Adoption of this amendment will MAINTAIN a 2/3s majority vote requirement for final passage of AB343 R1 (§§ 9, 10.5, 14).
ASSEMBLY ACTION Initial and Date |SENATE ACTION Initial and Date
Adopted Lost | Adopted Lost
Concurred In Not
|Concurred In Not
Receded Not | Receded Not
Amend section 1, page 1, line 2, by deleting “10,” and inserting “10.5,”.
Amend sec. 3, page 2, by deleting lines 1 through 5 and inserting:
“Sec. 3. “Consumer” means a person who pays money to a seller of travel for the purchase of travel services or a vacation certificate.”.
Amend sec. 4, page 2, line 10, by deleting “14-point” and inserting “10-point”.
Amend the bill as a whole by deleting sections 5 through 8 and adding new sections designated sections 5 through 8, following sec. 4, to read as follows:
“Sec. 5. 1. A seller of travel shall maintain a trust account in a bank, credit union or savings and loan association in this state for the purpose of depositing all money that a consumer pays to the seller of travel for the purchase of travel services or a vacation certificate.
2. If a consumer pays money to a seller of travel for the purchase of travel services or a vacation certificate, the seller of travel shall deposit all such money in the trust account maintained by the seller of travel not later than 2 business days after the date on which the consumer pays the money to the seller of travel.
3. The seller of travel shall pay out of the trust account the money paid to the seller of travel by the consumer as needed to complete the purchase of the travel services or vacation certificate purchased by the consumer.
Sec. 6. 1. The Division shall administer and account separately for the money received from each seller of travel pursuant to the provisions of paragraph (c) of subsection 1 and paragraph (c) of subsection 4 of NRS 598.365. The Division may refer to the money in the account as the “Recovery Fund.”
2. Except as otherwise provided in section 10 of this act, the money in the account must be used to pay claims made by consumers who are eligible for recovery from the account pursuant to sections 7 and 8 of this act.
Sec. 7. 1. Except as otherwise provided in subsection 5, a consumer who is eligible for recovery from the account must file a complaint with the Division or its designee not later than 1 year after the scheduled date of completion of the travel purchased by the consumer. The consumer must file the complaint on a form established for this purpose by the Division.
2. If the Division receives a complaint pursuant to subsection 1, the Division or its designee shall hold a hearing on the complaint. The Division shall:
(a) Affix the time and place for the hearing; and
(b) Notify the interested parties, in writing, at least 10 days before the date affixed for the hearing, of the time and place of the hearing.
3. Any testimony taken at the hearing must be considered a part of the record of the hearing before the Division or its designee.
4. The hearing must be public if a request is made for a public hearing.
5. If a consumer has obtained a judgment in any court of competent jurisdiction for recovery of damages against a seller of travel, the consumer may file with the Division or its designee a complaint for recovery of the judgment from the account. The consumer must file the complaint not later than 2 years after the entry of the judgment. The consumer is eligible for recovery of the judgment from the account if:
(a) The judgment is for actual damages suffered by the consumer as a result of:
(1) Any act of fraud or misrepresentation by the seller of travel acting in his capacity as a seller of travel;
(2) The bankruptcy of the seller of travel;
(3) The breach of any contract entered into by the seller of travel in his capacity as a seller of travel; or
(4) The violation by the seller of travel of any provision of NRS 598.305 to 598.365, inclusive, and sections 2 to 10, inclusive, of this act;
(b) The proceedings in connection with the judgment, including all appeals, have terminated;
(c) The consumer files the complaint on a form established for this purpose by the Division;
(d) The consumer submits proof satisfactory to the Division of the judgment; and
(e) Upon obtaining payment from the account, the consumer assigns his rights to enforce the judgment to the Division.
6. If a consumer files a complaint pursuant to this section, the Division or its designee shall act upon the complaint not later than 60 days after the date on which the complaint is filed with the Division, unless the Division:
(a) Determines that the complaint involves complex issues that may not reasonably be resolved within 60 days; and
(b) Notifies the interested parties, in writing, that the time for acting on the complaint will be extended. If the Division provides such notice to the interested parties, the Division shall act upon the complaint not later than 180 days after the date on which the complaint is filed with the Division.
