Existing law regulates sellers of travel, as defined, and requires a seller of travel to annually register with the Attorney General. Existing law establishes the Travel Consumer Restitution Corporation to provide restitution to a person aggrieved by the failure of a seller of travel, as specified, and provides for payment of claims from the Travel Consumer Restitution Fund established by the corporation. Existing law requires the corporation to establish and maintain an operations fund for the payment of costs of operations and administration. Existing law requires the corporation to bill and collect from each registered seller of travel an annual assessment not to exceed $35 for the operation fund.

This bill would increase the maximum amount of the assessment for the operations fund to $60, then, starting January 1, 2031, to $70. The bill would authorize the corporation to increase the maximum amount once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of ²/₃ of the membership of each house of the Legislature.

This bill would take effect immediately as a tax levy.

Existing law regulates sellers of travel, as defined, and requires a seller of travel to annually register with the Attorney General. Existing law establishes the Travel Consumer Restitution Corporation to provide restitution to a person aggrieved by the failure of a seller of travel, as specified, and provides for payment of claims from the Travel Consumer Restitution Fund established by the corporation. Existing law requires the corporation to establish and maintain an operations fund for the payment of costs of operations and administration. Existing law requires the corporation to bill and collect from each registered seller of travel an annual assessment not to exceed $35 for the operation fund.

This bill would increase the maximum amount of the assessment for the operations fund to $60, then, starting January 1, 2031, to $70. The bill would authorize the corporation to increase the maximum amount once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of ²/₃ of the membership of each house of the Legislature.

This bill would take effect immediately as a tax levy.

Existing law regulates sellers of travel, as defined, and requires a seller of travel to annually register with the Attorney General. Existing law establishes the Travel Consumer Restitution Corporation to provide restitution to a person aggrieved by the failure of a seller of travel, as specified, and provides for payment of claims from the Travel Consumer Restitution Fund established by the corporation. Existing law requires the corporation to establish and maintain an operations fund for the payment of costs of operations and administration. Existing law requires the corporation to bill and collect from each registered seller of travel an annual assessment not to exceed $35 for the operation fund.

This bill would increase the maximum amount of the assessment for the operations fund to $60 and $60, then, starting January 1, 2031, to $70. The bill would authorize the corporation, with the approval of the Attorney General, corporation to increase the maximum amount once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of ²/₃ of the membership of each house of the Legislature.

This bill would take effect immediately as a tax levy.

Existing law regulates sellers of travel, as defined, and requires their registration with the Attorney General. Existing law includes legislative findings and declarations with regard to the public welfare considerations that require the regulation of sellers of travel.

This bill would make nonsubstantive changes to these findings and declarations.

 THIRD READING  

Bill No: AB 1758

Author: Nguyen (D)

Amended: 5/18/26 in Assembly

Vote: 27- Urgency

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 8-3, 6/15/26

AYES: Wahab, Archuleta, Arreguín, Caballero, Grayson, Menjivar, Smallwood-Cuevas, Umberg

NOES: Choi, Niello, Strickland

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 57-15, 5/28/26 - See last page for vote

SUBJECT: Sellers of travel

SOURCE: California Coalition of Travel Organizations

DIGEST:

This bill increases the maximum annual amount each seller of travel is required to pay to fund the operations of the Travel Consumer Restitution Corporation (TCRC) from $35 to $60 and authorizes the TCRC to increase the maximum amount annually to accommodate for inflation.

