Assembly Bill No. 329–Assemblymen Chowning, Ohrenschall, McCleary, Arberry, Atkinson, Carpenter, Claborn, Conklin, Geddes, Giunchigliani, Goicoechea, Goldwater, Grady, Hardy, Horne, Leslie, Manendo, McClain, Mortenson, Oceguera, Perkins, Pierce, Sherer and Williams

 

March 14, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Prohibits seller of travel, tour broker or tour operator from paying fee, commission or other compensation to employee of hotel under certain circumstances. (BDR 52‑1101)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to deceptive trade practices; prohibiting a seller of travel, tour broker or tour operator from paying a fee, commission or other compensation to an employee of a hotel under certain circumstances; providing a penalty; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 598 of NRS is hereby amended by adding

1-2  thereto the provisions set forth as sections 2 and 3 of this act.

1-3  Sec. 2.  1.  A seller of travel shall not pay or otherwise

1-4  provide to an employee of a hotel any fee, commission or other

1-5  compensation for referring a patron or guest of the hotel to the

1-6  seller of travel if the amount of the fee, commission or other

1-7  compensation is more than 10 percent of the value of any travel

1-8  service or vacation certificate sold or offered for sale by the seller

1-9  of travel to the patron or guest as a result of the referral.

2-1  2.  The failure of a seller of travel to comply with a provision

2-2  of this section constitutes a deceptive trade practice for the

2-3  purposes of NRS 598.0903 to 598.0999, inclusive.

2-4  3.  As used in this section:

2-5  (a) “Employee” means any bellman, concierge or other

2-6  employee of a hotel whose primary duty of employment is to

2-7  provide guest services to, or arrange for the provision of guest

2-8  services for, a patron or guest of the hotel. The term does not

2-9  include:

2-10          (1) An employee of a hotel whose primary duty of

2-11  employment is to sell or otherwise provide services for events

2-12  conducted at the hotel; or

2-13          (2) A person who leases any portion of the premises of a

2-14  hotel for the purpose of providing travel services or vacation

2-15  certificates to patrons or guests of the hotel.

2-16      (b) “Hotel” means any hotel, resort hotel, casino, inn, motel,

2-17  motor court or similar establishment that provides lodging to

2-18  transient patrons or guests.

2-19      Sec. 3.  1.  A tour broker or tour operator shall not pay or

2-20  otherwise provide to an employee of a hotel any fee, commission

2-21  or other compensation for referring a patron or guest of the hotel

2-22  to the tour broker or tour operator if the amount of the fee,

2-23  commission or other compensation is more than 10 percent of the

2-24  value of any sightseeing tour negotiated by the tour broker for or

2-25  provided by the tour operator to the patron or guest as a result of

2-26  the referral.

2-27      2.  The failure of a tour broker or tour operator to comply

2-28  with a provision of this section constitutes a deceptive trade

2-29  practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

2-30      3.  As used in this section:

2-31      (a) “Employee” means any bellman, concierge or other

2-32  employee of a hotel whose primary duty of employment is to

2-33  provide guest services to, or arrange for the provision of guest

2-34  services for, a patron or guest of the hotel. The term does not

2-35  include:

2-36          (1) An employee of a hotel whose primary duty of

2-37  employment is to sell or otherwise provide services for events

2-38  conducted at the hotel; or

2-39          (2) A person who leases any portion of the premises of a

2-40  hotel for the purpose of providing sightseeing tours to patrons or

2-41  guests of the hotel.

2-42      (b) “Hotel” means any hotel, resort hotel, casino, inn, motel,

2-43  motor court or similar establishment that provides lodging to

2-44  transient patrons or guests.

 

3-1  Sec. 4.  NRS 598.0999 is hereby amended to read as follows:

3-2  598.0999  1.  A person who violates a court order or

3-3  injunction issued pursuant to the provisions of NRS 598.0903 to

3-4  598.0999, inclusive, upon a complaint brought by the

3-5  Commissioner, the Director, the district attorney of any county of

3-6  this state or the Attorney General shall forfeit and pay to the State

3-7  General Fund a civil penalty of not more than $10,000 for each

3-8  violation. For the purpose of this section, the court issuing the order

3-9  or injunction retains jurisdiction over the action or proceeding. Such

3-10  civil penalties are in addition to any other penalty or remedy

3-11  available for the enforcement of the provisions of NRS 598.0903 to

3-12  598.0999, inclusive.

