SB 274 -- TRAVEL CLUBS

This bill prohibits travel clubs from selling vacation benefits
unless the club maintains an effective registration statement
with the Attorney General.  The requirements of the registration
statement, including a $50 fee, are specified.  The Attorney
General must approve or disapprove a travel club's registration
statement within 30 days of its submission.  If the registration
is incomplete, the Attorney General must advise the club of the
missing information in writing within 15 days from its
submission.  Travel clubs may submit registration renewal
statements annually.

The bill gives an individual who has purchased travel benefits
from a travel club the right to rescind and cancel the travel
club purchase within three business days.  This right cannot be
waived.  If an individual exercises this right, a full refund
must be issued within 15 business days.  If an individual
purchased a travel club membership from a club that is not
registered in Missouri, he or she has three years from the date
of purchase to rescind and cancel the membership and to receive a
full refund within 15 business days.

Individuals who have purchased a travel club membership and have
a complaint regarding the purchase may file a written complaint
with the Attorney General or the county prosecuting attorney.
The office that receives the complaint must forward it to the
travel club by registered mail within 10 working days.  The
travel club has 30 days from the date on which the complaint was
filed to remedy the grievance.  If the complaint is settled, the
parties will execute a written mutual release containing the
terms of the settlement.  Payments arising from any settlement
must be made within 15 business days of the settlement's signing
date.

A person who violates these provisions is guilty of a class D
felony and will be fined $10,000.  Fines collected will be
deposited into the State School Moneys Fund and distributed to
Missouri's public schools.

Any travel club which a court determines has failed to provide
the required refund or failed to honor a settlement agreement
must post a $50,000 surety bond with the Attorney General.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:21 pm