Exempt classes

1  The following classes of persons are exempt from the Act:

(a) an operator of one day sightseeing tours whose principal business is providing sightseeing tours;

(b) a person providing guide services only where no other travel services are sold;

(c) a person providing sightseeing attractions where no other travel services are sold;

(d) a public carrier, while providing one day tours;

(e) a person qualified to teach in an elementary or secondary school or a university, college or an institute of technology and who is employed full time in that capacity

(i)  where he arranges travel services for the students of his school, without direct or indirect gain or profit for himself or any person of or for which he is a member, employee, officer, a director or agent, or

(ii)  where he arranges a one day tour;

(f) an operator of a motel, hotel, resort or other accommodations who, as incidental to his primary business, offers local travel services purchased from another person;

(g) the British Columbia Ferry Corporation when selling interconnecting scheduled travel transportation.

 Exempt public carriers

2  A public carrier is exempt from the Act who

(a) agrees with the registrar to honour all travel tickets issued on the ticket stock of itself or interconnecting carriers, notwithstanding the default of any travel agent or travel wholesaler,

(b) waives the right to claim against the fund,

(c) contributes to the fund, for each branch office in British Columbia where business as a travel agent or travel wholesaler is carried on, except those branch offices conducting business at any terminal,

(i)  an amount equivalent to the minimum initial payment specified in section 39 of these regulations,

(ii)  annually an amount equivalent to the fee specified in section 5 of these regulations, and

(iii)  $100 every 6 months,

(d) forthwith advises the registrar when it removes ticket stock from any registrant, and

(e) provides to the registrar on his request details of sales in British Columbia.

 Exemption for extra-provincial corporations

3  (1)  In the case of an extra-provincial corporation, the registrar, in his discretion, may exempt certain classes of persons from the provisions of section 10 of the Act, provided that such person shall appoint a resident manager as his representative in a form acceptable to the registrar and provided that the appointment is approved by the registrar.

(2)  For the purposes of this section, "resident manager" means an individual who is ordinarily resident in British Columbia and who holds a position of authority and responsibility with the extra-provincial corporation.

[am.B.C. Reg. 361/95, s. 1.]

 Registration

4  (1)  An application for registration as a travel agent and (or) a travel wholesaler shall be in the form of the Application for Registration under the Travel Agents Act and Personal History Form set out in the Appendix.

(2)  A notice by a travel agent or travel wholesaler pursuant to section 9 of the Act shall be in a form acceptable to the registrar.

(3)  For the purpose of distributing renewals throughout the year the registrar may request a registrant to apply for a renewal of registration before its expiry and where such a request is made the registrant shall pay a prorated annual fee and shall comply with all the requirements of the Act and the regulations respecting registration.

[am. B.C. Regs. 230/79, s. 1; 361/95, s. 2.]

 Fees

5  The following fees are payable annually to the registrar:

[am. B.C. Regs. 157/88; 114/90; 136/91; 49/97.]

 Registered persons must be 19

6  (1)  No individual shall be registered as a travel wholesaler or travel agent unless he is 19 years of age or older.

(2)  No individual shall be an officer or director of a travel wholesaler or travel agent unless he is 19 years of age or older.

 Conditions of carrying on business

7  (1)  A registered travel wholesaler or a registered travel agent shall not operate an office in British Columbia unless such office is registered.

(2)  Every person registered as a travel wholesaler or travel agent, or his employees or commission agents, shall carry on his business from a permanent place of business that is not a dwelling and which is open to the public during normal business hours, or such other place of business as the registrar, in his discretion, may permit.

(3)  Trade representatives of airlines or hotels or similar tourist service businesses, who do not receive moneys from the public and who make representation to the travel industry rather than to the general public, are, subject to the discretion of the registrar, exempt from the provisions of subsection (2) and sections 8 (2) and 10 of these regulations.

(4)  A registered travel wholesaler or a registered travel agent shall not carry on business in a name or names other than the name in which he is registered, which name or names shall not indicate sponsorship, approval, status or affiliation which he does not have.

(5)  Every registered travel wholesaler or registered travel agent shall prominently display his certificate of registration at the office for which it is issued.

(6)  Where the registration of a travel wholesaler or travel agent is revoked, suspended, cancelled or where he voluntarily goes out of business, the travel wholesaler or travel agent shall forthwith return to the registrar by registered mail or otherwise his certificate of registration.

(7)  A registered travel wholesaler or registered travel agent shall not knowingly carry on business in British Columbia with a travel agent or travel wholesaler in British Columbia who is not registered, unless such a travel agent or a travel wholesaler is exempt from registration.

