A-10, r. 1 - Regulation respecting travel agents

À jour au 1^er juillet 2019

Ce document a valeur officielle.

chapter A-10, r. 1

Regulation respecting travel agents

Travel Agents Act

(chapter A-10, s. 36).

The duties prescribed in the Regulation have been indexed as of 1 July 2019 pursuant to the notice published in Part 1 (French) of the Gazette officielle du Québec of 2 March 2019, page 217. (ss. 4, 11.5, 31.9, 43.8 and 43.10) (Erratum, 2019 G.O. 1, 250)

DIVISION I INTERPRETATION

1. Definitions: In this Regulation,

(a)  “Act” means the Travel Agents Act (chapter A-10);

(b)  “turnover” means the total amount of the sums collected or to be collected from customers by the travel agent, including the sums transmitted directly to another travel agent or supplier;

(c)  “gross income” means the total amount of the sums collected or to be collected for the account of a travel agent;

(d)  “customer” means every person benefiting from the tourist services provided by a travel agent, excluding any direct or indirect supplier of a travel agent.

R.R.Q., 1981, c. A-10, r. 1, s. 1; O.C. 962-2004, s. 1.

DIVISION I.1 EXCEPTIONS

O.C. 496-2010, s. 1.

1.1. The Act does not apply to

(a)  a person operating a tourist accommodation establishment and offering tourist services nearby in addition to accommodation services in the person’s establishment;

(b)  a person organizing adventure travel and offering packages including, in addition to the person’s own services, accommodation in a natural setting;

(c)  an outfitter offering tourist services nearby in addition to accommodation services in establishments registered on its licence or organizing and selling packages including, in addition to its own services, only the reservation for one night of accommodation services near the arrival airport on arrival and departure;

(d)  the holder of a charter bus transportation licence issued by the Commission des transports du Québec performing operations of a travel agent for trips lasting no longer than 72 hours exclusively in Québec;

(e)  the mandatary of the holder of an intercity bus transportation licence issued by the Commission des transports du Québec selling, in bus terminals, intercity bus transportation vouchers;

(f)  a hotel chain and a group of hotel establishments organizing packages including accommodation in more than one establishment of the chain or group, but not including any transportation service;

(g)  the reservation on the account of another person of a room in a tourist accommodation establishment or of a rental automobile where

i.  the person making the reservation receives no form of remuneration for that purpose from the customer;

ii.  no sum of money is transferred between the customer and that person or the supplier when the reservation is made or only the customer’s credit card number is sent to the supplier, without the credit card being debited;

iii.  the customer may cancel the reservation free of charge before the service is rendered;

iv.  no sum of money will be paid by the customer and the customer’s credit card will not be debited before the date on which the service must be rendered;

v.  no invoice is given to the customer at the time of reservation; only a document confirming the reservation is given to the customer.

(h)  a person offering tourist guide or local sightseeing tour services of a maximum period of 1 day;

(i)  an educational institution or a teacher mandated by the institution if the following conditions are met:

i.  the educational institution or teacher organizes a trip lasting no longer than 72 hours and exclusively in Québec for students or organizes a trip for them through a travel agent; and

ii.  the educational institution or teacher receives no form of remuneration for organizing the trip, except the teacher’s participation in the trip.

For the purposes of subparagraph i of the first paragraph, an educational institution means any institution listed in paragraphs a to g.1 of section 188 of the Consumer Protection Act (chapter P-40.1).

O.C. 496-2010, s. 1; O.C. 986-2018, s. 1.

1.2. Section 4 of the Act and Division IV.1 do not apply to students in training with a travel agent and employees of the holder of a restricted licence. They also do not apply to an employee of the holder of a restricted outfitter’s licence acting for a travel agent holding a general licence with whom the outfitter entered into an agreement for the sale of packages.

O.C. 496-2010, s. 1; O.C. 986-2018, s. 2.

DIVISION II CLASSES OF TRAVEL AGENT LICENCES

R.R.Q., 1981, c. A-10, r. 1, Div. II; O.C. 496-2010, s. 2.

2. The classes of travel agent licences are the following:

(a)  “general licence” means a licence that authorizes a person dealing with the public in general or members of a particular group, directly or through another travel agent, to perform the operations referred to in section 2 of the Act;

(b)  “restricted licence” means a licence that authorizes a person dealing with the public in general or members of a particular group, directly or through another travel agent holding a general licence, to perform the operations covered by the class of restricted licence issued on the person’s account or behalf.

R.R.Q., 1981, c. A-10, r. 1, s. 2; O.C. 449-90, s. 1; O.C. 546-92, s. 1; O.C. 962-2004, s. 2; O.C. 496-2010, s. 3.

DIVISION III CLASSES OF RESTRICTED LICENCES

R.R.Q., 1981, c. A-10, r. 1, Div. III; O.C. 496-2010, s. 4.

3. The classes of restricted licences are the following:

(a)  “restricted adventure travel organizer licence” means a licence that authorizes the person referred to in subparagraph b of the first paragraph of section 3 of the Act to organize and sell packages including, accessorily, accommodation services in accommodation establishments governed by the Act respecting tourist accommodation establishments (chapter E-14.2) other than camping establishment classes and outfitting operations;

(b)  “restricted outfitter’s licence” means a licence that authorizes the outfitter referred to in subparagraph d of the first paragraph of section 3 of the Act to organize and sell packages including, in addition to outfitting services, transportation services from an arrival airport to the outfitting operation and accommodation services near the arrival airport on arrival and departure;

(c)  “restricted regional tourist association licence” means a licence that authorizes a regional tourist association recognized under the Act respecting the Ministère du Tourisme (chapter M-31.2) to market tourist accommodation establishments and tourist attractions of the region, and packages without transportation within the region.

For the purposes of subparagraph c, Place d’affaires électronique de l’industrie touristique du Québec is considered a regional tourist association.

R.R.Q., 1981, c. A-10, r. 1, s. 3; O.C. 496-2010, s. 5; O.C. 986-2018, s. 3.

DIVISION IV LICENCES

4. The duties related to the licence referred to in section 4 of the Act are as follows:

(a)  for an application for the issue of a general licence: $938;

(b)  for renewal, the duties are based on the turnover appearing, in the case of a general licence, in the financial statements required under paragraph d of section 7 or, in the case of a restricted licence, in the certificate required under the second paragraph of section 8.1; the duties are as follows:

                                GENERAL LICENCE RENEWAL                             

Turnover                                                                     Duties

Up to $0.5M                                                                   $352

Up to $2M                                                                     $469

Up to $5M                                                                     $645

Up to $10M                                                                    $880

Up to $20M                                                                  $1,173

Over $20M                                                                   $1,525

                                  

(c)  (subparagaph revoked);

(d)  where a travel agent operates more than one establishment, the duties are $586 for the issue of a duplicate licence per establishment and $293 for its renewal;

(e)  in the case of an application for the transfer of a licence to another person, the duties are 50% of the duties indicated in subparagraph a, b or d or, where the application is filed after the period provided for in section 11.1 of the Act, 75% of the duties indicated in subparagraph a, b or d;

(f)  where the president refuses or where the applicant withdraws the application, the president reimburses 50% of the duties indicated in subparagraph a, b or d;

For the purposes of subparagraph f of the first paragraph, an applicant is deemed to have withdrawn an application if the requested additional information is not provided within 3 months after receiving a notice to that effect.

In the case of a restricted licence, the duties provided for in the first paragraph are reduced by 50%.

R.R.Q., 1981, c. A-10, r. 1, s. 4; O.C. 994-86, s. 1; O.C. 449-90, s. 2; O.C. 601-94, a. 1; O.C. 962-2004, s. 3; O.C. 496-2010, s. 6.

4.01. The duties payable under subparagraphs a, b, d and e of the first paragraph of section 4 are increased by 50% where priority processing is requested.

O.C. 496-2010, s. 7.

4.1. On 1 July 2019 and on 1 July of each subsequent year, the duties in force at that time for the licences referred to in subparagraph a, b or d of the first paragraph of section 4, section 11.5 and section 31.9 and the indemnity relating to living and accommodation expenses referred to in paragraphs b of section 43.8 and paragraph c of section 43.10 are indexed on the basis of the rate of variation in the general average Consumer Price Index for Canada as determined by Statistics Canada for the preceding calendar year in relation to that for the previous year. The new duties and indemnity shall have effect from the date of indexing.

The duties and indemnity thus indexed shall be reduced to the nearest dollar where they contain a fraction of a dollar less than $0.50; they shall be increased to the nearest dollar where they contain a fraction of a dollar equal to or greater than $0.50.

The Office de la protection du consommateur shall publish in the Gazette officielle du Québec each year a notice indicating the new duties and indemnity as soon as they are determined.

