2004 Legislative Priorities
The ASTA Board of Directors established the following issues as new legislative priorities for 2004:

Department of Homeland Security
Seek a high-level advisory body inside the Department of Homeland Security/Transportation Security Administration to serve as a guide/filter for developments of security policy and announcements that have an adverse effect on the demand for travel.

Federal Trade Commission
Shift the jurisdiction over travel agencies from the Department of Transportation to the Federal Trade Commission exclusively.

Federal Communications Commission
Pursue legislation that prevents the Federal Communications Commission from issuing harmful fax regulations.

Anti-Money Laundering Regulatory Issue Still Pending
ASTA will also continue to monitor actions related to the U.S. Treasury Department’s Advance Notice of Proposed Rulemaking (ANPRM) on Federal Crimes Enforcement Network on Anti-Money Laundering Programs for Travel Agencies. ASTA filed comments on April 15, 2003, stating that travel agencies should be exempted from formal regulation.

2004 Government Affairs Overall Activities

One Last Push for S. 2845 and S. 2603
To ensure that ASTA's pending legislative initiatives pass this year during the brief congressional session in December, Society members must get actively involved by contacting their elected officials to seek floor action for the National Intelligence Reform Act (S. 2845) and the Junk Fax Prevention Act (S. 2603). Travel agents can make a difference in getting these bills enacted; all it takes is a phone call to your two U.S. Senators and your U.S. Representative.

ASTA continues to support language in the National Intelligence Reform Act (S. 2845) that extends Sec. 145 of the 2001 Aviation and Transportation Security Act. The extension affords consumers assurance that efforts will be made to provide them with transportation in the event that a financially distressed carrier actually ceases operation. Section 145 expired on Nov. 19, 2004.

If the Junk Fax Prevention Act (S. 2603) does not pass in December, there will be a six-month window in which to get a new bill passed during the new Congress or to comply with the Federal Communications Commission's decision to require signed written consent before sending a commercial fax.

Congress Returns for Lame-Duck Session; ASTA Has Unfinished Legislation
With elections over, Congress returned to Washington on November 15 facing such unfinished business as completing nine appropriation bills and passing legislation to raise the debit limit by November 18 so the U.S. government does not default. The quick solution to this unfinished business is an omnibus-spending bill. The House has already set aside Wednesday, November 17 for consideration of such a bill and seeks to move it to the Senate as soon as possible.

Unless Sen. Boxer (D-Calif.) removes her hold on the Junk Fax Prevention Act, this bill will die in the lame-duck session. ASTA members are encouraged to immediately contact Boxer's office at 202-224-3553 and ask that she lift her hold and allow the Senate to vote on the bill.

ASTA is also supporting amendment language in the National Intelligence Reform Act that extends Sect. 145 of the 2001 Aviation and Transportation Security Act. The extension affords consumers assurance that efforts will be made to provide them with transportation in the event that a financially distressed carrier actually ceases operation. Section 145 is valid through November 19, 2004.

ASTA Makes Headway on Pennsylvania Travel Legislation
As a result of an October 20 meeting with seven Pennsylvania travel agents, tour operators and the chair of the Pennsylvania House Tourism and Recreational Development Committee, ASTA has made important progress regarding proposed state consumer protection legislation that would have strictly regulated Pennsylvania’s travel agencies and tour operators. The meeting, held in conjunction with the National Tour Association (NTA) and Rep. Robert Godshall agreed to work together to find a solution that would protect consumers without placing undue burdens on the travel industry.

In May of this year, Mr. Godshall held a hearing on the seller of travel legislation at which representatives of ASTA and NTA testified. On September 10, ASTA and the Interactive Travel Services Association (ITSA) submitted extensive comments and analysis on the draft legislation. The response led to the revised version of the travel agent regulatory legislation about which prompted the October 20 meeting.

Delayed Passage for Junk Fax Bill
The U.S. Senate failed to vote on the Junk Fax Prevention Act (S. 2603/HR. 4600) before leaving town for a five-week election break on October 11. Sen. Barbara Boxer (D-CA) placed a hold on S. 2603 seeking to amend the legislation to include a “do not fax” registry. The legislation, which passed the House on July 20, 2004, provides common sense in regulatory relief to the Federal Communication Commission’s (FCC) 2003 revised rules that require prior written consent before transmitting faxes containing commercial content. Congress returns on Nov. 15 for a lame-duck session, and enactment of this legislation solely depends on Sen. Boxer’s actions. ASTA members should contact Boxer’s Washington, D.C., office at 202-224-3553 or her California District offices: San Francisco, 415-403-0100; Los Angeles, 213-894-5000; San Diego, 619-239-3884; Fresno, 559-497-5109; San Bernardino, 909-888-8525; Sacramento, 916-448-2787, as soon as possible requesting she lift her block on the S. 2603.