(8)  Every registered travel wholesaler or registered travel agent who ceases to trade with another registered travel wholesaler or registered travel agent by reason of that registrant's failure to honour a cheque or other financial commitments shall forthwith notify the registrar of this fact.

(9)  Every travel wholesaler or travel agent shall file, when remitting additional payments to the registrar as required in section 39 of these regulations, a statement prepared in a form acceptable to the registrar.

[am. B.C. Reg. 361/95, s. 3; editorially renumbered.]

 Unsuitability for registration

8  (1)  The registrar may consider a person unsuitable for registration or subject to suspension or cancellation of registration where

(a) the person has been convicted of an offence that, in the opinion of the registrar, involves a dishonest or fraudulent act,

(b) having regard to his financial position, the person cannot reasonably be expected to be able to operate his business,

(c) the past conduct of the person affords reasonable grounds to believe that he may not carry on business in accordance with the law, or with integrity and honesty,

(d) the person is a corporation and

(i)  having regard to its financial position, it cannot reasonably be expected to be able to operate its business, or

(ii)  the past conduct of its officers or directors or agents affords reasonable grounds to believe that its business may not be carried on in accordance with the law, or with integrity and honesty,

(e) the person has contravened the Act or the regulations,

(f) the person has defaulted in his payments of fees to the registrar or to the funds as required by the Act and these regulations,

(g) the person is carrying on activities that are, or will be, if the person is registered, in contravention of the Act or the regulations,

(h) without restricting the generality of the preceding paragraphs, the person has been convicted of an offence under section 46 (f) to (j) of the Immigration Act (Canada), R.S.C. 1970, c. I-2, and amendments thereto,

(i) the person is unable to show that he, a partner or an officer or director of the person has the experience or knowledge of travel services that affords reasonable grounds for believing that the person will be able to operate a travel service business,

(j) the person has conducted his business in such a manner as to contravene any Provincial or federal statute or any international agreement, or

(k) the person has removed ticket stock or has had ticket stock removed and has not notified the registrar of such action.

(2)  For the purposes of subsection (1) (b) and (d) (i), the registrar may consider the following as grounds for refusing, suspending or cancelling registration:

(a) a negative net worth position or a negative working capital position;

(b) in the case of a corporation, the failure to establish and maintain a net worth position of not less than $15 000.

(3)  For the purposes of subsection (2),

(a) "net worth position" means the dollar difference between the value of total assets and the value of total liabilities which has been ascertained in accordance with ordinarily accepted accounting standards and principles;

(b) "working capital position" means the dollar difference between the value of current assets and the value of current liabilities which has been ascertained in accordance with ordinarily accepted accounting standards and principles.

[am. B.C. Reg. 230/79, s. 2.]

 Agent or wholesaler may act other than at registered address

9  For the purposes of section 3 (b) of the Act, a travel agent or a travel wholesaler shall be permitted occasionally to hold himself out as a travel agent or travel wholesaler other than at his registered address at such locations as trade fairs, exhibitions and hotels.

 Records and accounts

10  (1)  Subject to subsection (2), every travel agent or travel wholesaler shall maintain in British Columbia proper records and books of account in which are set out all financial, commercial and corporate transactions of the registrant including, and without limiting the generality of the foregoing,

(a) all sums of money received and disbursed and the matters with respect to which receipt and disbursement took place,

(b) the assets and liabilities of the business,

(c) all other transactions affecting the financial position of the registrant, and

(d) all transactions affecting the ownership of the registrant.

(2)  The provisions of subsection (1) do not apply to a registrant whose head office is situated outside British Columbia, provided that, upon the request of the registrar, he makes available those records and books of account required by subsection (1) or true copies of the same.

 Definitions

11  For the purposes of sections 11 through 47 of these regulations:

(a) "application" means any application for compensation from the fund that may be made to the board;

(b) "chairman" means the chairman of the board;

(c) "claimant" means a person who is making an application for compensation pursuant to section 17 of the Act;

(d) "client" means an individual member of the public who has contracted in British Columbia to purchase travel services through or from a participant and

(i)  who is resident in British Columbia, or

(ii)  who is nonresident in British Columbia and the travel services are wholly located in British Columbia;

(e) "default" of or by a participant means a failure by such participant to meet any liability or obligation of such participant pursuant to these regulations;

(f) "direction of the board" means a copy of a resolution of the board certified as such by its chairman or secretary;

(g) "participant" means any travel agent or travel wholesaler who is or was a subscriber to the fund.

[am. B.C. Reg. 230/79, s. 3.]

 Delivery of application

12  Each application must be mailed or delivered to the registrar for transmittal to the board and shall contain the information requested in a form acceptable to the registrar, and when received by the registrar shall be deemed to have been filed with the board.