Sec. 8. 1. Except as otherwise provided in subsection 2, a consumer is eligible for recovery from the account if:
(a) The Division or its designee, after conducting a hearing on a complaint filed pursuant to the provisions of subsection 1 of section 7 of this act, finds that the consumer suffered actual damages as a result of:
(1) Any act of fraud or misrepresentation by the seller of travel acting in his capacity as a seller of travel;
(2) The bankruptcy of the seller of travel;
(3) The breach of any contract entered into by the seller of travel in his capacity as a seller of travel; or
(4) The violation by the seller of travel of any provision of NRS 598.305 to 598.365, inclusive, and sections 2 to 10, inclusive, of this act; or
(b) The consumer complies with the provisions of subsection 5 of section 7 of this act for the recovery of a judgment from the account.
2. A consumer is not eligible for recovery from the account if:
(a) The consumer is the spouse of the seller of travel or is a personal representative of the spouse of the seller of travel;
(b) The consumer was associated in a business relationship with the seller of travel other than with regard to the travel services or vacation certificate at issue;
(c) At the time the consumer paid money to the seller of travel for the purchase of the travel services or vacation certificate at issue, the seller of travel was not registered with the Division as required by NRS 598.365; or
(d) The consumer is seeking recovery of losses which were incurred by the consumer as the result of a cancellation penalty that:
(1) Was fully disclosed and agreed to by the consumer at the time the consumer entered into the contract for the purchase of the travel services or vacation certificate at issue; and
(2) Was imposed against the consumer, in accordance with the terms of the contract, after the cancellation of the travel services or vacation certificate at issue.
3. If the Division or its designee finds that a consumer is eligible for recovery from the account pursuant to this section, the Division or its designee may pay out of the account:
(a) If the complaint was filed pursuant to subsection 1 of section 7 of this act, the amount of actual damages suffered, but not to exceed $10,000; or
(b) If the complaint was filed pursuant to subsection 5 of section 7 of this act, the amount of actual damages included in the judgment and remaining unpaid, but not to exceed $10,000.
4. If a consumer has recovered a portion of his losses from sources other than the account, the Division shall deduct the amount recovered from the other sources from the amount payable upon the claim and direct the difference to be paid from the account.
5. To the extent that payments are made from the account to a consumer, the Division is subrogated to the rights of the consumer. The Division and the Attorney General shall promptly enforce all subrogation claims.
6. The amount of recovery from the account based upon claims made against any single seller of travel:
(a) Must not exceed $200,000; and
(b) For any single action of the seller of travel, must not exceed 20 percent of the balance of the account.”.
Amend sec. 9, page 5, by deleting lines 1 through 18 and inserting:
“Sec. 9. 1. A seller of travel shall display conspicuously, at each place of business of the seller of travel and on any website maintained by the seller of travel for business purposes, a legible and typewritten statement that notifies consumers that they may be eligible to recover certain financial damages from the Recovery Fund. The written statement must be in substantially the following form:
RECOVERY FUND FOR CONSUMERS
DAMAGED BY SELLERS OF TRAVEL
You may be eligible for payment from the Recovery Fund if you have paid money to a seller of travel registered in this state for the purchase of travel services or a vacation certificate and you have suffered certain financial damages as a result of the transaction. To obtain information relating to your rights under the Recovery Fund and the filing of a claim for recovery from the Recovery”.
Amend sec. 10, page 6, line 17, by deleting “injured persons” and inserting “consumers”.
Amend the bill as a whole by adding a new section designated sec. 10.5, following sec. 10, to read as follows:
“Sec. 10.5. 1. Before advertising its services or conducting business in this state, a tour broker or tour operator must register with the Division by:
(a) Submitting to the Division an application for registration on a form prescribed by the Division;
(b) Paying to the Division a fee of $25; and
(c) If the tour broker or tour operator is subject to the provisions of NRS 598.495, depositing the security required by NRS 598.495 with the Division.
2. The Division shall issue a certificate of registration to the tour broker or tour operator upon receipt of:
(a) The security in the proper form as required by NRS 598.495, if the tour broker or tour operator is subject to the provisions of NRS 598.495; and
(b) The payment of the fee required by subsection 1.
3. A certificate of registration:
(a) Is not transferable or assignable; and
(b) Expires 1 year after it is issued.
4. A tour broker or tour operator must renew a certificate of registration issued pursuant to this section before the certificate expires by:
(a) Submitting to the Division an application for the renewal of the certificate on a form prescribed by the Division; and
(b) Paying to the Division a fee of $25.”.
