRANSIE NT 5 | |
| 154 | - | LODGING ACCOMMODATIO NS AND RELATED SERVI CES FOR ITS REGISTER ED 6 | |
| 155 | - | GUESTS: 7 | |
| 153 | + | (V) IF THE ANNUAL GROSS INC OME OF BUSINESS COND UCTED 13 | |
| 154 | + | IN THE STATE IS $1,000,000 OR MORE, THE PRINCIPAL AMOUNT OF THE SURETY 14 | |
| 155 | + | BOND SHALL BE $50,000. 15 | |
| 156 | 156 | ||
| 157 | - | 1. ARRANGES OR PROVIDES FOR TRANSPORTATION ; AND 8 | |
| 157 | + | (2) ANY SURETY BOND UNDER TH IS SUBSECTION SHALL CONFORM 16 | |
| 158 | + | WITH THE INSURANCE ARTICLE AND BE EXECUTED BY A SURETY COMPANY 17 | |
| 159 | + | AUTHORIZED TO DO BUS INESS IN THE STATE. 18 | |
| 158 | 160 | ||
| 159 | - | 2. DOES NOT DIRECTLY OR INDIRECTLY RECEIVE M ONEY 9 | |
| 160 | - | OR OTHER VALUABLE CO NSIDERATION FOR ARRA NGING OR PROVI DING THAT 10 | |
| 161 | - | TRANSPORTATION . 11 | |
| 161 | + | (B) IN LIEU OF THE BOND REQ UIRED UNDER SUBSECTI ON (A) OF THIS 19 | |
| 162 | + | SECTION, A SELLER OF TRAVEL O R AN INDEPENDENT AGENT MAY : 20 | |
| 162 | 163 | ||
| 163 | - | 17–2202. 12 | |
| 164 | + | (1) OBTAIN A CERTIFICATE OF DEP OSIT OR AN IRREVOCAB LE LETTER 21 | |
| 165 | + | OF CREDIT FROM A STATE BANKING INSTITUTION IN THE AMOUNT OF THE 22 | |
| 166 | + | PERFORMANCE BOND ; 23 | |
| 164 | 167 | ||
| 165 | - | (A) (1) EACH SELLER OF TRAVEL OR INDEPENDENT AGENT SHALL FILE 13 | |
| 166 | - | ANNUALLY WITH THE DEPARTMENT EVIDENCE OF FINANCIA L SECURITY PROOF OF 14 | |
| 167 | - | PROFESSIONAL LIABILI TY AND ERRORS AND OM ISSIONS INSURANCE IN THE 15 | |
| 168 | - | AMOUNT OF AT LEAST $1,000,000 AS REQUIRED BY THIS SUBTITLE. 16 | |
| 168 | + | (2) FILE WITH THE DEPARTMENT PROOF OF PROFESSIONA L 24 | |
| 169 | + | LIABILITY AND ERRORS AND OMISSIONS INSURANCE IN THE AMO UNT OF $1,000,000; 25 | |
| 170 | + | OR 26 | |
| 169 | 171 | ||
| 170 | - | (2) EACH SELLER OF TRAVEL SHALL FILE ANNUALLY WITH THE 17 | |
| 171 | - | DEPARTMENT A LIST OF INDEPENDENT AGENTS A FFILIATED WITH THE S ELLER OF 18 | |
| 172 | - | TRAVEL. 19 | |
| 172 | + | (3) DEPOSIT WITH THE DEPARTMENT : 27 | |
| 173 | 173 | ||
| 174 | - | ( | |
| 174 | + | (I) CASH IN THE AMOUNT OF $50,000; 28 | |
| 175 | 175 | ||
| 176 | - | (B) A PERSON MAY NOT RECEI VE VALUABLE CONSIDERATION IN PAY MENT 21 | |
| 177 | - | FOR SERVICES OFFERED FOR SALE BY A SELLER OF TRAVEL OR AN INDE PENDENT 22 | |
| 178 | - | AGENT UNLESS , AT THE TIME OF RECEI VING THE PAYMENT , THE SELLER OF TRAVEL 23 | |
| 179 | - | OR INDEPENDENT AGENT HAS MET THE ANNUAL F ILING REQUIREMENTS U NDER 24 | |