[am. B.C. Reg. 361/95, s. 4.]

 Verification of application

13  Where an application has been filed with the board, the board may require that the application be verified by statutory declaration.

 Signature on application

14  An application to the board or a reply thereto by a travel agent or a travel wholesaler shall be signed by the claimant, travel agent or travel wholesaler, or by his solicitor or authorized agent.

 Notice to persons affected by application

15  Where an application is made to the board, the board shall give notice to any travel agent or travel wholesaler deemed by the board to be affected by the application and shall provide to him a copy of such application.

 Filing of reply to application

16  Any person who may be affected by any determination by the board with respect to the application shall,

(a) if he has not already received a copy of the application, request the board provide him with a copy of the application, and

(b) file with the board a reply to the application within 14 days after receipt by him of a copy of the application, or within such other time as the board may allow.

 Reply to application

17  A reply shall

(a) admit or deny each of the allegations made in the application,

(b) contain a concise statement of the facts upon which the party intends to rely, and

(c) state whether or not a hearing before the board is requested for the purpose of making oral representations or presenting evidence in respect of the issues raised in the reply.

 Notice of reply may be given to applicant

18  Where a reply is filed pursuant to an application, the board may in its discretion give notice of the reply to the applicant.

 Board may gather information

19  The board may seek and receive such evidence and information on oath, affidavit or otherwise as in its discretion it considers proper and may disclose or not disclose such evidence and information in whole or in part or in summary form to the parties as it deems fit.

 Documents may be given to solicitor or agent

20  Where the name and address of a solicitor or agent of a party is endorsed or shown on a document filed with the board by or on behalf of the party, any document that is required to be given to that party may be given to the solicitor or agent.

 Board may adjust time for doing things

21  The board may abridge or enlarge the time prescribed by these regulations for doing any act, serving any notice, filing any report, document or paper, or taking any proceedings, and may do so although the application therefor is not made until after the expiration of the time prescribed.

 Delivery of documents

22  (1)  Where any document is required by these regulations to be given to any party, it may be given

(a) by handing it to the party,

(b) by registered mail addressed to the party at his latest known or usual address or at the address of the party shown in any document filed with the board by that party, or

(c) in such other manner as the board may direct.

(2)  Any document to be filed with the board may be delivered or mailed to the board in care of the Legislative Buildings, Victoria, B.C.

 Additional information may be required by board

23  The board may require a person to furnish the board with additional information in such manner and within such time as the board may specify.

 Board may allow permit less than full compliance

24  The board may, at the request of a party or on its own motion, permit any party to initiate or proceed with an application without fully complying with the requirements of these regulations.

 Documents may be amended

25  Any application, reply or other document prescribed by the Act or these regulations may be amended before or after the hearing by leave of the board upon such terms and conditions as the board considers advisable.

 Board may convene hearing

26  Where, in any proceeding, the board deems it necessary to hear oral evidence or argument, the board shall fix the time, date and place for a hearing and shall give notice of the hearing to all parties concerned.

 Board may adjourn hearing

27  The board may postpone or adjourn the consideration of any matter or hearing for such time and upon such terms as it thinks fit.

 If party fails to attend hearing

28  Where a party who has been given notice of a hearing fails to attend before the board in accordance with the notice, the board may proceed with the hearing and dispose of the matter in the absence of that party.

 Board may issue summons

29  The board may issue a summons to require any party to appear before the board to give evidence and bring with him any documents in his possession or under his control. Service of such summons may be effected by the delivery thereof to him or by the leaving thereof at his usual place of abode.

 Board may consolidate proceedings

30  The board may, upon such terms as it deems necessary, direct that a matter or proceeding before the board be consolidated with any other matter or proceeding before the board.

 Proceedings not invalid due to technical irregularity

31  No proceeding before the board is invalid by reason only of a defect in form or a technical irregularity.

 Board member may be disqualified

32  A member of the board shall be disqualified from participating in any deliberation or decision of the board with respect to any claim, by a client of a participant or a participant, made under section 17 of the Act where the member is the participant or an officer, director, partner or agent of the participant.

 Quorum and minutes

33  (1)  Three members of the board constitute a quorum.

(2)  The board shall record its meetings by minutes.

 Repealed

34  Repealed. [B.C. Reg. 230/79, s. 4.]

 Board rulings

35  After considering the application, the board may

(a) dismiss the application,

(b) make a recommendation to the minister that the application be allowed in whole or in part, or

(c) make such other order or ruling and proceed in such a manner as, in all circumstances of the case, it deems appropriate.

