HCS HB 1338 -- BUYERS CLUBS

SPONSOR:  Marsh (Wood)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Tourism
and Cultural Affairs by a vote of 17 to 0 with 1 present.

This substitute requires travel clubs and vacation clubs to keep
their registration or certificate of authority to do business on
file and in good standing with the Secretary of State.  These
clubs are required to file and maintain a bond with corporate
surety or a letter of credit from a bank with the Attorney
General in an amount to be determined by the Attorney General.
The bond or letter of credit must be renewed annually.  The
substitute specifies the information clubs are required to give
the Attorney General when filing the bond or letter of credit.

The bond or letter of credit will be in favor of the state for
the benefit of any private claimant who suffers a loss.

The substitute allows anyone who purchases prearranged travel-
or tourist-related services to rescind the purchase by providing
written notice within seven business days following the date on
which the purchase was made.  The seller must provide the
purchaser with a confirmation number within five business days of
the sale.  If the confirmation number is not postmarked or
electronically confirmed prior to the fifth day, the customer's
right of rescission extends to the fourteenth business day
following the purchase.  If a purchaser cancels a travel
arrangement, a refund will be delivered to the purchaser within
30 days after the notice of rescission is given.  The right to
rescission cannot be waived.  Notice of cancellation must be
written and will take effect upon deposit in a mailbox with
proper postage and address.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say the State of Missouri does not
adequately regulate these types of clubs.

Testifying for the bill were Representative Wood; Office of the
Attorney General; American Resort Developers Association; and
Branson/Lakes Area Chamber of Commerce.

OPPONENTS:  There was no opposition voiced to the committee.

Robert Triplett, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am