O.C. 601-94, s. 2; O.C. 496-2010, s. 8; O.C. 986-2018, s. 4.

5. Licences and duplicate licences are issued without any term.

The duties provided for in section 4 for the renewal of a licence are payable, once a year, not later than 2 months before the anniversary date of the licence.

The anniversary date of the licence is the first day of the eighth month following the end of the travel agent’s fiscal year.

If the period between the date of issue and the first anniversary date is shorter or longer than 1 year, the duties payable are set in proportion to that period of time in relation to 1 year.

R.R.Q., 1981, c. A-10, r. 1, s. 5; O.C. 994-86, s. 2; O.C. 449-90, s. 3; O.C. 473-2000, s. 1; O.C. 962-2004, s. 4; O.C. 496-2010, s. 9; O.C. 986-2018, s. 5.

5.1. The president may issue a licence for a determined term if the president deems that the public interest is at stake or for administrative reasons.

O.C. 496-2010, s. 10.

6. Every person applying for a travel agent licence must send the president, on a form provided by the president, the following information and documents:

(a)  the class of the licence concerned;

(b)  the person’s name, date of birth, domicile address, telephone number and, where applicable, technological address and fax number;

(c)  (subparagraph revoked);

(d)  the names under which the travel agent will carry on business;

(e)  the address of all the establishments where the travel agent will carry on business;

(f)  a declaration certifying compliance of each of the establishments with municipal by-laws relating to uses;

(g)  subject to section 11.13, a declaration stating that the person holds, at the time of applying for the issue of the licence, a travel agency manager certificate issued by the president after having passed, within less than 5 years, an examination on the knowledge of the laws and regulations applying to the travel sector and the management of a travel agency;

(h)  a declaration stating that the person has not been found guilty of fraud, forgery or fraudulent operations in contractual or commercial matters;

(i)  a declaration stating that the person has not been found guilty of an offence against the Act;

(j)  a declaration stating that the person has never held a licence nor held the position of officer or investor for a travel agent who was the cause of a claim paid by any of the collective security funds or the Fonds d’indemnisation des clients des agents de voyages and who did not reimburse the fund;

(k)  a declaration stating that the person has neither gone bankrupt in the 5 years preceding the application nor held the position of officer or investor for a travel agent who has gone bankrupt in the 5 preceding years;

(l)  a declaration stating that the person’s principal activity is to carry out management duties at the principal establishment of the person, association or partnership for which the person is applying for a licence;

(m)  in the case of a natural person applying for a licence on the person’s account, a declaration stating that the person’s principal activity is to perform operations of a travel agent at the principal establishment corresponding to the licence;

(n)  in the case of a person acting on the account of a person, association or partnership,

i.  the names, addresses and dates of birth of the officers and investors and their status and interest in the travel agency;

ii.  a declaration stating that the officers and investors have not been found guilty of an offence against the Act;

iii.  a declaration stating that no officer or investor has gone bankrupt as travel agent, or as officer or investor of a travel agency that has gone bankrupt, in the 5 years preceding the application;

iv.  a declaration stating that no officer or investor has been found guilty of fraud, forgery or fraudulent operations in contractual or commercial matters or has been an officer or investor of a travel agent found guilty of such offences;

v.  a declaration stating that no officer has ever held a licence or a position as officer or investor for a travel agent who was the cause of a claim paid by any of the collective security funds or the Fonds d’indemnisation des clients des agents de voyages, and who did not reimburse the fund;

vi.  a declaration stating that, at the time of the application, the person, association or partnership complied with the provisions relating to legal publicity, if the person, association or partnership is constituted under the statutes of Québec;

(o)  where the travel agent is required to register, the Québec business number (NEQ) assigned by the enterprise registrar;

(p)  the name and address of the financial institution where is located the trust account and the account number and the name, address and date of birth of the persons authorized to perform banking transactions affecting the trust account.

An application for the issue of a licence must be accompanied by the following:

(a)  in the case of a person acting on the account of a person, association or partnership, a copy of the resolution authorizing the applicant to hold a licence on the account of that person, association or partnership;

(b)  an opening balance sheet showing that the working capital is at least $5,000;

(c)  a declaration of the date of the end of the travel agent’s fiscal year;

(d)  if the application is made to continue to operate under a new legal entity, financial statements of the former travel agent as of the date of the application, including the financial statements of the trust account;

(e)  documents related to the opening and the signature log of the trust account;

(f)  (subparagraph revoked);

(g)  (subparagraph revoked).

Every licence application must be accompanied by the payable duties referred to in section 4, the surety bond provided for in Division XI and an attestation of the accuracy of the information provided under the first paragraph. The application must be signed by the natural person who files the application.

For the purposes of this section, in the case of a travel agent whose shares are listed on a stock exchange, “investor” refers only to a shareholder holding 10% or more of the voting shares.

R.R.Q., 1981, c. A-10, r. 1, s. 6; O.C. 994-86, s. 3; O.C. 546-92, s. 2; O.C. 473-2000, s. 2; O.C. 1420-2002, s. 1; O.C. 962-2004, s. 5; O.C. 496-2010, s. 11; O.C. 986-2018, s. 6.

7. A licence renewal application must be accompanied by

(a)  an attestation that the information required in the first paragraph of section 6 are up-to-date;

(b)  the duties payable under section 4;

(c)  where applicable, a new surety bond in accordance with Division XI;

(d)  the financial statements of the last fiscal year, including those of the trust account and containing a balance sheet showing a minimum working capital, determined on the basis of the turnover mentioned in the financial statements of the last fiscal year; the minimum working capital is set as follows:

  
TURNOVER                                                    MINIMUM WORKING CAPITAL 

Up to $1M                                                           $5,000        

Up to $3M                                                           $7,500

Up to $5M                                                          $10,000

Up to $10M                                                         $15,000

Up to $25M                                                         $25,000

Up to $50M                                                         $50,000

Up to $75M                                                         $75,000

Up to $100M                                                       $100,000

Over $100M                                                        $150,000  
  

R.R.Q., 1981, c. A-10, r. 1, s. 7; O.C. 994-86, s. 7; O.C. 546-92, s. 3; O.C. 473-2000, s. 3; O.C. 962-2004, s. 6; O.C. 496-2010, s. 11.

8. For the purposes of subparagraphs b and d of the second paragraph of section 6 and paragraph d of section 7,

(a)  accounts receivable or payable between a travel agent and a person, association or partnership to which the agent is related or over which the agent exercises control are excluded from the calculation of the working capital;

(b)  financial statements prepared by a travel agent providing services to persons domiciled outside Québec through a travel enterprise situated outside Québec must indicate the amount of the sums collected from those persons;

(c)  financial statements must indicate separately the amount of the sales of tourist services subject to the contribution to the Fonds d’indemnisation des clients des agents de voyages and the amount of the sales of tourist services performed through another travel agent;

(d)  financial statements must contain an auditor’s certificate or a review engagement report;

(e)  financial statements and what must accompany them must have been prepared by an accountant who is a member of a professional order of accountants recognized in Canada.

R.R.Q., 1981, c. A-10, r. 1, s. 8; O.C. 994-86, s. 7; O.C. 449-90, s. 4; O.C. 546-92, s. 4; O.C. 473-2000, s. 3; O.C. 962-2004, s. 7; O.C. 496-2010, s. 11.

8.1. Subparagraph g of the first paragraph and subparagraphs b and d of the second paragraph of section 6 do not apply to an application for a restricted licence. Paragraph d of section 7 does not apply to an application for the renewal of a restricted licence.

For an initial application for a restricted licence, if the person on the account of whom the licence is applied for did business in the previous fiscal year, and for an application for the renewal of a restricted licence, the applicant must file a certificate signed by an outside accountant and countersigned by an officer of the travel agent indicating the turnover for the preceding fiscal year and the amount of sales subject to the contribution to the fund and the fact that the working capital has a surplus.

When applying for the issue or the renewal of a restricted outfitter’s licence, the applicant must provide a copy of his or her outfitter’s licence issued under the Act respecting the conservation and development of wildlife (chapter C-61.1) or the Act respecting hunting and fishing rights in the James Bay and New Québec territories (chapter D-13.1).

O.C. 496-2010, s. 11; O.C. 986-2018, s. 7.

8.2. An application for the issue or renewal of a licence is deemed to be received only if it contains all the required information and is accompanied by the duties payable and the documents required under this Regulation.

O.C. 496-2010, s. 11.

8.3. Where the financial statements referred to in paragraph d of section 7 or where the certificate required under the second paragraph of section 8.1 indicate that the minimum working capital is not reached, the president may renew the licence provided that the licence holder invests long-term a sum equivalent to the deficit or submits interim financial statements prepared by the outside accountant of the licence holder indicating a working capital greater than the minimum working capital and accompanied by a balance sheet of the trust account.

