AN ACT Relating to charter and tour operators; adding a new chapter to Title 19 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds and declares that certain advertising, sales, and business practices of travel promoters have worked financial hardship upon the people of this state; that the travel business has a significant impact upon the economy and well-being of this state and its people; that problems have arisen that are peculiar to the travel promotion business; and that the public welfare requires regulation of travel promoters in order to eliminate unfair advertising, sales and business practices. The legislature further finds it necessary to establish standards that will safeguard the people against financial hardship and to encourage competition, fair dealing, and prosperity in the travel business.

NEW SECTION. Sec. 2. (1) "Travel promoter" means a charter or tour operator or other person who sells, provides, furnishes, contracts for, arranges, or advertises that he or she can or may arrange, or has arranged air, sea, or land transportation either separately or in conjunction with other services. "Travel promoter" does not include: (a) An air carrier, (b) an ocean carrier, (c) a motor carrier, (d) a rail carrier, or (e) an authorized airline reporting corporation agent.

(2) "Advertise" means to make any representation in conjunction with, or to effect the sale of, travel services and includes communication with other members of the same partnership, corporation, joint venture, association, organization, group or other entity.

(3) "Passenger" is a person on whose behalf money or other consideration has been given or is to be given to another, including another member of the same partnership, corporation, joint venture, association, organization, group or other entity, for procuring transportation or other travel services.

(4) "Adequate bond" means a bond executed by an authorized surety insurer in an amount at least equal to the amount required under the contract between the travel promoter and the transportation carrier or company or person providing any other services in conjunction with such transportation, for the benefit of every person injured by the wrongful act of the principal acting in the course and scope of his or her occupation or business or by any official, agent, or employee of the principal acting in the course or scope of his or her employment or agency.

NEW SECTION. Sec. 3. A travel promoter shall not advertise that air, sea, or land transportation either separately or in conjunction with other services is or may be available unless he or she has, prior to such advertisement, contracted with a carrier for the transportation advertised.

NEW SECTION. Sec. 4. At or prior to the time of full or partial payment for air, sea, or land transportation or any other services offered by the travel promoter in conjunction with such transportation, the travel promoter shall furnish to the person making the payment a written statement conspicuously setting forth the following information:

(1) The name and business address and telephone number of the travel promoter.

(2) The amount paid, the date of such payment, the purpose of the payment made, and an itemized statement of the balance due, if any.

(3) The location and number of the trust account or bond required by this statute.

(4) The name of the carrier with whom the travel promoter has contracted to provide the transportation, the type of equipment contracted, and the date, time, and place of each departure.

(5) The conditions, if any, upon which the contract between the travel promoter and the passenger may be canceled, and the rights and obligations of all parties in the event of such cancellation.

(6) A statement in eight-point boldface type in substantially the following form:

"If through no fault of the passenger, transportation or other services are cancelled, all sums paid to the travel promoter for services not performed in accordance with the contract between the travel promoter and the passenger will be refunded within seven days after the cancellation by the travel promoter to the passenger or the party who contracted for the passenger."

NEW SECTION. Sec. 5. (1) If the transportation or other services contracted for are canceled through no fault of the passenger, the travel promoter shall return to the passenger within seven days after the cancellation all moneys paid for services not performed in accordance with the contract.

(2) Any material misrepresentation with regard to the date, time, or place of all departures or arrivals, or type of carrier or similar occurrence shall be deemed to be a cancellation necessitating the refund required by this section.

NEW SECTION. Sec. 6. (1) Except as otherwise provided in subsection (3) of this section, a travel promoter shall deposit ninety percent of all sums received for transportation or any other services offered by the travel promoter in conjunction with such transportation in a trust account in a federally insured financial institution.

(2) The trust account required by this section shall be created and maintained for the benefit of the passengers paying money to the travel promoter. The travel promoter shall not in any manner encumber the corpus of the account and shall not withdraw money therefrom except: (a) In an amount equal to partial or full payment for the services contracted for the passengers to the carrier or person providing the other services offered by the travel promoter; or (b) to make the refunds as required by section 5 of this act or as provided for by written contract between the travel promoter and passengers. A travel promoter may withdraw from the account any interest earned and credited to the trust account for the sole benefit of the travel promoter after all services have been provided as contracted.

(3) A travel promoter, instead of maintaining a trust account as provided in subsections (1) and (2) of this section, may maintain an adequate bond.

(4) A violation of any provision of this section shall constitute a gross misdemeanor punishable under RCW 9A.20.021(2).

NEW SECTION. Sec. 7. A violation of sections 3 through 6 of this act shall constitute a violation of RCW 19.86.020.

NEW SECTION. Sec. 8. Sections 1 through 7 of this act shall constitute a new chapter in Title 19 RCW.

NEW SECTION. Sec. 9. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.