AB 2106: Sellers of travel: registration.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-09-23
Existing law regulates sellers of travel, as defined, and requires their registration with the Attorney General. Under existing law, the Travel Consumer Restitution Corporation provides restitution to a person aggrieved by the failure of a seller of travel to refund payments for air or sea transportation or travel services, subject to specified restrictions. Existing law requires the Travel Consumer Restitution Corporation to assess, as specified, sellers of travel for the corporations operations fund and the Travel Consumer Restitution Fund.
Existing law requires sellers of travel to register by filing with the Consumer Law Section specified fees for each location of business and specified information about the seller of travel including its business form, its place of organization, and certain personal identification numbers of each of its owners and principals.
This bill would also require sellers of travel to file with the Consumer Law Section the name, address, and telephone number of the sole member or the sole shareholder of a limited liability company or S corporation, as described, with which the seller of travel contracts and the file number assigned to the seller of travel by the Secretary of State or the Franchise Tax Board.
Existing law prohibits the issuance, approval, or renewal of registration of a seller of travel until specified filing and late fees have been paid.
The bill additionally would prohibit the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the Travel Consumer Restitution Corporation.
Existing law requires the Attorney General to suspend the registration of a seller of travel who fails to make required payments to the Travel Consumer Restitution Corporation or who submits a check in payment of a registration fee or late fee that is not honored by the institution on which it is drawn.
The bill would require the Attorney General to suspend the registration of a seller of travel who fails to provide the Consumer Law Section the file number assigned to the seller of travel by the Secretary of State or the Franchise Tax Board.
Existing law restricts refund payments from the Travel Consumer Restitution Fund to persons aggrieved by sellers of travel who, at the time of sale, were paid-up participants in the fund. Under existing law, any person aggrieved who files a claim for payment from the fund thereby waives his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel was not a paid-up participant.
The bill would instead allow refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the period commencing with the 18 months previous to the time of sale, and ending with the expiration of the applicable time period provided for filing an action. Under the bill, any person aggrieved who files a claim for payment from the fund would thereby waive his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel had not been a paid-up participant at any time during that time period.
Existing law exempts from the provisions regulating sellers of travel an individual, natural person who meets specified conditions.
This bill instead would exempt from those provisions a person who is an individual, a single-member limited liability company whose sole member is an individual, or a single-shareholder S corporation whose sole shareholder is an individual that meets specified conditions.
The bill would correct an incorrect cross-reference and make other nonsubstantive changes.
This bill would incorporate additional changes to Section 17550.20 of the Business and Professions Code proposed by AB 2138 that would become operative if this bill and AB 2138 are enacted and this bill is enacted last.
Existing law regulates sellers of travel, as defined, and requires their registration with the Attorney General. Under existing law, the Travel Consumer Restitution Corporation provides restitution to a person aggrieved by the failure of a seller of travel to refund payments for air or sea transportation or travel services, subject to specified restrictions. Existing law requires the Travel Consumer Restitution Corporation to assess, as specified, sellers of travel for the corporations operations fund and the Travel Consumer Restitution Fund.
Existing law requires sellers of travel to register by filing with the Consumer Law Section specified fees for each location of business and specified information about the seller of travel including its business form, its place of organization, and certain personal identification numbers of each of its owners and principals.
This bill would also require sellers of travel to file with the Consumer Law Section the name, address, and telephone number of the sole member or the sole shareholder of a limited liability company or S corporation, as described, with which the seller of travel contracts and the file number assigned to the seller of travel by the Secretary of State or the Franchise Tax Board.
Existing law prohibits the issuance, approval, or renewal of registration of a seller of travel until specified filing and late fees have been paid.
The bill additionally would prohibit the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the Travel Consumer Restitution Corporation.
Existing law requires the Attorney General to suspend the registration of a seller of travel who fails to make required payments to the Travel Consumer Restitution Corporation or who submits a check in payment of a registration fee or late fee that is not honored by the institution on which it is drawn.
The bill would require the Attorney General to suspend the registration of a seller of travel who fails to provide the Consumer Law Section the file number assigned to the seller of travel by the Secretary of State or the Franchise Tax Board.
Existing law restricts refund payments from the Travel Consumer Restitution Fund to persons aggrieved by sellers of travel who, at the time of sale, were paid-up participants in the fund. Under existing law, any person aggrieved who files a claim for payment from the fund thereby waives his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel was not a paid-up participant.
The bill would instead allow refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the period commencing with the 18 months previous to the time of sale, and ending with the expiration of the applicable time period provided for filing an action. Under the bill, any person aggrieved who files a claim for payment from the fund would thereby waive his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel had not been a paid-up participant at any time during that time period.
Existing law exempts from the provisions regulating sellers of travel an individual, natural person who meets specified conditions.
This bill instead would exempt from those provisions a person who is an individual, a single-member limited liability company whose sole member is an individual, or a single-shareholder S corporation whose sole shareholder is an individual that meets specified conditions.
The bill would correct an incorrect cross-reference and make other nonsubstantive changes.
This bill would incorporate additional changes to Section 17550.20 of the Business and Professions Code proposed by AB 2138 that would become operative if this bill and AB 2138 are enacted and this bill is enacted last.
Existing law regulates sellers of travel, as defined, and requires their registration with the Attorney General. Under existing law, the Travel Consumer Restitution Corporation provides restitution to a person aggrieved by the failure of a seller of travel to refund payments for air or sea transportation or travel services, subject to specified restrictions. Existing law requires the Travel Consumer Restitution Corporation to assess, as specified, sellers of travel for the corporations operations fund and the Travel Consumer Restitution Fund.
Existing law requires sellers of travel to register by filing with the Consumer Law Section specified fees for each location of business and specified information about the seller of travel including its business form, its place of organization, and certain personal identification numbers of each of its owners and principals.
This bill would also require sellers of travel to file with the Consumer Law Section, Section the name, address, and telephone number of each person in a single-member limited liability corporation or S corporation with whom the seller of travel contracts the sole member or the sole shareholder of a limited liability company or S corporation, as described, with which the seller of travel contracts and the 7-digit California corporation file number assigned to the seller of travel by the Secretary of State or the Franchise Tax Board.
Existing law prohibits the issuance, approval, or renewal of registration of a seller of travel until specified filing and late fees have been paid.
The bill additionally would prohibit the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the Travel Consumer Restitution Corporation.
Existing law requires the Attorney General to suspend the registration of a seller of travel who fails to make required payments to the Travel Consumer Restitution Corporation or who submits a check in payment of a registration fee or late fee that is not honored by the institution on which it is drawn.
The bill would require the Attorney General to suspend the registration of a seller of travel who fails to file with provide the Consumer Law Section, Section the 7-digit California corporation file number assigned to the seller of travel by the Secretary of State or the Franchise Tax Board.
Existing law restricts refund payments from the Travel Consumer Restitution Fund to persons aggrieved by sellers of travel who, at the time of sale, were paid-up participants in the fund. Under existing law, any person aggrieved who files a claim for payment from the fund thereby waives his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel was not a paid-up participant.
The bill would instead allow refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the period commencing with the 18 months previous to the time of sale, and ending with the expiration of the applicable time period provided for filing an action. Under the bill, any person aggrieved who files a claim for payment from the fund would thereby waive his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel had not been a paid-up participant at any time during the months previous to the time of sale. that time period.
Existing law exempts from the provisions regulating sellers of travel an individual, natural person who conducts his or her activities in accordance with specified procedures. meets specified conditions.
This bill would also exempt single-member limited liability corporations and S Corporations whose member is a natural person that conduct their activities in accordance with those procedures.
This bill instead would exempt from those provisions a person who is an individual, a single-member limited liability company whose sole member is an individual, or a single-shareholder S corporation whose sole shareholder is an individual that meets specified conditions.
The bill would correct an incorrect cross-reference and make other nonsubstantive changes.
This bill would incorporate additional changes to Section 17550.20 of the Business and Professions Code proposed by AB 2138 that would become operative if this bill and AB 2138 are enacted and this bill is enacted last.
Existing law regulates sellers of travel, as defined, and requires their registration with the Attorney General. Under existing law, the Travel Consumer Restitution Corporation provides restitution to a person aggrieved by the failure of a seller of travel to refund payments for air or sea transportation or travel services, subject to specified restrictions. Existing law requires the Travel Consumer Restitution Corporation to assess, as specified, sellers of travel for the corporations operations fund and the Travel Consumer Restitution Fund.
Existing law requires sellers of travel to register by filing with the Consumer Law Section specified fees for each location of business and specified information about the seller of travel including its business form, its place of organization, and certain personal identification numbers of each of its owners and principals.
This bill would also require sellers of travel to file with the Consumer Law Section, the name, address, and telephone number of each person in a single-member limited liability corporation or S corporation with whom the seller of travel contracts and the file 7-digit California corporation number issued assigned to the seller of travel by the Secretary of State. State or the Franchise Tax Board.
Existing law prohibits the issuance, approval, or renewal of registration of a seller of travel until specified filing and late fees have been paid.
The bill additionally would prohibit the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the Travel Consumer Restitution Corporation.
Existing law requires the Attorney General to suspend the registration of a seller of travel who fails to make required payments to the Travel Consumer Restitution Corporation or who submits a check in payment of a registration fee or late fee that is not honored by the institution on which it is drawn.
The bill would require the Attorney General to suspend the registration of a seller of travel who fails to file with the Consumer Law Section, the file 7-digit California corporation number issued assigned to the seller of travel by the Secretary of State. State or the Franchise Tax Board.
Existing law restricts refund payments from the Travel Consumer Restitution Fund to persons aggrieved by sellers of travel who, at the time of sale, were paid-up participants in the fund. Under existing law, any person aggrieved who files a claim for payment from the fund thereby waives his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel was not a paid-up participant.
The bill would instead allow refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the period commencing with the 18 months previous to the time of sale, and ending with the expiration of the applicable time period provided for filing an action. Under the bill, any person aggrieved who files a claim for payment from the fund would thereby waive his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel had not been a paid-up participant at any time during the months previous to the time of sale.
Existing law exempts from the provisions regulating sellers of travel an individual, natural person who conducts his or her activities in accordance with specified procedures.
This bill would also exempt single-member limited liability corporations and S Corporations whose member is a natural person that conduct their activities in accordance with those procedures.
The bill would correct an incorrect cross-reference and make other nonsubstantive changes.
Existing law regulates sellers of travel, as defined, and requires their registration with the Attorney General. Under existing law, the Travel Consumer Restitution Corporation provides restitution to a person aggrieved by the failure of a seller of travel to refund payments for air or sea transportation or travel services, subject to specified restrictions. Existing law requires the Travel Consumer Restitution Corporation to assess, as specified, sellers of travel for the corporations operations fund and the Travel Consumer Restitution Fund.
Existing law requires sellers of travel to register by filing with the Consumer Law Section specified fees for each location of business and specified information about the seller of travel including its business form, its place of organization, and certain personal identification numbers of each of its owners and principals.
This bill would also require sellers of travel to file with the Consumer Law Section, the name, address, and telephone number of each person in a single-member limited liability corporation or S corporation with whom the seller of travel contracts and the file number issued to the seller of travel by the Secretary of State.
Existing law prohibits the issuance, approval, or renewal of registration of a seller of travel until specified filing and late fees have been paid.
The bill additionally would prohibit the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the Travel Consumer Restitution Corporation.
Existing law requires the Attorney General to suspend the registration of a seller of travel who fails to make required payments to the Travel Consumer Restitution Corporation or who submits a check in payment of a registration fee or late fee that is not honored by the institution on which it is drawn.
The bill would require the Attorney General to suspend the registration of a seller of travel who fails to file with the Consumer Law Section, the file number issued to the seller of travel by the Secretary of State.
Existing law restricts refund payments from the Travel Consumer Restitution Fund to persons aggrieved by sellers of travel who, at the time of sale, were paid-up participants in the fund. Under existing law, any person aggrieved who files a claim for payment from the fund thereby waives his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel was not a paid-up participant.
The bill would instead allow refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the 12 period commencing with the 18 months previous to the time of sale. sale, and ending with the expiration of the applicable time period provided for filing an action. Under the bill, any person aggrieved who files a claim for payment from the fund would thereby waive his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel had not been a paid-up participant at any time during the 12 months previous to the time of sale.
Existing law exempts from the provisions regulating sellers of travel an individual, natural person who conducts his or her activities in accordance with specified procedures.
This bill would also exempt single-member limited liability corporations and S Corporations whose member is a natural person that conduct their activities in accordance with those procedures.
The bill would correct an incorrect cross-reference and make other nonsubstantive changes.
Existing law regulates sellers of travel, as defined, and requires their registration with the Attorney General, and makes legislative findings and declarations related to those regulations. General. Under existing law, the Travel Consumer Restitution Corporation provides restitution to a person aggrieved by the failure of a seller of travel to refund payments for air or sea transportation or travel services, subject to specified restrictions. Existing law requires the Travel Consumer Restitution Corporation to assess, as specified, sellers of travel for the corporations operations fund and the Travel Consumer Restitution Fund.
Existing law requires sellers of travel to register by filing with the Consumer Law Section specified fees for each location of business and specified information about the seller of travel including its business form, its place of organization, and certain personal identification numbers of each of its owners and principals.
This bill would also require sellers of travel to file with the Consumer Law Section, the file number issued to the seller of travel by the Secretary of State.
Existing law prohibits the issuance, approval, or renewal of registration of a seller of travel until specified filing and late fees have been paid.
The bill additionally would prohibit the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the Travel Consumer Restitution Corporation.
Existing law requires the Attorney General to suspend the registration of a seller of travel who fails to make required payments to the Travel Consumer Restitution Corporation or who submits a check in payment of a registration fee or late fee that is not honored by the institution on which it is drawn.
The bill would require the Attorney General to suspend the registration of a seller of travel who fails to file with the Consumer Law Section, the file number issued to the seller of travel by the Secretary of State.
Existing law restricts refund payments from the Travel Consumer Restitution Fund to persons aggrieved by sellers of travel who, at the time of sale, were paid-up participants in the fund. Under existing law, any person aggrieved who files a claim for payment from the fund thereby waives his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel was not a paid-up participant.
The bill would instead allow refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the 12 months previous to the time of sale. Under the bill, any person aggrieved who files a claim for payment from the fund would thereby waive his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel had not been a paid-up participant at any time during the 12 months previous to the time of sale.
Existing law exempts from the provisions regulating sellers of travel an individual, natural person who conducts his or her activities in accordance with specified procedures.
This bill would also exempt single-member limited liability corporations and S Corporations that conduct their activities in accordance with those procedures.
This
The bill would correct an incorrect cross-reference and make other nonsubstantive changes to those legislative findings and declarations. changes.
Existing law regulates sellers of travel, as defined, and requires their registration with the Attorney General, and makes legislative findings and declarations related to those regulations.
This bill would correct an incorrect cross-reference and make other nonsubstantive changes to those legislative findings and declarations.
(a)The Legislature finds and declares all of the following:
(1)Certain advertising, sales, and business practices of sellers of travel have worked financial hardship upon the people of this state.
(2)The travel business has a significant impact upon the economy and well-being of this state and its people.
(3)Problems have arisen that are peculiar to sellers of travel business.
(4)The public welfare requires regulation of sellers of travel in order to eliminate unfair advertising, sales, and business practices, to establish standards that will safeguard the people against financial hardship, to encourage competition, fair dealing, and prosperity in the travel business, and to provide certain and reliable funding for the seller of travel registration program and enforcement by the office of the Attorney General of this article.
(b)It is the intent of the Legislature in enacting this article that the Department of Justice, to the extent that resources are available, work together with representatives of the affected business community to develop sample forms that will, to the maximum extent possible, enable sellers of travel to comply with the requirement to provide to persons making payment the information required by paragraph (1) of subdivision (a) of Section 17550.13, in a manner that is simplified, efficient, and nonduplicative, and in a manner that recognizes the particular burdens and situations that may exist for small sellers of travel in their efforts to comply with the provisions of that section.
SEC. 2.Section 17550.20 of the Business and Professions Code is amended to read:17550.20.(a)(1)Not less than 10 days prior to doing business in this state, a seller of travel shall apply for registration with the office of the Attorney General by filing with the Consumer Law Section the information required by Section 17550.21 and paying the following fees, as applicable:
(A)A filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business.
(B)A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received.
(2)A seller of travel may annually renew its registration by making the filing required by Section 17550.21 and paying the filing fees and late fees required by paragraph (1).
(3)A registration shall not be issued, approved, or renewed until the late fee, the filing and late fees for each year the seller of travel operated without being registered, and any outstanding assessments due to the Travel Consumer Restitution Corporation as required by Sections 17550.43 and 17550.44 have been paid.