O.C. 496-2010, s. 11.

8.4. A person applying for a change of licence holder must send the president, on the form provided by the president, the information required under subparagraphs b, c, g, h, i, j, k and l of the first paragraph of section 6 and the document required under subparagraph a of the second paragraph of section 6.

Every application for a change of licence holder must be accompanied by the duties payable under section 4 and an attestation of the accuracy of the information sent under the first paragraph. The application must be signed by the natural person who files the application.

O.C. 496-2010, s. 11.

9. Every application for renewal of a licence or a duplicate of a licence must be submitted to the president not later than 2 months before the anniversary date of the licence.

Where the application is submitted after that period or where the application, although submitted within the prescribed period, is deemed incomplete, the amount of the payment to be made in accordance with section 4 shall be increased by 50%.

R.R.Q., 1981, c. A-10, r. 1, s. 9; O.C. 994-86, s. 4; O.C. 449-90, s. 5; O.C. 496-2010, s. 12.

9.1. (Revoked).

O.C. 962-2004, s. 8; O.C. 496-2010, s. 13.

10. Transfer: Any person wishing to transfer a licence must submit an application to the president using the form provided by the president.

R.R.Q., 1981, c. A-10, r. 1, s. 10; O.C. 994-86, s. 7; O.C. 449-90, s. 6; O.C. 546-92, s. 5; O.C. 473-2000, s. 4; O.C. 962-2004, s. 9; O.C. 496-2010, s. 14.

11. The holder of a travel agent’s licence must frame his licence and post it in a conspicuous place in his principal establishment so that it is readily readable by the clients.

Where applicable, he must also do it in each establishment with the licence duplicate issued for that establishment.

R.R.Q., 1981, c. A-10, r. 1, s. 11; O.C. 473-2000, s. 5.

DIVISION IV.1 TRAVEL COUNSELLORS

O.C. 496-2010, s. 15.

11.1. A travel counsellor is exempt from the obligation to hold a licence to perform the operations referred to in section 2 of the Act if the travel counsellor

(a)  performs the acts referred to in section 2 of the Act exclusively on the account of a travel agent holding a licence;

(b)  is not bound by an employment or service contract with more than 1 travel agent;

(c)  performs the operations or is attached to an establishment of the travel agent to whom the counsellor is bound by an exclusive employment or service contract;

(d)  does not receive customers in his or her domicile, except where the travel agent operates an establishment therein for which a duplicate licence has been issued;

(e)  collects funds from a customer on the account of the travel agent to whom the counsellor is bound by an exclusive employment or service contract and deposits the funds in trust;

(f)  gives to a customer from whom the counsellor collects funds a receipt compliant with section 18 and made in the name of the travel agent to whom the counsellor is bound by an exclusive employment or service contract; and

(g)  advertises only under the name of the travel agent to whom the counsellor is bound by an exclusive employment or service contract and does not provide personal contact information, except a mobile telephone number.

O.C. 496-2010, s. 15.

11.2. The president issues a travel counsellor certificate where the applicant

(a)  has passed an examination on the knowledge of the laws and regulations applying to the travel sector;

(b)  has not committed, in the 5 preceding years, an offence against the Act or this Regulation;

(c)  has not been found guilty, in the 5 preceding years, of fraud, forgery or fraudulent operations in contractual or commercial matters;

(d)  has not made a false declaration or untrue statement of a material fact to obtain a certificate;

(e)  has paid the duties provided for in this Regulation;

(f)  has sent the information required under section 11.4.

The certificate is issued or renewed for a period of 1 year.

The president renews the certificate if the conditions set out in subparagraphs b to f of the first paragraph are met.

O.C. 496-2010, s. 15; O.C. 986-2018, s. 8.

11.3. The travel counsellor must send a certificate application within 2 years of the date the examination was passed.

O.C. 496-2010, s. 15.

11.4. The travel counsellor must, when applying for the issue or renewal of the certificate, send to the president, on the form provided by the president, the following information:

(a)  the counsellor’s name, domicile address, date of birth, personal and professional telephone numbers and, where applicable, personal and professional technological address and fax number;

(b)  the name, address and licence number of the travel agent to whom the counsellor is bound by an exclusive employment or service contract;

(c)  a declaration according to which the counsellor has not committed, in the 5 years preceding the application, an offence against the Act or this Regulation;

(d)  a declaration according to which the counsellor has not been found guilty, in the 5 years preceding the application, of fraud, forgery or fraudulent operations in contractual or commercial matters;

(e)  a declaration according to which the counsellor has not made a false or misleading declaration or failed to mention an important fact for obtaining the certificate.

O.C. 496-2010, s. 15; O.C. 986-2018, s. 9.

11.5. The duties for the issue and the annual renewal of the certificate are set at $59 and $29 respectively.

O.C. 496-2010, s. 15.

11.6. Within 15 days of the event, the travel counsellor must inform the president of any change to any information referred to in section 11.4.

O.C. 496-2010, s. 15.

11.7. The president may suspend, cancel or refuse to issue or to renew a travel counsellor certificate where the holder

(a)  has committed, in the 5 preceding years, an offence against the Act or this Regulation;

(b)  has been found guilty, in the 5 preceding years, of fraud, forgery or fraudulent operations in contractual or commercial matters;

(c)  has made a false declaration or untrue statement of a material fact to obtain or renew a certificate; or

(d)  has failed to comply with any condition or obligation prescribed by the Act and this Regulation.

The president may also suspend, cancel or refuse to issue or to renew a certificate if the president has reasonable grounds to believe that the suspension, cancellation or refusal is necessary to ensure, in the public interest, that the operations proper to a travel agent will be performed with honesty and competence.

O.C. 496-2010, s. 15; O.C. 986-2018, s. 11.

11.8. The president must, before refusing to issue or renew, suspending or cancelling a certificate, notify in writing the applicant or the certificate holder as prescribed by section 5 of the Act respecting administrative justice (chapter J-3) and allow them at least 10 days to present observations. The president must also notify the applicant or certificate holder of his or her decision in writing and give reasons.

O.C. 496-2010, s. 15.

11.9. Where the travel counsellor no longer has an employment relationship or an exclusive service contract with the travel agent, the counsellor’s certificate is suspended until a new employment relationship is established or a new exclusive service contract is entered into with a travel agent.

After a maximum period of 2 years following the suspension and in the absence of a new employment relationship or a new exclusive service contract with a travel agent, the certificate ceases to have effect.

During the suspension period, the counsellor must deal with the formalities related to the renewal of the counsellor’s certificate.

O.C. 496-2010, s. 15; O.C. 986-2018, s. 13.

DIVISION IV.2 OPERATION OF AN ESTABLISHMENT AT HOME

O.C. 496-2010, s. 15.

11.10. A travel agent may operate an establishment at his or her domicile or the domicile of a travel counsellor on the following conditions:

(a)  the municipality authorizes the travel agent to practise at that address;

(b)  a room of the domicile is reserved for that activity;

(c)  the telephone and fax numbers and the technological address used for the travel agent activity are in the name of the travel agent and are different from the numbers and technological address of the owner of the domicile;

(d)  a licence or a duplicate of the licence is issued for that address.

O.C. 496-2010, s. 15.

DIVISION IV.3 TRAVEL AGENCY MANAGER

O.C. 986-2018, s. 14.

11.11. Sections 11.2 to 11.8 apply, with the necessary modifications, to the applicant for and the holder of a travel agency manager certificate.

O.C. 986-2018, s. 14.

11.12. On payment of the duties required under section 11.5, the holder of a travel agency manager certificate also holds a travel counsellor certificate.

O.C. 986-2018, s. 14.

11.13. Where the employment relationship with the travel agent for whom the holder works as manager is broken, the person’s manager certificate is suspended. The person may again hold a manager certificate without having again passed the examination provided that the person is again appointed manager within 2 years following the suspension of the certificate.

After that period and in the absence of a new employment relationship with a travel agent as manager, the certificate ceases to have effect.

During the suspension period, the holder must deal with the formalities related to the renewal of the manager’s certificate.

The first 3 paragraphs also apply, with the necessary modifications, to the holder of a travel agent licence.

O.C. 986-2018, s. 14.

DIVISION V OBLIGATIONS OF TRAVEL AGENTS

R.R.Q., 1981, c. A-10, r. 1, Div. V; O.C. 546-92, s. 6; O.C. 962-2004, s. 10.

12. A travel agent must, within 15 days of the event, notify the president in writing of any change in the information sent under the first paragraph of section 6 and in the documents sent under subparagraphs a, c, e, f and g of the second paragraph of section 6.