ANALYSIS:

Existing law:

1. Establishes the Sellers of Travel law (Law) which provides a comprehensive scheme for the regulation of Sellers of Travel (SOTs), as defined, 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.)
2. Defines a SOT as a person who sells, provides, furnishes, contracts for, arranges, or advertises that they 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))
3. Excludes the following from the definition of a SOT: 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))
4. 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 write 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)
5. 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. Specifies that a participant in the Travel Consumer Restitution Fund is a registered seller of travel with its principal place of business in California, who does business with persons located in California, or is a registered seller of travel that does business in California, from one or more locations in California. (BPC §§ 17550.7 and 17550.38)
6. Requires the TCRC to establish and maintain an operations fund for the payment of costs of operations and administration and requires the corporation to estimate an annual operational budget projecting the costs of operations and administration for the next fiscal year, excluding the amount paid for claims. Requires all participants to pay their initial one-time $75 assessment per business location in the state to provide additional funding for the operational fund and their initial one-time $200 assessment per business location in the state to provide additional funding for the restitution fund. Requires the TCRC to establish a restitution fund for the payment of claims. (BPC § 17550.43 (a)(b)(d))
7. Specifies that the annual assessment for the operations fund cannot exceed $35 per year for each location in the state from which a participant does business. (BPC § 17550.44)
8. Authorizes the TCRC to, if the balance in the restitution fund is less than $1.6 million, require participants to pay up to a maximum $200 assessment for each location in the state from which the participant does business. (BPC § 17550.44 (c))
9. Authorizes the TCRC to, if the balance in the restitution fund is less than $900,000, require participants to pay an emergency assessment, not more than twice per year, of up to $150 per year for each location in the state from which the participant does business. (BPC § 17550.44 (d))
10. If at any time the board of directors of the TCRC determine the operations fund will be insufficient to pay the costs of operations and administration for the current or next fiscal year they must either require participants pay an emergency assessment, not more than once per fiscal year, up to a maximum of $65 for each location in the state from which the participant does business. The emergency assessment may be billed and collected either on an emergency basis from all participants or in conjunction with each participant’s annual assessment; or transfer any or all interest earned on the Restitution Fund to the Operations Fund, provided that no transfer results in a restitution fund balance of less than $1.2 million. (BPC § 17550.44 (e))
11. Requires the TCRC to report to the AG each levy of assessment within 10 business days of the levy. (BPC § 17550.44 (g))

This bill increases the maximum annual amount for the operations fund each SOT is required to pay for the TCRC, from $35 to $60, and then, starting January 1, 2031, to a maximum of $70 per year, for each location in the state from which a SOT does business and after January 1, 2031, authorizes the TCRC to increase the maximum amount once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year.

Background

The Law. The Sellers of Travel 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 to fund the program and pay annual assessments into a self-sustaining restitution fund (the TCRF). This 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. The Law applies to both retail and wholesale transactions, and covers 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, sellers of travel 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 sellers of travel 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.
• 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.
• Written disclosures. Prior to or at the time of receiving any payment, a seller of travel 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.

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 SOT, the Law likewise requires a refund. Finally, the Law provides that once the SOT has received the purchaser’s full payment, the purchased tickets must be promptly delivered.

In addition to being required to register with the AG, a registered SOT must pay an initial one-time $75 assessment per business location in the state into the TCRC’s operation fund and an initial one -time payment of $200 assessment per business location in the state into the restitution fund. After the initial $75 assessment fee the SOT is required to pay an annual $35 into the TCRC’s operation fund. If the balance in the restitution fund is less than $1.6 million, the TCRC will require SOT to pay a maximum of $200 for each business location in the state. A participant’s assessment is determined pro rata based upon the ratio of the number of locations in the state from which the participant does business to the total number of locations for all participants.

Further, the TCRC may charge an SOT and emergency assessment for operation costs of no more than $65 once per year for each business location in the state and a maximum of $150 per year, not more than twice a year, for each business location in the state if the balance in the restitution fund is less than $900,000. The funds are deposited in a trust account until the level of the restitution fund balance reaches $1.6 million.