(4)A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state or solicits prospective purchasers who are located in this state.
(b)Registration shall be valid for one year from the effective date thereof shown on the registration issued by the office of the Attorney General.
(c)Whenever, prior to expiration of a seller of travels annual registration, there is a material change in the information required by Section 17550.21, the seller of travel shall, within 10 days, file an addendum updating the information with the Consumer Law Section of the office of the Attorney General.
(d)(1)Not less than 10 days prior to the transfer or sale of any interest in a seller of travel, the selling or transferring owner shall file with the office of the Attorney General, Seller of Travel Program, a notice of encumbrance, sale, or transfer of ownership, using a form provided for that purpose by the office of the Attorney General. The notice shall provide the information required pursuant to subdivision (d) of Section 17550.21 as to each transferee.
(2)Until the time the notice of encumbrance, sale, or transfer of ownership required in paragraph (1) is filed as required, the selling, encumbering, or transferring owner is responsible for all acts of and obligations imposed by law on the transferee sellers of travel to the same extent as they would have been responsible had there been no transfer, sale, or encumbrance.
(e)(1)The office of the Attorney General shall suspend the registration of a seller of travel who does any of the following:
(A)Fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35).
(B)Submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn.
(C)Fails to provide the file number assigned by the Secretary of State or the Franchise Tax Board to the seller of travel, as required by subdivision (m) of Section 17550.21.
(2)The Attorney General shall provide written notice to the seller of travel by first-class mail at the seller of travels place of business set forth in the registration statement that the seller of travels registration has been suspended until all fees that are due have been paid. The registration of the seller of travel shall be suspended until all such payments due have been collected.
(f)The Attorney General may, at his or her discretion and subject to supervision by the Attorney General or his or her delegate, contract out all or any part of the processing of registrations required by this section.
(g)This section does not apply to a person who is an individual, a single-member limited liability company whose sole member is an individual, or a single-shareholder S corporation whose sole shareholder is an individual, that meets all of the following:
(1)Has a written contract with a registered seller of travel to act on that registered seller of travels behalf in offering or selling air or sea transportation and other travel goods or services in connection with the transportation.
(2)Acts only on behalf of a registered seller of travel with whom the person has a written contract in the offer or sale to a passenger of air or sea transportation and other goods or services in connection with the transportation and sells no other air or sea transportation or travel services to that passenger.
(3)Provides air or sea transportation or travel services that are offered or sold pursuant to the official agency appointment of the registered seller of travel with whom the person has a written contract.
(4)Does not receive any consideration for air or sea transportation or other travel services from the passenger.
(5)Requires the passenger to pay all consideration for air or sea transportation or other travel services directly to the air carrier or ocean carrier or to the registered seller of travel.
(6)Discloses both of the following:
(A)The person is acting on behalf of a registered seller of travel.
(B)The name, address, telephone number, and registration number of the registered seller of travel on whose behalf the person is acting.
The person shall make the disclosures required by this paragraph in writing to the passenger at the same time the passenger receives notice under Section 17550.13. If the person transacts business in this state on the Internet, the disclosures also shall appear on the home page of the persons Internet Web site and shall be prominently set forth in the first electronic mail message sent to the passenger that refers to the passengers purchase of air or sea transportation or travel services.
(h)Whenever the Attorney General determines that a registration application is accurate and complete, the application shall be processed and a registration certificate shall be issued to the seller of travel within 21 days.
SEC. 2.5.Section 17550.20 of the Business and Professions Code is amended to read:17550.20.(a)(1)Not less than 10 days prior to doing business in this state, a seller of travel shall apply for registration with the office of the Attorney General by filing with the Consumer Law Section the information required by Section 17550.21 and paying the following fees, as applicable:
(A)A filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business.
(B)A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received.
(2)A seller of travel may annually renew its registration by making the filing required by Section 17550.21 and paying the filing fees and late fees required by paragraph (1).
(3)A registration shall not be issued, approved, or renewed until the late fee, the filing and late fees for each year the seller of travel operated without being registered, and any outstanding assessments due to the Travel Consumer Restitution Corporation as required by Sections 17550.43 and 17550.44 have been paid.
(4)A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state regardless of the geographic location of the prospective purchaser including persons located outside of this state or the country or solicits prospective purchasers who are located in this state.
(b)Registration shall be valid for one year from the effective date thereof shown on the registration issued by the office of the Attorney General.
(c)Whenever, prior to expiration of a seller of travels annual registration, there is a material change in the information required by Section 17550.21, the seller of travel shall, within 10 days, file an addendum updating the information with the Consumer Law Section of the office of the Attorney General.
(d)(1)Not less than 10 days prior to the transfer or sale of any interest in a seller of travel, the selling or transferring owner shall file with the office of the Attorney General, Seller of Travel Program, a notice of encumbrance, sale, or transfer of ownership, using a form provided for that purpose by the office of the Attorney General. The notice shall provide the information required pursuant to subdivision (d) of Section 17550.21 as to each transferee.
(2)Until the time the notice of encumbrance, sale, or transfer of ownership required in paragraph (1) is filed as required, the selling, encumbering, or transferring owner is responsible for all acts of and obligations imposed by law on the transferee sellers of travel to the same extent as they would have been responsible had there been no transfer, sale, or encumbrance.
(e)(1)The office of the Attorney General shall suspend the registration of a seller of travel who does any of the following:
(A)Fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35).
(B)Submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn.
(C)Fails to provide the file number assigned by the Secretary of State or the Franchise Tax Board to the seller of travel, as required by subdivision (m) of Section 17550.21.
(2)The Attorney General shall provide written notice to the seller of travel by first-class mail at the seller of travels place of business set forth in the registration statement that the seller of travels registration has been suspended until all fees that are due have been paid. The registration of the seller of travel shall be suspended until all such payments due have been collected.
(f)The Attorney General may, at his or her discretion and subject to supervision by the Attorney General or his or her delegate, contract out all or any part of the processing of registrations required by this section.
(g)This section does not apply to a person who is an individual, a single-member limited liability company whose sole member is an individual, or a single-shareholder S corporation whose sole shareholder is an individual, that meets all of the following:
(1)Has a written contract with a registered seller of travel to act on that registered seller of travels behalf in offering or selling air or sea transportation and other travel goods or services in connection with the transportation.
(2)Acts only on behalf of a registered seller of travel with whom the person has a written contract in the offer or sale to a passenger of air or sea transportation and other goods or services in connection with the transportation and sells no other air or sea transportation or travel services to that passenger.
(3)Provides air or sea transportation or travel services that are offered or sold pursuant to the official agency appointment of the registered seller of travel with whom the person has a written contract.
(4)Does not receive any consideration for air or sea transportation or other travel services from the passenger.
(5)Requires the passenger to pay all consideration for air or sea transportation or other travel services directly to the air carrier or ocean carrier or to the registered seller of travel.
(6)Discloses both of the following:
(A)The person is acting on behalf of a registered seller of travel.
(B)The name, address, telephone number, and registration number of the registered seller of travel on whose behalf the person is acting.
The person shall make the disclosures required by this paragraph in writing to the passenger at the same time the passenger receives notice under Section 17550.13. If the person transacts business in this state on the Internet, the disclosures also shall appear on the home page of the persons Internet Web site and shall be prominently set forth in the first electronic mail message sent to the passenger that refers to the passengers purchase of air or sea transportation or travel services.
(h)Whenever the Attorney General determines that a registration application is accurate and complete, the application shall be processed and a registration certificate shall be issued to the seller of travel within 21 days.
SEC. 3.Section 17550.21 of the Business and Professions Code is amended to read:17550.21.Each filing pursuant to Section 17550.20 shall contain the following information:
(a)The name or names of the seller of travel, including the name under which the seller of travel is doing or intends to do business, if different from the name of the seller of travel.
(b)The seller of travels business form and place of organization and, if operating under a fictitious business name, the location where the fictitious name has been registered. If the seller of travel does business in California from one or more locations in this state but does not maintain its principal place of business in this state, the seller of travel shall state whether it meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1.
(c)The complete street address or addresses of all locations from which the seller of travel will be conducting business, including, but not limited to, locations at which telephone calls will be received from, or made to, passengers or other sellers of travel. The statement shall designate which location is the principal place of business.
(d)The complete business and residential addresses and telephone numbers, the drivers license number and state of issuance or equivalent personal identification, the social security number, and the date of birth of each owner and principal of the seller of travel. Owner means a person who owns or controls 10 percent or more of the equity of, or otherwise has claim to 10 percent or more of the net income of, a seller of travel. Principal means an owner, an officer of a corporation, a general partner of a partnership, or a sole proprietor of a sole proprietorship.
(e)A statement as to whether the seller of travel, any owner, or principal, or any other seller of travel owned or managed by any owner or principal of the seller of travel, or the seller of travel itself has had entered against that person or entity any judgment, including a stipulated judgment, order, made a plea of nolo contendere, or been convicted of any criminal violation. The statement shall identify the person, the court or administrative agency rendering the judgment, order, or conviction, the docket number of the matter, and the date of the judgment, order, or conviction; where the judgment, order, or record of conviction is filed; and the nature of the case or judgment. This subdivision does not require disclosure of marital dissolution, child support, or child custody proceedings.
(f)A copy of the travel certificates, if any, that are or will be sold, marketed, or distributed to any person or entity by the seller of travel.
(g)The seller of travel shall file with the Attorney General a signed and dated statement providing the following:
(1)The account number of each trust account required by this article.
(2)The name and address of each financial institution at which the seller of travel maintains a trust account required by this article.
(3)Any registration number issued to the seller of travel by the Airline Reporting Corporation or the International Association of Travel Agents Network.
(4)A consent form consenting to the Attorney General, a district attorney, or their representatives obtaining directly from the Airlines Reporting Corporation, International Association of Travel Agents Network, a seller of transportation, provider of transportation, provider of travel services, and any financial institution where passenger funds have been deposited, any information related to an investigation of a seller of travels compliance with this section. The consent form shall be provided by the Attorney General. If a bond is maintained in lieu of the trust account, a copy of that bond shall be filed with the Attorney General.
(h)A statement signed by each owner and principal granting permission to the office of the Attorney General to obtain from any financial institution or credit union at which any trust account required by Section 17550.15 is maintained, information relating to that trust account, as set forth in paragraph (2) of subdivision (f) of Section 17550.15.
(i)The name, address, and telephone number of each person described in subdivision (g) of Section 17550.20 with whom the seller of travel contracts.
(j)The name, address, and telephone number of the sole member or the sole shareholder of a limited liability company or S corporation described in subdivision (g) of Section 17550.20 with which the seller of travel contracts.
(k)If at the time of registration renewal, no change has occurred to the information provided in the last filed complete registration statement and the permission described in subdivision (h) has not expired, the seller of travel may, instead of filing a registration statement containing the information required by subdivisions (a) to (j), inclusive, file a statement attesting to the continued accuracy of the information in the last filed complete registration statement. The attestation shall be in a form specified by the Attorney General and verified as described in subdivision (l).
(l)The information required by this section shall be verified by a declaration signed and dated by each owner and principal of the seller of travel, or in the case of a registered seller of travel that does business in California, from one or more locations in California, and that meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1, by a duly authorized officer of the corporation, under penalty of perjury pursuant to the laws of the State of California. The declaration shall specify the date and location of signing. Upon reregistration by a previously registered seller of travel, the information required by this section may be verified by the chief executive officer of a corporation, managing partner of a partnership, or manager of a limited liability company.
(m)The file number assigned by the Secretary of State or the Franchise Tax Board to the seller of travel.
SEC. 4.Section 17550.37 of the Business and Professions Code is amended to read:17550.37.(a)Person aggrieved, as used in this article, means a passenger, as defined in Section 17550.3, located in California at the time of sale, or a person located in California at the time of sale who made any payment on behalf of the passenger for air or sea transportation or travel services, who has sustained a loss as a result of the failure of a seller of travel to refund payments made by or on behalf of a passenger as payment for air or sea transportation or travel services, where a refund is due as a result of the bankruptcy, insolvency, cessation of operations, or material failure to provide the transportation or travel services purchased by the passenger, regardless of whether the passenger or a person making payment on behalf of the passenger initially contracted with that seller of travel. Loss, as used herein, shall be limited to losses that are incurred in a transaction with a seller of travel who, at the time of sale, was registered pursuant to Section 17550.20, and who had been a paid participant at any time during the period commencing with 18 months previous to the time of sale, and ending with the expiration of the applicable time period provided in law for the filing of a civil, administrative, or other available action under the law that is available to the person aggrieved. Person aggrieved shall not mean or include a passenger, or person making payment on behalf of a passenger, in a transaction where the air or sea transportation or travel services are furnished by a business entity that is located and providing transportation or travel services outside of the United States and is not in compliance with Article 2.6 (commencing with Section 17550).
(b)Any person aggrieved who files a claim for payment from the Travel Consumer Restitution Fund thereby waives his or her right to bring any action at law or equity that is against the seller of travel as to whom the claim is made and arises from the transaction that is the subject of the claim against the restitution fund. The claim form required by Section 17550.46 shall include a clear and conspicuous notice of the waiver.
(c)The waiver of rights provided for by subdivision (b) shall not apply to any claimant whose claim is denied on any of the following grounds, as set forth in the statement of decision required by subdivision (d) of Section 17550.47:
(1)The seller of travel had not been a paid-up participant in the Travel Consumer Restitution Fund at any time during the period of time provided in subdivision (a).
(2)The seller of travel was not, at the time of sale, registered pursuant to Section 17550.20.
(3)The claimant was not located in California at the time of sale, as required by subdivision (a).
SEC. 5.Section 2.5 of this bill incorporates amendments to Section 17550.20 of the Business and Professions Code proposed by both this bill and Assembly Bill 2138. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2017, (2) each bill amends Section 17550.20 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2138, in which case Section 2 of this bill shall not become operative.
(a)The Legislature finds and declares all of the following:
(1)Certain advertising, sales, and business practices of sellers of travel have worked financial hardship upon the people of this state.
(2)The travel business has a significant impact upon the economy and well-being of this state and its people.
(3)Problems have arisen that are peculiar to sellers of travel business.
(4)The public welfare requires regulation of sellers of travel in order to eliminate unfair advertising, sales, and business practices, to establish standards that will safeguard the people against financial hardship, to encourage competition, fair dealing, and prosperity in the travel business, and to provide certain and reliable funding for the seller of travel registration program and enforcement by the office of the Attorney General of this article.
(b)It is the intent of the Legislature in enacting this article that the Department of Justice, to the extent that resources are available, work together with representatives of the affected business community to develop sample forms that will, to the maximum extent possible, enable sellers of travel to comply with the requirement to provide to persons making payment the information required by paragraph (1) of subdivision (a) of Section 17550.13, in a manner that is simplified, efficient, and nonduplicative, and in a manner that recognizes the particular burdens and situations that may exist for small sellers of travel in their efforts to comply with the provisions of that section.
SEC. 2.Section 17550.20 of the Business and Professions Code is amended to read:17550.20.(a)(1)Not less than 10 days prior to doing business in this state, a seller of travel shall apply for registration with the office of the Attorney General by filing with the Consumer Law Section the information required by Section 17550.21 and paying the following fees, as applicable:
(A)A filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business.
(B)A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received.
(2)A seller of travel may annually renew its registration by making the filing required by Section 17550.21 and paying the filing fees and late fees required by paragraph (1).
(3)A registration shall not be issued, approved, or renewed until the late fee, the filing and late fees for each year the seller of travel operated without being registered, and any outstanding assessments due to the Travel Consumer Restitution Corporation as required by Sections 17550.43 and 17550.44 have been paid.
(4)A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state or solicits prospective purchasers who are located in this state.
(b)Registration shall be valid for one year from the effective date thereof shown on the registration issued by the office of the Attorney General.
(c)Whenever, prior to expiration of a seller of travels annual registration, there is a material change in the information required by Section 17550.21, the seller of travel shall, within 10 days, file an addendum updating the information with the Consumer Law Section of the office of the Attorney General.
(d)(1)Not less than 10 days prior to the transfer or sale of any interest in a seller of travel, the selling or transferring owner shall file with the office of the Attorney General, Seller of Travel Program, a notice of encumbrance, sale, or transfer of ownership, using a form provided for that purpose by the office of the Attorney General. The notice shall provide the information required pursuant to subdivision (d) of Section 17550.21 as to each transferee.
(2)Until the time the notice of encumbrance, sale, or transfer of ownership required in paragraph (1) is filed as required, the selling, encumbering, or transferring owner is responsible for all acts of and obligations imposed by law on the transferee sellers of travel to the same extent as they would have been responsible had there been no transfer, sale, or encumbrance.