R.R.Q., 1981, c. A-10, r. 1, s. 12; O.C. 994-86, s. 7; O.C. 962-2004, s. 10; O.C. 496-2010, s. 16.

Subparagraphs f and g of the second paragraph of section 6 have been revoked by O.C. 986-2018, 2018 G.O. 2, 3228.

12.1. A travel agent must submit interim financial statements at the request of the president within the period set by the president. The financial statements must include a trust account statement. At the request of the president, the statements must also be accompanied by a review engagement report or any other information or document related to the travel agent operations.

O.C. 986-2018, s. 15.

13. A travel agent shall not issue or offer to issue a voucher for the booking or reservation of air transportation services with a departure or arrival point in Canada or the United States unless the air carrier holds the licences and approvals necessary to provide the services and complies with the requirements prescribed by the competent authorities of the jurisdictions concerned.

R.R.Q., 1981, c. A-10, r. 1, s. 13; O.C. 994-86, s. 7; O.C. 546-92, s. 6; O.C. 962-2004, s. 10.

13.1. A travel agent must keep up to date a list of travel counsellors working for the agent or with whom the agent has signed an exclusive service contract. The list must contain the names of the travel counsellors, their certificate number and the date of expiry of the certificate. On request, a travel agent must send a copy of that list to the president or an inspector or investigator appointed by the president.

Where the employment relationship with any of the travel counsellors is broken or the exclusive service contract that binds the counsellor to the agent is resiliated or terminated, the travel agent must so inform the president within 5 days of the event.

O.C. 496-2010, s. 17; O.C. 986-2018, s. 16.

13.1.1. A travel agent may not employ a travel counsellor who does not hold a valid travel counsellor certificate. Nor may the travel agent sign an exclusive service contract with a travel counsellor who does not hold such a certificate.

O.C. 986-2018, s. 17.

13.2. A travel agent who, in accordance with section 16.1 of the Regulation respecting the application of the Consumer Protection Act (chapter P-40.1, r. 3), wishes to change unilaterally the price of the tourist services provided for in a contract with a customer must

(a)  insert in the contract a clause providing for the following:

i.  the price for the tourist services sold may only be increased following the imposition of a surcharge on fuel by the carrier or an increase in the exchange rate, insofar as the exchange rate applicable 45 days before the date on which the services are provided has increased by more than 5% since the date on which the contract was entered into;

ii.  if the increase, without taking into account any increase in the Québec sales tax or Canada’s goods and services tax, is equal to or greater than 7% of the price of services, the customer may choose between full and immediate reimbursement of the services or the provision of similar services;

iii.  no price increase may occur within 30 days preceding the date on which the services must be provided;

(b)  inform the customer verbally and in writing, before entering into the contract, of the content of the clause.

Where a distance contract is entered into in writing, the travel agent is exempt from the obligation provided for in subparagraph b of the first paragraph to inform the customer verbally of the content of the clause provided the information is expressly brought to the customer’s attention.

Where a distance contract is entered into verbally, the travel agent is exempt from the obligation provided for in subparagraph b of the first paragraph to inform the customer in writing of the content of the clause provided the contract is sent to the customer within 15 days after the contract is entered into.

O.C. 496-2010, s. 17.

DIVISION VI ADVERTISING

14. Mention: All forms of advertising made by a travel agent must specify, by the mention “Québec licensee” that the said travel agent or any other travel agent concerned by this advertising is the holder of a licence or represented in Québec by the holder of a licence issued by the president.

R.R.Q., 1981, c. A-10, r. 1, s. 14; O.C. 994-86, s. 7.

14.1. Any form of advertising by a travel agent that mentions, for a specific trip, a cost that does not include all amounts to be paid for the services advertised must specify the total cost of those services and indicate that total cost more prominently.

Where the advertising is written, the typographical characters used to indicate the total cost must be at least twice as large as those used to indicate any other cost.

For the purposes of this section, the total cost of the services may or may not include the Québec sales tax, the goods and services tax of Canada or the amount payable as a contribution to the Fonds d’indemnisation des clients des agents de voyages.

The advertising must indicate whether or not those taxes and that amount are included. If they are not included, the advertising must state the fund contribution rate in dollars. In written advertising, those particulars must appear in Helvetica typeface of at least 10 points.

O.C. 449-90, s. 7; O.C. 546-92, s. 7; O.C. 962-2004, s. 11; O.C. 1153-2004.

15. Information: All written or printed advertising relative to trips must include:

(a)  a listing of the transportation, accommodation and food services included in the trip, the name of the scheduled air carrier at the time of publication and the duration of the trip; and

(b)  the period during which the trip may be purchased at the price advertised;

(c)  (subparagraph revoked).

Subparagraph b of the first paragraph does not apply to advertisement on a transactional website provided that the following compulsory mention appears prominently and legibly in a box on the home page:

“Prices on our website are valid if you purchase services in a same session. If you log off our website, prices may be different the next time you log on.”.

R.R.Q., 1981, c. A-10, r. 1, s. 15; O.C. 962-2004, s. 12; O.C. 496-2010, s. 18.

16. A travel agent must inform customers in writing of the conditions for reimbursement or non-reimbursement of the sums required before accepting a deposit, unless those conditions are stated in a brochure given to the customer.

Despite the foregoing, the conditions may be communicated orally if the services are requested less than 7 days before they are provided and otherwise than in the presence of a travel agent or a representative of the travel agent.

R.R.Q., 1981, c. A-10, r. 1, s. 16; O.C. 962-2004, s. 13.

DIVISION VII ACCOUNTING

17. Bookkeeping: The travel agent must keep books, registers and accounts related to his operations up to date and in which are indicated among other things:

(a)  all the funds received by him in trust;

(b)  all disbursements made by him from his trust account;

(c)  the unused balance of the funds held by him in trust in the aggregate and separately for each customer.

R.R.Q., 1981, c. A-10, r. 1, s. 17; O.C. 449-90, s. 8.

18. Receipts:

(1)  The travel agent who, directly or indirectly, collects funds from a customer, must, for each customer, acknowledge receipt of such funds by consecutive pre-numbered receipts, copies of which must be kept in numerical order for inspection purposes.

(2)  These receipts must also include the following information:

(a)  the date;

(b)  the customer’s name and address;

(c)  the amount received and the balance to be collected, where applicable;

(d)  the description of the services rendered or to be rendered which correspond to the funds thus collected;

(e)  the mention that such funds are collected in trust, except if they are collected by an outfitter holding a restricted licence exempt from the obligation imposed in section 33 of the Act under section 29.1;

(f)  the conditions of eventual reimbursement of the funds collected;

(g)  the amount and percentage of the contribution to the Fonds d’indemnisation des clients des agents de voyages and a mention and the amount of the credit granted by the fund in accordance with section 39.01, where applicable. If necessary, the number of the exemption certificate issued under section 39.1;

(h)  the name of the travel counsellor having made the sale to the customer, where applicable;

(i)  the following mention near the information provided for in subparagraph c: “Tourist services paid but not received, may be reimbursed by the Fonds d’indemnisation des clients des agents de voyages. It is administered by the Office de la protection du consommateur. It is a financial protection for travelers. For more information: www.ficav.gouv.qc.ca.”

(3)  The travel agent must remit a copy of the receipt mentioned in paragraphs 1 and 2 to each customer.

(4)  The travel agent is exempt from including on the receipt the information provided for in subparagraph f of the first paragraph provided that the agent gives the customer, with the receipt, a writing to the same effect or a copy of the brochure describing the services purchased and including that information.

R.R.Q., 1981, c. A-10, r. 1, s. 18; O.C. 449-90, s. 9; O.C. 962-2004, s. 14; O.C. 496-2010, s. 19; O.C. 986-2018, s. 18.

DIVISION VIII SPECIAL PROVISIONS

19. Remittance of documents: The travel agent must provide, at least 7 days prior to departure, all documents necessary to the customer so that the latter may receive all tourist benefits in exchange for the disbursements made in his name with the travel agent, including passenger tickets for the return to the point of departure, when the latter are part of the amounts paid in advance.

Where the services of a travel agent are required less than 7 days prior to departure, the documents mentioned in the first paragraph must be remitted to the customer before the start of the trip.

R.R.Q., 1981, c. A-10, r. 1, s. 19.

20. Notice of cancellation: Except in the case of superior force no cancellation of a trip by a travel agent may be made without a prior notice of at least 7 days being made to the customer by the travel agent.

R.R.Q., 1981, c. A-10, r. 1, s. 20.

DIVISION IX TRUST ACCOUNT

21. For the purposes of this Division and of sections 17 and 18, the word “funds” includes cash, cheques or other negotiable instruments as well as any amount representing the monetary equivalent of all or part of a payment by credit card or debit card or of any other form of payment.

