EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1106*
HOUSE BILL 1106
C2 5lr2216
CF SB 922
By: Delegate Boafo
Introduced and read first time: February 5, 2025
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 6, 2025
CHAPTER ______
AN ACT concerning 1
Business Regulation – Travel Services – Special Fund, Fees, and Surety 2
Requirement 3
(Don’t You Worry (Wurie) Act) 4
FOR the purpose of establishing the Sellers of Travel Registration Fund as a special, 5
nonlapsing fund in the Maryland Department of Labor; requiring that certain 6
investment earnings be credited to the General Fund of the State; requiring the 7
Secretary of Labor to annually calculate certain costs; authorizing the Department 8
to set by regulation certain fees based on certain calculations; prohibiting certain 9
fees from increasing by more than a certain amount each year; requiring certain 10
providers of travel services to file with the Department of Labor evidence of financial 11
security proof of professional liability and errors and omissions liability in at least a 12
certain amount; and generally relating to the financial security of providers of travel 13
services. 14
BY adding to 15
Article – Business Regulation 16
Section 2–106.17 and 2–106.18; and 17–2201 through 17–2205 17–2203 to be under 17
the new subtitle “Subtitle 22. Travel Services” 18
Annotated Code of Maryland 19
(2024 Replacement Volume) 20
SECTION 1. BE IT ENACTED B Y THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
2 HOUSE BILL 1106
Article – Business Regulation 1
2–106.17. 2
(A) IN THIS SECTION , “FUND” MEANS THE SELLERS OF TRAVEL 3
REGISRATION FUND. 4
(B) (1) THERE IS A SELLERS OF TRAVEL REGISRATION FUND. 5
(2) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 6
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 7
(C) (1) THE DEPARTMENT SHALL PAY ALL FEES COLLECTED U NDER 8
TITLE 17, SUBTITLE 22 OF THIS ARTICLE TO T HE COMPTROLLER . 9
(2) THE COMPTROLLER SHALL DISTRIBU TE THE FEES TO THE FUND. 10
(D) THE FUND SHALL BE USED TO COVER THE ACTUAL DOC UMENTED 11
DIRECT AND INDIRECT COSTS OF FULFILLING THE STATUTORY AND RE GULATORY 12
DUTIES OF THE DEPARTMENT UNDER TITLE 17, SUBTITLE 22 OF THIS ARTICLE. 13
(E) THE SECRETARY OR A DESIGNE E OF THE SECRETARY SHALL 14
ADMINISTER THE FUND. 15
(F) THE LEGISLATIVE AUDITOR SHALL AUDIT T HE ACCOUNTS AND 16
TRANSACTIONS OF THE FUND AS PROVIDED IN § 2–1220 OF THE STATE 17
GOVERNMENT ARTICLE. 18
(G) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE CREDITED TO THE 19
GENERAL FUND OF THE STATE. 20
2–106.18. 21
(A) THE SECRETARY SHALL ANNUA LLY CALCULATE THE DI RECT AND 22