 Decisions must be in writing

36  All decisions, orders or rulings of the board shall be in writing and all parties affected shall be notified thereof. The board shall make all its decisions, orders and rulings available for publication.

 Composition of fund

37  The corpus of the fund shall be composed of the payments contributed in the manner set out in sections 2 and 39.

 Report on fund

38  (1)  The registrar shall maintain a record of amounts received, and all such amounts received shall be credited to the source and the registrar's decision in respect of such crediting shall be final.

(2)  No crediting of an amount to a participant shall give that participant any rights to that amount.

(3)  The report referred to in section 14 (4) and (5) of the Act shall include the following information:

(a) the amount owing under these regulations by any participant;

(b) the total amount of all receipts;

(c) the amount of all payments;

(d) a statement of all claims;

(e) a statement of all credits and debits to the capital of the fund;

(f) such other information as the board may include.

(4)  The registrar shall provide to the board, on a quarterly basis, a statement of the assets of the fund.

 Payments into fund

39  (1)  Each participant on behalf of himself and for each branch office he maintains in British Columbia shall make a minimum initial payment to the fund of $300, with additional payments to be made to the fund as follows:

(a) subject to section 40, each participant shall make 2 half-yearly payments of an amount equal to 5/100 of 1% of every dollar of revenue which pertains to non-scheduled travel services contracted for during the 2 half-year periods;

(b) the first half-yearly payment falls due 6 months following the date on which the travel agent or travel wholesaler was registered under the Act with the second half-yearly payment falling due the day the travel agent's or travel wholesaler's registration under the Act expires;

(c) the half-yearly payments made under paragraph (a) shall be transmitted to the registrar within 40 days of the end of the month during which the half-yearly payment falls due.

(2)  For the purposes of this section, "revenue" means the total sales volume, including commissions, received or forwarded by a travel agent or travel wholesaler providing or supplying travel service, but not including any sales which pertain to scheduled travel transportation.

 When fund is adequate

40  Subject to section 42, when each participant has been advised by the registrar that the fund has a book value of at least $1 000 000, no further additional payment for any following half-year period shall be required pursuant to section 39 of these regulations.

[am. B.C. Reg. 116/93.]

 Payments for 3 years required

41  Notwithstanding section 40 of these regulations, each participant shall be required to make the half-yearly payments pursuant to section 39 (1) (a) of these regulations for a period of 3 years.

 Resumption of payments into fund

42  At any time when the fund is or would be reduced by reason of the payment or proposed payments by the fund to a claimant or on behalf of one or more of the participants or, where the amount of any such payment or proposed payment by the fund would reduce the book value of the fund to less than $500 000, each participant, on notice from the registrar, shall resume or continue to make the additional payments provided for in section 39, until such time as the amount of such payment or payments from the fund are made up or the fund is restored to a book value of at least $1 000 000.

[am. B.C. Reg. 116/93.]

 Additional contributions

43  The Lieutenant Governor in Council may assess additional contributions on each participant.

 Defaults in payment

44  (1)  When a participant is in default in making any required payment to the fund, as determined by the registrar, or in the discharge of any other of its obligations under these regulations, the registrar shall forward notice in writing of the default to the participant.

(2)  Where a default is not satisfied within 14 days from the date of notice referred to in subsection (1), the participant shall be disqualified from claiming against the fund.

(3)  Subsection (2) does not apply where the default is due to the insolvency, bankruptcy or voluntary or compulsory winding up of the participant.

(4)  Upon disqualification from claiming from the fund, the participant is not entitled to payment out of the fund of any amount paid to the fund.

(5)  A participant referred to in subsection (3) shall file with the board and the registrar such financial statements and other evidence as the board and the registrar may in their discretion require to establish that the financial affairs of the participant are settled and that there are no claims on the fund and that arrangements satisfactory to the board and the registrar have been made to ensure that all liabilities and obligations of the participant which should give rise to any such claim have been met and discharged.

 Exchange of information

45  (1)  All information, records and documents of any kind whatsoever about a participant or any officer, director or shareholder of a participant, or information, record or document with respect to the business relations between the participant and any other person at any time in the possession of either the registrar or the board may be mutually exchanged between the registrar and the board.

(2)  No participant or officer, director or shareholder of a participant shall have any claim of any kind whatsoever against the board or the registrar arising from or out of the exchange of any information by the board or the registrar or arising from its use in good faith by the registrar or the board for any purpose.

(3)  Nothing in subsections (1) and (2) shall constitute an obligation of the board to furnish or disclose any information to the registrar, participant or any other person.