This bill increases the assessment fees SOT’s pay and allows limited increases in fees tied to the California Consumer Price Index ensuring the long-term financial stability of the fund and continued consumer protection for travelers provided by the TCRC. Upon passage, this bill will take effect immediately as a tax levy.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 6/30/26)

California Coalition of Travel Organizations (source)

OPPOSITION: (Verified 6/30/26)

None received

ARGUMENTS IN SUPPORT: The California Coalition of Travel Organizations writes in support, “California’s SOT Law requires travel businesses operating in the state to register and participate in the Fund. The monies are utilized to reimburse consumers who lose money when a registered seller of travel fails to provide promised travel services because of fraud, insolvency, or closure. This bill increases the cap from $35 to $ 60 per year for each location in California from which a travel business operates and allows limited annual adjustments tied to inflation. Beginning January 1, 2031, the assessment cap will be $70 per business location. This update helps ensure the fund remains financially stable and able to reimburse consumers when travel services are not provided due to fraud, bankruptcy, or business closure.”

ASSEMBLY FLOOR: 57-15, 5/28/26

AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Elhawary, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Pellerin, Petrie-Norris, Ramos, Ransom, Michelle Rodriguez, Rogers, Blanca Rubio, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Ward, Wicks, Wilson, Zbur, Rivas

NOES: Chen, Davies, DeMaio, Dixon, Ellis, Gallagher, Hadwick, Hoover, Johnson, Macedo, Patterson, Sanchez, Schiavo, Ta, Tangipa

NO VOTE RECORDED: Bains, Castillo, Flora, Lackey, Patel, Quirk-Silva, Celeste Rodriguez, Wallis

Prepared by: Sarah Mason / B., P. & E.D. / , Anna Billy / B., P. & E.D. /

7/1/26 16:54:58

**** END ****

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Dr. Aisha Wahab, Chair

2025 - 2026 Regular

Bill No: Hearing Date: June 15, 2026

Subject:

SUMMARY:

Increases the maximum annual amount each seller of travel (SOT) is required to pay to fund the operations of the Travel Consumer Restitution Corporation (TCRC) from $35 to $60 and authorizes the TCRC to increase the maximum amount annually to accommodate for inflation.

Existing law:

1. Establishes the Sellers of Travel law (Law) which provides a comprehensive scheme for the regulation of SOTs, as defined, 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.)
2. Defines a SOT as a person who sells, provides, furnishes, contracts for, arranges, or advertises that they 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))
3. Excludes the following from the definition of a SOT: 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))
4. 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 write 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)
5. 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. Specifies that a participant in the Travel Consumer Restitution Fund is a registered seller of travel with its principal place of business in California, who does business with persons located in California, or is a registered seller of travel that does business in California, from one or more locations in California. (BPC §§ 17550.7 and 17550.38)
6. Requires the TCRC to establish and maintain an operations fund for the payment of costs of operations and administration and requires the corporation to estimate an annual operational budget projecting the costs of operations and administration for the next fiscal year, excluding the amount paid for claims. Requires all participants to pay their initial one-time $75 assessment per business location in the state to provide additional funding for the operational fund and their initial one-time $200 assessment per business location in the state to provide additional funding for the restitution fund. Requires the TCRC to establish a restitution fund for the payment of claims. (BPC § 17550.43 (a)(b)(d))
7. Specifies that the annual assessment for the operations fund cannot exceed $35 per year for each location in the state from which a participant does business. (BPC § 17550.44)
8. Authorizes the TCRC to, if the balance in the restitution fund is less than $1,600,000, require participants to pay up to a maximum $200 assessment for each location in the state from which the participant does business. (BPC § 17550.44 (c))
9. Authorizes the TCRC to, if the balance in the restitution fund is less than $900,000, require participants to pay an emergency assessment, not more than twice per year, of up to $150 per year for each location in the state from which the participant does business. (BPC § 17550.44 (d))
10. If at any time the board of directors of the TCRC determine the operations fund will be insufficient to pay the costs of operations and administration for the current or next fiscal year they must either require participants pay an emergency assessment, not more than once per fiscal year, up to a maximum of $65 for each location in the state from which the participant does business. The emergency assessment may be billed and collected either on an emergency basis from all participants or in conjunction with each participant’s annual assessment; or transfer any or all interest earned on the Restitution Fund to the Operations Fund, provided that no transfer results in a restitution fund balance of less than $1,200,000. (BPC § 17550.44 (e)
11. Requires the TCRC to report to the AG each levy of assessment within 10 business days of the levy. (BPC § 17550.44 (g)