INDIRECT COSTS ATTRI BUTABLE TO THE DEPARTMENT UNDER TITLE 17, SUBTITLE 23
22 OF THIS ARTICLE. 24
(B) THE DEPARTMENT SHALL ESTA BLISH FEES BASED O N THE 25
CALCULATIONS PROVIDE D BY THE SECRETARY UNDER THIS SECTION. 26
(C) EACH FEE ESTABLISHED BY THE DEPARTMENT UNDER TITLE 17, 27
SUBTITLE 22 OF THIS ARTICLE MAY NOT BE INCREASED ANN UALLY BY MORE THAN 28
12.5% OF THE EXISTING AND CORRESPONDING FEES O F THE DEPARTMENT UNDER 29
TITLE 17, SUBTITLE 22 OF THIS ARTICLE. 30
HOUSE BILL 1106 3
SUBTITLE 22. TRAVEL SERVICES. 1
17–2201. 2
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 3
INDICATED. 4
(B) “DIVISION” MEANS THE DIVISION OF CONSUMER PROTECTION OF THE 5
OFFICE OF THE ATTORNEY GENERAL. 6
(C) (B) “INDEPENDENT AGENT ” MEANS A PERSON THAT OFFERS OR 7
UNDERTAKES TO ARRANG E FOR OR PROVIDE THE TRAVEL SERVICES SPEC IFIED IN 8
SUBSECTION (D)(1)(II) (C)(1)(II) OF THIS SECTION BUT DOES NOT: 9
(1) RECEIVE MONEY OR OTH ER VALUABLE CONSIDER ATION 10
DIRECTLY FROM THE PUR CHASER FOR THE SALE OF TRAVEL SERVICES O R FROM 11
THE ULTIMATE TRAVEL SUPPLIER; 12
(2) POSSESS AT ANY TIME ANY UNISSUED TICKET STOCK OR TRAVEL 13
DOCUMENT ; OR 14
(3) HAVE THE ABILITY TO ISSUE TICKETS, VACATION CERTIFICATE S, 15
OR ANY OTHER TRAVEL DOCUMENTS . 16
(D) (C) (1) “SELLER OF TRAVEL ” MEANS A PERSON THAT : 17
(I) IS LOCATED IN THE STATE OR OFFERS TO SE LL TRAVEL 18
SERVICES TO A PERSON LOCATED IN THE STATE; 19
(II) OFFERS OR UNDERTAKES TO ARRANGE OR PROVID E FOR: 20
1. TRAVEL RESERVATIONS OR ACCOMMODATIONS ; 21
2. TICKETS FOR TRAVEL B Y ANY MODE OF 22
TRANSPORTATION ; 23
3. HOTEL OR MOTEL ACCOM MODATIONS; 24
4. CAR RENTALS; OR 25
5. SIGHTSEEING TOURS ; AND 26
(III) RECEIVES VALUABLE CO NSIDERATION DIRECTLY FROM 27
THE PURCHASER FOR TH E SALE OF TRAVEL SERVICES O R FROM THE ULTIMATE 28
TRAVEL SUPPLIER . 29 4 HOUSE BILL 1106
(2) “SELLER OF TRAVEL ” DOES NOT INCLUDE : 1
(I) AN AIR CARRIER; 2
(II) AN OCEAN CARRIER ; OR 3
(III) A HOTEL, MOTEL, OR SIMILAR LODGING E STABLISHMENT 4
THAT, IN THE COURSE OF SEL LING, PROVIDING, OR ARRANGING TRANSIE NT 5
LODGING ACCOMMODATIO NS AND RELATED SERVI CES FOR ITS REGISTER ED 6
GUESTS: 7
1. ARRANGES OR PROVIDES FOR TRANSPORTATION ; AND 8
2. DOES NOT DIRECTLY OR INDIRECTLY RECEIVE M ONEY 9
OR OTHER VALUABLE CO NSIDERATION FOR ARRA NGING OR PROVI DING THAT 10
TRANSPORTATION . 11
17–2202. 12
(A) (1) EACH SELLER OF TRAVEL OR INDEPENDENT AGENT SHALL FILE 13
ANNUALLY WITH THE DEPARTMENT EVIDENCE OF FINANCIA L SECURITY PROOF OF 14
PROFESSIONAL LIABILI TY AND ERRORS AND OM ISSIONS INSURANCE IN THE 15
AMOUNT OF AT LEAST $1,000,000 AS REQUIRED BY THIS SUBTITLE. 16
(2) EACH SELLER OF TRAVEL SHALL FILE ANNUALLY WITH THE 17
