71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
Senate Bill 334
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Department of Consumer and Business Services)
CHAPTER ................
AN ACT
Relating to sellers of travel; creating new provisions; amending
ORS 646.185 and 646.189; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 646.185 is amended to read:
646.185. As used in ORS 646.185 to 646.195:
(1) 'Accommodations' means the provision of land, sea or air
transportation or a combination of transportation and any goods
and services sold in conjunction with that transportation,
including but not limited to lodging, meals and entertainment.
(2) 'Adequate financial security' means a bond executed by an
authorized surety insurer or an irrevocable letter of credit
issued by an insured institution as defined in ORS 706.008 for
the benefit of every person for whom services have not been
delivered by the wrongful act of the seller of travel acting in
the course and scope of the seller's occupation or business or by
any official, agent or employee of the seller acting in the
course or scope of that person's employment or agency. The
financial security shall be in an amount not less than $10,000.
The financial security shall be continuous until canceled and
shall remain in full force and unimpaired at all times to comply
with this subsection. If the financial security is a bond, the
surety insurer shall give the Director of the Department of
Consumer and Business Services at least 30 days' written notice
before it cancels or terminates its liability under the bond.
(3) 'Consumer' means a person { + in Oregon + } that purchases
accommodations { - in Oregon - } and on whose behalf money or
other consideration has been given to another, including another
member of the same partnership, corporation, joint venture,
association, organization, group or other entity, for procuring
accommodations.
(4) 'Department' means the Department of Consumer and Business
Services.
(5) 'Director' means the Director of the Department of Consumer
and Business Services.
(6) 'Seller of travel' or 'seller' means a person that sells,
provides, furnishes, contracts for, arranges or advertises in
this state that the person can or may arrange or has arranged
Enrolled Senate Bill 334 (SB 334-INTRO) Page 1
accommodations either separately or in conjunction with other
services.
(7) 'State of Oregon certified association' or 'certified
association' means an association of sellers of travel that has
been certified by the director as described in ORS 656.191.
SECTION 2. ORS 646.189 is amended to read:
646.189. (1) An association of sellers of travel shall be
eligible for certification as a certified association if the
Director of the Department of Consumer and Business Services
determines that:
(a) The rules or bylaws of the association require members of
the association to:
(A) Maintain adequate financial security { - as defined in
ORS 646.185 or maintain a client trust account. A client trust
account shall be established and verified as provided in the
rules or bylaws of the association and shall be used solely for
the purpose of depositing and disbursing funds received from
consumers for the purchase of accommodations - } ;
(B) Maintain errors and omissions insurance; { + or + }
{ - (C) Participate in a program for mediation of disputes
between sellers of travel and consumers under which members of
the association agree to submit all unresolved consumer
complaints to an independent mediator agreed to by all parties
and where costs of the mediation are paid by the seller, subject
to a final determination of costs by the mediator; and - }
{ - (D) Comply with a written code of ethics; - }
{ + (C) Maintain accreditation by the Airlines Reporting
Corporation, its successor or a similar entity designated by the
association and approved by the director. + }
(b) The rules or bylaws of the association { + require members
of the association to participate in a program of mediation of
disputes between members and consumers. + } { - contain
provisions for the suspension or revocation of members of the
association who do not comply with the rules or bylaws of the
association or with the provisions of ORS 646.185 to 646.195 or
rules adopted by the director under ORS 646.185 to 646.195;
and - }
{ - (c) The association has complied with any other
requirements for certification as set by rule by the
director. - }
{ - (2) - } { + (c) + } The { + rules or bylaws of the
association require members of the association to comply with a
written + } code of ethics
{ - referred to in subsection (1) of this section shall set - }
{ + that sets + } requirements for { + at least + }:
{ - (a) - } { + (A) + } Advertising and promotion policies;
{ - (b) - } { + (B) + } Disclosure of consumer rights
{ - , responsibilities and risks - } ;
{ - (c) - } { + (C) + } Disclosure of policies and
procedures for refunds to consumers; { + and + }
{ - (d) - } { + (D) + } Disclosure of the limits of
liability of the seller of travel in all transactions { + . + }
{ - ; - }
{ - (e) Disclosure of mediation rights; and - }
{ - (f) Disclosure of actions filed against the seller of
travel and other enforcement actions taken against the seller of
travel as described in subsection (3) of this section. - }
{ + (d) The rules, bylaws or code of ethics of the
association provides that a seller of travel may not be admitted
to the association or maintain membership in the association if,
Enrolled Senate Bill 334 (SB 334-INTRO) Page 2
during the three years prior to application for membership in the
association or at any time after admission to the association,
the seller of travel, or the owner, principal or any person
having control over the seller of travel, has been:
(A) Convicted of any offense involving fraud, deception,
misrepresentation, misappropriation of property or breach of
trust or other fiduciary obligation;
(B) The subject of an order of any federal, state or local
court or administrative agency denying, suspending or revoking
any license or any other authority to engage in business as a
seller of travel; or
(C) The subject of any civil judgment or penalty imposed by any
federal, state or local court or administrative agency.