(e)(1)The office of the Attorney General shall suspend the registration of a seller of travel who does any of the following:
(A)Fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35).
(B)Submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn.
(C)Fails to provide the file number assigned by the Secretary of State or the Franchise Tax Board to the seller of travel, as required by subdivision (m) of Section 17550.21.
(2)The Attorney General shall provide written notice to the seller of travel by first-class mail at the seller of travels place of business set forth in the registration statement that the seller of travels registration has been suspended until all fees that are due have been paid. The registration of the seller of travel shall be suspended until all such payments due have been collected.
(f)The Attorney General may, at his or her discretion and subject to supervision by the Attorney General or his or her delegate, contract out all or any part of the processing of registrations required by this section.
(g)This section does not apply to a person who is an individual, a single-member limited liability company whose sole member is an individual, or a single-shareholder S corporation whose sole shareholder is an individual, that meets all of the following:
(1)Has a written contract with a registered seller of travel to act on that registered seller of travels behalf in offering or selling air or sea transportation and other travel goods or services in connection with the transportation.
(2)Acts only on behalf of a registered seller of travel with whom the person has a written contract in the offer or sale to a passenger of air or sea transportation and other goods or services in connection with the transportation and sells no other air or sea transportation or travel services to that passenger.
(3)Provides air or sea transportation or travel services that are offered or sold pursuant to the official agency appointment of the registered seller of travel with whom the person has a written contract.
(4)Does not receive any consideration for air or sea transportation or other travel services from the passenger.
(5)Requires the passenger to pay all consideration for air or sea transportation or other travel services directly to the air carrier or ocean carrier or to the registered seller of travel.
(6)Discloses both of the following:
(A)The person is acting on behalf of a registered seller of travel.
(B)The name, address, telephone number, and registration number of the registered seller of travel on whose behalf the person is acting.
The person shall make the disclosures required by this paragraph in writing to the passenger at the same time the passenger receives notice under Section 17550.13. If the person transacts business in this state on the Internet, the disclosures also shall appear on the home page of the persons Internet Web site and shall be prominently set forth in the first electronic mail message sent to the passenger that refers to the passengers purchase of air or sea transportation or travel services.
(h)Whenever the Attorney General determines that a registration application is accurate and complete, the application shall be processed and a registration certificate shall be issued to the seller of travel within 21 days.
SEC. 2.5.Section 17550.20 of the Business and Professions Code is amended to read:17550.20.(a)(1)Not less than 10 days prior to doing business in this state, a seller of travel shall apply for registration with the office of the Attorney General by filing with the Consumer Law Section the information required by Section 17550.21 and paying the following fees, as applicable:
(A)A filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business.
(B)A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received.
(2)A seller of travel may annually renew its registration by making the filing required by Section 17550.21 and paying the filing fees and late fees required by paragraph (1).
(3)A registration shall not be issued, approved, or renewed until the late fee, the filing and late fees for each year the seller of travel operated without being registered, and any outstanding assessments due to the Travel Consumer Restitution Corporation as required by Sections 17550.43 and 17550.44 have been paid.
(4)A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state regardless of the geographic location of the prospective purchaser including persons located outside of this state or the country or solicits prospective purchasers who are located in this state.
(b)Registration shall be valid for one year from the effective date thereof shown on the registration issued by the office of the Attorney General.
(c)Whenever, prior to expiration of a seller of travels annual registration, there is a material change in the information required by Section 17550.21, the seller of travel shall, within 10 days, file an addendum updating the information with the Consumer Law Section of the office of the Attorney General.
(d)(1)Not less than 10 days prior to the transfer or sale of any interest in a seller of travel, the selling or transferring owner shall file with the office of the Attorney General, Seller of Travel Program, a notice of encumbrance, sale, or transfer of ownership, using a form provided for that purpose by the office of the Attorney General. The notice shall provide the information required pursuant to subdivision (d) of Section 17550.21 as to each transferee.
(2)Until the time the notice of encumbrance, sale, or transfer of ownership required in paragraph (1) is filed as required, the selling, encumbering, or transferring owner is responsible for all acts of and obligations imposed by law on the transferee sellers of travel to the same extent as they would have been responsible had there been no transfer, sale, or encumbrance.
(e)(1)The office of the Attorney General shall suspend the registration of a seller of travel who does any of the following:
(A)Fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35).
(B)Submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn.
(C)Fails to provide the file number assigned by the Secretary of State or the Franchise Tax Board to the seller of travel, as required by subdivision (m) of Section 17550.21.
(2)The Attorney General shall provide written notice to the seller of travel by first-class mail at the seller of travels place of business set forth in the registration statement that the seller of travels registration has been suspended until all fees that are due have been paid. The registration of the seller of travel shall be suspended until all such payments due have been collected.
(f)The Attorney General may, at his or her discretion and subject to supervision by the Attorney General or his or her delegate, contract out all or any part of the processing of registrations required by this section.
(g)This section does not apply to a person who is an individual, a single-member limited liability company whose sole member is an individual, or a single-shareholder S corporation whose sole shareholder is an individual, that meets all of the following:
(1)Has a written contract with a registered seller of travel to act on that registered seller of travels behalf in offering or selling air or sea transportation and other travel goods or services in connection with the transportation.
(2)Acts only on behalf of a registered seller of travel with whom the person has a written contract in the offer or sale to a passenger of air or sea transportation and other goods or services in connection with the transportation and sells no other air or sea transportation or travel services to that passenger.
(3)Provides air or sea transportation or travel services that are offered or sold pursuant to the official agency appointment of the registered seller of travel with whom the person has a written contract.
(4)Does not receive any consideration for air or sea transportation or other travel services from the passenger.
(5)Requires the passenger to pay all consideration for air or sea transportation or other travel services directly to the air carrier or ocean carrier or to the registered seller of travel.
(6)Discloses both of the following:
(A)The person is acting on behalf of a registered seller of travel.
(B)The name, address, telephone number, and registration number of the registered seller of travel on whose behalf the person is acting.
The person shall make the disclosures required by this paragraph in writing to the passenger at the same time the passenger receives notice under Section 17550.13. If the person transacts business in this state on the Internet, the disclosures also shall appear on the home page of the persons Internet Web site and shall be prominently set forth in the first electronic mail message sent to the passenger that refers to the passengers purchase of air or sea transportation or travel services.
(h)Whenever the Attorney General determines that a registration application is accurate and complete, the application shall be processed and a registration certificate shall be issued to the seller of travel within 21 days.
SEC. 3.Section 17550.21 of the Business and Professions Code is amended to read:17550.21.Each filing pursuant to Section 17550.20 shall contain the following information:
(a)The name or names of the seller of travel, including the name under which the seller of travel is doing or intends to do business, if different from the name of the seller of travel.
(b)The seller of travels business form and place of organization and, if operating under a fictitious business name, the location where the fictitious name has been registered. If the seller of travel does business in California from one or more locations in this state but does not maintain its principal place of business in this state, the seller of travel shall state whether it meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1.
(c)The complete street address or addresses of all locations from which the seller of travel will be conducting business, including, but not limited to, locations at which telephone calls will be received from, or made to, passengers or other sellers of travel. The statement shall designate which location is the principal place of business.
(d)The complete business and residential addresses and telephone numbers, the drivers license number and state of issuance or equivalent personal identification, the social security number, and the date of birth of each owner and principal of the seller of travel. Owner means a person who owns or controls 10 percent or more of the equity of, or otherwise has claim to 10 percent or more of the net income of, a seller of travel. Principal means an owner, an officer of a corporation, a general partner of a partnership, or a sole proprietor of a sole proprietorship.
(e)A statement as to whether the seller of travel, any owner, or principal, or any other seller of travel owned or managed by any owner or principal of the seller of travel, or the seller of travel itself has had entered against that person or entity any judgment, including a stipulated judgment, order, made a plea of nolo contendere, or been convicted of any criminal violation. The statement shall identify the person, the court or administrative agency rendering the judgment, order, or conviction, the docket number of the matter, and the date of the judgment, order, or conviction; where the judgment, order, or record of conviction is filed; and the nature of the case or judgment. This subdivision does not require disclosure of marital dissolution, child support, or child custody proceedings.
(f)A copy of the travel certificates, if any, that are or will be sold, marketed, or distributed to any person or entity by the seller of travel.
(g)The seller of travel shall file with the Attorney General a signed and dated statement providing the following:
(1)The account number of each trust account required by this article.
(2)The name and address of each financial institution at which the seller of travel maintains a trust account required by this article.
(3)Any registration number issued to the seller of travel by the Airline Reporting Corporation or the International Association of Travel Agents Network.
(4)A consent form consenting to the Attorney General, a district attorney, or their representatives obtaining directly from the Airlines Reporting Corporation, International Association of Travel Agents Network, a seller of transportation, provider of transportation, provider of travel services, and any financial institution where passenger funds have been deposited, any information related to an investigation of a seller of travels compliance with this section. The consent form shall be provided by the Attorney General. If a bond is maintained in lieu of the trust account, a copy of that bond shall be filed with the Attorney General.
(h)A statement signed by each owner and principal granting permission to the office of the Attorney General to obtain from any financial institution or credit union at which any trust account required by Section 17550.15 is maintained, information relating to that trust account, as set forth in paragraph (2) of subdivision (f) of Section 17550.15.
(i)The name, address, and telephone number of each person described in subdivision (g) of Section 17550.20 with whom the seller of travel contracts.
(j)The name, address, and telephone number of the sole member or the sole shareholder of a limited liability company or S corporation described in subdivision (g) of Section 17550.20 with which the seller of travel contracts.
(k)If at the time of registration renewal, no change has occurred to the information provided in the last filed complete registration statement and the permission described in subdivision (h) has not expired, the seller of travel may, instead of filing a registration statement containing the information required by subdivisions (a) to (j), inclusive, file a statement attesting to the continued accuracy of the information in the last filed complete registration statement. The attestation shall be in a form specified by the Attorney General and verified as described in subdivision (l).
(l)The information required by this section shall be verified by a declaration signed and dated by each owner and principal of the seller of travel, or in the case of a registered seller of travel that does business in California, from one or more locations in California, and that meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1, by a duly authorized officer of the corporation, under penalty of perjury pursuant to the laws of the State of California. The declaration shall specify the date and location of signing. Upon reregistration by a previously registered seller of travel, the information required by this section may be verified by the chief executive officer of a corporation, managing partner of a partnership, or manager of a limited liability company.
(m)The file number assigned by the Secretary of State or the Franchise Tax Board to the seller of travel.
SEC. 4.Section 17550.37 of the Business and Professions Code is amended to read:17550.37.(a)Person aggrieved, as used in this article, means a passenger, as defined in Section 17550.3, located in California at the time of sale, or a person located in California at the time of sale who made any payment on behalf of the passenger for air or sea transportation or travel services, who has sustained a loss as a result of the failure of a seller of travel to refund payments made by or on behalf of a passenger as payment for air or sea transportation or travel services, where a refund is due as a result of the bankruptcy, insolvency, cessation of operations, or material failure to provide the transportation or travel services purchased by the passenger, regardless of whether the passenger or a person making payment on behalf of the passenger initially contracted with that seller of travel. Loss, as used herein, shall be limited to losses that are incurred in a transaction with a seller of travel who, at the time of sale, was registered pursuant to Section 17550.20, and who had been a paid participant at any time during the period commencing with 18 months previous to the time of sale, and ending with the expiration of the applicable time period provided in law for the filing of a civil, administrative, or other available action under the law that is available to the person aggrieved. Person aggrieved shall not mean or include a passenger, or person making payment on behalf of a passenger, in a transaction where the air or sea transportation or travel services are furnished by a business entity that is located and providing transportation or travel services outside of the United States and is not in compliance with Article 2.6 (commencing with Section 17550).
(b)Any person aggrieved who files a claim for payment from the Travel Consumer Restitution Fund thereby waives his or her right to bring any action at law or equity that is against the seller of travel as to whom the claim is made and arises from the transaction that is the subject of the claim against the restitution fund. The claim form required by Section 17550.46 shall include a clear and conspicuous notice of the waiver.
(c)The waiver of rights provided for by subdivision (b) shall not apply to any claimant whose claim is denied on any of the following grounds, as set forth in the statement of decision required by subdivision (d) of Section 17550.47:
(1)The seller of travel had not been a paid-up participant in the Travel Consumer Restitution Fund at any time during the period of time provided in subdivision (a).
(2)The seller of travel was not, at the time of sale, registered pursuant to Section 17550.20.
(3)The claimant was not located in California at the time of sale, as required by subdivision (a).
SEC. 5.Section 2.5 of this bill incorporates amendments to Section 17550.20 of the Business and Professions Code proposed by both this bill and Assembly Bill 2138. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2017, (2) each bill amends Section 17550.20 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2138, in which case Section 2 of this bill shall not become operative.
(a)The Legislature finds and declares all of the following:
(1)Certain advertising, sales, and business practices of sellers of travel have worked financial hardship upon the people of this state.
(2)The travel business has a significant impact upon the economy and well-being of this state and its people.
(3)Problems have arisen that are peculiar to sellers of travel business.
(4)The public welfare requires regulation of sellers of travel in order to eliminate unfair advertising, sales, and business practices, to establish standards that will safeguard the people against financial hardship, to encourage competition, fair dealing, and prosperity in the travel business, and to provide certain and reliable funding for the seller of travel registration program and enforcement by the office of the Attorney General of this article.
(b)It is the intent of the Legislature in enacting this article that the Department of Justice, to the extent that resources are available, work together with representatives of the affected business community to develop sample forms that will, to the maximum extent possible, enable sellers of travel to comply with the requirement to provide to persons making payment the information required by paragraph (1) of subdivision (a) of Section 17550.13, in a manner that is simplified, efficient, and nonduplicative, and in a manner that recognizes the particular burdens and situations that may exist for small sellers of travel in their efforts to comply with the provisions of that section.
SEC. 2.Section 17550.20 of the Business and Professions Code is amended to read:17550.20.(a)(1)Not less than 10 days prior to doing business in this state, a seller of travel shall apply for registration with the office of the Attorney General by filing with the Consumer Law Section the information required by Section 17550.21 and paying the following fees, as applicable:
(A)A filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business.
(B)A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received.
(2)A seller of travel may annually renew its registration by making the filing required by Section 17550.21 and paying the filing fees and late fees required by paragraph (1).
(3)A registration shall not be issued, approved, or renewed until the late fee, the filing and late fees for each year the seller of travel operated without being registered, and any outstanding assessments due to the Travel Consumer Restitution Corporation as required by Sections 17550.43 and 17550.44 have been paid.
(4)A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state or solicits prospective purchasers who are located in this state.
(b)Registration shall be valid for one year from the effective date thereof shown on the registration issued by the office of the Attorney General.
(c)Whenever, prior to expiration of a seller of travels annual registration, there is a material change in the information required by Section 17550.21, the seller of travel shall, within 10 days, file an addendum updating the information with the Consumer Law Section of the office of the Attorney General.
(d)(1)Not less than 10 days prior to the transfer or sale of any interest in a seller of travel, the selling or transferring owner shall file with the office of the Attorney General, Seller of Travel Program, a notice of encumbrance, sale, or transfer of ownership, using a form provided for that purpose by the office of the Attorney General. The notice shall provide the information required pursuant to subdivision (d) of Section 17550.21 as to each transferee.
(2)Until the time the notice of encumbrance, sale, or transfer of ownership required in paragraph (1) is filed as required, the selling, encumbering, or transferring owner is responsible for all acts of and obligations imposed by law on the transferee sellers of travel to the same extent as they would have been responsible had there been no transfer, sale, or encumbrance.
(e)(1)The office of the Attorney General shall suspend the registration of a seller of travel who does any of the following:
(A)Fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35).
(B)Submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn.
(C)Fails to provide the seven-digit California corporation file number assigned by the Secretary of State or the Franchise Tax Board to the seller of travel, as required by subdivision (m) of Section 17550.21.
(2)The Attorney General shall provide written notice to the seller of travel by first-class mail at the seller of travels place of business set forth in the registration statement that the seller of travels registration has been suspended until all fees that are due have been paid. The registration of the seller of travel shall be suspended until all such payments due have been collected.
(f)The Attorney General may, at his or her discretion and subject to supervision by the Attorney General or his or her delegate, contract out all or any part of the processing of registrations required by this section.