R.R.Q., 1981, c. A-10, r. 1, s. 21; O.C. 449-90, s. 10; O.C. 546-92, s. 8.

22. Subject to section 29.1, every travel agent must, without delay, deposit in a trust account opened in Québec in his name, or credit to that account, all the funds that he receives in the course of his business from or on account of and by adding of a customer, for services rendered or to be rendered to the customer. He must keep those funds in that account until he is entitled to withdraw them under section 23 or until he remits them in accordance with section 40.

Despite the foregoing, a travel agent having no contract with a credit card issuer may send directly to another travel agent for whom the travel agent acts as intermediary or to the service supplier a payment received from a customer by credit card.

A trust account must be designated as an “account in trust” and must be opened in a Canadian chartered bank or in another institution authorized to receive deposits under the laws of Canada or Québec.

R.R.Q., 1981, c. A-10, r. 1, s. 22; O.C. 449-90, s. 10; O.C. 962-2004, s. 15; O.C. 496-2010, s. 20; O.C. 986-2018, s. 19.

22.01. Despite the first paragraph of section 22 and subject to section 29.1, an outfitter holding a restricted licence must deposit in a trust account or credit to that account 70% of the funds referred to in that paragraph.

O.C. 496-2010, s. 21; O.C. 986-2018, s. 20.

22.1. A travel agent must, within 7 days of the event, notify the president of the opening, closing and transfer of a trust account and provide the name and address of the financial institution and the account number.

O.C. 962-2004, s. 16.

23. A travel agent may withdraw from the trust account, for or on behalf of a customer or in connection with a customer, only the funds deposited or held in the account for the customer.

He may withdraw those funds from the trust account only if they are required for one of the following purposes:

(a)  for services to be rendered to the customer;

(b)  for expenditures on behalf of the customer;

(c)  to reimburse himself for expenditures and service charges incurred on behalf of the customer;

(d)  to reimburse the customer for amounts due him;

(e)  to collect the gross income due him in connection with the customer, but only after the cost of the services has been paid to the person on whose behalf the funds were received from the customer.

The funds withdrawn must be used only for the purpose provided for in the paragraph authorizing their withdrawal.

R.R.Q., 1981, c. A-10, r. 1, s. 23; O.C. 449-90, s. 10.

24. Withdrawals from the trust account must be made by cheque.

Withdrawals may, however, be made by bank transfer if the transaction is evidenced by a writing indicating the date, the amount, the name of the recipient and the name and signature of the person who performed the transaction.

The withdrawal must be in favour of the travel agent in the cases referred to in subparagraphs c and e of the second paragraph of section 23

R.R.Q., 1981, c. A-10, r. 1, s. 24; O.C. 449-90, s. 10; O.C. 962-2004, s. 17.

25. The travel agent may under no circumstances withdraw from the trust account for, on behalf of or in connection with a customer more than the total amount of the funds deposited and held in the trust account for the customer, even in the case where the travel agent is entitled to some of the funds held in the trust account. The travel agent may not, even in that case, use the funds in the trust account to pay his operating expenses or his personal accounts.

R.R.Q., 1981, c. A-10, r. 1, s. 25; O.C. 449-90, s. 10.

26. A travel agent’s trust account must never be overdrawn or show a deficit.

R.R.Q., 1981, c. A-10, r. 1, s. 26; O.C. 449-90, s. 10.

27. Banking transactions affecting the trust account must be performed by the licensee. The licensee may, however, authorize in writing an officer or a member of the travel agent’s staff to perform the transactions, alone or jointly.

R.R.Q., 1981, c. A-10, r. 1, s. 27; O.C. 449-90, s. 10; O.C. 962-2004, s. 18.

27.1. (Revoked).

O.C. 962-2004, s. 19; O.C. 496-2010, s. 22; O.C. 986-2018, s. 21.

DIVISION X INDIVIDUAL SECURITY AND INDEMNITY FUND

R.R.Q., 1981, c. A-10, r. 1, Div. X; O.C. 962-2004, s. 20.

28. The individual security under Division XI is required to guarantee to customers the performance by a travel agent of the obligations in mandates given to him by those customers during the term of the licence and during the period of renewal of the licence until the president’s decision and, in particular;

(a)  to compensate in capital, interest and costs, but excluding punitive damages, any customer in possession of a final judgment rendered other than on acquiescence in the judgment, against the travel agent, his employee or a travel counsellor with whom the travel agent has entered into an exclusive employment or service contract related to the performance of the mandate given to them;

(b)  to reimburse a customer for a sum that he paid to the travel agent for a service not yet provided, in the case of cessation of the travel agent’s activities and, in particular, in the case of cancellation, suspension or refusal to renew or transfer his licence, on the condition that the customer’s debt is paid off and is recognized as such by the president or by the provisional administrator appointed under section 14 of the Act.

The security is also required for payment, in accordance with section 16 of the Act, of the administrative expenses and provisional administrator’s fees, and for the collection of fines levied under Division VII of the Act. It is also required for the recovery, following the closure of a travel agent, of the contributions to the Fonds d’indemnisation des clients des agents de voyages collected by the travel agent but not sent to the president. The recovery of fines and contributions to the Fonds d’indemnisation des clients des agents de voyages not sent is paid only after the payment of customers’ claims.

If the individual security is not sufficient to indemnify or reimburse a customer or to pay the administrative expenses and provisional administrator’s fees, a claim may be made against the Fonds d’indemnisation des clients des agents de voyage.

R.R.Q., 1981, c. A-10, r. 1, s. 28; O.C. 994-86, s. 5; O.C. 546-92, s. 9; O.C. 473-2000, s. 10; O.C. 962-2004, s. 21; O.C. 496-2010, s. 23; O.C. 986-2018, s. 22.

DIVISION XI INDIVIDUAL SECURITY

29. Amount:

(1)  General licence:

(a)  upon an application for a general licence, the amount of security to be paid is, subject to paragraph 4, $25,000;

(b)  the amount of security to be paid upon an application for the renewal of a general licence is based on the turnover appearing in the financial statements required under section 7; that amount is set as follows:

                                  GENERAL LICENCE                                  

                           AMOUNT OF INDIVIDUAL SECURITY                           

Turnover             First            Second             Third            Fourth    
                  anniversary       anniversary       anniversary      anniversary 
                                                                      and following

Up to$1M            $25,000           $25,000           $25,000          $25,000        

Up to $2M           $40,000           $35,000           $30,000          $25,000        

Up to $3M           $55,000           $45,000           $40,000          $30,000        

Up to $4M           $70,000           $60,000           $50,000          $40,000        

Up to $5M           $90,000           $75,000           $60,000          $50,000        

Up to $6M          $105,000           $90,000           $70,000          $60,000        

Up to $7M          $115,000          $100,000           $80,000          $70,000        

Up to $8M          $125,000          $115,000           $90,000          $80,000        

Up to $9M          $135,000          $125,000          $100,000          $90,000        

Up to $10M         $150,000          $140,000          $110,000         $100,000        

Up to $11M         $160,000          $150,000          $120,000         $110,000        

Up to $12M         $170,000          $160,000          $130,000         $120,000        

Up to $13M         $180,000          $170,000          $140,000         $130,000        

Up to $14M         $190,000          $180,000          $150,000         $140,000       

Up to $15M         $200,000          $190,000          $160,000         $150,000       

Up to $16M         $225,000          $200,000          $180,000         $160,000       

Up to $17M         $225,000          $215,000          $200,000         $170,000       

Up to $18M         $225,000          $225,000          $215,000         $180,000       

Up to $19M         $225,000          $225,000          $225,000         $200,000       

Up to $20M         $225,000          $225,000          $225,000         $215,000       

Over $20M          $225,000          $225,000          $225,000         $225,000       

      

(1.01)  Restricted licence:

(a)  upon an application for the issue of a restricted licence, the amount of security to be paid is, subject to paragraph 4, $15,000 if the person for whom the licence is applied for is not yet in business;

(b)  the amount of security to be paid upon an application for the issue of a restricted licence where the person for whom the licence is applied for is already in business or upon an application for the renewal of a restricted licence is based on the turnover appearing in the certificate required in section 8.1; the amount is set as follows:

                                  RESTRICTED LICENCE                                

Turnover                                              Amount of individual security

Up to $1M                                                       $15,000           

Up to $2M                                                       $20,000

Up to $5M                                                       $25,000

Up to $10M                                                      $35,000

Up to $15M                                                      $40,000

Over $15M                                                       $50,000

      

(1.1)  Where a travel agent provides services to persons domiciled outside Québec through a travel enterprise outside Québec, the amount of the security is the greater of $20,000 and the amount under subparagraph b of paragraph 1 after the amount of the sums collected from those persons is subtracted from the turnover.