This bill:

1. Increases the maximum annual amount for the operations fund each SOT is required to pay for the TCRC, from $35 to $60, and then, starting January 1, 2031, to a maximum of $70 per year, for each location in the state from which a SOT does business.
2. Authorizes the TCRC, prior to January 1, 2031, to increase the maximum amount once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year, as compiled and reported by the Department of Industrial Relations.

FISCAL EFFECT:

According to the Assembly Committee on Appropriations, because the fee in this bill is state-imposed and results in a taxpayer paying a higher tax within the meaning of Article XIII A of the California Constitution, this bill has been identified by Legislative Counsel as a tax levy.

COMMENTS:

1. Purpose. This bill is sponsored by the California Coalition of Travel Organizations. According to the Author, “For nearly three decades, the cap on assessments supporting California’s Travel Consumer Restitution [Corporation] has remained unchanged. In that time, costs have increased, putting pressure on a program that protects consumers when travel services are not delivered. [This bill] makes a modest update to ensure the fund remains stable and continues to serve Californians. This bill provides a responsible and measured approach by allowing limited adjustments tied to inflation while maintaining oversight.”
2. Background.

The Law. The Sellers of Travel 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 to fund the program and pay annual assessments into a self-sustaining restitution fund (the TCRF). This 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. The law applies to both retail and wholesale transactions, and covers 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, sellers of travel 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 sellers of travel 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.
• 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.
• Written disclosures. Prior to or at the time of receiving any payment, a seller of travel 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.

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 SOT, the Law likewise requires a refund. Finally, the Law provides that once the SOT has received the purchaser’s full payment, the purchased tickets must be promptly delivered.

In addition to being required to register with the AG, a registered SOT must pay an initial one-time $75 assessment per business location in the state into the TCRC’s operation fund and an initial one -time payment of $200 assessment per business location in the state into the restitution fund. After the initial $75 assessment fee the SOT is required to pay an annual $35 into the TCRC’s operation fund. If the balance in the restitution fund is less than $1,600,000, the TCRC will require SOT to pay a maximum of $200 for each business location in the state. A participant’s assessment is determined pro rata based upon the ratio of the number of locations in the state from which the participant does business to the total number of locations for all participants.

Further, the TCRC may charge an SOT and emergency assessment for operation costs of no more than $65 once per year for each business location in the state and a maximum of $150 per year, not more than twice a year, for each business location in the state if the balance in the restitution fund is less than $900,000. The funds are deposited in a trust account until the level of the restitution fund balance reaches $1,600,000.

According to TCRC, the current $35 assessment cap has not been updated since 1997 despite significant increases in administrative operational costs associated with maintaining the TCRF. Further, the TCRC states that the number of registered sellers of travel has declined from around 6,000 in 2020 to less than 2,000 presently reducing the assessment base that supports the program. In Fiscal Year 2024-2025, the TCRC reported operating and administrative costs were $204, 314. According to the TCRC’s administrator, SOT paid $235,475 in assessments to fund the TCRC’s operations, including $71,885 in late fees. TCRC notes had SOTs paid their annual assessments on time, the TCRC would have experienced a deficit.

This bill addresses this issue by increasing the assessment fees SOT’s pay and allowing limited increases in fees tied to the California Consumer Price Index ensuring the long-term financial stability of the fund and continued consumer protection for travelers provided by the TCRC. Upon passage, this bill will take effect immediately as a tax levy.