 Exemption from professional audit

46  (1)  A travel agent or travel wholesaler whose annual gross sales in British Columbia do not exceed $5 000 000 shall be exempted from the requirement in section 22 (1) of the Act that his financial statements be professionally audited, provided that they are certified as being correct by the majority of directors or by all partners or by the proprietor.

(2)  Where a person carries on business as both a travel agent and a travel wholesaler, then the exemption under subsection (1) applies to his combined gross sales.

 Claims on fund

47  (1)  For the purposes of the Act, "direct economic loss" means the reasonable out-of-pocket expenses incurred as a result of the failure to supply some or all of the contracted travel service components, which may include, inter alia, transportation, accommodation, meals, sightseeing and special events, but limited to the amount of moneys actually paid by a client to a registrant with respect to the travel service component not provided.

(2)  Subject to subsections (3) and (4), the fund is established to compensate clients who have suffered direct economic loss and who meet the following requirements:

(a) subject to subsection (7), a client who has made a payment for travel services directly to a participant, pursuant to a contract for travel services, and who has suffered a direct economic loss shall be entitled to a claim for a refund of moneys paid, but only to the extent of the direct economic loss suffered and only after he has made a demand for payment which the participant has refused to honour within 30 days of demand;

(b) the board shall determine the eligibility of any claim made by a client and shall recommend the payment of the claim, or any part thereof, in any amount, with the approval of the minister, and any payment so made shall be deemed to be full reimbursement of any moneys paid by a client;

(c) no client of any participant shall have any vested or absolute right to payment of a claim against the board or the fund.

(3)  Where a participant has received moneys from a client pursuant to a contract for travel services and has acted in good faith and at arm's length with the person contractually obligated to render such travel services and where the participant has properly disbursed his client's money to the person and has at his expense reimbursed his client or arranged for alternate travel services in lieu of the travel services contracted for and not provided to the client, the participant shall be entitled to claim for the refund of that portion of the client's money passed to the person but he shall not be entitled to claim any commission received or owing on account of the services contracted for.

(4)  Where a participant ("the first participant") has entered into a contract for travel services by virtue of the fact that a client has paid moneys to another participant ("the second participant") and has acted in good faith and at arm's length with the second participant and where the first participant has not received some or all of the moneys paid to the second participant and has at his own expense reimbursed the client or provided the contracted travel services without being paid by the client or the second participant, the first participant shall be entitled to claim for the refund of that portion of the client's moneys passed to the second participant less the related commission, but he shall not be entitled to claim any commission or other remuneration for the rendering of such services.

(5)  The provisions of subsection (2) (b) and (c) shall apply, mutatis mutandis, to a claim under subsections (3) and (4).

(6)  Before making any payment out of the fund to a claimant, the board shall have received from the claimant an executed assignment of his rights to the Crown and such other executed documents as it considers necessary to assign to the Crown all his rights under the claim that gives rise to the application.

(7)  Notwithstanding subsections (2), (3), (4) and (5), but subject to subsection (8),

(a) the board may in its discretion defer the payment of claims in respect of any one participant until the board is reasonably satisfied all claims likely to be made in respect of such participant have been received by the board,

(b) the board may in its discretion reserve against claims which it thinks may be validly made and any such reservations shall be the equivalent of a payment of such claim for the purpose of an additional payment to the fund under sections 42 and 43, and

(c) the board in its discretion may pay claims in respect of any one participant in one or more instalments as it sees fit.

(8)  In the event of an act of God, acts of government or other authorities, wars, hostilities, civil disturbances, strikes, riots, epidemics and quarantines causing loss or default, then any payments made pursuant to subsection (2), (3) or (4) shall be deemed to be full reimbursement of any moneys paid by a client through a travel agent or to a travel wholesaler.

(9)  When it appears to the board that a client of a participant has been placed in circumstances where immediate funds and facilities are necessary to alleviate the suffering and inconvenience of the client, the board, with the approval of the minister, may recommend that moneys be paid out of the fund sufficient for the immediate and necessary travel services of the client.

(10)  The amount of a payment under subsection (9) may be deemed to be an additional payment due to the fund by such participant and the board shall demand payment from the participant forthwith.

(11)  Notwithstanding the provisions of subsection 33 (1) of these regulations, where a quorum of the board is not available, the powers set out under subsection (7) may be exercised by any 2 members of the board with the written concurrence of the registrar or his designate-in-writing.

(12)  Where the board determines that a claim, or any part thereof, made under this section is not eligible for payment, it shall serve written notice of the decision on the claimant.

[am. B.C. Reg. 230/79, s. 5.]

 Repealed

48  Repealed. [B.C. Reg. 230/79, s. 6.]