(2)  (Paragraph revoked).

(3)  (Paragraph revoked).

(4)  Where a travel agent submits an initial application for a licence to continue to operate but as a new legal entity, the amount of the security referred to in subparagraph a of paragraph 1 must equal the security that the former travel agent would have had to provide had he applied to have his licence renewed.

R.R.Q., 1981, c. A-10, r. 1, s. 29; O.C. 449-90, s. 11; O.C. 546-92, s. 10; O.C. 473-2000, s. 11; O.C. 962-2004, s. 22; O.C. 496-2010, s. 24.

29.1. An outfitter holding a restricted licence who deposits an additional security to the president the amount of which is based on the amount of sales subject to the contribution to the fund appearing in the certificate required under the second paragraph of section 8.1 is exempt from the obligation referred to in section 33 of the Act to transfer funds collected on account of a third person in trust; the amount is set as follows:

AMOUNT OF INDIVIDUAL SECURITY OF EXEMPTED OUTFITTER
AMOUNT OF SALES	SECURITY
Up to $0.5M	$40,000
Up to $2M	$80,000
Up to $5M	$120,000
Over $5M	$160,000

O.C. 986-2018, s. 23.

30. Mode: The security must be provided as follows:

(a)  by an individual surety bond or, in the case of security provided for in paragraph 1.01 of section 29, by a group surety bond;

(b)  in cash, by cheque, money order or bank draft made to the order of the president or, if the president is in a position to accept it, by a transfer of funds to an account held by the president in a financial institution; or

(c)  by the deposit of a bearer-bond issued or guaranteed by the Government of Canada or of one of its provinces and whose market value is at least equal to the amount payable under section 29 or 29.1.

R.R.Q., 1981, c. A-10, r. 1, s. 30; O.C. 994-86, s. 7; O.C. 546-92, s.11; O.C. 496-2010, s. 25; O.C. 986-2018, s. 24.

31. Issuance:

(1)  The security referred to in paragraph a of section 30 may be issued only by a legal person governed by the Bank Act (S.C. 1991, c. 46), the Act respecting financial services cooperatives (chapter C-67.3), the Trust Companies and Savings Companies Act (chapter S-29.02) or the Insurers Act (chapter A-32.1).

(2)  The security contemplated in paragraphs b and c of section 30 may be provided either by the applicant, or, for him, by a third party.

R.R.Q., 1981, c. A-10, r. 1, s. 31; O.C. 546-92, s. 12.

31.1. The surety bond must be drawn up on the form provided by the president and must include the undertakings and obligations provided for in sections 31.2 to 31.7. The form must indicate the date on which security is provided, be signed by the surety or the travel agent where it is provided by the travel agent and, at the request of the surety, by the principal debtor.

O.C. 496-2010, s. 26.

31.2. The surety is required to fulfill the obligation up to the amount required by section 29 or 29.1.

However, in the case of security provided by means of a group surety bond, the total amount of the bond is established at $300,000.

O.C. 496-2010, s. 26; O.C. 986-2018, s. 25.

31.3. The surety must undertake to be solidarily liable with the travel agent towards the president, in the case of individual security, or with every member of the group, in the case of group security, for the amount of the required security, to pay any sum payable under section 28. That undertaking must bind the administrators of the surety.

O.C. 496-2010, s. 26.

31.4. Where security is provided by a travel agent for himself or herself, the travel agent undertakes, for the amount of the required security, to pay any sum payable under section 28. That undertaking must bind the administrators of the travel agent.

O.C. 496-2010, s. 26.

31.5. The surety must waive the benefits of discussion and division and is subrogated to the rights of the customer compensated up to the amount paid by the surety.

O.C. 496-2010, s. 26.

31.6. The surety bond must be valid for the entire term of the licence; it must be given without any term.

The surety or travel agent may end the surety bond only on written notice of at least 90 days to the president, to which is attached proof that a copy of the notice was notified to the travel agent.

Where the licence ceases to have effect for non-payment of the duties payable for its renewal, the surety bond remains valid, if applicable, where the licence is renewed within 60 days of the date on which the licence ceases to have effect.

O.C. 496-2010, s. 26; O.C. 986-2018, s. 26.

31.7. Despite the expiry of the surety bond, the obligations of the surety continue to apply and the liability of the travel agent is incurred towards customers where

(1)  it pertains to a contract entered into while the surety bond was in force or was executed while the surety bond was in force; and

(2)  no more than 3 years have elapsed since cause of action arose and before a civil lawsuit is filed or an agreement or transaction is made.

O.C. 496-2010, s. 26.

31.8. Each licence holder covered under a group surety bond must be identified by a member certificate stating

(1)  the name of the surety;

(2)  the name of the group for which the surety stands;

(3)  the number of the group’s member certificate;

(4)  the amount of security required under section 29 or 29.1;

(5)  the number of the group surety bond and its date of issue;

(6)  an attestation that the licence holder is a member of the group and is covered by the group surety bond; and

(7)  the signature of a duly authorized representative of the surety or the association authorized by the surety and the date of issue.

O.C. 496-2010, s. 26; O.C. 986-2018, s. 27.

31.9. A travel agent who provides a surety bond provided for in paragraph c of section 30 must pay duties of $293 to cover the costs for opening a file.

O.C. 496-2010, s. 26.

32. How kept: The president shall keep the document evidencing the security contract; he shall keep in trust a security in the form of cash, cheque, postal or bank money order or deposit of bonds.

The sums provided as security are deposited with a financial institution chosen by the president and may be invested in accordance with the rules respecting investments presumed sound provided for in the Civil Code.

Those sums may also be entrusted to the Caisse de dépôt et placement du Québec according to the conditions determined between the president and the Caisse.

Income from the investment of those sums goes into the trust and may be used to reimburse the president the costs of managing the trust.

R.R.Q., 1981, c. A-10, r. 1, s. 32; O.C. 994-87, s. 7; O.C. 546-92, s. 13; O.C. 496-2010, s. 27.

33. Term:

(1)  (Paragraph revoked).

(2)  Where the security was given in cash, or by certified cheque, money order or bank draft or in the form of a bond, the amount or the title shall remain in deposit and shall be effective for a period of 3 years from the date of cancellation, and, where it has been provided under another form, the security shall remain effective for a period of 3 years from the date of cancellation.

(3)  Unless the notice is withdrawn, this security shall expire with respect to the person designated at the end of the deadline indicated.

(4)  In the case of an action brought against a travel agent within the 3 years of the date on which the cause of action arose, the security shall remain liable up to the final judgment and up to the extent of the total amount of the claims in capital, interest and costs, sent to the president and the fines and costs as the case may be.

R.R.Q., 1981, c. A-10, r. 1, s. 33; O.C. 994-86, s. 6; O.C. 496-2010, s. 28; O.C. 986-2018, s. 28.

34. Obligations:

(1)  For the term of the security, in the case of an action brought against him, every travel agent must immediately deposit a copy of the action with the president.

(2)  In the case of an action brought against a travel agent by a customer, the latter must immediately notify the president by depositing with him a copy of the action.

R.R.Q., 1981, c. A-10, r. 1, s. 34; O.C. 994-86, s. 7.

35. Keeping in effect: A licensee must permanently maintain, for the term of the licence, a security equal to the amount required in section 29 or 29.1.

R.R.Q., 1981, c. A-10, r. 1, s. 35; O.C. 986-2018, s. 29.

35.1. Where recourse to the security is necessary, the president shall notify the surety and declare the security payable where it is provided in the form of a security contract or realize on the security provided in any other form.

O.C. 962-2004, s. 23.

36. Return: Where the deadlines prescribed in section 33 have expired and, where applicable, where the deadline for the appeal from a judgment has expired or a judgment has been confirmed by the highest competent court, the president may remit the amount of the security or the balance to the person who has provided it.

R.R.Q., 1981, c. A-10, r. 1, s. 36; O.C. 994-86, s. 7.

DIVISION XII INDEMNITY FUND

R.R.Q., 1981, c. A-10, r. 1, Div. XII; O.C. 962-2004, s. 24.

37. (Revoked).

R.R.Q., 1981, c. A-10, r. 1, s. 37; O.C. 994-86, s. 7; O.C. 962-2004, s. 24; O.C. 986-2018, s. 30.

38. (Revoked).

R.R.Q., 1981, c. A-10, r. 1, s. 38; O.C. 449-90, s. 12; O.C. 546-92, s. 14; O.C. 473-2000, s. 14; O.C. 962-2004, s. 24; O.C. 496-2010, s. 29; O.C. 986-2018, s. 31.