3-13      2.  In any action brought pursuant to the provisions of NRS

3-14  598.0903 to 598.0999, inclusive, if the court finds that a person has

3-15  willfully engaged in a deceptive trade practice, the Commissioner,

3-16  the Director, the district attorney of any county in this state or the

3-17  Attorney General bringing the action may recover a civil penalty not

3-18  to exceed $2,500 for each violation. The court in any such action

3-19  may, in addition to any other relief or reimbursement, award

3-20  reasonable attorney’s fees and costs.

3-21      3.  A natural person, firm, or any officer or managing agent of

3-22  any corporation or association who knowingly and willfully engages

3-23  in a deceptive trade practice:

3-24      (a) For the first offense, is guilty of a misdemeanor.

3-25      (b) For the second offense, is guilty of a gross misdemeanor.

3-26      (c) For the third and all subsequent offenses, is guilty of a

3-27  category D felony and shall be punished as provided in

3-28  NRS 193.130.

3-29      4.  Any offense which occurred within 10 years immediately

3-30  preceding the date of the principal offense or after the principal

3-31  offense constitutes a prior offense for the purposes of subsection 3

3-32  when evidenced by a conviction, without regard to the sequence of

3-33  the offenses and convictions.

3-34      5.  If a person violates any provision of NRS 598.0903 to

3-35  598.0999, inclusive, 598.100 to 598.2801, inclusive, 598.305 to

3-36  598.395, inclusive, and section 2 of this act, 598.405 to 598.525,

3-37  inclusive, and section 3 of this act, 598.741 to 598.787, inclusive,

3-38  or 598.840 to 598.966, inclusive, fails to comply with a judgment or

3-39  order of any court in this state concerning a violation of such a

3-40  provision, or fails to comply with an assurance of discontinuance or

3-41  other agreement concerning an alleged violation of such a provision,

3-42  the Commissioner or the district attorney of any county may bring

3-43  an action in the name of the State of Nevada seeking:

 

 

4-1  (a) The suspension of the person’s privilege to conduct business

4-2  within this state; or

4-3  (b) If the defendant is a corporation, dissolution of the

4-4  corporation.

4-5  The court may grant or deny the relief sought or may order other

4-6  appropriate relief.

4-7  Sec. 5.  NRS 598.305 is hereby amended to read as follows:

4-8  598.305  As used in NRS 598.305 to 598.395, inclusive, and

4-9  section 2 of this act, unless the context otherwise requires, the

4-10  words and terms defined in NRS 598.315 to 598.356, inclusive,

4-11  have the meanings ascribed to them in those sections.

4-12      Sec. 6.  NRS 598.335 is hereby amended to read as follows:

4-13      598.335  “Seller of travel” means a person who offers for sale,

4-14  directly or indirectly, transportation by air, land, rail or water, travel

4-15  services, vacation certificates or any combination thereof, to a

4-16  person or group of persons for a fee, commission or other valuable

4-17  consideration. The term:

4-18      1.  Includes any person who offers membership in a travel club

4-19  or any services related to travel for an advance fee or payment.

4-20      2.  Does not include:

4-21      (a) A hotel that provides or arranges travel services for its

4-22  patrons or guests;

4-23      (b) A person who, for compensation, transports persons or

4-24  property by air, land, rail or water; or

4-25      (c) A tour broker or tour operator who is subject to the

4-26  provisions of NRS 598.405 to 598.525, inclusive[.] , and section 3

4-27  of this act.

4-28      Sec. 7.  NRS 598.345 is hereby amended to read as follows:

4-29      598.345  “Travel services” includes, without limitation:

4-30      1.  Short-term leases of passenger cars;

4-31      2.  Lodging;

4-32      3.  Transfers;

4-33      4.  Sightseeing tours other than sightseeing tours for which a

4-34  tour broker or tour operator is regulated pursuant to NRS 598.405 to

4-35  598.525, inclusive[;] , and section 3 of this act; and

4-36      5.  Any other services that are related to travel by air, land, rail

4-37  or water or any other method of transportation.

4-38      Sec. 8.  NRS 598.405 is hereby amended to read as follows:

4-39      598.405  As used in NRS 598.405 to 598.525, inclusive, and

4-40  section 3 of this act, unless the context otherwise requires, the

4-41  words and terms defined in NRS 598.416 to 598.465, inclusive,

4-42  have the meanings ascribed to them in those sections.

 

 

 

5-1  Sec. 9.  NRS 598.525 is hereby amended to read as follows:

5-2  598.525  The Commissioner may adopt such regulations as the

5-3  Commissioner determines are necessary to carry out the intent of

5-4  NRS 598.405 to 598.525, inclusive[.] , and section 3 of this act.

 

5-5  H