SB 0784 - Fiscal Note

Fiscal Note - SB 0784 - Regulation of the Sellers and Promoters of Travel

L.R. NO.  2958-03
BILL NO.  Perfected SB 784
SUBJECT:  Regulation of Travel Industry
TYPE:     Original
DATE:     May 1, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

None

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Local Government                $0                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Economic Development - Missouri Division of
Tourism assume the proposed legislation would have no fiscal impact on their
agency.  They also reported that they are unable to determine the number of
travel agencies that would be affected by this proposal or the number of
surety bonds that would be filed.

Officials from the Office of the Attorney General (AGO)  assume the proposed
legislation would require certain travel agencies to provide evidence to the
AGO that they are bonded or have a letter of credit before they can engage in
the sale of travel.  AGO assumes this proposal would have no fiscal impact on
their budget.

Oversight assumes there would be additional duties incurred by AGO as a
result of this proposal; however, the extent of those duties is unknown.
Since the profession of selling and promoting travel is an unlicensed
profession, Oversight is unable to determine the number of surety bonds that
would be filed.  Oversight assumes that any costs incurred as a result of the
proposed legislation could be absorbed with existing resources or could be
requested through normal and customary budget means.


FISCAL IMPACT - State Government   FY 1997   FY 1998   FY 1999
                                  (10 Mo.)

                                        $0        $0        $0


FISCAL IMPACT  - Local Government  FY 1997   FY 1998   FY 1999
                                  (10 Mo.)

                                        $0        $0        $0


DESCRIPTION

The proposed legislation would regulate promoters and sellers of travel
services by requiring them to file evidence of financial security with the
Attorney General if they have been in business for fewer than three years.
This information would be used to benefit travelers if a contract for travel
services is improperly or incompletely executed.  It would require promoters
and sellers of travel to obtain written confirmation that transportation
services are available before advertising these services and retain this
confirmation for three years.  It would also require them to provide
travelers with a written receipt for any money received that clearly states
specified information relating to the terms and conditions of the
transaction, including procedures for refunds when contracted services are
cancelled.

The proposal also expressly states that compliance with its provisions does
not provide immunity from civil claims and that its provisions do not preempt
local political subdivisions from enacting more stringent ordinances.  The
proposal would exempt certain religious, educational and other benevolent
organizations from the bonding requirements.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Office of the Attorney General
Department of Economic Development - Missouri Division of Tourism