§468L-24 Maintenance of charter tour operator accounts. (a) Every charter tour operator shall maintain adequate books and records that provide for a proper accounting of total qualified charter tour client trust assets and qualified charter tour client trust liabilities for all charter tours for which funds have been accepted.
(b) Every charter tour operator shall maintain in its books and records a charter tour trust liability account for the purpose of accounting for qualified charter tour client trust liabilities.
(c) The charter tour trust liability account shall only be adjusted in the following manner:
(1) The charter tour trust liability account shall be reduced by the amount of actual payments made by the charter tour operator for air transportation, hotel accommodations, baggage handling, or ground transportation charges with respect to the charter tour operator's current obligations to provide travel services or to past travel services provided by the charter tour operator; provided that the charter tour trust liability account shall not be reduced for any expenditure which constitutes a qualified prepaid charter tour client trust asset;
(2) The charter tour trust liability account shall be reduced by the amount of payments made by the charter tour operator of federal transportation taxes that are payable as a result of a charter tour and for commissions payable to third party travel agents; and
(3) Only after:
(A) All of the liabilities described in paragraphs (1) and (2) with respect to a specific charter tour have been satisfied through payment;
(B) The obligation to provide travel services has been fully provided; and
(C) The travel has been completed;
then and only then, may any funds remaining in the charter tour client trust account relating to the specific charter tour be withdrawn from the charter tour client trust account and deposited into the general accounts of the charter tour operator, and the charter tour trust liability account shall be reduced by the amount so withdrawn from the charter tour client trust account. [L 1999, c 258, pt of §3]
Structure Hawaii Revised Statutes
Title 25. Professions and Occupations
468L-2 Registration and renewal.
468L-2.5 Denial of registration.
468L-3 Powers and duties of the director.
468L-4 Statement required to be furnished to consumer.
468L-5 Client trust accounts; maintenance of and withdrawal from such accounts.
468L-5.5 Recordkeeping requirements for client trust accounts.
468L-5.6 Violations; summary suspension; penalties.
468L-6 Disclosure on airline awards.
468L-10 Consumer right of action.
468L-21 Charter tour operator registration as travel agency required.
468L-22 Charter tour operator financial performance requirements.
468L-23 Charter tour client trust account.
468L-24 Maintenance of charter tour operator accounts.
468L-25 Maintenance of qualified charter tour client trust assets by charter tour operators.
468L-26 Quarterly report filing requirements for charter tour operators.