| 180 | - | SUBSECTION (A) OF THIS SECTION. 25 | |
| 181 | - | ||
| 182 | - | (C) IF THERE IS A MATERIA L CHANGE IN THE FINA NCIAL SECURITY OF A 26 | |
| 183 | - | SELLER OF TRAVEL OR AN INDEPENDENT AGENT DURING THE PERIOD BE TWEEN 27 | |
| 184 | - | THE ANNUAL FILINGS R EQUIRED UNDER SUBSEC TION (A)(1) OF THIS SECTION, THE 28 | |
| 185 | - | SELLER OF TRAVEL OR AN INDEPENDENT AGENT SHALL FILE AN ADDENDUM WITH 29 | |
| 186 | - | THE DEPARTMENT . 30 | |
| 187 | - | ||
| 188 | - | 17–2203. 31 HOUSE BILL 1106 5 | |
| 176 | + | (II) SECURITIES WITH A VALUE OF AT LEAST $50,000; 29 | |
| 177 | + | HOUSE BILL 1106 5 | |
| 189 | 178 | ||
| 190 | 179 | ||
| 180 | + | (III) A STATEMENT FROM A LIC ENSED FINANCIAL INST ITUTION 1 | |
| 181 | + | GUARANTEEING THE PER FORMANCE OF THE SELLER OF TRAVEL OR INDEPENDEN T 2 | |
| 182 | + | AGENT; OR 3 | |
| 191 | 183 | ||
| 192 | - | (A) (1) SUBJECT TO SUBSECTION (B) OF THIS SECTION, EVIDENCE OF THE 1 | |
| 193 | - | FINANCIAL SECURITY R EQUIRED UNDER § 17–2202 OF THIS SUBTITLE SHA LL BE A 2 | |
| 194 | - | SURETY OR CASH PERFO RMANCE BOND RELATIVE TO THE ANNUAL GROSS INCOME 3 | |
| 195 | - | OF THE SELLER OF TRA VEL OR INDEPENDENT A GENT IN THE STATE AS FOLLOWS : 4 | |
| 184 | + | (IV) A SECURITY INTEREST IN PROPERTY WITH A VALU E OF 4 | |
| 185 | + | $50,000. 5 | |
| 196 | 186 | ||
| 197 | - | (I) IF THE ANNUAL GROSS INCOME OF BUSINESS C ONDUCTED 5 | |
| 198 | - | IN THE STATE IS LESS THAN $200,000, THE PRINCIPAL AMOUNT OF THE SURETY 6 | |
| 199 | - | BOND SHALL BE $10,000; 7 | |
| 187 | + | (C) THE BOND REQUIRED UNDER SUBSE CTION (A) OF THIS SECTION SHALL 6 | |
| 188 | + | BE PAYABLE TO THE STATE AND THE BOND OR OTHE R EVIDENCE OF SECURI TY 7 | |
| 189 | + | SPECIFIED IN SUBSECTION (B) OF THIS SECTION SHAL L BE FOR THE USE AND 8 | |
| 190 | + | BENEFIT OF ANY PERSON : 9 | |
| 200 | 191 | ||
| 201 | - | (II) IF THE ANNUAL GROSS INCOME OF BUSI NESS CONDUCTED 8 | |
| 202 | - | IN THE STATE IS $200,000 OR MORE BUT LESS THA N $500,000, THE PRINCIPAL 9 | |
| 203 | - | AMOUNT OF THE SURETY BOND SHALL BE $20,000; 10 | |
| 192 | + | (1) WHO SUSTAINS A MONETARY LOSS AS A RESULT OF THE FRAUD, 10 | |
| 193 | + | MISREPRESENTATION , BREACH OF CONTRACT , FINANCIAL FAILURE , OR VIOLATION 11 | |
| 194 | + | OF ANY PROVISION OF THIS SUBTITLE BY THE SELLER OF TRA VEL OR INDEPENDENT 12 | |
| 195 | + | AGENT; OR 13 | |
| 204 | 196 | ||
| 205 | - | (III) IF THE ANNUAL GROSS INCOME OF BUSINESS C ONDUCTED 11 | |