ASTA Urges U.S. House to Extend Air Traveler Protection
On October 7, ASTA president Kathryn Sudeikis urged the House of Representatives to act favorably on the extension of protection for consumes holding tickets on non-operating airlines, prior to Congress’ adjournment.

Section 145 provides that airline passengers holding tickets from a bankrupt carrier for a particular route are entitled, at minimum, to transportation on a space-available basis on any airline currently serving that route within 60 days after an airline has suspended operations. Additionally, the maximum fee that an airline can charge for providing standby transportation should not exceed $25 each way. However, these protections are currently due to expire November 19. Extension for the authorization of this requirement is contained in The National Intelligence Reform Act, passed by the Senate October 6. The President is expected to sign the final intelligence bill.

FCC Delays Effective Date of Fax Ban Rule
The Federal Communications Commission (FCC) announced on October 1, that it would extend for six months, through June 30, 2005, the effective date for its determination that an established business relationship will no longer be sufficient to show that an individual or business has given prior express permission to receive unsolicited faxes. ASTA is part of a coalition that filed with the FCC requesting that the stay of the rules be extended for six months to have time to get legislation passed that does not require permission for those faxes.

ASTA Advocacy Dinner
Over two hundred ASTA delegates gathered to celebrate the Society’s advocacy role before Congress, in the state legislatures and within the travel and tourism industry. On September 30 attendees had a chance to meet with special guests, Doris Kearns Goodwin, political analyst, and the Honorable Jim Santini, four-term member of Congress. This black tie event allowed members to mingle with top industry leaders and recognize the impact ASTA’s advocacy programs have on travel and tourism issues worldwide.

Recognizing Volunteers
ASTA appreciates the many members who voluntarily testified before Congress, State Legislatures and who participated in federal government fact-finding industry reviews. * denotes federal appointees to the National Commission

Sausage Seminar
At ASTA’s World Congress in Hong Kong, on September 28 in Government Affairs conducted a seminar entitled, See How the Sausage is Made; ASTA & Its Allies at the Political Front. Members had a unique opportunity to hear from key industry “movers and shakers, “ sharpen political skills, find out what’s transpiring in Washington, DC and the 50 states, learn about the Society’s grassroots efforts, hear firsthand about industry issues and battles as well as join NOVA-Now One Voice-ASTA. This program seeks politically minded agents willing to go the extra mile in ASTA’s advocacy role i.e. testifying before congress, participating in federal and state stakeholder meetings and contacting elected officials when called upon.

ASTA Files on CAN-SPAM
ASTA, along with a wide range of trade associations, filed comments on Monday, Sept. 13 with Donald S. Clark, Secretary of the Federal Trade Commission, in response to the FTC’s CAN-SPAM proposed rule. The comments specifically addressed the clarification on the definition of the primary purpose of an e-mail message. It is important for the FTC to provide a clear standard on the definition as many businesses today depend on e-mail as a medium for commerce and communications.

Extension Petition Filed at FCC
The Fax Ban Coalition filed a petition on Aug. 10 with the Federal Communications Commission (FCC) requesting that the implementation of new fax rules be extended from Jan. 1, 2005, to June 30, 2005. The purpose of the extension is to provide Congress with additional time in September to enact the Junk Fax Prevention Act (H.R. 4600/S. 2603), which has passed the House by a voice vote. The Senate Companion bill was reported out of the Senate Commerce Committee on July 22, 2004, and the full Senate is expected to vote on S. 2603 when Congress reconvenes in September.

Passage of this legislation requires continued ASTA grassroots involvement throughout the summer months to ensure a victory when Congress returns in September. When visiting with your elected leaders, encourage their support for this legislation.

