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government affairs | report


repeal all restrictions on US residents’ travel to the country. “General tourist travel remains banned under current law,” says Eben Peck, ASTA’s senior vice president of government and industry aff airs. ASTA believes Americans ought to be able to travel the globe without restrictions, “allowing them to act as ambassadors of freedom and American values.” Regarding overtime, if changes proposed by the


US Department of Labor (DOL) are approved, all employees of companies with annual gross sales of $500,000 or more who earn under $50,440 (instead of the current $23,660), will be entitled to overtime pay protections under the Fair Labor Standards Act. “Given that average travel agency salaries fall well below the new threshold, this could prove disruptive to our industry,” says Peck. ASTA has also been active in fi ghting sales


taxes levied on travel services. “As governors across the country attempt to broaden the tax base, these fees are often falling on the shoulders of our businesses,” notes Jennifer Wilson- Buttigieg, co-president, Valerie Wilson Travel and ASTAPAC co-chair. “Wins in 2015 so far include Maine (saving


OBSTACLES overcoming


With several legislative issues on the front burner for ASTA this fall, Geri Bain offers a rundown of the key concerns for agents


WHEN THE FAA Modernization and Reform Act of 2012 expires on September 30, 2015, the reauthorization process is expected to include a number of debates on important issues that could greatly impact travel agents. A key concern is the treatment of airline ancillary


fees for services like checked luggage and seat assignments. “Airline practices don’t allow travel agents or consumers to see, compare and buy these


separate components in one place, if at all,” says Deb Mangas, business development manager, Menno Travel/American Express and ASTAPAC co- chair. Additionally, the current draft regulations don’t even stipulate that agents be allowed to sell these services to consumers. Cuba is another big issue. ASTA is part of


a coalition supporting the Freedom to Travel to Cuba Act (S.R.299/H.R. 664) that would


agencies there $9.7m/year in new taxes), Ohio ($87m) and Washington State ($14m),” says Peck, noting proposals are pending in Illinois and Pennsylvania. “Illinois is talking about a 5% tax on services,


including travel sales. T at wouldn’t allow us to compete with internet and out of state agencies that wouldn’t be taxed,” says John Haskins, vice president, Viking Travel Service and ASTAPAC committee member. ASTA has been working with the US Travel


Insurance Association to lobby states to allow agencies to off er insurance under the license of their travel insurance provider, saving money and mitigating the risk of violating state regulations. To date, 42 states plus the District of Columbia adopted the new travel insurance standard. “It’s critical our industry be represented and


fi nanced in these debates,” stresses Mangas. “Contributions to ASTAPAC is the only way we have of funding our ‘fi ghts’.” Peck also stresses that individual ASTA members can make a diff erence. “Respond to ASTA’s Action Alerts, be willing to testify in state capitals, attend Legislative Day to meet members of Congress, and contribute to ASTAPAC.” Haskins makes sure his staff emails the


governor and state legislators whenever ASTA sends an action alert, saying: “If you’re not at the table, you’re on the menu.” 


fall 2015 | ASTAnetwork | 45


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