DEPARTMENT A LIST OF INDEPENDENT AGENTS A FFILIATED WITH THE S ELLER OF 18
TRAVEL. 19
(3) THE ANNUAL FILING FEE IS $300. 20
(B) A PERSON MAY NOT RECEI VE VALUABLE CONSIDERATION IN PAY MENT 21
FOR SERVICES OFFERED FOR SALE BY A SELLER OF TRAVEL OR AN INDE PENDENT 22
AGENT UNLESS , AT THE TIME OF RECEI VING THE PAYMENT , THE SELLER OF TRAVEL 23
OR INDEPENDENT AGENT HAS MET THE ANNUAL F ILING REQUIREMENTS U NDER 24
SUBSECTION (A) OF THIS SECTION. 25
(C) IF THERE IS A MATERIA L CHANGE IN THE FINA NCIAL SECURITY OF A 26
SELLER OF TRAVEL OR AN INDEPENDENT AGENT DURING THE PERIOD BE TWEEN 27
THE ANNUAL FILINGS R EQUIRED UNDER SUBSEC TION (A)(1) OF THIS SECTION, THE 28
SELLER OF TRAVEL OR AN INDEPENDENT AGENT SHALL FILE AN ADDENDUM WITH 29
THE DEPARTMENT . 30
17–2203. 31 HOUSE BILL 1106 5
(A) (1) SUBJECT TO SUBSECTION (B) OF THIS SECTION, EVIDENCE OF THE 1
FINANCIAL SECURITY R EQUIRED UNDER § 17–2202 OF THIS SUBTITLE SHA LL BE A 2
SURETY OR CASH PERFO RMANCE BOND RELATIVE TO THE ANNUAL GROSS INCOME 3
OF THE SELLER OF TRA VEL OR INDEPENDENT A GENT IN THE STATE AS FOLLOWS : 4
(I) IF THE ANNUAL GROSS INCOME OF BUSINESS C ONDUCTED 5
IN THE STATE IS LESS THAN $200,000, THE PRINCIPAL AMOUNT OF THE SURETY 6
BOND SHALL BE $10,000; 7
(II) IF THE ANNUAL GROSS INCOME OF BUSI NESS CONDUCTED 8
IN THE STATE IS $200,000 OR MORE BUT LESS THA N $500,000, THE PRINCIPAL 9
AMOUNT OF THE SURETY BOND SHALL BE $20,000; 10
(III) IF THE ANNUAL GROSS INCOME OF BUSINESS C ONDUCTED 11
IN THE STATE IS $500,000 OR MORE BUT LESS THA N $750,000, THE PRINCIPAL 12
AMOUNT OF THE SURETY BOND SHALL BE $30,000; 13
(IV) IF THE ANNUAL GROSS INCOME OF BUSINESS C ONDUCTED 14
IN THE STATE IS $750,000 OR MORE BUT LESS THA N $1,000,000, THE PRINCIPAL 15
AMOUNT OF THE SURETY BOND SHALL BE $40,000; AND 16
(V) IF THE ANNUAL GROSS INCOME OF BUSINESS C ONDUCTED 17
IN THE STATE IS $1,000,000 OR MORE, THE PRINCIPAL AMOUNT OF THE SURETY 18
BOND SHALL BE $50,000. 19
(2) ANY SURETY BOND UNDER THIS SUBSECTION SHAL L CONFORM 20
WITH THE INSURANCE ARTICLE AND BE EXECUT ED BY A SURETY COMPANY 21
AUTHORIZED TO DO BUS INESS IN THE STATE. 22
(B) IN LIEU OF THE BOND R EQUIRED UNDER SUBSEC TION (A) OF THIS 23
SECTION, A SELLER OF TRAVEL O R AN INDEPENDENT AGE NT MAY: 24
(1) OBTAIN A CERTIFICATE OF DEPOSIT OR AN IRR EVOCABLE LETTER 25
OF CREDIT FROM A STATE BANKING INSTITUTION IN THE AMOUNT OF THE 26
PERFORMANCE BOND ; 27
(2) FILE WITH THE DEPARTMENT PROOF OF P ROFESSIONAL 28
LIABILITY AND ERRORS AND OMISSIONS INSURA NCE IN THE AMOUNT OF $1,000,000; 29
OR 30
(3) DEPOSIT WITH THE DEPARTMENT : 31
(I) CASH IN THE AMOUNT O F $50,000; 32 6 HOUSE BILL 1106