ASTA Issues Call for Action on Fax Bill
The Senate Commerce Committee intends to markup S. 2603, the Junk Prevention Act, on July 22. ASTA members were sent a “Call to Action” today urging them to contact the Senate Commerce members seeking support for S. 2603 as introduced and vote against any amendments offered during the session. The Federal Communications Commission (FCC), along with the support of several state Attorneys General, are requesting that S. 2603 be modified to redefine an Established Business Relationship (EBR). H.R. 4600, the companion bill, is expected to reach the House for a floor vote on Wednesday morning.

Senators Introduce Companion Fax Ban Legislation
Senators Gordon Smith (R-OR), George Allen (R-VA), Fritz Hollings (D-SC) and John Sununu (R-NH) introduced S. 2603 on June 24 and added Sen. John Breaux as a co-sponsor on June 25. S.2603 is the companion bill to the "Junk Fax Prevention" bill, H.R. 4600, which was reported out of the House Energy and Commerce Committee by a voice vote on June 24. ASTA members are urged to contact their members of Congress today seeking support for, and quick passage of, this legislation.

House Subcommittee Holds Junk Fax Hearing
Rep. Fred Upton (R-MI), chairman of the House Subcommittee on Telecommunications and the Internet, held a hearing on June 15 regarding the Junk Fax Prevention Act of 2004. According to Rep. Upton, the legislation provides common sense in regulatory relief to the Federal Communication Commission’s (FCC) 2003 revised rules that require prior written consent before transmitting faxes containing commercial content. ASTA participated in the drafting of the bipartisan bill that is to be introduced on June 16. Society members will be called upon to partake in grassroots efforts seeking the bill’s enactment by year's end.

ASTA Supports SBA’s Reclassification of Agency Size Standards
In a June 14 letter to the Small Business Administration (SBA), ASTA praised the agency for its intention to change the travel agency industry size standard from its current level of $3 million in revenue to an employee-based standard. Under the proposed rulemaking, a small travel agency would now be defined as having fewer than 50 employees rather than $3 million in annual revenues. In its letter, however, the Society strongly urged the SBA to take its reclassification a step further by raising the number of employees to 100.

ASTA Files Recommendations to FTC on Spam Act
On April 27, ASTA, on behalf of the Society, the Cruise Lines International Association (CLIA) and the National Tour Association (NTA), recently responded to the Federal Trade Commission’s (FTC) CAN-SPAM Act rulemaking regarding management of commercial e-mail, in which it addressed matters that strongly affect travel agents and the travel industry. ASTA also is a signatory on a letter to FTC Secretary Donald Clark sent by the Society and 22 other associations, which addresses these issues in broader policy terms.

DOT Withdraws Proposed Amendments to Policy Statement
The Department of Transportation (DOT) had proposed to amend its existing policy statement on fare advertising, which requires airlines and travel agents to disclose the full price for an airline ticket (including all airline surcharges and most government fees) by applying the policy statement to computer reservations systems (CRSs) and requiring travel agents to separately state the amount of any service fees charged by the travel agency. On April 20, after considering the comments, the Department has decided to withdraw the proposals, because the record does not persuasively show that they are necessary or would be beneficial. The existing policy statement will remain in effect without change. ASTA opposed the proposals from the beginning of the rulemaking proceeding, filing comments and reply comments and also participating in oral argument on the issues.

GAO Reviews CAPPS II Cost
The U.S. General Accounting Office (GAO) is reviewing the cost of the Computer Assisted Passenger Prescreening System II (CAPPS II) program. On April 19, ASTA representatives met with the GAO regarding the program's cost to travel agents. The GAO's audit will entail the following three questions: 1) What are the costs to the government to develop, implement, and operate this system? 2) What financial implications will the system have on domestic and foreign air carriers and the travel industry? 3) What processes or procedures should be taken to minimize any impact on passengers?

ASTA Meets with TSA
On April 14, Representatives of ASTA, including staff and travel agency members, met with the Transportation Security Administration (TSA) to discuss the plans for and implications of the new Computer Assisted Passenger Pre-Screening System (CAPPS II) that is in development at TSA. The expected CAPPS II system will require that additional consumer data be included in every PNR. The two-hour meeting included a detailed presentation by TSA of the current thinking about the content of CAPPS II. There was considerable discussion of CAPPS II elements that may affect how travel agents do business or that could deter consumers from traveling. TSA has committed to continuing dialogue with ASTA and its members as the CAPPS II process continues to mature.