| 206 | - | IN THE STATE IS $500,000 OR MORE BUT LESS THA N $750,000, THE PRINCIPAL 12 | |
| 207 | - | AMOUNT OF THE SURETY BOND SHALL BE $30,000; 13 | |
| 197 | + | (2) FOR WHOM SERVICES HAVE N OT BEEN DELIVERED BY THE 14 | |
| 198 | + | WRONGFUL ACT OF : 15 | |
| 208 | 199 | ||
| 209 | - | (IV) IF THE ANNUAL GROSS INCOME OF BUSINESS C ONDUCTED 14 | |
| 210 | - | IN THE STATE IS $750,000 OR MORE BUT LESS THA N $1,000,000, THE PRINCIPAL 15 | |
| 211 | - | AMOUNT OF THE SURETY BOND SHALL BE $40,000; AND 16 | |
| 200 | + | (I) THE SELLER OF TRAVEL OR INDEPENDENT AGENT AC TING 16 | |
| 201 | + | IN THE COURSE OF BUS INESS; OR 17 | |
| 212 | 202 | ||
| 213 | - | ( | |
| 214 | - | IN THE | |
| 215 | - | ||
| 203 | + | (II) AN OFFICIAL, AGENT, OR EMPLOYEE OF THE SELLER OF 18 | |
| 204 | + | TRAVEL OR INDEPENDEN T AGENT, ACTING IN THE COURSE OF THE OFFICIAL ’S, 19 | |
| 205 | + | AGENT’S, OR EMPLOYEE ’S EMPLOYMENT OR AGEN CY. 20 | |
| 216 | 206 | ||
| 217 | - | (2) ANY SURETY BOND UNDER THIS SUBSECTION SHAL L CONFORM 20 | |
| 218 | - | WITH THE INSURANCE ARTICLE AND BE EXECUT ED BY A SURETY COMPANY 21 | |
| 219 | - | AUTHORIZED TO DO BUS INESS IN THE STATE. 22 | |
| 207 | + | 17–2204. 21 | |
| 220 | 208 | ||
| 221 | - | (B) IN LIEU OF THE BOND R EQUIRED UNDER SUBSEC TION (A) OF THIS 23 | |
| 222 | - | SECTION, A SELLER OF TRAVEL O R AN INDEPENDENT AGE NT MAY: 24 | |
| 209 | + | THE DIVISION AND THE DEPARTMENT SHALL : 22 | |
| 223 | 210 | ||
| 224 | - | (1) OBTAIN A CERTIFICATE OF DEPOSIT OR AN IRR EVOCABLE LETTER 25 | |
| 225 | - | OF CREDIT FROM A STATE BANKING INSTITUTION IN THE AMOUNT OF THE 26 | |
| 226 | - | PERFORMANCE BOND ; 27 | |
| 211 | + | (1) PROVIDE REASONABLE N OTICE OF THE REQUIRE MENTS OF THIS 23 | |
| 212 | + | SUBTITLE TO CONSUMERS AND SELLER S OF TRAVEL; AND 24 | |
| 227 | 213 | ||
| 228 | - | (2) FILE WITH THE DEPARTMENT PROOF OF P ROFESSIONAL 28 | |
| 229 | - | LIABILITY AND ERRORS AND OMISSIONS INSURA NCE IN THE AMOUNT OF $1,000,000; 29 | |
| 230 | - | OR 30 | |
| 214 | + | (2) ENFORCE THE PROVISIO NS OF THIS SUBTITLE . 25 | |
| 231 | 215 | ||
| 232 | - | ||
| 216 | + | 17–2205. 26 | |
| 233 | 217 | ||
| 234 | - | (I) CASH IN THE AMOUNT O F $50,000; 32 6 HOUSE BILL 1106 | |
| 218 | + | (A) (1) AN INDIVIDUAL WHO VIOLA TES ANY PROVISION OF THIS SUBTITLE 27 | |
| 219 | + | IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT 28 | |
| 220 | + | EXCEEDING $10,000. 29 | |
