Bill
SB 922
Maryland travel sellers/agents must post financial security (bond, CD/LOC, or insurance) and annually file with MD Labor to fund consumer reimbursements for fraud or failure.
(“Don’t You Worry (Wurie) Act”)
Status & Timeline
- Introduced: Jan. 24, 2025 (filed in Senate). Hearing scheduled Feb. 19, 2025 (1:00 p.m.).
- Effective date in the introduced Maryland bill text: October 1, 2025 (if enacted as written).
Purpose / Intent
- To protect consumers who purchase travel services by requiring Maryland-based (or offering to Maryland residents) sellers of travel and certain independent agents to file evidence of financial security with the Maryland Department of Labor (MD Labor). The measure is intended to ensure funds are available to reimburse customers harmed by fraud, financial failure, or breaches in delivery of purchased travel services.
Key definitions
- Seller of Travel: person located in the State or offering travel services to Maryland residents, who arranges/provides travel reservations/accommodations, tickets, car rentals, sightseeing tours, etc., and receives payment directly from purchasers or suppliers. (Specified entities—e.g., common carriers, many hotels—are excluded.)
- Independent Agent: person who arranges/provides travel services but does not receive payment directly from the purchaser, does not possess ticket stock, and cannot issue travel documents.
Main requirements / provisions
- Annual filing: Each covered seller of travel and each independent agent must file annually with MD Labor evidence of financial security and (for sellers) a list of affiliated independent agents.
- Filing fee: $300 per annual filing.
- Required financial security (by annual gross income from business in Maryland):
- <$200,000: $10,000 bond
- $200k–$499,999: $20,000 bond
- $500k–$749,999: $30,000 bond
- $750k–$999,999: $40,000 bond
- ≥$1,000,000: $50,000 bond
- Alternatives to the surety bond:
- Certificate of deposit or irrevocable letter of credit equal to bond amount;
- Professional liability / errors & omissions insurance of $1,000,000;
- Deposit to MD Labor of $50,000 cash, or securities worth $50,000, or an institutional guarantee, or a security interest in property valued at $50,000.
- Use of funds: Bond or alternative security payable/available to persons who sustain monetary loss because of fraud, misrepresentation, breach of contract, financial failure, or violation of the subtitle — or for whom services were not delivered due to wrongful acts by the seller/agent or their employees/agents.
- OAG Division of Consumer Protection and MD Labor duties: Provide reasonable notice of requirements to consumers and sellers; enforce subtitle provisions.
- Compliance restriction: A seller or agent may not accept payment from customers for travel services unless annual filing requirements are current at the time of receipt.
Penalties
- Individuals: misdemeanor; fine up to $10,000 for a first offense; up to $50,000 for subsequent offenses.
- Business entities: misdemeanor; fine up to $50,000 for a first offense; up to $100,000 for subsequent offenses.
Fiscal and economic impacts (per fiscal note)
- State revenues: estimated ~$99,000 annually from the $300 filing fees (approx. 330 affected entities).
- State expenditures: initial MD Labor staffing and operating costs estimated at ~$115,200 in FY2026 (net negative in first years); ongoing costs for enforcement and administration possible.
- Small business effect: meaningful — small travel businesses will likely face costs to obtain bonds/insurance or post deposits and pay annual fees.
Who is affected
- Primary: Maryland sellers of travel and covered independent agents (including many small travel agencies and brokers).
- Secondary: Maryland consumers (increased financial protections), MD Labor and OAG (administration/enforcement), surety/insurance markets (demand for bonds or E&O coverage).
Practical implications
- Travel businesses must assess whether they fall within the statutory definition, select an approved form of security (bond, CD/LOC, insurance, or deposit), budget for the $300 filing fee and possible additional compliance costs, and ensure filings remain current before accepting payments.
- Consumers gain a statutory reimbursement source for certain losses caused by seller misconduct or failure.
Sources
- Bill text and fiscal note (Maryland Department of Legislative Services) as introduced; definitions, bond schedule, filing fee, enforcement and penalties summarized from the bill text.
Compiled from official sources — confirm details with the bill’s official record.
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