1. Related Legislation. SB 2175 (Alpert, Chapter 924, Statues of 1998) authorized the TCRC to impose an emergency assessment up to a maximum of $65 per year if the TCRC operations fund is insufficient; lowered the maximum amount TCRC may assess each participant in an emergency to replenish the Restitution Fund from $200 to $150 twice a year, if the Fund’s balance falls below $900,000; increased the initial processing fee paid to new sellers of travel to fund the TCRC’s operations from $35 to $75; increased the level of the Restitution Fund from $1,200,000 to $1,600,000, amongst other provisions.

AB 918 (Spier, Chapter 1123, Statues of 1994) required all SOT to register annually with the AG, created a non-profit-trust corporation supervised by the AG to administer a consumer restitution fund, also created by AB 918, and required registered California SOT to pay an initial assessment of not more than $200 to the restitution fund and $25 as an operations assessment.

1. Arguments in Support. The California Coalition of Travel Organizations writes in support, “California’s SOT Law requires travel businesses operating in the state to register and participate in the Fund. The monies are utilized to reimburse consumers who lose money when a registered seller of travel fails to provide promised travel services because of fraud, insolvency, or closure. This bill increases the cap from $35 to $ 60 per year for each location in California from which a travel business operates and allows limited annual adjustments tied to inflation. Beginning January 1, 2031, the assessment cap will be $70 per business location. This update helps ensure the fund remains financially stable and able to reimburse consumers when travel services are not provided due to fraud, bankruptcy, or business closure.”

SUPPORT AND OPPOSITION:

Support:

California Coalition of Travel Organizations (sponsor)

Opposition:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1758

Author:(Nguyen)

As Amended Ver:May 18, 2026

2/3 vote. Tax levy

SUMMARY

Increases the maximum amount that sellers of travel (SOT) may be required to pay to fund the operations of the Travel Consumer Restitution Corporation (TCRC) per business location from $30 to $60, until January 1, 2031, and $70 thereafter; authorizes the TCRC to increase the maximum each year to account for inflation, until January 1, 2031.

Major Provisions

1. Specifies that the annual assessment for the operations fund shall not exceed $60 per year for each location in the state from which a participant does business, until January 1, 2031.
2. Specifies that after January 1, 2031, the annual assessment for the operations fund shall not exceed $70 per year for each location in the state from which a participant does business.
3. Authorizes the TCRC to increase the maximum amount of this assessment no more than once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year as compiled and reported by the Department of Industrial Relations.
4. States that the Act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.

COMMENTS

Sellers of Travel. A SOT is anyone who sells, provides, furnishes, contractors for, arranges, or advertises they can arrange air or sea transportation, either separately or in conjunction with other travel services such as hotels and rental cars, or land or water vessel transportation (other than sea carriage), either separately or in conjunction with other travel services, that costs the consumer more than $300. Air carriers, ocean carriers, lodging establishments, government-authorized transportation providers, and individual agents of registered SOT are not SOT.

SOT must register with the AG's office before they can operate lawfully in California. Registration is valid for one year and costs $100 per business location. Registered SOT must display their registration number on all advertising, are required to provide the services purchased by the passenger or provide a refund, and comply with various other financial, disclosure, and advertising requirements. Registered SOT range from small businesses such as Yoga Shala Sacramento, which offers international yoga retreats, to large companies such as Costco Travel, which offers packaged vacations, hotels, cruises, and rental cars exclusively for Costco members.

Travel Consumer Restitution Corporation and Travel Consumer Restitution Fund. In addition to registering with the AG's office, any SOT that does business in California and whose principal place of business is in California, or that does business in California from at least one location in California and is a publicly traded company, must participate in the restitution fund administered by the TCRC. The TCRC is a nonprofit organization that manages the restitution fund and decides restitution claims. The restitution fund provides refunds to customers who paid for travel services they did not receive and who, at the time of sale, were in California.