| 221 | + | 6 HOUSE BILL 1106 | |
| 235 | 222 | ||
| 236 | 223 | ||
| 224 | + | (2) AN INDIVIDUAL ON CONV ICTION OF A SECOND O R SUBSEQUENT 1 | |
| 225 | + | OFFENSE UNDER THIS S UBTITLE IS GUILTY OF A MISDEMEANOR AND IS SUBJECT TO 2 | |
| 226 | + | A FINE NOT EXCEEDING $50,000. 3 | |
| 237 | 227 | ||
| 238 | - | (II) SECURITIES WITH A VA LUE OF AT LEAST $50,000; 1 | |
| 228 | + | (B) (1) A BUSINESS ENTITY THAT VIOLATES ANY PROVISION OF THIS 4 | |
| 229 | + | SUBTITLE IS GUILTY O F A MISDEMEANOR AND ON CONVICTI ON IS SUBJECT TO A F INE 5 | |
| 230 | + | NOT EXCEEDING $50,000. 6 | |
| 239 | 231 | ||
| 240 | - | ( | |
| 241 | - | ||
| 242 | - | ||
| 232 | + | (2) A BUSINESS ENTITY ON C ONVICTION OF A SECON D OR 7 | |
| 233 | + | SUBSEQUENT OFFENSE U NDER THIS SUBTITLE I S GUILTY OF A MISDEM EANOR AND 8 | |
| 234 | + | IS SUBJECT TO A FINE NOT EXCEEDING $100,000. 9 | |
| 243 | 235 | ||
| 244 | - | (IV) A SECURITY INTEREST IN PROPERTY WITH A V ALUE OF 5 | |
| 245 | - | $50,000. 6 | |
| 246 | - | ||
| 247 | - | (C) THE BOND REQUIRED UND ER SUBSECTION (A) OF THIS SECTION SHAL L 7 | |
| 248 | - | BE PAYABLE TO THE STATE AND THE BOND OR OTHER EVIDENCE OF SE CURITY 8 | |
| 249 | - | SPECIFIED IN SUBSECT ION (B) OF THIS SECTION SHAL L BE FOR THE USE AND 9 | |
| 250 | - | BENEFIT OF ANY PERSO N: 10 | |
| 251 | - | ||
| 252 | - | (1) WHO SUSTAIN S A MONETARY LOSS AS A RESULT OF THE FRAU D, 11 | |
| 253 | - | MISREPRESENTATION , BREACH OF CONTRACT , FINANCIAL FAILURE , OR VIOLATION 12 | |
| 254 | - | OF ANY PROVISION OF THIS SUBTITLE BY THE SELLER OF TRAVEL OR INDEPENDENT 13 | |
| 255 | - | AGENT; OR 14 | |
| 256 | - | ||
| 257 | - | (2) FOR WHOM SERVICES HA VE NOT BEEN DELIVERE D BY THE 15 | |
| 258 | - | WRONGFUL ACT OF : 16 | |
| 259 | - | ||
| 260 | - | (I) THE SELLER OF TRAVEL OR INDEPENDENT AGENT ACTING 17 | |
| 261 | - | IN THE COURSE OF BUS INESS; OR 18 | |
| 262 | - | ||
| 263 | - | (II) AN OFFICIAL, AGENT, OR EMPLOYEE OF THE S ELLER OF 19 | |
| 264 | - | TRAVEL OR INDEPENDEN T AGENT, ACTING IN THE COURSE OF THE OFFICIAL ’S, 20 | |
| 265 | - | AGENT’S, OR EMPLOYEE ’S EMPLOYMENT OR AGENCY . 21 | |
| 266 | - | ||
| 267 | - | 17–2204. 22 | |
| 268 | - | ||
| 269 | - | (1) EXCEPT AS OTHERWISE P ROVIDED BY LAW , THE DEPARTMENT 23 | |
| 270 | - | SHALL PAY ALL FEES C OLLECTED UNDER THIS TITLE TO THE COMPTROLLER . 24 | |
| 271 | - | ||
| 272 | - | (2) THE COMPTROLLER SHALL DIS TRIBUTE THE FEES TO THE 25 | |
