Oregon Statutes - Chapter 646A - Trade Regulation - Section 646A.014 - Requirements for certification; bylaws; code of ethics; disclosures; rules; definitions.

(1) An association of sellers of travel shall be eligible for certification as a certified association if the Director of the Department of Consumer and Business Services determines that:

(a) The rules or bylaws of the association require members of the association to:

(A) Maintain adequate financial security;

(B) Maintain errors and omissions insurance; or

(C) Maintain accreditation by the Airlines Reporting Corporation, its successor or a similar entity designated by the association and approved by the director.

(b) The rules or bylaws of the association require members of the association to participate in a program of mediation of disputes between members and consumers.

(c) The rules or bylaws of the association require members of the association to comply with a written code of ethics that sets requirements for at least:

(A) Advertising and promotion policies;

(B) Disclosure of consumer rights;

(C) Disclosure of policies and procedures for refunds to consumers; and

(D) Disclosure of the limits of liability of the seller of travel in all transactions.

(d) The rules, bylaws or code of ethics of the association provides that a seller of travel may not be admitted to the association or maintain membership in the association if, during the three years prior to application for membership in the association or at any time after admission to the association, the seller of travel, or the owner, principal or any person having control over the seller of travel, has been:

(A) Convicted of any offense involving fraud, deception, misrepresentation, misappropriation of property or breach of trust or other fiduciary obligation;

(B) The subject of an order of any federal, state or local court or administrative agency denying, suspending or revoking any license or any other authority to engage in business as a seller of travel; or

(C) The subject of any civil judgment or penalty imposed by any federal, state or local court or administrative agency.

(e) The rules or bylaws of the association provide for the suspension or revocation of membership in the association if a member does not comply with the rules or bylaws of the association, ORS 646A.010 to 646A.020 or rules adopted by the director under ORS 646A.010 to 646A.020.

(2) The director by rule may establish additional requirements for certification.

(3) As used in this section:

(a) “Conviction” includes, but is not limited to, a plea of nolo contendere, a consent judgment, a judgment, an administrative order and an assurance of voluntary compliance.

(b) “Owner” means a person who owns or controls 10 percent or more of the equity of, or otherwise has claim to 10 percent or more of the net income of, the seller of travel.

(c) “Principal” means an owner, an officer of a corporation, a general partner of a partnership or a sole proprietor of a sole proprietorship. [Formerly 646.189]

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Last modified: August 7, 2008