(g)This section does not apply to an individual, natural person who, or a single-member limited liability corporation or S corporation whose member is a natural person that, meets all of the following conditions:
(g)This section does not apply to a person who is an individual, a single-member limited liability company whose sole member is an individual, or a single-shareholder S corporation whose sole shareholder is an individual, that meets all of the following:
(1)Has a written contract with a registered seller of travel to act on that registered seller of travels behalf in offering or selling air or sea transportation and other travel goods or services in connection with the transportation.
(2)Acts only on behalf of a registered seller of travel with whom the person has a written contract in the offer or sale to a passenger of air or sea transportation and other goods or services in connection with the transportation and sells no other air or sea transportation or travel services to that passenger.
(3)Provides air or sea transportation or travel services that are offered or sold pursuant to the official agency appointment of the registered seller of travel with whom the person has a written contract.
(4)Does not receive any consideration for air or sea transportation or other travel services from the passenger.
(5)Requires the passenger to pay all consideration for air or sea transportation or other travel services directly to the air carrier or ocean carrier or to the registered seller of travel.
(6)Discloses both of the following:
(A)The person is acting on behalf of a registered seller of travel.
(B)The name, address, telephone number, and registration number of the registered seller of travel on whose behalf the person is acting.
The person shall make the disclosures required by this paragraph in writing to the passenger at the same time the passenger receives notice under Section 17550.13. If the person transacts business in this state on the Internet, the disclosures also shall appear on the home page of the persons Internet Web site and shall be prominently set forth in the first electronic mail message sent to the passenger that refers to the passengers purchase of air or sea transportation or travel services.
(h)Whenever the Attorney General determines that a registration application is accurate and complete, the application shall be processed and a registration certificate shall be issued to the seller of travel within 21 days.
SEC. 2.5.Section 17550.20 of the Business and Professions Code is amended to read:17550.20.(a)(1)Not less than 10 days prior to doing business in this state, a seller of travel shall apply for registration with the office of the Attorney General by filing with the Consumer Law Section the information required by Section 17550.21 and a filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business. A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), shall be paid for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received. No registration shall be issued or approved until the late fee, and the filing and late fees for each year the seller of travel operated without being registered, have been paid. A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state or solicits prospective purchasers who are located in this state. paying the following fees, as applicable:
(A)A filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business.
(B)A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received.
(2)A seller of travel may annually renew its registration by making the filing required by Section 17550.21 and paying the filing fees and late fees required by paragraph (1).
(3)A registration shall not be issued, approved, or renewed until the late fee, the filing and late fees for each year the seller of travel operated without being registered, and any outstanding assessments due to the Travel Consumer Restitution Corporation as required by Sections 17550.43 and 17550.44 have been paid.
(4)A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state regardless of the geographic location of the prospective purchaser including persons located outside of this state or the country or solicits prospective purchasers who are located in this state.
(b)Registration shall be valid for one year from the effective date thereof shown on the registration issued by the office of the Attorney General and may be annually renewed by making the filing required by Section 17550.21 and paying a filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business. A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), shall be paid for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received. No registration shall be renewed until the late fee, and the filing and late fees for each year the seller of travel operated without being registered, have been paid. General.
(c)Whenever, prior to expiration of a seller of travels annual registration, there is a material change in the information required by Section 17550.21, the seller of travel shall, within 10 days, file an addendum updating the information with the Consumer Law Section of the office of the Attorney General.
(d)(1)Not less than 10 days prior to the transfer or sale of any interest in a seller of travel, the selling or transferring owner shall file with the office of the Attorney General, Seller of Travel Program, a notice of encumbrance, sale, or transfer of ownership, using a form provided for that purpose by the office of the Attorney General. The notice shall provide the information required pursuant to subdivision (d) of Section 17550.21 as to each transferee.
(2)Until the time the notice of encumbrance, sale, or transfer of ownership required in paragraph (1) is filed as required, the selling, encumbering, or transferring owner is responsible for all acts of and obligations imposed by law on the transferee sellers of travel to the same extent as they would have been responsible had there been no transfer, sale, or encumbrance.
(e)(1)The office of the Attorney General shall suspend the registration of a seller of travel who does any of the following:
(A)Fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35).
(B)Submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn.
(C)Fails to provide the file number assigned by the Secretary of State or the Franchise Tax Board to the seller of travel, as required by subdivision (m) of Section 17550.21.
(e)
(2)The office of the Attorney General shall suspend the registration of any seller of travel who (1) fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35) or (2) submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn. The Attorney General shall provide written notice to the seller of travel by first-class mail at the seller of travels place of business set forth in the registration statement that the seller of travels registration has been suspended until all fees that are due have been paid. The registration of the seller of travel shall be suspended until all such payments due have been collected.
(f)The Attorney General may, at his or her discretion and subject to supervision by the Attorney General or his or her delegate, contract out all or any part of the processing of registrations required by this section.
(g)This section does not apply to an individual, natural person who meets all of the following conditions:
(g)This section does not apply to a person who is an individual, a single-member limited liability company whose sole member is an individual, or a single-shareholder S corporation whose sole shareholder is an individual, that meets all of the following:
(1)Has a written contract with a registered seller of travel to act on that registered seller of travels behalf in offering or selling air or sea transportation and other travel goods or services in connection with the transportation.
(2)Acts only on behalf of a registered seller of travel with whom the person has a written contract in the offer or sale to a passenger of air or sea transportation and other goods or services in connection with the transportation and sells no other air or sea transportation or travel services to that passenger.
(3)Provides air or sea transportation or travel services that are offered or sold pursuant to the official agency appointment of the registered seller of travel with whom the person has a written contract.
(4)Does not receive any consideration for air or sea transportation or other travel services from the passenger.
(5)Requires the passenger to pay all consideration for air or sea transportation or other travel services directly to the air carrier or ocean carrier or to the registered seller of travel.
(6)Discloses both of the following:
(A)The person is acting on behalf of a registered seller of travel.
(B)The name, address, telephone number, and registration number of the registered seller of travel on whose behalf the person is acting.
The person shall make the disclosures required by this paragraph in writing to the passenger at the same time the passenger receives notice under Section 17550.13. If the person transacts business in this state on the Internet, the disclosures also shall appear on the home page of the persons Internet Web site and shall be prominently set forth in the first electronic mail message sent to the passenger that refers to the passengers purchase of air or sea transportation or travel services.
(h)Whenever the Attorney General determines that a registration application is accurate and complete, the application shall be processed and a registration certificate shall be issued to the seller of travel within 21 days.
SEC. 3.Section 17550.21 of the Business and Professions Code is amended to read:17550.21.Each filing pursuant to Section 17550.20 shall contain the following information:
(a)The name or names of the seller of travel, including the name under which the seller of travel is doing or intends to do business, if different from the name of the seller of travel.
(b)The seller of travels business form and place of organization and, if operating under a fictitious business name, the location where the fictitious name has been registered. If the seller of travel does business in California from one or more locations in this state but does not maintain its principal place of business in this state, the seller of travel shall state whether it meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1.
(c)The complete street address or addresses of all locations from which the seller of travel will be conducting business, including, but not limited to, locations at which telephone calls will be received from, or made to, passengers or other sellers of travel. The statement shall designate which location is the principal place of business.
(d)The complete business and residential addresses and telephone numbers, the drivers license number and state of issuance or equivalent personal identification, the social security number, and the date of birth of each owner and principal of the seller of travel. Owner means a person who owns or controls 10 percent or more of the equity of, or otherwise has claim to 10 percent or more of the net income of, a seller of travel. Principal means an owner, an officer of a corporation, a general partner of a partnership, or a sole proprietor of a sole proprietorship.
(e)A statement as to whether the seller of travel, any owner, or principal, or any other seller of travel owned or managed by any owner or principal of the seller of travel, or the seller of travel itself has had entered against that person or entity any judgment, including a stipulated judgment, order, made a plea of nolo contendere, or been convicted of any criminal violation. The statement shall identify the person, the court or administrative agency rendering the judgment, order, or conviction, the docket number of the matter, and the date of the judgment, order, or conviction; where the judgment, order, or record of conviction is filed; and the nature of the case or judgment. This subdivision does not require disclosure of marital dissolution, child support, or child custody proceedings.
(f)A copy of the travel certificates, if any, that are or will be sold, marketed, or distributed to any person or entity by the seller of travel.
(g)The seller of travel shall file with the Attorney General a signed and dated statement providing the following:
(1)The account number of each trust account required by this article.
(2)The name and address of each financial institution at which the seller of travel maintains a trust account required by this article.
(3)Any registration number issued to the seller of travel by the Airline Reporting Corporation or the International Association of Travel Agents Network.
(4)A consent form consenting to the Attorney General, a district attorney, or their representatives obtaining directly from the Airlines Reporting Corporation, International Association of Travel Agents Network, a seller of transportation, provider of transportation, provider of travel services, and any financial institution where passenger funds have been deposited, any information related to an investigation of a seller of travels compliance with this section. The consent form shall be provided by the Attorney General. If a bond is maintained in lieu of the trust account, a copy of that bond shall be filed with the Attorney General.
(h)A statement signed by each owner and principal granting permission to the office of the Attorney General to obtain from any financial institution or credit union at which any trust account required by Section 17550.15 is maintained, information relating to that trust account, as set forth in paragraph (2) of subdivision (f) of Section 17550.15.
(i)The name, address, and telephone number of each person described in subdivision (g) of Section 17550.20 with whom the seller of travel contracts.
(j)The name, address, and telephone number of each person in a single-member limited liability corporation or S corporation described in subdivision (g) of Section 17550.20 with whom the seller of travel contracts.
(j)The name, address, and telephone number of the sole member or the sole shareholder of a limited liability company or S corporation described in subdivision (g) of Section 17550.20 with which the seller of travel contracts.
(k)If at the time of registration renewal, no change has occurred to the information provided in the last filed complete registration statement and the permission described in subdivision (h) has not expired, the seller of travel may, instead of filing a registration statement containing the information required by subdivisions (a) to (j), inclusive, file a statement attesting to the continued accuracy of the information in the last filed complete registration statement. The attestation shall be in a form specified by the Attorney General and verified as described in subdivision (l).
(l)The information required by this section shall be verified by a declaration signed and dated by each owner and principal of the seller of travel, or in the case of a registered seller of travel that does business in California, from one or more locations in California, and that meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1, by a duly authorized officer of the corporation, under penalty of perjury pursuant to the laws of the State of California. The declaration shall specify the date and location of signing. Upon reregistration by a previously registered seller of travel, the information required by this section may be verified by the chief executive officer of a corporation, managing partner of a partnership, or manager of a limited liability company.
(m)The seven-digit California corporation file number assigned by the Secretary of State or the Franchise Tax Board to the seller of travel.
SEC. 4.Section 17550.37 of the Business and Professions Code is amended to read:17550.37.(a)Person aggrieved, as used in this article, means a passenger, as defined in Section 17550.3, located in California at the time of sale, or a person located in California at the time of sale who made any payment on behalf of the passenger for air or sea transportation or travel services, who has sustained a loss as a result of the failure of a seller of travel to refund payments made by or on behalf of a passenger as payment for air or sea transportation or travel services, where a refund is due as a result of the bankruptcy, insolvency, cessation of operations, or material failure to provide the transportation or travel services purchased by the passenger, regardless of whether the passenger or a person making payment on behalf of the passenger initially contracted with that seller of travel. Loss, as used herein, shall be limited to losses that are incurred in a transaction with a seller of travel who, at the time of sale, was registered pursuant to Section 17550.20, and who had been a paid participant at any time during the period commencing with 18 months previous to the time of sale, and ending with the expiration of the applicable time period provided in law for the filing of a civil, administrative, or other available action under the law that is available to the person aggrieved. Person aggrieved shall not mean or include a passenger, or person making payment on behalf of a passenger, in a transaction where the air or sea transportation or travel services are furnished by a business entity that is located and providing transportation or travel services outside of the United States and is not in compliance with Article 2.6 (commencing with Section 17550).
(b)Any person aggrieved who files a claim for payment from the Travel Consumer Restitution Fund thereby waives his or her right to bring any action at law or equity that is against the seller of travel as to whom the claim is made and arises from the transaction that is the subject of the claim against the restitution fund. The claim form required by Section 17550.46 shall include a clear and conspicuous notice of the waiver.
(c)The waiver of rights provided for by subdivision (b) shall not apply to any claimant whose claim is denied on any of the following grounds, as set forth in the statement of decision required by subdivision (d) of Section 17550.47:
(1)The seller of travel had not been a paid-up participant in the Travel Consumer Restitution Fund at any time during the period of time provided in subdivision (a).
(2)The seller of travel was not, at the time of sale, registered pursuant to Section 17550.20.
(3)The claimant was not located in California at the time of sale, as required by subdivision (a).
SEC. 5.Section 2.5 of this bill incorporates amendments to Section 17550.20 of the Business and Professions Code proposed by both this bill and Assembly Bill 2138. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2017, (2) each bill amends Section 17550.20 of the Business and Professions Code, and (3) this bill is enacted after Assembly Bill 2138, in which case Section 2 of this bill shall not become operative.
(a)The Legislature finds and declares all of the following:
(1)Certain advertising, sales, and business practices of sellers of travel have worked financial hardship upon the people of this state.
(2)The travel business has a significant impact upon the economy and well-being of this state and its people.
(3)Problems have arisen that are peculiar to sellers of travel business.
(4)The public welfare requires regulation of sellers of travel in order to eliminate unfair advertising, sales, and business practices, to establish standards that will safeguard the people against financial hardship, to encourage competition, fair dealing, and prosperity in the travel business, and to provide certain and reliable funding for the seller of travel registration program and enforcement by the office of the Attorney General of this article.
(b)It is the intent of the Legislature in enacting this article that the Department of Justice, to the extent that resources are available, work together with representatives of the affected business community to develop sample forms that will, to the maximum extent possible, enable sellers of travel to comply with the requirement to provide to persons making payment the information required by paragraph (1) of subdivision (a) of Section 17550.13, in a manner that is simplified, efficient, and nonduplicative, and in a manner that recognizes the particular burdens and situations that may exist for small sellers of travel in their efforts to comply with the provisions of that section.
SEC. 2.Section 17550.20 of the Business and Professions Code is amended to read:17550.20.(a)(1)Not less than 10 days prior to doing business in this state, a seller of travel shall apply for registration with the office of the Attorney General by filing with the Consumer Law Section the information required by Section 17550.21 and paying the following fees, as applicable:
(A)A filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business.
(B)A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received.
(2)A seller of travel may annually renew its registration by making the filing required by Section 17550.21 and paying the filing fees and late fees required by paragraph (1).
(3)A registration shall not be issued, approved, or renewed until the late fee, the filing and late fees for each year the seller of travel operated without being registered, and any outstanding assessments due to the Travel Consumer Restitution Corporation as required by Sections 17550.43 and 17550.44 have been paid.
(4)A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state or solicits prospective purchasers who are located in this state.
(b)Registration shall be valid for one year from the effective date thereof shown on the registration issued by the office of the Attorney General.
(c)Whenever, prior to expiration of a seller of travels annual registration, there is a material change in the information required by Section 17550.21, the seller of travel shall, within 10 days, file an addendum updating the information with the Consumer Law Section of the office of the Attorney General.
(d)(1)Not less than 10 days prior to the transfer or sale of any interest in a seller of travel, the selling or transferring owner shall file with the office of the Attorney General, Seller of Travel Program, a notice of encumbrance, sale, or transfer of ownership, using a form provided for that purpose by the office of the Attorney General. The notice shall provide the information required pursuant to subdivision (d) of Section 17550.21 as to each transferee.
(2)Until the time the notice of encumbrance, sale, or transfer of ownership required in paragraph (1) is filed as required, the selling, encumbering, or transferring owner is responsible for all acts of and obligations imposed by law on the transferee sellers of travel to the same extent as they would have been responsible had there been no transfer, sale, or encumbrance.
(e)(1)The office of the Attorney General shall suspend the registration of a seller of travel who does any of the following:
(A)Fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35).
(B)Submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn.
(C)Fails to provide the file seven-digit California corporation number issued assigned by the Secretary of State or the Franchise Tax Board to the seller of travel, as required by subdivision (l) (m) of Section 17550.21.
(2)The Attorney General shall provide written notice to the seller of travel by first-class mail at the seller of travels place of business set forth in the registration statement that the seller of travels registration has been suspended until all fees that are due have been paid. The registration of the seller of travel shall be suspended until all such payments due have been collected.
(f)The Attorney General may, at his or her discretion and subject to supervision by the Attorney General or his or her delegate, contract out all or any part of the processing of registrations required by this section.
(g)This section does not apply to an individual, natural person who, or a single-member limited liability corporation or S corporation whose member is a natural person that, meets all of the following conditions:
(1)Has a written contract with a registered seller of travel to act on that registered seller of travels behalf in offering or selling air or sea transportation and other travel goods or services in connection with the transportation.
