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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1262 |
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TWENTY-NINTH LEGISLATURE, 2017 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CHARTER TOUR OPERATORS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 468L-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Within five business days of
receipt, all travel agencies shall deposit all sums received from a consumer,
for travel services offered by the travel agency, in a trust account
maintained in a federally insured financial institution located in Hawaii[.];
provided that charter tour operators may deposit sums received from a consumer
in a client trust account maintained in a federally insured financial
institution outside the State in compliance with section 468L-23. A travel
agency shall be deemed to have complied with this section if:
(1) Travel services are paid for by the consumer by means of a credit, charge or debit card, or by means of a centrally billed travel account, and the travel agency submits the charge data to the appropriate payment processing or card issuing company within five days of the charge; and
(2) Any moneys received from these means by the agency are handled in accordance with the provisions of this section."
SECTION 2. Section 468L-23, Hawaii Revised Statutes, is amended to read as follows:
"[[]§468L-23[]] Charter
tour client trust account. Every travel agency engaged in the business of
a charter tour operator shall establish and maintain a separate charter tour
client trust account solely for the purpose of the travel agency's charter tour
business. The charter tour client trust account shall be maintained in
accordance with sections 468L-5 and 468L-24[.]; provided that if the
client trust account is maintained in a federally insured financial institution
outside the State, then the charter tour operator shall file a written
irrevocable agreement and authorization with the department, that allows the
department, upon written request to the financial institution, to examine and
obtain copies at the department of all business records related to the client
trust account that are maintained by the financial institution. The agreement
shall state that the authorization shall be effective for as long as the
financial institution retains the records."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2112; provided that Sections 1 and 2 of this Act shall take effect on January 1, 2018.
Report Title:
Charter Tour Operators; Trust Account; Financial Records
Description:
Permits charter tour operators to maintain client trust accounts in a federally insured financial institution outside the State; provided that charter tour operators agree to allow the Department of Commerce and Consumer Affairs to access the tour operator's financial records through the financial institution. (HB1262 HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.