Participating SOT are currently required to pay an initial $75 assessment per business location to cover the TCRC's operating costs and an initial $200 assessment per business location to be deposited into the restitution fund. Thereafter, SOT are subject to annual assessment capped at $35 per business location for the TCRC's operating costs and $200 per business location for the restitution fund, if the restitution fund is less than $1,600,000. The TCRC may charge an emergency assessment up to $65 per business location once per year to cover the TCRC's operating expenses and $150 per business location twice per year if the balance of the restitution fund is less than $900,000. Since its inception, the TCRC has collected only one emergency assessment. In 2020, the TCRC changed administrators, necessitating the creation of a new website. The TCRC collected a $50 emergency assessment to cover the cost of the new website.

Since then, the number of registered SOT has declined from approximately 6,000 in 2020 to less than 4,000 at present, and this does not account for the loss of additional locations associated with these SOT. Meanwhile, the TCRC reports that operating costs (e.g., insurance, wages, office supplies, website maintenance, telephone expenses, and credit card service fees) have increased. In Fiscal Year 2024-2025, the TCRC's reported operating and administrative costs were $204,314. According to the TCRC's administrator, SOT paid $235,475 in assessments to fund the TCRC's operations, including $71,885 in late fees. Had SOT paid their annual assessments on time, the TCRC would have experienced a deficit. As late fees are an unreliable source of revenue, the TCRC feels it is necessary to increase the annual assessment paid by SOT.

The $35 annual assessment cap for operations has been in statute since 1998. Adjusted for inflation, $35 in 1998 is equal to roughly $70 today. This bill would allow the TCRC to charge up to $60 until January 1, 2031, and up to $70 thereafter. Additionally, this bill would allow the TCRD to increase the maximum assessment annually in accordance with the Consumer Price Index.

According to the Author

"For nearly three decades, the cap on assessments supporting California's Travel Consumer Restitution Fund has remained unchanged. In that time, costs have increased, putting pressure on a program that protects consumers when travel services are not delivered. [This bill] makes a modest update to ensure the fund remains stable and continues to serve Californians. This bill provides a responsible and measured approach by allowing limited adjustments tied to inflation while maintaining oversight."

Arguments in Support

As the sponsor of this bill, the California Coalition of Travel Organizations writes:

Operation of the [Restitution] Fund is supported entirely through annual assessments paid by participating travel businesses. The current maximum assessment of $35 per location was last increased in 1997 and has never been adjusted. Over time, administrative and operational costs associated with maintaining the fund have increased, creating concerns about the long-term stability of the program. The bill increases the cap from $35 to $60 per year for each location in California from which a travel business operates and allows limited future adjustments tied to inflation. This update helps ensure the fund remains financially stable and able to reimburse consumers when travel services are not provided due to fraud, bankruptcy, or business closure.

Arguments in Opposition

There is no opposition on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee: No state costs. Because the fee in this bill is state-imposed and results in a taxpayer paying a higher tax within the meaning of Article XIII A of the California Constitution, this bill has been identified by Legislative Counsel as a tax levy. Therefore, according to this committee's custom and practice this bill is a suspense candidate.

VOTES

ASM BUSINESS AND PROFESSIONS: 14-1-4

YES: Berman, Addis, Ahrens, Alanis, Aguiar-Curry, Caloza, Elhawary, Haney, Hart, Irwin, Jackson, Lowenthal, Nguyen, Pellerin

NO: Hadwick

ABS, ABST OR NV: Johnson, Bains, Chen, Macedo

ASM APPROPRIATIONS: 11-3-1

YES: Wicks, Aguiar-Curry, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache

NO: Hoover, Ta, Tangipa

ABS, ABST OR NV: Dixon

UPDATED

VERSION: May 18, 2026

CONSULTANT: Kaitlin Curry / B. & P. / (916) 319-3301 FN: 0003043

Date of Hearing: April 22, 2026

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 1758

Author:(Nguyen) – As Amended Ver:March 16, 2026

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill increases, from $35 to $60, the maximum annual amount each seller of travel (SOT) may be required to pay to fund the operations of the Travel Consumer Restitution Corporation (TCRC) and authorizes the TCRC, with approval of the Attorney General (AG), to annually increase the new maximum to account for inflation.