(2)Acts only on behalf of a registered seller of travel with whom the person has a written contract in the offer or sale to a passenger of air or sea transportation and other goods or services in connection with the transportation and sells no other air or sea transportation or travel services to that passenger.
(3)Provides air or sea transportation or travel services that are offered or sold pursuant to the official agency appointment of the registered seller of travel with whom the person has a written contract.
(4)Does not receive any consideration for air or sea transportation or other travel services from the passenger.
(5)Requires the passenger to pay all consideration for air or sea transportation or other travel services directly to the air carrier or ocean carrier or to the registered seller of travel.
(6)Discloses both of the following:
(A)The person is acting on behalf of a registered seller of travel.
(B)The name, address, telephone number, and registration number of the registered seller of travel on whose behalf the person is acting.
The person shall make the disclosures required by this paragraph in writing to the passenger at the same time the passenger receives notice under Section 17550.13. If the person transacts business in this state on the Internet, the disclosures also shall appear on the home page of the persons Internet Web site and shall be prominently set forth in the first electronic mail message sent to the passenger that refers to the passengers purchase of air or sea transportation or travel services.
(h)Whenever the Attorney General determines that a registration application is accurate and complete, the application shall be processed and a registration certificate shall be issued to the seller of travel within 21 days.
SEC. 3.Section 17550.21 of the Business and Professions Code is amended to read:17550.21.Each filing pursuant to Section 17550.20 shall contain the following information:
(a)The name or names of the seller of travel, including the name under which the seller of travel is doing or intends to do business, if different from the name of the seller of travel.
(b)The seller of travels business form and place of organization and, if operating under a fictitious business name, the location where the fictitious name has been registered. If the seller of travel does business in California from one or more locations in this state but does not maintain its principal place of business in this state, the seller of travel shall state whether it meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1.
(c)The complete street address or addresses of all locations from which the seller of travel will be conducting business, including, but not limited to, locations at which telephone calls will be received from, or made to, passengers or other sellers of travel. The statement shall designate which location is the principal place of business.
(d)The complete business and residential addresses and telephone numbers, the drivers license number and state of issuance or equivalent personal identification, the social security number, and the date of birth of each owner and principal of the seller of travel. Owner means a person who owns or controls 10 percent or more of the equity of, or otherwise has claim to 10 percent or more of the net income of, a seller of travel. Principal means an owner, an officer of a corporation, a general partner of a partnership, or a sole proprietor of a sole proprietorship.
(e)A statement as to whether the seller of travel, any owner, or principal, or any other seller of travel owned or managed by any owner or principal of the seller of travel, or the seller of travel itself has had entered against that person or entity any judgment, including a stipulated judgment, order, made a plea of nolo contendere, or been convicted of any criminal violation. The statement shall identify the person, the court or administrative agency rendering the judgment, order, or conviction, the docket number of the matter, and the date of the judgment, order, or conviction; where the judgment, order, or record of conviction is filed; and the nature of the case or judgment. This subdivision does not require disclosure of marital dissolution, child support, or child custody proceedings.
(f)A copy of the travel certificates, if any, that are or will be sold, marketed, or distributed to any person or entity by the seller of travel.
(g)The seller of travel shall file with the Attorney General a signed and dated statement providing the following:
(1)The account number of each trust account required by this article.
(2)The name and address of each financial institution at which the seller of travel maintains a trust account required by this article.
(3)Any registration number issued to the seller of travel by the Airline Reporting Corporation or the International Association of Travel Agents Network.
(4)A consent form consenting to the Attorney General, a district attorney, or their representatives obtaining directly from the Airlines Reporting Corporation, International Association of Travel Agents Network, a seller of transportation, provider of transportation, provider of travel services, and any financial institution where passenger funds have been deposited, any information related to an investigation of a seller of travels compliance with this section. The consent form shall be provided by the Attorney General. If a bond is maintained in lieu of the trust account, a copy of that bond shall be filed with the Attorney General.
(h)A statement signed by each owner and principal granting permission to the office of the Attorney General to obtain from any financial institution or credit union at which any trust account required by Section 17550.15 is maintained, information relating to that trust account, as set forth in paragraph (2) of subdivision (f) of Section 17550.15.
(i)The name, address, and telephone number of each person described in subdivision (g) of Section 17550.20 with whom the seller of travel contracts.
(j)The name, address, and telephone number of each person in a single-member limited liability corporation or S corporation described in subdivision (g) of Section 17550.20 with whom the seller of travel contracts.
(k)If at the time of registration renewal, no change has occurred to the information provided in the last filed complete registration statement and the permission described in subdivision (h) has not expired, the seller of travel may, instead of filing a registration statement containing the information required by subdivisions (a) to (j), inclusive, file a statement attesting to the continued accuracy of the information in the last filed complete registration statement. The attestation shall be in a form specified by the Attorney General and verified as described in subdivision (l).
(l)The information required by this section shall be verified by a declaration signed and dated by each owner and principal of the seller of travel, or in the case of a registered seller of travel that does business in California, from one or more locations in California, and that meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1, by a duly authorized officer of the corporation, under penalty of perjury pursuant to the laws of the State of California. The declaration shall specify the date and location of signing. Upon reregistration by a previously registered seller of travel, the information required by this section may be verified by the chief executive officer of a corporation, managing partner of a partnership, or manager of a limited liability company.
(m)The file seven-digit California corporation number issued assigned by the Secretary of State or the Franchise Tax Board to the seller of travel.
SEC. 4.Section 17550.37 of the Business and Professions Code is amended to read:17550.37.(a)Person aggrieved, as used in this article, means a passenger, as defined in Section 17550.3, located in California at the time of sale, or a person located in California at the time of sale who made any payment on behalf of the passenger for air or sea transportation or travel services, who has sustained a loss as a result of the failure of a seller of travel to refund payments made by or on behalf of a passenger as payment for air or sea transportation or travel services, where a refund is due as a result of the bankruptcy, insolvency, cessation of operations, or material failure to provide the transportation or travel services purchased by the passenger, regardless of whether the passenger or a person making payment on behalf of the passenger initially contracted with that seller of travel. Loss, as used herein, shall be limited to losses that are incurred in a transaction with a seller of travel who, at the time of sale, was registered pursuant to Section 17550.20, and who had been a paid participant at any time during the period commencing with 18 months previous to the time of sale, and ending with the expiration of the applicable time period provided in law for the filing of a civil, administrative, or other available action under the law that is available to the person aggrieved. Person aggrieved shall not mean or include a passenger, or person making payment on behalf of a passenger, in a transaction where the air or sea transportation or travel services are furnished by a business entity that is located and providing transportation or travel services outside of the United States and is not in compliance with Article 2.6 (commencing with Section 17550).
(b)Any person aggrieved who files a claim for payment from the Travel Consumer Restitution Fund thereby waives his or her right to bring any action at law or equity that is against the seller of travel as to whom the claim is made and arises from the transaction that is the subject of the claim against the restitution fund. The claim form required by Section 17550.46 shall include a clear and conspicuous notice of the waiver.
(c)The waiver of rights provided for by subdivision (b) shall not apply to any claimant whose claim is denied on any of the following grounds, as set forth in the statement of decision required by subdivision (d) of Section 17550.47:
(1)The seller of travel had not been a paid-up participant in the Travel Consumer Restitution Fund at any time during the period of time provided in subdivision (a).
(2)The seller of travel was not, at the time of sale, registered pursuant to Section 17550.20.
(3)The claimant was not located in California at the time of sale, as required by subdivision (a).
(a)The Legislature finds and declares all of the following:
(1)Certain advertising, sales, and business practices of sellers of travel have worked financial hardship upon the people of this state.
(2)The travel business has a significant impact upon the economy and well-being of this state and its people.
(3)Problems have arisen that are peculiar to sellers of travel business.
(4)The public welfare requires regulation of sellers of travel in order to eliminate unfair advertising, sales, and business practices, to establish standards that will safeguard the people against financial hardship, to encourage competition, fair dealing, and prosperity in the travel business, and to provide certain and reliable funding for the seller of travel registration program and enforcement by the office of the Attorney General of this article.
(b)It is the intent of the Legislature in enacting this article that the Department of Justice, to the extent that resources are available, work together with representatives of the affected business community to develop sample forms that will, to the maximum extent possible, enable sellers of travel to comply with the requirement to provide to persons making payment the information required by paragraph (1) of subdivision (a) of Section 17550.13, in a manner that is simplified, efficient, and nonduplicative, and in a manner that recognizes the particular burdens and situations that may exist for small sellers of travel in their efforts to comply with the provisions of that section.
SEC. 2.Section 17550.20 of the Business and Professions Code is amended to read:17550.20.(a)(1)Not less than 10 days prior to doing business in this state, a seller of travel shall apply for registration with the office of the Attorney General by filing with the Consumer Law Section the information required by Section 17550.21 and paying the following fees, as applicable:
(A)A filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business.
(B)A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received.
(2)A seller of travel may annually renew its registration by making the filing required by Section 17550.21 and paying the filing fees and late fees required by paragraph (1).
(3)A registration shall not be issued, approved, or renewed until the late fee, the filing and late fees for each year the seller of travel operated without being registered, and any outstanding assessments due to the Travel Consumer Restitution Corporation as required by Sections 17550.43 and 17550.44 have been paid.
(4)A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state or solicits prospective purchasers who are located in this state.
(b)Registration shall be valid for one year from the effective date thereof shown on the registration issued by the office of the Attorney General.
(c)Whenever, prior to expiration of a seller of travels annual registration, there is a material change in the information required by Section 17550.21, the seller of travel shall, within 10 days, file an addendum updating the information with the Consumer Law Section of the office of the Attorney General.
(d)(1)Not less than 10 days prior to the transfer or sale of any interest in a seller of travel, the selling or transferring owner shall file with the office of the Attorney General, Seller of Travel Program, a notice of encumbrance, sale, or transfer of ownership, using a form provided for that purpose by the office of the Attorney General. The notice shall provide the information required pursuant to subdivision (d) of Section 17550.21 as to each transferee.
(2)Until the time the notice of encumbrance, sale, or transfer of ownership required in paragraph (1) is filed as required, the selling, encumbering, or transferring owner is responsible for all acts of and obligations imposed by law on the transferee sellers of travel to the same extent as they would have been responsible had there been no transfer, sale, or encumbrance.
(e)(1)The office of the Attorney General shall suspend the registration of a seller of travel who does any of the following:
(A)Fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35).
(B)Submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn.
(C)Fails to provide the file number issued by the Secretary of State to the seller of travel, as required by subdivision (l) of Section 17550.21.
(2)The Attorney General shall provide written notice to the seller of travel by first-class mail at the seller of travels place of business set forth in the registration statement that the seller of travels registration has been suspended until all fees that are due have been paid. The registration of the seller of travel shall be suspended until all such payments due have been collected.
(f)The Attorney General may, at his or her discretion and subject to supervision by the Attorney General or his or her delegate, contract out all or any part of the processing of registrations required by this section.
(g)This section does not apply to an individual, natural person who, or a single-member limited liability corporation or S corporation whose member is a natural person that, meets all of the following conditions:
(1)Has a written contract with a registered seller of travel to act on that registered seller of travels behalf in offering or selling air or sea transportation and other travel goods or services in connection with the transportation.
(2)Acts only on behalf of a registered seller of travel with whom the person or corporation has a written contract in the offer or sale to a passenger of air or sea transportation and other goods or services in connection with the transportation and sells no other air or sea transportation or travel services to that passenger.
(3)Provides air or sea transportation or travel services that are offered or sold pursuant to the official agency appointment of the registered seller of travel with whom the person or corporation has a written contract.
(4)Does not receive any consideration for air or sea transportation or other travel services from the passenger.
(5)Requires the passenger to pay all consideration for air or sea transportation or other travel services directly to the air carrier or ocean carrier or to the registered seller of travel.
(6)Discloses both of the following:
(A)The person or corporation is acting on behalf of a registered seller of travel.
(B)The name, address, telephone number, and registration number of the registered seller of travel on whose behalf the person or corporation is acting.
The person or corporation shall make the disclosures required by this paragraph in writing to the passenger at the same time the passenger receives notice under Section 17550.13. If the person or corporation transacts business in this state on the Internet, the disclosures also shall appear on the home page of the persons or corporations Internet Web site and shall be prominently set forth in the first electronic mail message sent to the passenger that refers to the passengers purchase of air or sea transportation or travel services.
(h)Whenever the Attorney General determines that a registration application is accurate and complete, the application shall be processed and a registration certificate shall be issued to the seller of travel within 21 days.
SEC. 3.Section 17550.21 of the Business and Professions Code is amended to read:17550.21.Each filing pursuant to Section 17550.20 shall contain the following information:
(a)The name or names of the seller of travel, including the name under which the seller of travel is doing or intends to do business, if different from the name of the seller of travel.
(b)The seller of travels business form and place of organization and, if operating under a fictitious business name, the location where the fictitious name has been registered. If the seller of travel does business in California from one or more locations in this state but does not maintain its principal place of business in this state, the seller of travel shall state whether it meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1.
(c)The complete street address or addresses of all locations from which the seller of travel will be conducting business, including, but not limited to, locations at which telephone calls will be received from, or made to, passengers or other sellers of travel. The statement shall designate which location is the principal place of business.
(d)The complete business and residential addresses and telephone numbers, the drivers license number and state of issuance or equivalent personal identification, the social security number, and the date of birth of each owner and principal of the seller of travel. Owner means a person who owns or controls 10 percent or more of the equity of, or otherwise has claim to 10 percent or more of the net income of, a seller of travel. Principal means an owner, an officer of a corporation, a general partner of a partnership, or a sole proprietor of a sole proprietorship.
(e)A statement as to whether the seller of travel, any owner, or principal, or any other seller of travel owned or managed by any owner or principal of the seller of travel, or the seller of travel itself has had entered against that person or entity any judgment, including a stipulated judgment, order, made a plea of nolo contendere, or been convicted of any criminal violation. The statement shall identify the person, the court or administrative agency rendering the judgment, order, or conviction, the docket number of the matter, and the date of the judgment, order, or conviction; where the judgment, order, or record of conviction is filed; and the nature of the case or judgment. This subdivision does not require disclosure of marital dissolution, child support, or child custody proceedings.
(f)A copy of the travel certificates, if any, that are or will be sold, marketed, or distributed to any person or entity by the seller of travel.
(g)The seller of travel shall file with the Attorney General a signed and dated statement providing the following:
(1)The account number of each trust account required by this article.
(2)The name and address of each financial institution at which the seller of travel maintains a trust account required by this article.
(3)Any registration number issued to the seller of travel by the Airline Reporting Corporation or the International Association of Travel Agents Network.
(4)A consent form consenting to the Attorney General, a district attorney, or their representatives obtaining directly from the Airlines Reporting Corporation, International Association of Travel Agents Network, a seller of transportation, provider of transportation, provider of travel services, and any financial institution where passenger funds have been deposited, any information related to an investigation of a seller of travels compliance with this section. The consent form shall be provided by the Attorney General. If a bond is maintained in lieu of the trust account, a copy of that bond shall be filed with the Attorney General.
(h)A statement signed by each owner and principal granting permission to the office of the Attorney General to obtain from any financial institution or credit union at which any trust account required by Section 17550.15 is maintained, information relating to that trust account, as set forth in paragraph (2) of subdivision (f) of Section 17550.15.
(i)The name, address, and telephone number of each person described in subdivision (g) of Section 17550.20 with whom the seller of travel contracts.
(j)The name, address, and telephone number of each person in a single-member limited liability corporation or S corporation described in subdivision (g) of Section 17550.20 with whom the seller of travel contracts.
(j)
(k)If at the time of registration renewal, no change has occurred to the information provided in the last filed complete registration statement and the permission described in subdivision (h) has not expired, the seller of travel may, instead of filing a registration statement containing the information required by subdivisions (a) to (i), (j), inclusive, file a statement attesting to the continued accuracy of the information in the last filed complete registration statement. The attestation shall be in a form specified by the Attorney General and verified as described in subdivision (k). (l).
(k)
(l)The information required by this section shall be verified by a declaration signed and dated by each owner and principal of the seller of travel, or in the case of a registered seller of travel that does business in California, from one or more locations in California, and that meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1, by a duly authorized officer of the corporation, under penalty of perjury pursuant to the laws of the State of California. The declaration shall specify the date and location of signing. Upon reregistration by a previously registered seller of travel, the information required by this section may be verified by the chief executive officer of a corporation, managing partner of a partnership, or manager of a limited liability company.
