To amend chapter 407, RSMo, relating to merchandising practices, by enacting eight new sections relating to the sellers and promoters of travel, with penalty provisions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI,

AS FOLLOWS:

Section A. Chapter 407, RSMo, is amended by adding eight new sections, to be known as sections 407.1000, 407.1005, 407.1007, 407.1009, 407.1015, 407.1020, 407.1023 and 407.1027, to read as follows:

407.1000. As used in sections 407.1000 to 407.1027 of this act, the following terms shall mean:

(1) "Accommodations", any hotel or motel room, apartment, condominium or cooperative unit, cabin, lodge or campground; any other commercial structure designed for occupancy by one or more individuals; or any lodging establishment as provided by law;

(2) "Contract", any written agreement, contract, certificate, reservation request form, use agreement, license, or reservation confirmation whereby a traveler obtains the right to the benefits and privileges of the prearranged travel or tourist service, or to a lodging or travel certificate, or any such other document, writing or form committing the seller of travel to provide travel services, benefits or privileges pertaining to reservations, tour or travel arrangements, and accommodations;

(3) "Offer for sale", any direct or indirect representation, claim, or statement making an offer or undertaking, by any means or method, to arrange for, provide or acquire travel reservations or accommodations, tickets for domestic or foreign travel by air, rail, ship or other medium of transportation, or hotel and motel accommodations or sightseeing tours;

(4) "Promoter", any person or business entity that solicits travelers, at the time of use of accommodations or facilities, for the sale of any investments, goods, products or services, or any business entity that provides travel or tour services in conjunction with promotional opportunities, including, but not limited to, land and interest in land, timeshare plans, housing, commodities or securities, or any person or business entity that provides travel-related prizes or awards for which the traveler must pay a fee or, in connection with the prize or award, expend moneys for the direct or indirect monetary benefit of the person or business entity making the prize or award, in order for the traveler to collect or enjoy the benefits of the prize or award;

(5) "Seller of travel", any resident or nonresident person, firm, corporation, or business entity who offers for sale, directly or indirectly, at wholesale or retail, travel or tour services for individuals or groups;

(6) "Travel or tour services", arranging or booking vacation or travel packages, sightseeing tours, car rentals, travel reservations or accommodations, tickets for domestic or foreign travel by air, rail, ship, bus or other medium of transportation, or hotel or other accommodations. Travel or tour services include travel-related prizes or awards for which the traveler must pay a fee or, in connection with the prize or award, expend moneys for the direct or indirect monetary benefits of the person or business entity making the award, in order for the traveler to collect or enjoy the benefits of the prize or award. Travel or tour services also include travel-related services provided in conjunction with solicitations for the sale of any investments, goods, products or services, or in conjunction with promotional opportunities, including, but not limited to, land, interest in land, timeshare plans, housing, commodities or securities;

(7) "Traveler", the purchaser of travel or tour services, a person otherwise entitled to receive travel or tour services for a fee or commission, a person who has received a travel-related prize or award, or a person who has been provided travel-related services in conjunction with solicitations for the sale of any investments, goods, products or services, or in conjunction with promotional opportunities, including, but not limited to, land, interest in land, timeshare plans, housing, commodities or securities.

407.1005. Sections 407.1000 to 407.1027 of this act do not apply to:

(1) Any direct common carrier of passengers or property regulated by an agency of the federal government or employees of such carrier when engaged solely in the transportation business of the carrier;

(2) An interstate or intrastate common carrier of passengers selling only transportation or employees of such carrier when engaged solely in the transportation business of the carrier;

(3) Hotels, motels or other places of public accommodation selling public accommodations, or employees of such hotels, motels or other places of public accommodation, when engaged solely in making arrangements for accommodations or sightseeing tours within the state, or taking reservations for the traveler with times, dates, location and accommodations certain at the time the reservations are made;

(4) Persons involved solely in the rental, leasing or sale of transportation vehicles or residential property;

(5) Persons who make travel arrangements for themselves, for their employees or agents, for the distributors, franchisees or dealers of the persons' products or services, for persons or entities which are financially related to the persons, or for the employees or agents of the distributor, franchisee, dealer or financially- related entity;

(6) A person who sells memberships in an organization, club or association that entitles the purchaser to obtain transportation or other services from a seller of travel and who does not arrange or provide for travel or tour services;

(7) Excursion gambling boats subject to regulation pursuant to section 313.800 et seq., RSMo.

407.1007. 1. A promoter or seller of travel shall not advertise that air, sea or land transportation, either separately or in conjunction with other services, is or may be available unless the promoter or seller of travel, prior to the advertisement, received written confirmation from a carrier for the transportation advertised.

2. The promoter or seller of travel shall maintain confirmation records for three years after the placement of the advertisement.

