FLORIDA Sellers of Travel Law

(CLICK HERE FOR MORE INFORMATION FROM THE STATE OF FLORIDA)

Click here to download the State Of Florida Independent Sales Agents - Statement of Exemption Form.
Florida has one of the strictest travel promoter laws in the country, the Florida Sellers of Travel Law. It is set forth at Florida Statutes Chapter 559.927. The Florida Department of Agriculture and Consumer Services, which administers the Law, (Division of Consumer Services, Mayo Building, 2nd Floor, Tallahassee, Florida 32399-0800) has also passed its own regulations affecting Sellers of Travel. The latest version of the Law and Regulations became effective October 1, 1993.
The Florida Sellers of Travel Act defines "Seller of Travel" as:

"any resident or nonresident person, firm, corporation, or business entity maintaining or purporting to maintain a business location or branch office in this state who offers for sale, directly or indirectly, at wholesale or retail, prearranged travel, tourist-related services, or tour-guide services for individuals or groups, through vacation or tour packages, or through lodging or travel certificates in exchange for a fee, commission or other valuable consideration. The term includes any business entity offering membership in a travel club or travel services for an advance fee or payment, even if no travel contracts or certificates or vacation or tour packages are sold by the business entity."

ARC-appointed travel agencies in business more than three years may apply for exemption. IATAN-appointed agencies are exempt.

Further, similar to the exemption to the California Travel Promoter's Law, independent contractor outside agents are exempt, provided:

  1. they have a written contract with an ARC-appointed travel agency, or other seller of travel;
  2. they do not personally receive funds from customers (i.e. customer checks are made payable to the appointed travel agency or credit card payments are made directly to the appointed travel agency);
  3. they do not issue tickets or other travel documents.

Outside sales agents who are employees engaged solely in the business of their employers, are also exempt.

Sellers of Travel must register and pay a filing fee of $300.00 annually. Further, registered Sellers of Travel are required to display their registration certification at their place of business and to include their registration number in any advertising in Florida, or contract for the sale of travel. The rules, as proposed as of October, 1993, would require that Sellers of Travel post a bond, letter of credit, or certificate of deposit in the following sum:

  1. $10,000 for businesses with annual sales under $500,000;
  2. $15,000 for annual sales between $500,000 and $1 million;
  3. $20,000 for annual sales between $1 million and $2 million;
  4. $25,000 for sales of $2 million or more.

Businesses in operation for less than one year, need post only a $10,000 bond. The Bond must be in the form (Surety Bond Form ST-10203) prescribed by the Florida Department of Agriculture and Consumer Services (address set forth above).

The exemption in the former law for those businesses with $1 million or more in professional errors and omissions insurance, has been abolished.

The Act also prohibits counties and cities from issuing or renewing "occupational licenses" for sellers of travel, unless the applicant demonstrates that he has first registered as a seller of travel, or is exempt from registration. Currently, a majority of Florida counties and cities require occupational licenses for self-employed travel agents, or sellers of travel.

Violation of the sellers of Travel law exposes the violator to civil penalties of up to $5,000 per violation, in addition to potential criminal penalties as a "first degree misdemeanor".