(e) The rules or bylaws of the association provide for the
suspension or revocation of membership in the association if a
member does not comply with the rules or bylaws of the
association, ORS 646.185 to 646.195 or rules adopted by the
director under ORS 646.185 to 646.195. + }
{ - (3)(a) For purposes of this subsection: - }
{ - (A) 'Owner' means a person who owns or controls 10
percent or more of the equity of, or otherwise has claim to 10
percent or more of the net income of, the seller of travel. - }
{ - (B) 'Principal' means an owner, an officer of a
corporation, a general partner of a partnership or a sole
proprietor of a sole proprietorship. - }
{ - (b) The disclosure required under subsection (2)(f) of
this section shall include whether the seller of travel or any
principal of the seller of travel, or any other seller of travel
owned or managed by the seller of travel or by any principal of
the seller of travel: - }
{ - (A) Has had entered against the seller of travel or
principal any judgment, including a stipulated judgment, or order
or has made a plea of nolo contendere; - }
{ - (B) Is the subject of an order of any federal, state or
local administrative agency denying, suspending or revoking any
license or other indicator of authority to engage in business as
a seller of travel; - }
{ - (C) Is subject to any civil penalties imposed by any
federal, state or local administrative agency; - }
{ - (D) Has been the subject of any civil action involving
allegations of financial misconduct and damages in an amount of
$1,000 or more, or a lower amount adopted by the director by
rule. For purposes of this subparagraph, 'civil action' includes
actions filed in any court, arbitration or alternative dispute
resolution proceedings and administrative actions initiated by a
state, a subdivision of a state, the United States or any agency
of the United States; or - }
{ - (E) Has been convicted of any criminal violation. - }
{ - (c) Actions described in paragraph (b) of this subsection
must be disclosed only if they occur: - }
{ - (A) In connection with the conduct of business as a
seller of travel; and - }
{ - (B) During the period beginning 10 years prior to the
date the disclosure is made. - }
{ - (d) The disclosures described under this subsection shall
identify: - }
{ - (A) The person, the court or the federal, state or local
administrative agency rendering the judgment, order, civil
penalty or conviction or before which the plea of nolo contendere
was made; - }
Enrolled Senate Bill 334 (SB 334-INTRO) Page 3
{ - (B) The person, the court or the federal, state or local
administrative agency that filed the civil action or with which
any civil action has been filed; - }
{ - (C) The docket number, if any, of the action; - }
{ - (D) The date of the judgment, order, civil penalty,
conviction or plea; - }
{ - (E) The date and location of the filing of the civil
action; - }
{ - (F) The location where the judgment, order, civil penalty
or record of conviction or plea was filed or was imposed; and - }
{ - (G) The nature of the case, civil action or judgment. - }
{ - (4) - } { + (2) + } The director by rule may establish
additional requirements for certification { - as a certified
association - } .
{ + (3) As used in this section:
(a) 'Conviction' includes, but is not limited to, a plea of
nolocontendere, a consent judgment, a judicial or administrative
decree or order and assurances of voluntary compliance.
(b) 'Owner' means a person who owns or controls 10 percent or
more of the equity of, or otherwise has claim to 10 percent or
more of the net income of, the seller of travel.
(c) 'Principal' means an owner, an officer of a corporation, a
general partner of a partnership or a sole proprietor of a sole
proprietorship. + }
SECTION 3. { + If the Director of the Department of Consumer
and Business Services certifies an association of sellers of
travel under ORS 646.191 prior to the effective date of this 2001
Act, the certification remains in effect until the certificate is
surrendered by the association or revoked or suspended by the
director as provided in ORS 646.193. + }
SECTION 4. { + This 2001 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2001 Act takes effect on its
passage. + }
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Passed by Senate May 14, 2001
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 14, 2001
...........................................................
Speaker of House
Enrolled Senate Bill 334 (SB 334-INTRO) Page 4
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled Senate Bill 334 (SB 334-INTRO) Page 5