(l)
(m)The file number issued by the Secretary of State to the seller of travel.
SEC. 4.Section 17550.37 of the Business and Professions Code is amended to read:17550.37.(a)Person aggrieved, as used in this article, means a passenger, as defined in Section 17550.3, located in California at the time of sale, or a person located in California at the time of sale who made any payment on behalf of the passenger for air or sea transportation or travel services, who has sustained a loss as a result of the failure of a seller of travel to refund payments made by or on behalf of a passenger as payment for air or sea transportation or travel services, where a refund is due as a result of the bankruptcy, insolvency, cessation of operations, or material failure to provide the transportation or travel services purchased by the passenger, regardless of whether the passenger or a person making payment on behalf of the passenger initially contracted with that seller of travel. Loss, as used herein, shall be limited to losses that are incurred in a transaction with a seller of travel who, at the time of sale, was registered pursuant to Section 17550.20, and who, who had been a paid participant at any time during the 12 period commencing with 18 months previous to the time of sale, had been a paid-up participant. and ending with the expiration of the applicable time period provided in law for the filing of a civil, administrative, or other available action under the law that is available to the person aggrieved. Person aggrieved shall not mean or include a passenger, or person making payment on behalf of a passenger, in a transaction where the air or sea transportation or travel services are furnished by a business entity that is located and providing transportation or travel services outside of the United States and is not in compliance with Article 2.6 (commencing with Section 17550).
(b)Any person aggrieved who files a claim for payment from the Travel Consumer Restitution Fund thereby waives his or her right to bring any action at law or equity that is against the seller of travel as to whom the claim is made and arises from the transaction that is the subject of the claim against the restitution fund. The claim form required by Section 17550.46 shall include a clear and conspicuous notice of the waiver.
(c)The waiver of rights provided for by subdivision (b) shall not apply to any claimant whose claim is denied on any of the following grounds, as set forth in the statement of decision required by subdivision (d) of Section 17550.47:
(1)The seller of travel had not been a paid-up participant in the Travel Consumer Restitution Fund at any time during the 12 months previous to the period of time of sale, as required by provided in subdivision (a).
(2)The seller of travel was not, at the time of sale, registered pursuant to Section 17550.20.
(3)The claimant was not located in California at the time of sale, as required by subdivision (a).
(a)The Legislature finds and declares all of the following:
(1)Certain advertising, sales, and business practices of sellers of travel have worked financial hardship upon the people of this state.
(2)The travel business has a significant impact upon the economy and well-being of this state and its people.
(3)Problems have arisen that are peculiar to sellers of travel business.
(4)The public welfare requires regulation of sellers of travel in order to eliminate unfair advertising, sales, and business practices, to establish standards that will safeguard the people against financial hardship, to encourage competition, fair dealing, and prosperity in the travel business, and to provide certain and reliable funding for the seller of travel registration program and enforcement by the office of the Attorney General of this article.
(b)It is the intent of the Legislature in enacting this article that the Department of Justice, to the extent that resources are available, work together with representatives of the affected business community to develop sample forms that will, to the maximum extent possible, enable sellers of travel to comply with the requirement to provide to persons making payment the information required by paragraph (1) of subdivision (a) of Section 17550.13, in a manner that is simplified, efficient, and nonduplicative, and in a manner that recognizes the particular burdens and situations that may exist for small sellers of travel in their efforts to comply with the provisions of that section.
SEC. 2.Section 17550.20 of the Business and Professions Code is amended to read:17550.20.(a)(1)Not less than 10 days prior to doing business in this state, a seller of travel shall apply for registration with the office of the Attorney General by filing with the Consumer Law Section the information required by Section 17550.21 and a paying the following fees, as applicable:
(A)A filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business. A
(B)A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), shall be paid ($500), for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received. No
(2)A seller of travel may annually renew its registration by making the filing required by Section 17550.21 and paying the filing fees and late fees required by paragraph (1).
(3)A registration shall not be issued or approved issued, approved, or renewed until the late fee, and the filing and late fees for each year the seller of travel operated without being registered, and any outstanding assessments due to the Travel Consumer Restitution Corporation as required by Sections 17550.43 and 17550.44 have been paid. A
(4)A seller of travel shall be deemed to do business in this state if the seller of travel solicits business from locations in this state or solicits prospective purchasers who are located in this state.
(b)Registration shall be valid for one year from the effective date thereof shown on the registration issued by the office of the Attorney General and may be annually renewed by making the filing required by Section 17550.21 and paying a filing fee of one hundred dollars ($100) for each location from which the seller of travel conducts business. A late fee of five dollars ($5) per day, up to a maximum of five hundred dollars ($500), shall be paid for each day after the time specified by this section until the filing fee and the information required by Section 17550.21 are received. No registration shall be renewed until the late fee, and the filing and late fees for each year the seller of travel operated without being registered, have been paid. General.
(c)Whenever, prior to expiration of a seller of travels annual registration, there is a material change in the information required by Section 17550.21, the seller of travel shall, within 10 days, file an addendum updating the information with the Consumer Law Section of the office of the Attorney General.
(d)(1)Not less than 10 days prior to the transfer or sale of any interest in a seller of travel, the selling or transferring owner shall file with the office of the Attorney General, Seller of Travel Program, a notice of encumbrance, sale, or transfer of ownership, using a form provided for that purpose by the office of the Attorney General. The notice shall provide the information required pursuant to subdivision (d) of Section 17550.21 as to each transferee.
(2)Until the time the notice of encumbrance, sale, or transfer of ownership required in paragraph (1) is filed as required, the selling, encumbering, or transferring owner is responsible for all acts of and obligations imposed by law on the transferee sellers of travel to the same extent as they would have been responsible had there been no transfer, sale, or encumbrance.
(e)(1)The office of the Attorney General shall suspend the registration of any a seller of travel who (1) fails does any of the following:
(A)Fails to make any payment required pursuant to Article 2.7 (commencing with Section 17550.35) or (2) submits Section 17550.35).
(B)Submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn. The
(C)Fails to provide the file number issued by the Secretary of State to the seller of travel, as required by subdivision (l) of Section 17550.21.
(2)The Attorney General shall provide written notice to the seller of travel by first-class mail at the seller of travels place of business set forth in the registration statement that the seller of travels registration has been suspended until all fees that are due have been paid. The registration of the seller of travel shall be suspended until all such payments due have been collected.
(f)The Attorney General may, at his or her discretion and subject to supervision by the Attorney General or his or her delegate, contract out all or any part of the processing of registrations required by this section.
(g)This section does not apply to an individual, natural person who who, or a single-member limited liability corporation or S corporation that, meets all of the following conditions:
(1)Has a written contract with a registered seller of travel to act on that registered seller of travels behalf in offering or selling air or sea transportation and other travel goods or services in connection with the transportation.
(2)Acts only on behalf of a registered seller of travel with whom the person or corporation has a written contract in the offer or sale to a passenger of air or sea transportation and other goods or services in connection with the transportation and sells no other air or sea transportation or travel services to that passenger.
(3)Provides air or sea transportation or travel services that are offered or sold pursuant to the official agency appointment of the registered seller of travel with whom the person or corporation has a written contract.
(4)Does not receive any consideration for air or sea transportation or other travel services from the passenger.
(5)Requires the passenger to pay all consideration for air or sea transportation or other travel services directly to the air carrier or ocean carrier or to the registered seller of travel.
(6)Discloses both of the following:
(A)The person or corporation is acting on behalf of a registered seller of travel.
(B)The name, address, telephone number, and registration number of the registered seller of travel on whose behalf the person or corporation is acting.
The person or corporation shall make the disclosures required by this paragraph in writing to the passenger at the same time the passenger receives notice under Section 17550.13. If the person or corporation transacts business in this state on the Internet, the disclosures also shall appear on the home page of the persons or corporations Internet Web site and shall be prominently set forth in the first electronic mail message sent to the passenger that refers to the passengers purchase of air or sea transportation or travel services.
(h)Whenever the Attorney General determines that a registration application is accurate and complete, the application shall be processed and a registration certificate shall be issued to the seller of travel within 21 days.
SEC. 3.Section 17550.21 of the Business and Professions Code is amended to read:17550.21.Each filing pursuant to Section 17550.20 shall contain the following information:
(a)The name or names of the seller of travel, including the name under which the seller of travel is doing or intends to do business, if different from the name of the seller of travel.
(b)The seller of travels business form and place of organization and, if operating under a fictitious business name, the location where the fictitious name has been registered. If the seller of travel does business in California from one or more locations in this state but does not maintain its principal place of business in this state, the seller of travel shall state whether it meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1.
(c)The complete street address or addresses of all locations from which the seller of travel will be conducting business, including, but not limited to, locations at which telephone calls will be received from, or made to, passengers or other sellers of travel. The statement shall designate which location is the principal place of business.
(d)The complete business and residential addresses and telephone numbers, the drivers license number and state of issuance or equivalent personal identification, the social security number, and the date of birth of each owner and principal of the seller of travel. Owner means a person who owns or controls 10 percent or more of the equity of, or otherwise has claim to 10 percent or more of the net income of, a seller of travel. Principal means an owner, an officer of a corporation, a general partner of a partnership, or a sole proprietor of a sole proprietorship.
(e)A statement as to whether the seller of travel, any owner, or principal, or any other seller of travel owned or managed by any owner or principal of the seller of travel, or the seller of travel itself has had entered against that person or entity any judgment, including a stipulated judgment, order, made a plea of nolo contendere, or been convicted of any criminal violation. The statement shall identify the person, the court or administrative agency rendering the judgment, order, or conviction, the docket number of the matter, and the date of the judgment, order, or conviction; where the judgment, order, or record of conviction is filed; and the nature of the case or judgment. This subdivision does not require disclosure of marital dissolution, child support, or child custody proceedings.
(f)A copy of the travel certificates, if any, that are or will be sold, marketed, or distributed to any person or entity by the seller of travel.
(g)The seller of travel shall file with the Attorney General a signed and dated statement providing the following:
(1)The account number of each trust account required by this article.
(2)The name and address of each financial institution at which the seller of travel maintains a trust account required by this article.
(3)Any registration number issued to the seller of travel by the Airline Reporting Corporation or the International Association of Travel Agents Network.
(4)A consent form consenting to the Attorney General, a district attorney, or their representatives obtaining directly from the Airlines Reporting Corporation, International Association of Travel Agents Network, a seller of transportation, provider of transportation, provider of travel services, and any financial institution where passenger funds have been deposited, any information related to an investigation of a seller of travels compliance with this section. The consent form shall be provided by the Attorney General. If a bond is maintained in lieu of the trust account, a copy of that bond shall be filed with the Attorney General.
(h)A statement signed by each owner and principal granting permission to the office of the Attorney General to obtain from any financial institution or credit union at which any trust account required by Section 17550.15 is maintained, information relating to that trust account, as set forth in paragraph (2) of subdivision (f) of Section 17550.15.
(i)The name, address, and telephone number of each person described in subdivision (g) of Section 17550.20 with whom the seller of travel contracts.
(j)If at the time of registration renewal, no change has occurred to the information provided in the last filed complete registration statement and the permission described in subdivision (h) has not expired, the seller of travel may, instead of filing a registration statement containing the information required by subdivisions (a) to (i), inclusive, file a statement attesting to the continued accuracy of the information in the last filed complete registration statement. The attestation shall be in a form specified by the Attorney General and verified as described in subdivision (k).
(k)The information required by this section shall be verified by a declaration signed and dated by each owner and principal of the seller of travel, or in the case of a registered seller of travel that does business in California, from one or more locations in California, and that meets the requirements of paragraph (16) of subdivision (e) of Section 17511.1, by a duly authorized officer of the corporation, under penalty of perjury pursuant to the laws of the State of California. The declaration shall specify the date and location of signing. Upon reregistration by a previously registered seller of travel, the information required by this section may be verified by the chief executive officer of a corporation, managing partner of a partnership, or manager of a limited liability company.
(l)The file number issued by the Secretary of State to the seller of travel.
SEC. 4.Section 17550.37 of the Business and Professions Code is amended to read:17550.37.(a)Person aggrieved, as used in this article, means a passenger, as defined in Section 17550.3, located in California at the time of sale, or a person located in California at the time of sale who made any payment on behalf of the passenger for air or sea transportation or travel services, who has sustained a loss as a result of the failure of a seller of travel to refund payments made by or on behalf of a passenger as payment for air or sea transportation or travel services, where a refund is due as a result of the bankruptcy, insolvency, cessation of operations, or material failure to provide the transportation or travel services purchased by the passenger, regardless of whether the passenger or a person making payment on behalf of the passenger initially contracted with that seller of travel. Loss, as used herein, shall be limited to losses that are incurred in a transaction with a seller of travel who, at the time of sale, was a paid-up participant in the Travel Consumer Restitution Fund and was registered pursuant to Section 17550.20. 17550.20, and who, at any time during the 12 months previous to the time of sale, had been a paid-up participant. Person aggrieved shall not mean or include a passenger, or person making payment on behalf of a passenger, in a transaction where the air or sea transportation or travel services are furnished by a business entity that is located and providing transportation or travel services outside of the United States and is not in compliance with Article 2.6 (commencing with Section 17550).
(b)Any person aggrieved who files a claim for payment from the Travel Consumer Restitution Fund thereby waives his or her right to bring any action at law or equity that is against the seller of travel as to whom the claim is made and arises from the transaction that is the subject of the claim against the restitution fund. The claim form required by Section 17550.46 shall include a clear and conspicuous notice of the waiver.
(c)The waiver of rights provided for by subdivision (b) shall not apply to any claimant whose claim is denied on any of the following grounds, as set forth in the statement of decision required by subdivision (d) of Section 17550.47:
(1)The seller of travel was not, at the time of sale, had not been a paid-up participant in the Travel Consumer Restitution Fund, Fund at any time during the 12 months previous to the time of sale, as required by subdivision (a).
(2)The seller of travel was not, at the time of sale, registered pursuant to Section 17550.20.
(3)The claimant was not located in California at the time of sale, as required by subdivision (a).
(a)The Legislature finds and declares that certain all of the following:
(1)Certain advertising, sales, and business practices of sellers of travel have worked financial hardship upon the people of this state; that the state.
(2)The travel business has a significant impact upon the economy and well-being of this state and its people; that problems people.
(3)Problems have arisen that are peculiar to sellers of travel business; and that the business.
(4)The public welfare requires regulation of sellers of travel in order to eliminate unfair advertising, sales, and business practices; practices, to establish standards that will safeguard the people against financial hardship; hardship, to encourage competition, fair dealing, and prosperity in the travel business; business, and to provide certain and reliable funding for the seller of travel registration program and enforcement by the office of the Attorney General of this article.`
It
(b)It is the intent of the Legislature in enacting this article that the Department of Justice, to the extent that resources are available, work together with representatives of the affected business community to develop sample forms that will, to the maximum extent possible, enable sellers of travel to comply with the requirement to provide to persons making payment the information required by subdivision (c) and subdivisions (e) to (l), inclusive, paragraph (1) of subdivision (a) of Section 17550.13, in a manner that is simplified, efficient, and nonduplicative, and in a manner that recognizes the particular burdens and situations that may exist for small sellers of travel in their efforts to comply with the provisions of that section.
|
Date
|
Status
|
|---|---|
| Aug 17, 2016 | Read third time. Passed. Ordered to the Assembly. |
| Jun 13, 2016 | Withdrawn from committee. |
| Jun 27, 2016 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| Jun 28, 2016 | Read second time. Ordered to Consent Calendar. |
| Jun 30, 2016 | From Consent Calendar. |
| Jun 30, 2016 | Ordered to third reading. |
| Aug 15, 2016 | Read third time and amended. Ordered to second reading. |
| Aug 16, 2016 | Read second time. Ordered to third reading. |
| Aug 17, 2016 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 19 pursuant to Assembly Rule 77. |
| Jun 13, 2016 | Re-referred to Com. on APPR. |
| Aug 17, 2016 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5051.). |
| Aug 17, 2016 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.). |
| Aug 18, 2016 | Re-referred to Com. on A.,E.,S.,T., & I.M. pursuant to Assembly Rule 77.2. |
| Aug 25, 2016 | From committee: That the Senate amendments be concurred in. (Ayes 6. Noes 0.) . |
| Aug 30, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 30, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 6425.). |
| Sep 8, 2016 | Enrolled and presented to the Governor at 4 p.m. |
| Feb 17, 2016 | Read first time. To print. |
| Jun 9, 2016 | Read second time and amended. Re-referred to Com. on JUD. |
| Jun 8, 2016 | From committee: Amend, and do pass as amended and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (June 6). |
| May 31, 2016 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D. |
| May 19, 2016 | Referred to Coms. on B., P. & E.D. and JUD. |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0.) |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 4787.) |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. |
| May 12, 2016 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 5, 2016 | Read second time. Ordered to Consent Calendar. |
| May 4, 2016 | From committee: Do pass. To Consent Calendar. (Ayes 20. Noes 0.) (May 4). |
| Apr 12, 2016 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (April 12). Re-referred to Com. on APPR. |
| Mar 14, 2016 | Re-referred to Com. on A.,E.,S.,T., & I.M. |
| Mar 10, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on A.,E.,S.,T., & I.M. Read second time and amended. |
| Feb 29, 2016 | Referred to Com. on A.,E.,S.,T., & I.M. |
| Feb 18, 2016 | From printer. May be heard in committee March 19. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 30, 2016 | AB 2106 IRWIN Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 25, 2016 | With recommendation: That Senate amendments be concurred in. | Assembly Standing Committee on Arts, Entertainment, Sports, Tourism, and Internet Media |
Passed |
|
| Aug 17, 2016 | Assembly 3rd Reading AB2106 Irwin By Wieckowski | Senate Floor |
Passed |
|
| Jun 6, 2016 | Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary] with the recommendation: To Consent Calendar | Senate Standing Committee on Business, Professions and Economic Development |
Passed |
|
| May 12, 2016 | AB 2106 IRWIN Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 4, 2016 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 12, 2016 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Arts, Entertainment, Sports, Tourism, and Internet Media |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Coalition of Travel Agents | ** Support | Aug 17, 2016 |
| California Coalition Of Travel Organizations | ** Support | Aug 17, 2016 |
| California Farm Bureau | * Support | Jun 26, 2018 |
CONCURRENCE IN SENATE AMENDMENTS
CSA2 Bill Id:AB 2106
Author:(Irwin)
As Amended Ver:August 15, 2016
Majority vote
ASSEMBLY: | 78-0 | (May 12, 2016) | SENATE: | 39-0 | (August 17, 2016) |
COMMITTEE VOTE: | 6-0 | (August 25, 2016) | RECOMMENDATION: | concur |
(A.,E.,S.,T., & I.M.)