ASTA Fights Taxes On Travel Agency Income

Florida
On April 13 ASTA South Florida Chapter member, Michael Greenwald, president of Personalized Travel, Inc. of Oakland, Park, Fla. represented ASTA (and the National Tour Association) before the state of Florida’s Senate Taxation Committee in Tallahassee. The subject was potential legislative efforts to increase hotel occupancy taxes by including intermediary service fees in the amount subject to taxation. As a result of our work, in conjunction with the Interactive Travel Services Association (“ITSA”), the proposed bill has lost momentum and there is doubt about its advancement through the process.

Massachusetts
ASTA and ITSA developed a statement and distributed it to select legislative leaders to oppose elements of the Governor’s tax and budget package that would extend hotel taxes to services provided by an intermediary, including travel agents. We believe our efforts have been successful, but continue to monitor the situation. If a grassroots effort is necessary here, you will hear from us.

Note: Members should be on the alert for similar legislation, or even discussion of such legislation, in other states. Alert ASTA Government Affairs at governmentaffairs@astahq.com if you have anything to report.

ASTAPAC Celebrates 25 Years
Established in 1979, ASTA's Political Action Committee (ASTAPAC) is celebrating its 25th anniversary of building influence for the travel agency in the political arena. ASTAPAC has succeeded through the thousands of personal, voluntary contributions from ASTA members. During the month of March, voting members of ASTA will receive ASTAPAC's annual campaign information outlining the Society's legislative initiatives and the role the PAC plays in these efforts. It is important for members to sign and return the postage-paid white ASTAPAC Solicitation Authorization Card to ASTA, which legally grants ASTAPAC permission to solicit for contributions. Contributions and gifts to ASTAPAC are not deductible as charitable contributions for federal income tax purposes.

ASTA Meets with DOT
Representatives of ASTA's legal, industry and government affairs met with members of the Department of Transportation (DOT) decision-making committee on February 25 to present ASTA's arguments for creating a special box on tickets for agents' service fee charges and for improvements in the Travel Agent Arbiter program by expanding the arbiter's jurisdiction to include arbitration of debit memos. Language directing the Secretary of Transportation to consult with travel agent and airline representatives on these two provisions was contained in the Federal Aviation Administration (FAA) Reauthorization Bill enacted in 2003. Initially these recommendations stemmed from the final report of the National Commission to Ensure Consumer Information and Choice in the Airline Industry. DOT is required to file a congressional report on these issues by May.

Tax Gap Measure
In its annual report to Congress, the Internal Revenue Service's (IRS) National Taxpayer Advocate has recommended a withholding scheme to certain payments made to independent contractors. The report identifies $81.2 billion of unreported and underreported taxes attributed to independent contractors. The IRS cannot exercise the regulatory process to enforce this withholding scheme. It must seek congressional authority to do so. ASTA, along with 25 representatives of the small business community, met with the National Taxpayers Advocate on February 24 to discuss the independent contractor withholding mechanism and the burden it places on small businesses. ASTA will continue to monitor this issue as congressional appropriators begin the 2005 federal budget process and zero in on tax gap measures.

Travel Industry Honors Rep. Istook
At a Capitol Hill reception on February 23, industry leaders from the American Bus Association, National Tour Association, Student Youth Travel Association and ASTA paid tribute to Rep. Ernst Istook (R-Okla.) for his years of support and friendship to the travel and tourism industry. Istook is the chairman of the House Appropriations Subcommittee on Transportation and Treasury. Istook was key in ASTA's fight against non-profit organizations that engaged in commercial sales of travel and travel services and abused their tax status by not paying the required unrelated business income tax.

ASTA Alerts FCC and Congress
In a letter dated January 14, 2004, ASTA alerts and provides information to the FCC Chairman and its Commissioners that the decision to change the Commission’s interpretation of the Telephone Consumer Protection Act (TCPA) regarding commercial faxes has resulted in a series of threatened and actual lawsuits within the travel industry. A copy of the letter was also sent to key House and Senate Committees.

CRS Rules Deregulated
The Department of Transportation (DOT) formally posts the final CRS rule notice in the January 7, 2004, Federal Register (Volume 69, Number 4). The DOT drops most of its rules governing CRSs on January 31, 2004; the remaining two follow on July 31. ASTA views this favorable outcome as a major industry victory.