THE SENATE	S.B. NO.	1299
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII

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 subject to part II may deposit sums subject to section 468L-23 in a trust account maintained in a federally insured financial institution serving as the depository bank for a public charter program pursuant to the requirements of title 14 Code of Federal Regulations, part 380, as amended.  A travel agency shall be deemed to have complied with this section if:

     (1)  (A)  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)] (B) Any moneys received from these means by the agency are handled in accordance with the provisions of this section[.]; or

(2) A charter tour operator subject to part II deposits sums subject to section 468L-23 in a trust account maintained in a federally insured financial institution located out of the State pursuant to this section; provided that the charter tour operator files with the department an irrevocable agreement and authorization in writing, in a form prescribed by the department, allowing the department, upon written request to the financial institution, to examine and obtain copies of all business records maintained by the financial institution related to the trust account, regardless of the location of the financial institution and records.  The agreement shall indicate that the authorization remains in effect for as long as the financial institution retains the records."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect upon its approval.

INTRODUCED BY:

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Report Title:

Travel Agencies; Client Trust Accounts; Charter Tour Operators

Description:

Provides that charter tour operators may deposit sums subject to section 468L-23, HRS, in a trust account maintained in a federally insured financial institution serving as the depository bank for a public charter program subject to federal regulations.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.