San Marcos Municipal Code Ch. 5.32 Aircraft Ticket Brokers

For the purposes of this chapter, the following definitions shall apply:

(a)

Aircraft means all vehicles of flight which are licensed to carry four or more passengers whether takeoff is from land or water.

(b)

Aircraft transportation broker and/or aircraft transportation brokerage business means any person engaged in the sale, solicitation or procurement of air transportation or the issuance or promise to issue any ticket, reservation, script, receipt or any other token for passenger space on any aircraft other than by the owner or operator of one or more aircraft or his authorized agent.

The applicant, with his application, shall file a surety bond executed by such applicant as principal, with a surety company authorized to do business in this State in the sum of $5,000.00 conditioned for the faithful and honest conduct of business by the applicant and/or his employees or agent. Such bond as to form, execution and sufficiency shall be approved by the City Attorney. The bond required by this section shall be taken in the name of the people of this State and every person injured by the willful, malicious or wrongful act of the principal acting in the course and scope of his occupation or business or by any official, agent or employee of said principal acting in the course or scope of his employment or agency, may bring an action on the bond in his own name to recover damages suffered by reason of said willful, malicious or wrongful act.

The procedure to follow, except as otherwise provided in this chapter, in obtaining a license is that set forth in the uniform licensing procedure, set out in Chapter 5.04. The fee for a license shall be $10.00.

Such license, if issued, shall entitle the applicant and/or his officers, employees and agents to engage in the business of air transportation brokers subject to the further restrictions of this chapter.

No person, whether licensed under this chapter or not, who is not the owner or operator of one or more aircraft or the salaried employee or authorized agent of the owner or operator of one or more aircraft shall in the course or scope of his business or occupation make any statement or representations or advertise, either in writing or by word of mouth, that he can provide or arrange or sell any ticket, reservation, script, receipt, or any other token for passenger space on any aircraft leaving or arriving at any specified place and/or at any specified or approximate time unless he has at the time he makes such statement, representation or advertisement, a legally enforceable contract with the owner or operator of the aircraft for such passenger space.

Any person, whether licensed or not, who engages in the aircraft transportation brokerage business shall keep as reserve surplus an amount equal to five percent of the previous month's gross returns in the operation of such business either at his place of business, on his person, or in a depository licensed under the laws of this State. Said reserve shall be used only for the purpose of making refunds to

clients or customers for the inability of such person to perform its contract of furnishing such transportation to any client or customer or for any damages arising out of such failure of performance. Failure to disclose information necessary to evidence compliance with this section to the County Auditory or his authorized deputy shall render the license null and void.