407.1009. A promoter or seller of travel shall not receive money or other valuable consideration as payment for travel or tour services unless, at the time of receipt of the money or other valuable consideration, the promoter or seller of travel furnishes to the traveler a written statement or electronic communication clearly and conspicuously setting forth the following information:

(1) The name, business address and telephone number of the promoter or seller of travel;

(2) The amount of money or type of valuable consideration paid to the promotor or seller of travel, the date of such payment, the purpose of the payment and an itemized statement of the balance due, if any;

(3) The name and address of the entity that maintains the travel or tour services trust account, and the name or number of the trust account; and

(4) The name of each person or entity with which the promoter or seller of travel has contracted to provide travel or tour services for the traveler and all pertinent information such as, but not limited to, the following:

(a) The name of the carrier that will provide the transportation, the type of equipment to be used, and the date, time and place of each departure;

(b) The types of accommodations and dates and times of services;

(c) The conditions, if any, upon which the contract between the promoter or seller of travel and the traveler may be canceled, and the rights and obligations of all parties in the event of such a cancellation;

(d) The conditions, if any, upon which the contract between the promoter or seller of travel and the carrier or other provider of travel or tour services may be canceled, and the rights and obligations of all parties in the event of such a cancellation; and

(e) A statement in eight-point boldfaced type in the following form: "If transportation or other services are canceled by the promoter or seller of travel, all sums paid to the promoter or seller of travel for services not performed in accordance with the contract between the promoter or seller of travel and the traveler will be refunded within thirty days of receiving the funds from the vendor with which the services were arranged, or if the funds were not sent to the vendor, the money shall be returned within fourteen days after cancellation by the promoter or seller of travel to the traveler unless the traveler requests the seller of travel to apply the money to another travel product or date."

407.1015. If the travel or tour services are canceled by the promoter or seller of travel, or if money is to be refunded to the traveler for any reason, the promoter or seller of travel shall refund to the traveler the money due within thirty days of receiving the funds from the vendor with whom the travel or tour services were arranged. If the funds were not sent to the vendor and remain in the possession of the promoter or seller of travel, the funds shall be returned to the traveler within fourteen days of the cancellation.

407.1020. 1. Before offering, advertising, selling, executing or causing to be executed any contract in this state for travel or tour services, every promoter or seller of travel shall file and maintain with the office of the attorney general evidence of financial security. Financial security shall be evidenced by a surety or cash performance bond from a company authorized to transact business in this state, or a letter of credit from a bank insured by the Federal Deposit Insurance Corporation, with an aggregate limit of twenty-five thousand dollars. The surety, bond or letter of credit shall be in favor of the state of Missouri for the benefit of:

(1) Any traveler injured by having paid money for travel or tour services to a promotor or seller of travel that fails to provide the travel or tour services; or

(2) Any traveler injured as a result of a violation of sections 407.1000 to 407.1027 of this act.

2. In lieu of the surety, bond or letter of credit required by this section, the promoter or seller of travel may annually file with the office of the attorney general proof of professional liability and errors and omissions insurance in an amount of at least one million dollars. The insurance policy must provide uninterrupted coverage for the entire calendar year.

3. If the promoter or seller of travel has contracted with the airlines reporting corporation or the passenger network services corporation, or has filed a bond pursuant to United States Department of Transportation regulations, the promoter or seller of travel may, in lieu of the surety, bond, or letter of credit required by this section, file with the office of the attorney general a certified copy of the official approval and appointment of the promoter or seller of travel from the airlines reporting corporation or the passenger network services corporation, or a certified copy of the bond filed pursuant to United States Department of Transportation regulations.

4. The surety, bond or letter of credit required by this section shall be in favor of the state of Missouri for the benefit of any buyer injured as a result of a violation of sections 407.1000 to 407.1027.

5. The aggregate liability of the surety, bond or letter of credit to all persons for all breaches of the conditions of the surety, bond or letter of credit shall in no event exceed twenty-five thousand dollars. The surety, bond or letter of credit shall not be canceled without the consent of the office of the attorney general.

6. The provisions of this section shall not apply to a promoter or seller of travel or tour services continuously engaged in such business for at least three years prior to August 28, 1996.

407.1023. 1. A traveler injured by a violation of sections 407.1000 to 407.1027 may bring an action for recovery of damages. The damages awarded may not be less than the amount paid by the traveler to the travel or tour services organization, plus reasonable attorney's fees and court costs. The traveler may also be awarded punitive damages.

2. The attorney general or a traveler may bring an action in any court of competent jurisdiction to enjoin a violation of sections 407.1000 to 407.1027.

3. A violation of sections 407.1000 to 407.1027 is an unlawful practice pursuant to sections 407.010 to 407.130, and the violator shall be subject to all penalties, remedies and procedures provided in chapter 407.

4. An action may not be brought under this section more than four years after the date of the execution of the contract for services to which the action relates.

5. A person who violates any provision of sections 407.1000 to 407.1027 is guilty of a class B misdemeanor.

6. The remedies provided by sections 407.1000 to 407.1027 are in addition to other remedies provided by law.

7. The provisions of sections 407.1000 to 407.1027 of this act are not exclusive and do not relieve promoters, sellers of travel or contracts subject hereto from compliance with all other applicable provisions of law nor shall such provisions provide immunity for any civil claim against any promoter or seller of travel who has acquired any moneys or property, real or personal, by means of any practice declared unlawful by this chapter.

407.1027. Nothing in sections 407.1000 to 407.1027 of this act shall prohibit local political subdivisions from adopting more stringent ordinances or orders.