SAN DIEGO -- Despite ASTA's lobbying efforts against it, Maryland passed a new law requiring travel seller registration.
Gov. Wes Moore signed the "Don't You Worry (Wurie) Act" into law on May 26.
Scheduled to take effect Oct. 1, the law requires travel sellers to register if they operate within Maryland or sell travel to residents of the state. They must pay an annual $300 fee and provide proof of errors-and-omissions (E&O) insurance with a minimum $1 million in liability coverage. It appears that travel agencies must register any independent agents affiliated with the business.
The legislation was introduced after a Maryland couple -- the Wuries -- died while on a holy pilgrimage to Mecca. They had booked with an unlicensed tour operator.
ASTA executives spoke about the law at ASTA's Travel Advisor Conference on May 27. ASTA said there's a lack of clarity about to whom the law applies to and how it would be enforced.
The law doesn't state whether travel agencies, travel advisors and tour operators would be treated similarly under the law. Although an incident with a tour operator sparked the legislation, the law's wording does not exempt travel agencies.
Peter Lobasso, ASTA's senior vice president and general counsel, said, "Our members are saying, 'Well, when can we expect some guidance about how to comply with this requirement?' It's a wonderful question."
ASTA is seeking clarity on whether agency-employed advisors would need to register separately from their employer; whether independent contractors would be required to obtain separate insurance if their host agency already carries a policy; and whether both E&O insurance and professional liability insurance would be mandatory.
The Society also wants to know whether the law's $1 million minimum requirement for insurance coverage refers to aggregate or per-policy coverage, and wants to understand how the state plans to enforce the law for businesses and advisors who are not located in the state.
"Not to be overly critical, but it's obvious that the legislators had no idea what they were doing -- and who it was going to affect -- the way this was drafted," he said. "There's not really a problem with registered sellers of travel, but they haven't thought exactly about what that looks like."
He added that in California and Florida, their laws clearly lay out that independent travel advisors can qualify for an exemption if their host agency is registered as a seller of travel.
ASTA's advocacy team is seeking to partner with a state lobbyist to educate lawmakers and make improvements to the law. ASTA is also exploring legal options to prevent the law's implementation.
Maryland is now the fifth state to have a seller-of-travel registration requirement, along with Florida, California, Hawaii and Washington.