39. Subject to section 39.1, the amount of the contribution of customers of travel agents is calculated by multiplying the total cost of the purchased tourist services by a percentage varying according to the surplus accumulated in the Fonds d’indemnisation des clients des agents de voyages as of the preceding 31 March; the percentage is set as follows:

CONTRIBUTION TO THE FUND
Surplus accumulated in the fund	Percentage of tourist services
Up to $75M	0.35%
Up to $100M	0.20%
Over $100M	0.10%

Where applicable, the change to the percentage applicable to the calculation of the contribution takes effect on 1 January of the year following the submission of the financial statements indicating the surplus accumulated in the fund as of 31 March.

The contribution must be collected by the travel agent dealing directly with the customer.

R.R.Q., 1981, c. A-10, r. 1, s. 39; O.C. 962-2004, s. 24; O.C. 496-2010, s. 30; O.C. 986-2018, s. 32.

39.01. Despite section 39, where the financial statements of the Fonds d’indemnisation des clients des agents de voyages indicate that the surplus accumulated in the fund as of 31 March is equal to or greater than $125M, the customers of travel agents are credited the amount of the contribution to the fund.

In that case, the travel agent must, on the receipt remitted in accordance with section 18, indicate

(a)  the amount corresponding to the contribution calculated by multiplying the total cost of the purchased tourist services by 0.10%; and

(b)  on the subsequent line, after the mention “Credit applicable”, the amount corresponding to a credit of a value equivalent to the amount calculated in accordance with subparagraph a.

The terms and conditions take effect on 1 January of the year following the submission of the financial statements of the fund.

The terms and conditions are maintained until the financial statements of the fund indicate a surplus accumulated in the fund as of 31 March of $75M or less. The obligation to contribute to the fund, in accordance with section 39, resumes on 1 January of the year following the submission of the financial statements of the fund.

O.C. 986-2018, s. 33.

39.1. A customer that is any of the following is exempt from paying the contribution to the fund referred to in section 39 provided that the customer obtains an exemption certificate and provides a copy of the certificate to a travel agent before entering into a tourist service contract:

(a)  a diplomatic mission or consular corps established in Canada;

(b)  an international government body that has entered into an agreement with the Government with respect to its establishment in Québec;

(c)  a permanent mission of a foreign State accredited with an international body referred to in subparagraph b;

(d)  an international non-government body with a tax exemption under an agreement entered into with the Government with respect to its establishment in Québec;

(e)  an office of a province, State or similar division of a foreign State, recognized by the Minister of Finance;

(f)  a person employed by one the those international representations or bodies, if the person

i.  is registered with the Ministère des Relations internationales;

ii.  is not a Canadian citizen or permanent resident of Canada;

iii.  must reside in Canada by reason of the person’s duties; and

iv.  does not operate a business in Canada and holds no office or employment in Canada other than the person’s duties with the representation or international body.

The exemption certificate is issued by the president on written request submitted by the Ministère des Relations internationales for the benefit of the customer.

The customer who prevailed himself of the exemption may not receive an indemnity or reimbursement under sections 43.7 to 43.14.

O.C. 496-2010, s. 31; O.C. 986-2018, s. 34.

40. A travel agent must, not later than the last day of the month following the end of each half of the agent’s fiscal year or, if the amount of the sales of tourist services subject to the contribution to the fund, as indicated in the financial statements required under section 7 or the certificate required under section 8.1, exceeds $5M, not later than the last day of the month following the end of each quarter of the agent’s fiscal year, remit the contributions to the president, less management expenses of 5% of the contributions collected.

A travel agent who ceases activities, whose licence ceases to have effect or whose licence has been cancelled, suspended or not renewed by the president must, within 30 days of the cessation or notification of the president’s decision, forward the contributions to the president, less the management expenses provided for in the first paragraph.

A licence holder or other officer must, within the period prescribed by the first paragraph, sign and send a report to the president indicating

(a)  the amount of the sales subject to the contribution;

(b)  the total of the contributions collected; and

(c)  the amount remitted.

The travel agent who does not remit the report or the contributions collected within the period provided for in the first and second paragraphs must add to those contributions, as penalty, the highest of the following sums: $50 or a sum representing 10% of the contributions to be remitted.

Where section 39.01 applies, a travel agent is exempt from collecting the contributions and sending the report. Despite the foregoing, the travel agent must send to the president the contributions collected before the date referred to in the third paragraph of section 39.01 and the report not later than 28 February following that date.

R.R.Q., 1981, c. A-10, r. 1, s. 40; O.C. 994-86, s. 7; O.C. 962-2004, s. 24; O.C. 496-2010, s. 32; O.C. 986-2018, s. 35.

41. (Revoked).

R.R.Q., 1981, c. A-10, r. 1, s. 41; O.C. 994-86, s. 7; O.C. 962-2004, s. 24; O.C. 496-2010, s. 33.

42. (Revoked).

R.R.Q., 1981, c. A-10, r. 1, s. 42; O.C. 546-92, s. 15; O.C. 473-2000, s. 15; O.C. 962-2004, s. 24; O.C. 496-2010, s. 33.

43. The sums making up the Fonds d’indemnisation des clients des agents de voyages must be deposited with the financial institution chosen by the president and may be invested in accordance with the rules pertaining to investments presumed sound set out in the Civil Code.

The sums may also be deposited with the Caisse de dépôt et placement du Québec according to the terms and conditions determined by the president and the Caisse.

R.R.Q., 1981, c. A-10, r. 1, s. 43; O.C. 994-86, s. 7; O.C. 449-90, s. 13; O.C. 962-2004, s. 24; O.C. 986-2018, s. 36.

43.1. Fund management expenses are chargeable to the fund.

O.C. 962-2004, s. 24.

43.2. The president shall pay out of the fund

(a)  (paragraph revoked);

(b)  (paragraph revoked);

(c)  (paragraph revoked);

(d)  (paragraph revoked);

(e)  the administrative expenses and the fees of a provisional administrator or a claims manager;

(f)  advances made by the Minister of Finance;

(g)  (paragraph revoked).

O.C. 962-2004, s. 24; O.C. 496-2010, s. 34; O.C. 986-2018, s. 37.

43.3. The total amount of the indemnities per event may not exceed 60% of the surplus accumulated in the fund as of the preceding 31 March or be less than $30M.

O.C. 962-2004, s. 24; O.C. 496-2010, s. 35; O.C. 986-2018, s. 38.

43.4. (Revoked).

O.C. 962-2004, s. 24; O.C. 986-2018, s. 39.

43.5. (Revoked).

O.C. 962-2004, s. 24; O.C. 986-2018, s. 40.

43.6. The president may use, annually, the higher of the following sums: $250,000 or a sum representing 5% of the income from the investment of the sums accumulated in the fund, to finance information and education campaigns for customers of travel agents with regard to their rights and obligations under the Acts under the supervision of the Office de la protection du consommateur.

O.C. 496-2010, s. 36; O.C. 986-2018, s. 41.

43.7. In the case provided for in paragraph a of section 30.4 of the Act, the president reimburses to the customer

(a)  the sums paid by the customer to the travel agent for the service that was not performed by the supplier in default; and

(b)  where applicable, the sums paid by the customer to the travel agent for a tourist service, other than the service referred to in paragraph a, of which the customer could not benefit owing to the default of the supplier. If the customer has partially benefited from a tourist service, the reimbursement of the service is proportionate to the unused service.

O.C. 986-2018, s. 42.

43.8. In the case provided for in paragraph b of section 30.4 of the Act, the president may reimburse to the customer

(a)  the reasonable costs paid to replace the tourist benefit not performed owing to the default of the supplier;

(b)  the other reasonable costs paid owing to the default of the supplier, such as

i.  living and accommodation expenses up to a maximum amount of $205 per day per person;

ii.  where applicable, the costs paid to ensure a departure or repatriation required under the circumstances.

O.C. 986-2018, s. 42.

43.9. Cases in which a customer may not prevail himself of tourist services the customer has paid due to the following reasons constitute a reason outside the customer’s control for the purposes of section 30.5 of the Act:

(a)  a non-compliant performance of a tourist service that deprives the customer from benefiting from the performance of another tourist service paid to the travel agent;

(b)  the dissemination, after the purchase of a tourist service, of an official warning from a Canadian public authority to avoid all travel or avoid non-essential travel to the destination;

(c)  the occurrence of an event for which a default of the supplier is foreseeable.

O.C. 986-2018, s. 42.