Original Committee Reference: A.,E.,S.,T., & I.M.
SUMMARY: Makes various changes to the Sellers of Travel law.
The Senate amendments:
- Provide the existing exemption from the Sellers of Travel Law (Travel Law) is limited to a natural person:
- Who is an individual,
- A single-member limited liability company whose sole member is an individual, or,
- A single-shareholder "S" corporation whose sole shareholder is an individual that meets specified conditions.
- Restructure and clarify the existing fee and fines authorized under the Travel Law.
- Make conforming changes to the requirement that the Attorney General (AG) suspend the registration of a Seller of Travel (SOT) who fails to make any required payment or submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn, or fails to provide the file number assigned them, as required.
- Require a SOT to provide the AG the name and contact information for the sole member or the sole shareholder of a limited liability company or "S" corporation, as described, with which the SOT contracts, as well as their file number issued by the Secretary of State or Franchise Tax Board, in addition to other requirements in existing law.
- Extend consumer protections by allowing refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the 18 months previous to the time of sale.
- Make additional technical, conforming and chaptering out amendments.
EXISTING LAW:
- Establishes the Law which provides a comprehensive scheme for the regulation of sellers of travel, as defined, and requires a SOT, unless exempted, to register with the AG and to comply with various requirements. (Business and Professions Code Section (BPC) 17550 et. seq.)
- Defines a SOT as a person who sells, provides, furnishes, contracts for, arranges, or advertises that he or she can or may arrange, or has arranged, at wholesale or retail either of the following: air or sea transportation either separately or in conjunction with other travel services, or land or water vessel transportation, other than sea carriage, either separately or in conjunction with other travel services if the total charge to the passenger exceeds $300. (BPC 17550.1(a))
- Excludes from the definition of a SOT the following: an air carrier; an ocean carrier; a hotel, motel, or similar lodging establishment that arranges for transportation for its registered guests; a motor club; or a motor or rail carrier or water vessel operator operating from a state, federal, or other governmental entity. (BPC 17550.1(b))
- Requires a SOT to register with the AG and file certain information as part of registration, including the name and contact information of individuals a SOT contracts with. Requires the AG to suspend a SOT's registration for failure to make payment to the Travel Consumer Restitution Fund (TCRF) or writes a registration fee check that is not honored. Authorizes the AG to contract for the processing of SOT registrations. Exempts individuals that conduct their activities in accordance with specified procedures and disclosures. (BPC 17550.20, 17550.21)
- Establishes the Travel Consumer Restitution Corporation (TCRC) which creates the TCRF as a mechanism for an aggrieved passenger to be reimbursed when a SOT fails to provide for travel or in the event that a SOT becomes insolvent. (BPC 17550.38)
FISCAL EFFECT: This bill passed out of the Senate Appropriations Committee, pursuant to Rule 28.8, negligible state costs.
COMMENTS: According to the author the substantive amendments came at the request of the AG's office, the state agency tasked with regulation of the SOTs, and the Secretary of States' Office, in order to provide increased consumer protection in particular through greater ease of enforcement, in addition to addressing technical issues and chaptering out conflicts.
Analysis Prepared by: Dana Mitchell / A.,E.,S.,T., & I.M. / (916) 319-3450 FN: 0004904
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2106
Author:(Irwin)
As Amended Ver:August 15, 2016
Majority vote
ASSEMBLY: | 78-0 | (May 12, 2016) | SENATE: | 39-0 | (August 17, 2016) |
Original Committee Reference: A.,E.,S.,T., & I.M.
SUMMARY: Makes various changes to the Sellers of Travel law.
The Senate amendments
- Provide that the exemption from the Sellers of Travel Law (Travel Law) is limited to:
- Person who is an individual,
- A single-member limited liability company whose sole member is an individual, or,
- A single-shareholder "S" corporation whose sole shareholder is an individual that meets specified conditions.
- Restructure and clarify the fee and fines authorized under the Travel Law.
- Require the Attorney General (AG) to suspend the registration of a Seller of Travel (SOT) who fails to make any required payment or submits a check in payment of a registration fee or late fee required by this section that is not honored by the institution on which it is drawn, or fails to provide the file number assigned them, as required.
- Require a SOT to provide the AG the name and contact information for the sole member or the sole shareholder of a limited liability company or "S" corporation, as described, with which the SOT contracts, as well as their file number issued by the Secretary of State or Franchise Tax Board, in addition to other requirements in existing law.
- Extend consumer protections by allowing refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the 18 months previous to the time of sale.
- Make additional technical, conforming and chaptering out amendments.
EXISTING LAW:
- Establishes the Law which provides a comprehensive scheme for the regulation of sellers of travel, as defined, and requires a SOT, unless exempted, to register with the AG and to comply with various requirements. (Business and Professions Code Section (BPC) 17550 et. seq.)
- Defines a SOT as a person who sells, provides, furnishes, contracts for, arranges, or advertises that he or she can or may arrange, or has arranged, at wholesale or retail either of the following: air or sea transportation either separately or in conjunction with other travel services, or land or water vessel transportation, other than sea carriage, either separately or in conjunction with other travel services if the total charge to the passenger exceeds $300. (BPC 17550.1(a))
- Excludes from the definition of a SOT the following: an air carrier; an ocean carrier; a hotel, motel, or similar lodging establishment that arranges for transportation for its registered guests; a motor club; or a motor or rail carrier or water vessel operator operating from a state, federal, or other governmental entity. (BPC 17550.1(b))
- Requires a SOT to register with the AG and file certain information as part of registration, including the name and contact information of individuals a SOT contracts with. Requires the AG to suspend a SOT's registration for failure to make payment to the Travel Consumer Restitution Fund (TCRF) or writes a registration fee check that is not honored. Authorizes the AG to contract for the processing of SOT registrations. Exempts individuals that conduct their activities in accordance with specified procedures and disclosures. (BPC 17550.20, 17550.21)
- Establishes the Travel Consumer Restitution Corporation (TCRC) which creates the TCRF as a mechanism for an aggrieved passenger to be reimbursed when a SOT fails to provide for travel or in the event that a SOT becomes insolvent. (BPC 17550.38)
FISCAL EFFECT: This bill passed out of the Senate Appropriations Committee, pursuant to Rule 28.8.
COMMENTS: According to the author the substantive amendments came at the request of the AG's office, the state agency tasked with regulation of the SOTs, in order to provide increased consumer protection through greater ease of enforcement, in addition to addressing technical issues and chaptering out conflicts.
Analysis Prepared by: Dana Mitchell / A.,E.,S.,T., & I.M. / (916) 319-3450 FN: 0004452
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 2106
:
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-0, 6/6/16
AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez, Mendoza, Wieckowski
NO VOTE RECORDED: Jackson
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 78-0, 5/12/16 (Consent) - See last page for vote
SOURCE: California Coalition of Travel Organizations
DIGEST: This bill makes various changes to the Sellers of Travel Law.
Senate Floor Amendments of 8/15/16 make technical changes and remove chaptering conflicts with AB 2138 (Low) which also amends the Sellers of Travel Law.
Existing law:
- Establishes the Sellers of Travel Law (Law), which provides a comprehensive scheme for the regulation of sellers of travel (SOT) and requires a SOT, unless exempted, to register with the Attorney General (AG) and to comply with various requirements. (Business and Professions Code (BPC) § 17550 et. seq.)
- Requires, when registering with the AG, a SOT file certain information, including the name and contact information of individuals a SOT contracts with. Requires the AG to suspend a SOT’s registration for failure to make payment to the Travel Consumer Restitution Fund (TCRF) or writes a registration fee check that is not honored. Authorizes the AG to contract for the processing of SOT registrations. Exempts individuals that conduct their activities in accordance with specified procedures and disclosures. (BPC §§ 17550.20, 17550.21)
- Establishes the Travel Consumer Restitution Corporation (TCRC) which creates the TCRF as a mechanism for an aggrieved passenger to be reimbursed when a SOT fails to provide for travel or in the event that a SOT becomes insolvent. (BPC § 17550.38)
This bill:
- Specifies that a registration shall not be issued, renewed, or approved until outstanding TCRF assessments are paid.
- Requires a SOT to provide the seven-digit California corporation number assigned by the Secretary of State (SOS) or the Franchise Tax Board to the AG and specifies that failure to provide this information is grounds for registration suspension. Requires a SOT to also provide the AG the name and contact information for individuals in a single-member limited liability corporation or “S” corporation who the SOT contracts with.
- Prohibits the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the TCRC.
- Exempts single-member limited liability corporations and “S” corporations whose member is a natural person that conduct their activities in accordance with specified procedures and disclosures from registration.
- Allows refund payments to persons aggrieved by SOTs who had been paid-up participants at any time during the 18 months previous to the time of sale.
- Declares that any person aggrieved who files a claim for payment from the TCRF would waive his or her right to bring an action at law or equity against the SOT as to that claim unless the SOT had not been a paid-up participant in the TCRF at any time during the 18 months previous to the time of sale.
Background
The Law was enacted by AB 918 (Chapter 1123, Statutes of 1994), authored by then-Assemblymember Jackie Speier and sponsored by the source of this bill, working in cooperation with the AG’s office. The Law requires all SOTs to register with the AG’s office, pay an annual fee of $100 to fund the program and pay annual assessments into a self-sustaining restitution fund (the TCRF). The Law provides specific protections to consumers who purchase sea or air transportation either singly or in conjunction with other travel services, such as lodging and car rentals. The Law applies to all sellers located in California, as well as those who sell or offer to sell from locations outside the state to persons located in California and applies to both retail and wholesale transactions, covering sales by tour operators, consolidators, and wholesalers. A seller who only offers lodging, bus, or train tours without also offering air or sea transportation is not covered by the Law. Lodging establishments that book travel for their guests and accept no money for doing so, along with airlines, and cruise lines are also not covered by this law.
The Law also provides for a number of guarantees. In the event that there is a cancellation, the purchaser is entitled to receive a prompt and automatic refund. If there is a material misrepresentation by the seller, the Law likewise requires a refund. Finally, the Law provides that once the seller has received the purchaser’s full payment, the purchased tickets must be promptly delivered.
According to the author, the goals of this bill are to ensure that SOTs comply with the requirements under current law that they obtain a California State Tax Identification number issued by the SOS; to ensure that a consumer’s ability to recover from the TCRF does not depend on whether the SOT was late in paying its assessment to the TCRF by allowing consumers to recover from the fund for up to 18 months and; to ensure that independent agents may be a business entity and do not have to be a natural person, reflecting the common practice of independent agents to organize as a single member limited liability corporation or S-corporation.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
California Coalition of Travel Organizations (source)
OPPOSITION: (Verified 8/16/16)
None received
ARGUMENTS IN SUPPORT: The California Coalition of Travel Organizations thinks that this bill is important to update current law in order to enhance the consumer protections and the efficiency of the Law.
ASSEMBLY FLOOR: 78-0, 5/12/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Burke, Jones-Sawyer
8/16/16 17:57:15
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
CONSENT
Bill No: AB 2106
:
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-0, 6/6/16
AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez, Mendoza, Wieckowski
NO VOTE RECORDED: Jackson
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 78-0, 5/12/16 (Consent) - See last page for vote
SOURCE: California Coalition of Travel Organizations
DIGEST: This bill makes various changes to the Sellers of Travel Law.
Existing law:
- Establishes the Sellers of Travel Law (Law), which provides a comprehensive scheme for the regulation of sellers of travel (SOT) and requires a SOT, unless exempted, to register with the Attorney General (AG) and to comply with various requirements. (Business and Professions Code (BPC) § 17550 et. seq.)
- Requires, when registering with the AG, a SOT file certain information, including the name and contact information of individuals a SOT contracts with. Requires the AG to suspend a SOT’s registration for failure to make payment to the Travel Consumer Restitution Fund (TCRF) or writes a registration fee check that is not honored. Authorizes the AG to contract for the processing of SOT registrations. Exempts individuals that conduct their activities in accordance with specified procedures and disclosures. (BPC §§ 17550.20, 17550.21)
- Establishes the Travel Consumer Restitution Corporation (TCRC) which creates the TCRF as a mechanism for an aggrieved passenger to be reimbursed when a SOT fails to provide for travel or in the event that a SOT becomes insolvent. (BPC § 17550.38)
This bill:
- Specifies that a registration shall not be issued, renewed, or approved until outstanding TCRF assessments are paid.
- Requires a SOT to provide the seven-digit California corporation number assigned by the Secretary of State (SOS) or the Franchise Tax Board to the AG and specifies that failure to provide this information is grounds for registration suspension. Requires a SOT to also provide the AG the name and contact information for individuals in a single-member limited liability corporation or “S” corporation who the SOT contracts with.
- Prohibits the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the TCRC.
- Exempts single-member limited liability corporations and “S” corporations whose member is a natural person that conduct their activities in accordance with specified procedures and disclosures from registration.
- Allows refund payments to persons aggrieved by SOTs who had been paid-up participants at any time during the 18 months previous to the time of sale.
- Declares that any person aggrieved who files a claim for payment from the TCRF would waive his or her right to bring an action at law or equity against the SOT as to that claim unless the SOT had not been a paid-up participant in the TCRF at any time during the 18 months previous to the time of sale.
Background
The Law was enacted by AB 918 (Chapter 1123, Statutes of 1994), authored by then-Assemblymember Jackie Speier and sponsored by the source of this bill, working in cooperation with the AG’s office. The Law requires all SOTs to register with the AG’s office, pay an annual fee of $100 to fund the program and pay annual assessments into a self-sustaining restitution fund (the TCRF). The Law provides specific protections to consumers who purchase sea or air transportation either singly or in conjunction with other travel services, such as lodging and car rentals. The Law applies to all sellers located in California, as well as those who sell or offer to sell from locations outside the state to persons located in California and applies to both retail and wholesale transactions, covering sales by tour operators, consolidators, and wholesalers. A seller who only offers lodging, bus, or train tours without also offering air or sea transportation is not covered by the Law. Lodging establishments that book travel for their guests and accept no money for doing so, along with airlines, and cruise lines are also not covered by this law.
The Law also provides for a number of guarantees. In the event that there is a cancellation, the purchaser is entitled to receive a prompt and automatic refund. If there is a material misrepresentation by the seller, the Law likewise requires a refund. Finally, the Law provides that once the seller has received the purchaser’s full payment, the purchased tickets must be promptly delivered.