| 273 | - | SELLERS OF TRAVEL REGISTRATION FUND ESTABLISHED IN § 2–106.17 OF THIS 26 | |
| 274 | - | ARTICLE. 27 | |
| 275 | - | ||
| 276 | - | 17–2203. 28 | |
| 277 | - | ||
| 278 | - | THE DIVISION AND THE DEPARTMENT SHALL : 29 | |
| 279 | - | HOUSE BILL 1106 7 | |
| 280 | - | ||
| 281 | - | ||
| 282 | - | (1) PROVIDE REASONABLE N OTICE OF THE REQUIRE MENTS OF THIS 1 | |
| 283 | - | SUBTITLE TO CONSUMER S AND SELLERS OF TRA VEL; AND 2 | |
| 284 | - | ||
| 285 | - | (2) ENFORCE THE PROVISIO NS OF THIS SUBTITLE ; AND 3 | |
| 286 | - | ||
| 287 | - | (3) ADOPT REGULATIONS TO CARRY OUT THIS SUBTI TLE, INCLUDING 4 | |
| 288 | - | REGULATIONS ESTABLIS HING REQUIREMENTS AN D PROCEDURES FOR THE 5 | |
| 289 | - | REGISTRATION OF SELL ERS OF TRAVEL AND PR OVIDING FOR THE ENFO RCEMENT 6 | |
| 290 | - | OF THIS SUBTITLE. 7 | |
| 291 | - | ||
| 292 | - | 17–2205. 8 | |
| 293 | - | ||
| 294 | - | (A) (1) AN INDIVIDUAL WHO VIOLATES ANY PROVISI ON OF THIS SUBTITLE 9 | |
| 295 | - | IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT 10 | |
| 296 | - | EXCEEDING $10,000. 11 | |
| 297 | - | ||
| 298 | - | (2) AN INDIVIDUAL ON CONV ICTION OF A SECOND O R SUBSEQUENT 12 | |
| 299 | - | OFFENSE UNDER THIS S UBTITLE IS GUILTY OF A MISDEMEANOR AND IS SUBJECT TO 13 | |
| 300 | - | A FINE NOT EXCEEDING $50,000. 14 | |
| 301 | - | ||
| 302 | - | (B) (1) A BUSINESS ENTITY THAT VIOLATES ANY PROVISI ON OF THIS 15 | |
| 303 | - | SUBTITLE IS GUILTY O F A MISDEMEANOR AND ON CONVICTION IS SUB JECT TO A FINE 16 | |
| 304 | - | NOT EXCEEDING $50,000. 17 | |
| 305 | - | ||
| 306 | - | (2) A BUSINESS ENTITY ON C ONVICTION OF A SECON D OR 18 | |
| 307 | - | SUBSEQUENT OFFENSE U NDER THIS SUBTITLE I S GUILTY OF A MISDEM EANOR AND 19 | |
| 308 | - | IS SUBJECT TO A FINE NOT EXCEEDING $100,000. 20 | |
| 309 | - | ||
| 310 | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21 | |
| 311 | - | October 1, 2025. 22 | |
| 312 | - | ||
| 313 | - | ||
| 314 | - | ||
| 315 | - | ||
| 316 | - | Approved: | |
| 317 | - | ________________________________________________________________________________ | |
| 318 | - | Governor. | |
| 319 | - | ________________________________________________________________________________ | |
| 320 | - | Speaker of the House of Delegates. | |
| 321 | - | ________________________________________________________________________________ | |
| 322 | - | President of the Senate. | |
| 236 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10 | |
| 237 | + | October 1, 2025. 11 |