43.10. In the cases provided for in section 30.5 of the Act, the president may reimburse to the customer:

(a)  the sums paid by the customer to the travel agent for the service the customer did not benefit from. If the customer has partially benefitted from a tourist service, the reimbursement of the service must be proportionate to the unused service;

(b)  the reasonable costs paid to replace the tourist benefit the customer did not benefit from;

(c)  the other reasonable costs paid owing to the event that prevents the customer from availing himself of other tourist services such as

i.  living and accommodation expenses up to a maximum amount of $205 per day per person;

ii.  where applicable, the costs paid to ensure a departure or repatriation required under the circumstances.

O.C. 986-2018, s. 42.

43.11. In the cases provided for in paragraphs a and b of section 30.4 and section 30.5 of the Act, on presentation of proof required to show the eligibility and value of the claim, the president may reimburse to the travel agent the reasonable sums the agent reimbursed to the agent’s customer or paid for the benefit of the customer in accordance with sections 43.7, 43.8 and 43.10.

No travel agent may be reimbursed by the fund if otherwise paid or reimbursed.

O.C. 986-2018, s. 42.

43.12. In the cases provided for in paragraph b of section 30.4 and section 30.5 of the Act, the president, on presentation of proof required to show the value of the tourist benefit and on other conditions determined by the president, may mandate a travel agent or supplier and pay them directly the reasonable costs to ensure the departure or repatriation of a customer required under the circumstances.

O.C. 986-2018, s. 42.

43.13. In case of insufficient security, the president pays to the customer the sums required

(a)  to compensate in capital, interest and costs of a final judgment, but excluding punitive damages, and any sum greater than $500 granted to compensate moral damage, in the cases referred to in subparagraph a of the first paragraph of section 28;

(b)  to reimburse a sum paid to the travel agent for the provision of a service not yet provided in the cases referred to in subparagraph b of the first paragraph of section 28.

The president may, instead of reimbursing to the client the sum referred to in subparagraph b of the first paragraph, pay the sums required to ensure the departure or repatriation of the customer.

O.C. 986-2018, s. 42.

43.14. Where the president receives a claim under section 43.8, 43.10, 43.11 or 43.12, the president assesses the reasonableness of the costs claimed taking into consideration that the claimant or the customer may not benefit from unjustified enrichment and that he must minimize damages.

O.C. 986-2018, s. 42.

DIVISION XIII

(Revoked)

R.R.Q., 1981, c. A-10, r. 1, Div. XIII; O.C. 962-2004, s. 25.

44. (Revoked).

R.R.Q., 1981, c. A-10, r. 1, s. 44; O.C. 994-86, s. 7; O.C. 546-92, s. 16; O.C. 1420-2002, s. 2; O.C. 962-2004, s. 25.

DIVISION XIV

(Revoked)

R.R.Q., 1981, c. A-10, r. 1, Div. XIV; O.C. 496-2010, s. 37.

45. (Revoked).

R.R.Q., 1981, c. A-10, r. 1, s. 45; O.C. 496-2010, s. 37.

DIVISION XV PENAL

O.C. 962-2004, s. 26.

46. Every person who contravenes section 22, 22.01, 23, 24, 25, 26 or 27 commits an offence against section 33 of the Act and is liable to the fine under section 39 of the Act.

O.C. 962-2004, s. 26; O.C. 496-2010, s. 38.

47. Every person who contravenes any of sections 11.6, 12, 12.1, 13, 13.1, 13.1.1, 13.2, 14, 14.1, 15, 16, 17, 18, 19, 20, 22.1, 34, 35, 39, 39.01 or 40 commits an offence and is liable to the fine under section 40 of the Act.

O.C. 962-2004, s. 26; O.C. 496-2010, s. 39; O.C. 986-2018, s. 43.

DIVISION XVI ADVISORY COMMITTEE

O.C. 962-2004, s. 26.

48. The Comité consultatif des agents de voyages is hereby established.

O.C. 962-2004, s. 26.

49. The committee shall be composed of the president of the Office de la protection du consommateur and 8 members appointed by the Minister.

Four members shall be appointed after consultation with representatives of the travel sector, 2 after consultation with consumer representatives and 2 to represent the Administration.

O.C. 962-2004, s. 26.

50. The term of the members, excluding the president, may not exceed 3 years; however, 3 of the first members of the committee shall be appointed for 3 years, 3 for 2 years and 2 for 1 year.

The term of a member may be renewed consecutively only once. At the end of their terms, the members shall remain in office until replaced or re-appointed.

O.C. 962-2004, s. 26.

51. Any vacancy during a term must be filled in accordance with the rules of appointment set out in section 49 for the unexpired portion of the term.

O.C. 962-2004, s. 26.

52. The members of the committee, other than those representing the Administration, are entitled, on the conditions and to the extent determined by the Government, to be reimbursed for expenses incurred to attend meetings of the committee.

O.C. 962-2004, s. 26.

53. The president shall chair the committee.

The president may designate a person to act as substitute chair.

The president shall also designate a member of the staff to act as secretary of the committee.

O.C. 962-2004, s. 26.

54. A majority of the members constitutes a quorum and the president has a casting vote in the case of a tie-vote.

The committee may adopt an internal by-law. The by-law may provide that absence from a specific number of meetings constitutes a vacancy in the cases and circumstances specified in the by-law.

O.C. 962-2004, s. 26.

55. The committee shall meet at least 3 times a year, at the call of the president.

The president shall also hold a meeting of the committee at the request of the Minister or of at least 3 members of the committee.

O.C. 962-2004, s. 26.

56. The function of the committee is to advise the Minister on all issues concerning the activities of travel agents.

The committee must also advise the Minister on any matter referred to it by the Minister relating to the activities of travel agents.

O.C. 962-2004, s. 26.

57. The committee sends to the Minister, not later than 30 June of each year, a report on its activities for the preceding financial year.

O.C. 962-2004, s. 26; O.C. 986-2018, s. 44.

SCHEDULE

(Revoked)

O.C. 473-2000, s. 16; O.C. 962-2004, s. 27; O.C. 496-2010, s. 40.

SCHEDULE A

(Replaced)

R.R.Q., 1981, c. A-10, r. 1, Sch. A; O.C. 994-86, s. 8; O.C. 546-92, s. 17; O.C. 473-2000, s. 16.

SCHEDULE B

(Revoked)

R.R.Q., 1981, c. A-10, r. 1, Sch. B; O.C. 994-86, s. 8; O.C. 546-92, s. 18.

TRANSITIONAL

2018

(O.C. 986-2018) SECTION 45. Sections 43.7 to 43.14, introduced by section 42 of this Regulation, apply where the facts giving rise to indemnification or reimbursement occur after the coming into force of this Regulation. Despite the foregoing, section 43.13 also applies where the facts giving rise to indemnification or reimbursement occurred before the coming into force of this Regulation.

SECTION 46. Subparagraphs b, c and d of the first paragraph of section 43.2, struck out by section 37 of this Regulation, continue to apply to the facts giving rise to indemnification and reimbursement that occurred before the coming into force of this Regulation.

2010

(O.C. 496-2010) SECTION 41. Holders of only one travel agent licence of the retail or wholesale class on the coming into force of this Regulation (2010-06-30) are considered to hold a general licence and that licence is considered not to have a term.

The travel agent licence of the retail class and the travel agent licence of the wholesale class held by the same holder are kept in force until the date of their renewal. At the time of renewal, the licence of the wholesale class is cancelled and the licence of the retail class is considered to be a general licence.

SECTION 42. The obligation for a travel counsellor to pass the examination required under section 11.2 for the issue of a certificate is postponed to 1 July 2012.

SECTION 43. Every person acting as travel counsellor at the time of coming into force of this Regulation (2010-06-30) must obtain a certificate in accordance with section 11.4 not later than 1 January 2011.

SECTION 44. Adventure travel organizers, outfitters and regional tourist associations that are required to hold a restricted licence must obtain that licence not later than 1 January 2011.

SECTION 45. The new amount of the individual surety bond for travel agents applies to holders of an existing licence upon the renewal of the licence on its anniversary date.

REFERENCES

R.R.Q., 1981, c. A-10, r. 1

S.Q. 1981, c. 23, ss. 3 and 4

O.C. 994-86, 1986 G.O. 2, 1361

O.C. 449-90, 1990 G.O. 2, 697

O.C. 546-92, 1992 G.O. 2, 2345

O.C. 601-94, 1994 G.O. 2, 1587

O.C. 473-2000, 2000 G.O. 2, 2078

O.C. 1420-2002, 2002 G.O. 2, 6488

O.C. 962-2004, 2004 G.O. 2, 2978

O.C. 1153-2004, 2004 G.O. 2, 3592

O.C. 496-2010, 2010 G.O. 2, 1395A

O.C. 986-2018, 2018 G.O. 2, 3228

S.Q. 2018, c. 23, s. 811