Specifically, this bill:

1. Increases the maximum amount each registered SOT may be required to pay to TCRC’s operations fund from $35 to $60 per year for each location in the state from which a SOT does business.
2. Authorizes TCRC, with the approval of the AG, to annually increase the maximum amount of the assessment by an amount not to exceed the one-year increase in the California Consumer Price Index (CPI) for the immediately preceding year as compiled and reported by the Department of Industrial Relations.

FISCAL EFFECT:

1. Because the fee in this bill is state-imposed and results in a taxpayer paying a higher tax within the meaning of Article XIII A of the California Constitution, this bill has been identified by Legislative Counsel as a tax levy. Therefore, according to this committee’s custom and practice this bill is a suspense candidate.
2. Potential costs of an unknown amount, but likely minor and absorbable to the AG to approve assessment increases pursuant to the CPI.

In addition, the AG provided the following regarding potential litigation, which, in this committee’s view, represents speculative costs, rather than costs stemming from a directive in the bill, and therefore are not attributable to the fiscal impact of the bill.

Requiring AG approval of decisions by the board of the TCRC, which is a private legislatively created corporation rather than a state program within the AG’s office, is likely to lead to litigation and potential conflicts with the AG’s other legal roles and functions, including claims against the state, that may result in unquantifiable but potentially significant costs, depending on the extent of the litigation or conflicts.

COMMENTS:

1. Purpose. This bill is sponsored by the California Coalition of Travel Organizations. According to the author:

For nearly three decades, the cap on assessments supporting California’s Travel Consumer Restitution [Corporation] has remained unchanged. In that time, costs have increased, putting pressure on a program that protects consumers when travel services are not delivered. [This bill] makes a modest update to ensure the fund remains stable and continues to serve Californians. This bill provides a responsible and measured approach by allowing limited adjustments tied to inflation while maintaining oversight.

1. Background. The SOT Law, established by SB 918 (Speier), Chapter 1123, Statutes of 1994, requires all SOT to register with the AG’s office, pay an annual fee to fund the program, and pay annual assessments into the self-sustaining Travel Consumer Restitution Fund (restitution fund). The SOT Law provides specific protections to consumers who purchase sea or air transportation singly or in conjunction with other travel services, such as lodging and car rentals. The SOT 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. The SOT Law does not apply to airlines, cruise lines, or lodging establishments that book travel for their guests and accept no money for doing so.

TCRC is a private non-profit corporation which administers the restitution fund. If a consumer located in California purchased travel from a registered SOT whose principal place of business is also in California, and the consumer does not receive what they contracted to purchase, the consumer can file a claim with TCRC.

Registered SOT must pay an initial $75 assessment per business location to TCRC’s operations fund and an initial $200 assessment per business location to the restitution fund. Thereafter, each SOT must pay an annual assessment capped at $35 per business location to TCRC’s operations fund. If the TCRF is less than $1.6 million, each SOT must also pay $200 per business location to the TCRF. The SOT Law also allows TCRC to charge emergency assessments for operating expenses and to replenish the restitution fund if it dips below $900,000.

TCRC reports that since 2020 the number of registered SOT has declined while its operating costs have increased. The $35 annual assessment cap for operations has not been increased since 1998. Adjusted for inflation, $35 is equivalent to approximately $70 today.

1. Two-thirds Vote Requirement. Legislative Counsel has identified the assessment increase in this bill as a tax levy within the meaning of Section 3 of Article XIIIA of the California Constitution, which says any change in state statute that results in any taxpayer paying a higher tax must be passed by a two-thirds vote in both houses. In addition, because this bill is keyed as a tax levy, should the bill be signed into law, it will take effect immediately.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing:

ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS

Marc Berman, Chair

ABPCA Bill Id:AB 1758

Author:(Nguyen) – As Amended Ver:March 16, 2026

SUBJECT: Sellers of travel.