Amend sec. 11, page 7, line 29, after “inclusive,” by inserting:
“and section 10.5 of this act,”.
Amend sec. 13, page 8, lines 5 and 6, by deleting:
“, including, without limitation, a business entity,”.
Amend sec. 13, page 8, by deleting lines 16 through 22 and inserting:
“(1) Contracts with a seller of travel to sell travel services or vacation certificates on behalf of the seller of travel;
(2) Receives compensation for selling the travel services or vacation certificates only from the seller of travel; and
(3) Requires the consumer who purchases the travel services or vacation certificates to pay for the travel services or vacation certificates by transmitting payment directly to the provider of the travel services or vacation certificates or the seller of travel;”.
Amend sec. 13, page 8, line 28, by deleting “;” and inserting:
“, and section 10.5 of this act;”.
Amend the bill as a whole by adding a new section designated sec. 13.5, following sec. 13, to read as follows:
“Sec. 13.5. NRS 598.345 is hereby amended to read as follows:
598.345 “Travel services” includes, without limitation:
1. Short-term leases of passenger cars;
2. Lodging;
3. Transfers;
4. Sightseeing tours other than sightseeing tours for which a tour broker or tour operator is regulated pursuant to NRS 598.405 to 598.525, inclusive [;] , and section 10.5 of this act; and
5. Any other services that are related to travel by air, land, rail or water , or any other method of transportation.”.
Amend the bill as a whole by adding new sections designated sections 14.3 and 14.7, following sec. 14, to read as follows:
“Sec. 14.3. NRS 598.405 is hereby amended to read as follows:
598.405 As used in NRS 598.405 to 598.525, inclusive, and section 10.5 of this act, unless the context otherwise requires, the words and terms defined in NRS 598.416 to 598.465, inclusive, have the meanings ascribed to them in those sections.
Sec. 14.7. NRS 598.525 is hereby amended to read as follows:
598.525 The Commissioner may adopt such regulations as the Commissioner determines are necessary to carry out the intent of NRS 598.405 to 598.525, inclusive [.] , and section 10.5 of this act.”.
Amend sec. 16, page 9, lines 23, 27, 28, 30, 38 and 42, by deleting “July” and inserting “October”.
Amend sec. 16, page 10, line 1, by deleting “July” and inserting “October”.
Amend the bill as a whole by deleting sec. 17 and adding new sections designated sections 17 through 19, following sec. 16, to read as follows:
“Sec. 17. 1. Notwithstanding the amendatory provisions of this act, a consumer who is eligible to recover from the account established pursuant to section 6 of this act may not file a complaint with the Consumer Affairs Division of the Department of Business and Industry sooner than January 1, 2004.
2. The statutes of limitations set forth in section 7 of this act are tolled for the period beginning on October 1, 2003, and ending on December 31, 2003.
Sec. 18. Notwithstanding the amendatory provisions of this act, until January 1, 2004, a tour broker or tour operator may advertise its services and conduct business in this state without possessing a certificate of registration issued by the Consumer Affairs Division of the Department of Business and Industry pursuant to section 10.5 of this act, unless the Division establishes an earlier date for compliance with the provisions of section 10.5 of this act.
Sec. 19. This act becomes effective:
1. Upon passage and approval for the purposes of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
2. On October 1, 2003, for all other purposes.”.
Amend the title of the bill to read as follows:
“AN ACT relating to travel and tourism; requiring a seller of travel to include his registration number in his advertising; requiring a seller of travel to maintain a trust account for money paid to the seller of travel by consumers; revising the definition of “seller of travel”; requiring the Consumer Affairs Division of the Department of Business and Industry to mail to a seller of travel an application for the renewal of his certificate before the expiration of his current certificate; establishing an account for a consumer to recover damages for certain actions of a seller of travel; repealing the provisions that require a seller of travel to comply with certain financial security requirements; repealing the provisions allowing a consumer to recover damages from security deposited by a seller of travel with the Division; requiring tour brokers and tour operators to register with the Division annually; requiring sellers of travel, tour brokers and tour operators to pay certain fees relating to registration; and providing other matters properly relating thereto.”.
Amend the summary of the bill to read as follows:
“SUMMARY—Makes various changes related to sellers of travel, tour brokers and tour operators. (BDR 52‑881)”.