According to the author, the goals of this bill are to ensure that SOTs comply with the requirements under current law that they obtain a California State Tax Identification number issued by the SOS; to ensure that a consumer’s ability to recover from the TCRF does not depend on whether the SOT was late in paying its assessment to the TCRF by allowing consumers to recover from the fund for up to 18 months and; to ensure that independent agents may be a business entity and do not have to be a natural person, reflecting the common practice of independent agents to organize as a single member limited liability corporation or S-corporation.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
California Coalition of Travel Organizations (source)
OPPOSITION: (Verified 6/29/16)
None received
ARGUMENTS IN SUPPORT: The California Coalition of Travel Organizations thinks that this bill is important to update current law in order to enhance the consumer protections and the efficiency of the Law.
ASSEMBLY FLOOR: 78-0, 5/12/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Burke, Jones-Sawyer
7/29/16 12:25:36
**** END ****
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Jerry Hill, Chair
2015 - 2016 Regular
Bill No: AB 2106 Hearing Date: June 6, 2016
Author: | Irwin | ||
Version: |
| ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject: Sellers of travel: registration
SUMMARY:
Makes various changes to the Sellers of Travel law.
Existing law:
- Establishes the Sellers of Travel law (Law) which provides a comprehensive scheme for the regulation of sellers of travel (SOT), as defined, and requires a seller of travel, unless exempted, to register with the Attorney General (AG) and to comply with various requirements. (Business and Professions Code (BPC) § 17550 et. seq.)
- Defines a SOT as a person who sells, provides, furnishes, contracts for, arranges, or advertises that he or she can or may arrange, or has arranged, at wholesale or retail either of the following: air or sea transportation either separately or in conjunction with other travel services, or land or water vessel transportation, other than sea carriage, either separately or in conjunction with other travel services if the total charge to the passenger exceeds three hundred dollars ($300). (BPC § 17550.1(a))
- Excludes from the definition of a SOT the following: an air carrier; an ocean carrier; a hotel, motel, or similar lodging establishment that arranges for transportation for its registered guests; a motor club; or a motor or rail carrier or water vessel operator operating from a state, federal, or other governmental entity. (BPC § 17550.1(b))
- Requires a SOT to register with the Attorney General's office (AG) and file certain information as part of registration, including the name and contact information of individuals a SOT contracts with. Requires the AG to suspend a SOT’s registration for failure to make payment to the Travel Consumer Restitution Fund (TCRF) or writes a registration fee check that is not honored. Authorizes the AG to contract for the processing of SOT registrations. Exempts individuals that conduct their activities in accordance with specified procedures and disclosures. (BPC §§ 17550.20, 17550.21)
- Establishes the Travel Consumer Restitution Corporation (TCRC) which creates the TCRF as a mechanism for an aggrieved passenger to be reimbursed when a SOT fails to provide for travel or in the event that a SOT becomes insolvent. (BPC § 17550.38)
This bill:
- Specifies that a registration shall not be issued, renewed, or approved until outstanding TCRF assessments are paid.
- Requires a SOT to provide the file number issued by the Secretary of State to the AG and specifies that failure to provide this information is grounds for registration suspension.
- Exempts single-member limited liability corporations and “S” corporations whose member is a natural person that conduct their activities in accordance with specified procedures and disclosures from registration.
- Requires a SOT to also provide the AG the name and contact information for individuals in a single-member limited liability corporation or “S” corporation who the SOT contracts with, as well as the file number issued by the Secretary of State to the SOT, in addition to requirements in Item #4 above.
- Prohibits the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the Travel Consumer Restitution Corporation.
- Allows refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the 18 months previous to the time of sale.
- Declares that any person aggrieved who files a claim for payment from the fund would waive his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel had not been a paid-up participant at any time during the 18 months previous to the time of sale.
- Makes technical changes.
FISCAL EFFECT:
This bill is keyed fiscal by Legislative Counsel. According to the Assembly Committee on Appropriations analysis dated May 4, 2016, the bill will result in minor and absorbable enforcement costs to the AG.
COMMENTS:
- Purpose. This California Coalition of Travel Organizations is the Sponsor of this bill. According to the Author, the goals of the bill are to ensure that SOTs comply with the requirements under current law that they obtain a California State Tax Identification number issued by the SOS; to ensure that a consumer’s ability to recover from the TCRF does not depend on whether the SOT was late in paying its assessment to the TCRF by allowing consumers to recover from the fund for up to 18 months and; to ensure that independent agents may be a business entity and do not have to be a natural person, reflecting the common practice of independent agents to organize as a single member limited liability corporation or S-corporation.
- Sellers of Travel Law. The Law was enacted by SB 918 (Chapter 1123, Statutes of 1994), authored by then-Assemblymember Jackie Speier and sponsored by the California Coalition of Travel Organizations working in cooperation with the AG’s office. The Law requires all sellers of travel to register with the AG’s office, pay an annual fee of $100 to fund the program and pay annual assessments into a self-sustaining restitution fund (the TCRF). The Law provides specific protections to consumers who purchase sea or air transportation either singly or in conjunction with other travel services, such as lodging and car rentals. The Law applies to all sellers located in California, as well as those who sell or offer to sell from locations outside the state to persons located in California and applies to both retail and wholesale transactions, covering sales by tour operators, consolidators, and wholesalers. A seller who only offers lodging, bus, or train tours without also offering air or sea transportation is not covered by the Law. Lodging establishments that book travel for their guests and accept no money for doing so, along with airlines, and cruise lines are also not covered by this law.
The Law provides several layers of protections for consumers, including:
- Disclosure and identification of the seller. Among other things, SOTs must disclose business addresses, fictitious business names, identifying information of principals and owners, any relationship with airlines, and the location of a trust account or information about a surety bond. The registration number, displayed in all advertising and offers to sell, is a means of identifying the businesses in the event of claims or complaints and does not indicate any review or approval of the business by the AG’s office. Therefore, so long as the seller discloses the necessary information in its application and pays the appropriate fees, the registration will be approved and a registration number issued.
- Financial protections. Some SOTs must deposit payments into a trust account or obtain a surety bond on behalf of their customers. In addition, sellers receiving payment from a passenger may not use that money for any other purpose (i.e., to buy travel on behalf of another passenger, pay rent or business overhead, or any personal use) until it has delivered the purchased goods and services.
c. Restitution fund. The law provides for a private non-profit corporation, the TCRC, which administers the TCRF. If the purchaser is located in California and the purchase is from a registered seller of travel whose principal place of business is also in California, and the purchaser does not receive what he or she contracted to purchase, the purchaser can file a claim with the TCRC. Registered California sellers and out-of-state sellers whose stock is nationally traded are required to pay annual assessments to the TCRC.
d. Written disclosures. Prior to, or at the time of, receiving any payment, a SOT must provide the purchaser with various written disclosures including its name, business address and telephone number, an itinerary, a statement about its cancellation policy, the total amount to be paid, the amount paid to date, the date of any future payment, the purpose of the payment made, an itemized statement of any balance due, whether it has a trust account or surety bond, whether the payment is protected by the TCRF, and how to make a claim of the TCRC.
In addition to those primary purposes highlighted above, the Law also provides for a number of “guarantees.” In the event that there is a cancellation, the purchaser is entitled to receive a prompt and automatic refund. If there is a material misrepresentation by the seller, the law likewise requires a refund. Finally, the law provides that once the seller has received the purchaser’s full payment, the purchased tickets must be promptly delivered.
- Arguments in Support. The Sponsor, the California Coalition of Travel Organizations (CCTO), writes in support of this bill, noting that the bill updates current law in order to enhance the consumer protections and the efficiency of the Law. According to CCTO, some SOTS that are currently in compliance with requirements that SOTs obtain a California State Tax Identification number issued by the Secretary of State have identified businesses that are not in compliance. Ensuring that a consumer’s ability to recover from the Travel Consumer Restitution Fund [TCRF] does not depend on whether the seller of travel was late in paying its assessment to the TRCF.
- Author’s Amendment. The Author is concerned that some SOTs may not be complying with requirements businesses in California are subject to, outside of the Law. According to the Author, authorizing the AG to withhold a SOT from being assigned a registration number when the SOT is out of compliance with other laws, such as those requiring certain businesses to register operations with the Secretary of State, will ensure consistency among state agencies and protect consumers. The Author believes that it is important that travel businesses are not allowed to avoid compliance with one set of laws, yet be allowed to register as a SOT and present themselves as compliant with California law. As such, the bill includes a requirement that a SOT provide “the file number issued by the Secretary of State” to the AG and specifies that failure to provide this information is grounds for registration suspension.
The terminology used in the bill currently is not specific, nor clear to ensure that SOTs are providing the information the Author intends for them to provide to the AG in order to be registered. In response, the Author has agreed to amend the bill according to the following:
On page 9, in line 8, strike “file number issued by the Secretary of State” and replace with “seven digit California corporation number assigned by the Secretary of State or the Franchise Tax Board”.
NOTE:
Double-referral to the Senate Committee on Judiciary.
SUPPORT AND OPPOSITION:
Support:
California Coalition of Travel Organizations (Sponsor)
Opposition:
None on file as of June 1, 2016.
-- END --
Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
ABPCA Bill Id:AB 2106
Author:(Irwin) – As Amended Ver:March 10, 2016
Policy Committee: | Arts, Entertainment, Sports, Tourism, and Internet Media | Vote: | 7 - 0 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill makes several modifications to the Seller of Travel (SOT) Law, in order to increase consumer protections. Specifically, this bill:
- Requires sellers of travel to provide their file number, as issue by the Secretary of State, to the Consumer Law Division of the Attorney General's (AG's) Office, and requires the AG to suspense the registration of a seller of travel who fails to do so.
- Prohibits the issuance, approval or renewal of a registration until the seller of travel has paid any outstanding assessments to the Travel Consumer Restitution Fund (TCRF).
- Stipulates that any person aggrieved who files a claim for payment from the TCRF waives their right to bring an action against the seller of travel unless the seller of travel has not been a paid-up participant in the TCRF at any time during the 12 months prior to the sale.
- Expands the exemptions from registration requirements to include single-member limited liability corporations and "S" corporations who meet specified conditions per current law.
FISCAL EFFECT:
Any costs to the AG for enforcement will be minor and absorbable.
COMMENTS:
- Purpose. This bill is sponsored by the California Coalition of Travel Organizations (CCT), who argues that it updates the SOT law, first enacted in 1995, to enhance consumer protections of that law.
- Background. Current law establishes the Travel Consumer Restitution Corporation in order to provide restitution to a person aggrieved by the failure of a seller of travel by refunding payments for air or sea transportation or travel services. The Corporation is authorized to assess sellers of travel to fund its operations and to fund the Travel Consumer Restitution Fund.
Analysis Prepared by: Chuck Nicol / APPR. / (916) 319-2081
Date of Hearing: April 12, 2016
ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND INTERNET MEDIA
Kansen Chu, Chair
ABPCA Bill Id:AB 2106 (
Author:Irwin) – As Amended Ver:March 10, 2016
SUBJECT: Sellers of travel: registration.
SUMMARY: Makes various changes to the regulations regarding registration of sellers of travel with the Consumer Law Section of the Attorney General's Office and expands covered entities subject to consumer restitution payments under the Travel Consumers Restitution Fund for violations of the Seller of Travel law.
Specifically, this bill:
- Requires sellers of travel to provide the file number issued to them by the Secretary of State to the Consumer Law Section of the Attorney General's Office and further provides that the Attorney General shall suspend the registration of a seller of travel who fails to file this information.
- Prohibits the issuance, approval, or renewal of registration until the seller of travel has paid any outstanding assessments due to the Travel Consumer Restitution Corporation.
- Allows refund payments to persons aggrieved by sellers of travel who had been paid-up participants at any time during the 12 months previous to the time of sale.
- Declares that any person aggrieved who files a claim for payment from the fund would waive his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel had not been a paid-up participant at any time during the 12 months previous to the time of sale.
- Exempts single-member limited liability corporations and “S” Corporations that conduct their activities in accordance with specified procedures.
- Contains technical clean up provisions.
EXISTING LAW:
- Regulates sellers of travel and requires sellers of travel to register by filing with the Consumer Law Section of the Attorney General's Office and pay specified fees for each location of business and specified information about the seller of travel including its business form, its place of organization, and certain personal identification numbers of each of its owners and principals. (Bus. & Prof. Code Sec. 17550 et seq.)
- Prohibits the issuance, approval, or renewal of registration of a seller of travel by the Consumer Law Section, until specified filing and late fees have been paid.
- Defines a "seller of travel" to mean a person who sells, provides, furnishes, contracts for, arranges, or advertises that he or she can or may arrange, or has arranged, wholesale or retail, either of the following:
- Air or sea transportation either separately or in conjunction with other travel services; or
- Land or water vessel transportation, other than sea carriage, either separately or in conjunction with other travel services if the total charge to the passenger exceeds $300.
- Establishes the Travel Consumer Restitution Corporation in order to provide restitution to a person aggrieved (as defined) by the failure of a seller of travel to refund payments for air or sea transportation or travel services, subject to specified restrictions. (Bus. & Prof. Code Sec. 17550.35. et seq.)
- Requires the Travel Consumer Restitution Corporation to assess, as specified, sellers of travel for the corporation’s operations fund and the Travel Consumer Restitution Fund.
- Requires the Attorney General to suspend the registration of a seller of travel who fails to make required payments to the Travel Consumer Restitution Corporation or who submits a check in payment of a registration fee or late fee that is not honored by the institution on which it is drawn.
- Restricts refund payments from the Travel Consumer Restitution Fund to persons aggrieved by sellers of travel who, at the time of sale, were paid-up participants in the fund.
- Declares that any person aggrieved who files a claim for payment from the fund thereby waives his or her right to bring an action at law or equity against the seller of travel as to that claim, as specified, unless the seller of travel was not a paid-up participant.
- Exempts from regulation those sellers of travel who are individual and natural persons that conduct their business activities in accordance with specified procedures.
FISCAL EFFECT: Unknown
COMMENTS:
- Author and sponsor's statement of need and explanation of legislation.
According to the author, the purpose of this legislation is to accomplish three things. First, he states that, "the Seller of Travel law does not require that sellers of travel comply with the requirements of current law (outside of the Sellers of Travel law) that they obtain a California State Tax Identification number issued by the Secretary of State. Sellers of travel who are in compliance with this requirement have identified businesses that are not in compliance. AB 2106 will correct this loophole in the existing law to ensure that sellers of travel comply with the requirement that they obtain a California State Tax Identification number issued by the Secretary of State."
In addition, according to the author, "there have been circumstances where the consumer has not been able to recover from the Travel Consumer Restitution Fund [TCRF] because the seller of travel was late in paying its assessment to the TCRF. To address this problem AB 2106 ensures that a consumer’s ability to recover from the Travel Consumer Restitution Fund [TCRF] does not depend on whether the seller of travel was late in paying its assessment to the TRCF."
Finally, the author states, "since the Seller of Travel law was enacted 25 years ago, it has become common for independent agents to organize as a single-member limited liability corporation or as an S-Corporation, to reflect this trend, AB 2106 will update the Seller of Travel law to ensure that independent agents may be a business entity and do not have to be a natural person."
This bill is sponsored by the California Coalition of Travel Organizations [CCTO], which is a coalition of associations of travel agents and tour operators. They urge passage of this measure, writing in part to say, "CCTO was the sponsor of the legislation enacted in 1995 that established California’s Seller of Travel [SOT] Law and its landmark Travel Consumer Restitution Fund. AB 2106 would update the existing SOT law in the Business and Professions Code in order to enhance the consumer protections and the efficiency of the law… (Passage of the bill) would enhance the state’s unique and effective Seller of Travel Law to the benefit of both California consumers as well as the state’s travel industry.
- Prior related legislation. AB 1107 (Irwin), Chapter 253, Statutes of 2015, required sellers of travel to maintain all business records for a minimum period of 3 years; authorized the Attorney General to maintain an action for recovery of examination costs and expenses in any court of competent jurisdiction, as specified; required the seller of travel to pay for costs and expenses for any examination if the Attorney General bills the seller of travel, provided that the examination shows that the seller of travel has failed to comply with certain requirements; made a technical change to require specified assessments to be due 45 days from the date the bill for that assessment is sent to the seller of travel, and not 45 days from the date mailed.
REGISTERED SUPPORT / OPPOSITION:
Support
California Coalition of Travel Agents
Opposition
There is no opposition on file.
Analysis Prepared by: Dana Mitchell / A.,E.,S.,T., & I.M. / (916) 319-3450
Discussed in Hearing
3MIN
Senate Standing Committee on Governmental Organization
46SEC
Assembly Floor
3MIN
Assembly Standing Committee on Arts, Entertainment, Sports, Tourism, and Internet Media
42SEC
Senate Floor
Bill Author
Bill Co-Author(s):