(II) SECURITIES WITH A VA LUE OF AT LEAST $50,000; 1
(III) A STATEMENT FROM A L ICENSED FINANCIAL IN STITUTION 2
GUARANTEEING THE PER FORMANCE OF THE SELL ER OF TRAVEL OR INDE PENDENT 3
AGENT; OR 4
(IV) A SECURITY INTEREST IN PROPERTY WITH A V ALUE OF 5
$50,000. 6
(C) THE BOND REQUIRED UND ER SUBSECTION (A) OF THIS SECTION SHAL L 7
BE PAYABLE TO THE STATE AND THE BOND OR OTHER EVIDENCE OF SE CURITY 8
SPECIFIED IN SUBSECT ION (B) OF THIS SECTION SHAL L BE FOR THE USE AND 9
BENEFIT OF ANY PERSO N: 10
(1) WHO SUSTAIN S A MONETARY LOSS AS A RESULT OF THE FRAU D, 11
MISREPRESENTATION , BREACH OF CONTRACT , FINANCIAL FAILURE , OR VIOLATION 12
OF ANY PROVISION OF THIS SUBTITLE BY THE SELLER OF TRAVEL OR INDEPENDENT 13
AGENT; OR 14
(2) FOR WHOM SERVICES HA VE NOT BEEN DELIVERE D BY THE 15
WRONGFUL ACT OF : 16
(I) THE SELLER OF TRAVEL OR INDEPENDENT AGENT ACTING 17
IN THE COURSE OF BUS INESS; OR 18
(II) AN OFFICIAL, AGENT, OR EMPLOYEE OF THE S ELLER OF 19
TRAVEL OR INDEPENDEN T AGENT, ACTING IN THE COURSE OF THE OFFICIAL ’S, 20
AGENT’S, OR EMPLOYEE ’S EMPLOYMENT OR AGENCY . 21
17–2204. 22
(1) EXCEPT AS OTHERWISE P ROVIDED BY LAW , THE DEPARTMENT 23
SHALL PAY ALL FEES C OLLECTED UNDER THIS TITLE TO THE COMPTROLLER . 24
(2) THE COMPTROLLER SHALL DIS TRIBUTE THE FEES TO THE 25
SELLERS OF TRAVEL REGISTRATION FUND ESTABLISHED IN § 2–106.17 OF THIS 26
ARTICLE. 27
17–2203. 28
THE DIVISION AND THE DEPARTMENT SHALL : 29
HOUSE BILL 1106 7
(1) PROVIDE REASONABLE N OTICE OF THE REQUIRE MENTS OF THIS 1
SUBTITLE TO CONSUMER S AND SELLERS OF TRA VEL; AND 2
(2) ENFORCE THE PROVISIO NS OF THIS SUBTITLE ; AND 3
(3) ADOPT REGULATIONS TO CARRY OUT THIS SUBTI TLE, INCLUDING 4
REGULATIONS ESTABLIS HING REQUIREMENTS AN D PROCEDURES FOR THE 5
REGISTRATION OF SELL ERS OF TRAVEL AND PR OVIDING FOR THE ENFO RCEMENT 6
OF THIS SUBTITLE. 7
17–2205. 8
(A) (1) AN INDIVIDUAL WHO VIOLATES ANY PROVISI ON OF THIS SUBTITLE 9
IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT 10
EXCEEDING $10,000. 11
(2) AN INDIVIDUAL ON CONV ICTION OF A SECOND O R SUBSEQUENT 12
OFFENSE UNDER THIS S UBTITLE IS GUILTY OF A MISDEMEANOR AND IS SUBJECT TO 13
A FINE NOT EXCEEDING $50,000. 14
(B) (1) A BUSINESS ENTITY THAT VIOLATES ANY PROVISI ON OF THIS 15
SUBTITLE IS GUILTY O F A MISDEMEANOR AND ON CONVICTION IS SUB JECT TO A FINE 16
NOT EXCEEDING $50,000. 17
(2) A BUSINESS ENTITY ON C ONVICTION OF A SECON D OR 18
SUBSEQUENT OFFENSE U NDER THIS SUBTITLE I S GUILTY OF A MISDEM EANOR AND 19
IS SUBJECT TO A FINE NOT EXCEEDING $100,000. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 21
October 1, 2025. 22
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.