SUMMARY: Increases the maximum amount that sellers of travel (SOT) may be required to pay to fund the operations of the Travel Consumer Restitution Corporation (TCRC) from $30 to $60, and authorizes the TCRC to increase the maximum, with approval of the Attorney General (AG), each year to account for inflation.

EXISTING LAW:

1. Defines “seller of travel” as a person who sells, provides, furnishes, contracts for, arranges, or advertises that they can or may arrange, or has arranged, wholesale or retail, either of the following: (1) air or sea transportation, either separately or in conjunction with other travel services or (2) 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, except as specified. (Business and Professions Code (BPC) § 17550.1(a))
2. Defines “person aggrieved” as a passenger 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. (BPC § 17550.37(a))
3. Requires a SOT to apply for registration with the AG not less than 10 days before doing business in California. (BPC § 17550.20)
4. Defines “participant” as a registered SOT with its principal place of business in California, who does business with persons located in California, or is a registered SOT that does business in California, from one or more locations in California, and is an issuer or subsidiary of an issuer that has a security listed on a national securities exchange, as specified. meets specified requirements. (BPC § 17550.36)
5. Requires participants to maintain a corporation under the nonprofit Mutual Benefit Corporation Law operating under the name “Travel Consumer Restitution Corporation.” (BPC § 17550.39(a))
6. Specifies that it is the purpose of the TCRC to provide restitution to a person aggrieved, as specified. (BPC § 17550.38(a)
7. Specifies that restitution must be paid from the Travel Consumer Restitution Fund (restitution fund) established by the TCRC. (BPC § 17550.38(c))
8. Requires the TCRC to establish and maintain an operations fund for the payment of costs of operations and administration. (BPC § 17550.43(a))
9. Requires the TCRC to establish and maintain a restitution fund for the payment of claims. (BPC § 17550.43(d))
10. Requires participants making their initial payment of assessments to pay to the TCRC an initial, one-time $75 assessment per location from which the participant does business in California to provide additional funding for the operations of the corporation and an initial, one-time $200 assessment per location from which the participant does business in California to provide additional funding for the restitution fund. (BPC § 17550.43(b))
11. Requires the TCRC to bill and collect from each participant an annual assessment that, in the aggregate, must consist of assessments for the operations fund and the restitution fund. (BPC § 17550.44(a))
12. Specifies that the annual assessment for the operations fund cannot exceed $35 per year for each location in the state from which a participant does business. (BPC § 17550.44(b))
13. States that if at any time during the fiscal year the board of directors of the TCRC determines that the operations fund will be insufficient to pay the costs of operations and administration for the current or next fiscal year, the TCRC must do either or both of the following:
    1. Make an emergency assessment of participants, not more than once per fiscal year, up to $65 per year for each location in the state from which a participant does business.
    2. Transfer any or all interest earned on the restitution fund to the operations fund, provided that no transfer results in a restitution fund balance of less than $1,200,000.

(BPC § 17550.44(e))

1. Requires the TCRC to notify the AG if any assessment is not paid within 60 days of the due date, and requires the AG to suspend the registration of the participant who has not paid. (BPC § 17550.45)
2. Authorizes any person aggrieved who suffers a loss of more than $50 for air or sea transportation or travel services to file a claim with the TCRC. (BPC § 17550.47(a))
3. Allows a person aggrieved to recover up to $15,000 from the TCRC per person aggrieved, not to exceed the amount paid to the participant by or on behalf of the person aggrieved for the transportation or travel services. (BPC § 17550.47(b))
4. Requires any SOT that is not a participant in the restitution fund who is doing business with persons located in California to make a clear and conspicuous disclosure, both orally and in writing, that the SOT is not a participant in the restitution fund, and any SOT doing business from any location in California with persons located outside California must make a clear and conspicuous disclosure, both orally and in writing, that the transaction is not covered by the restitution fund. (BPC § 17550.25)

THIS BILL:

1. Specifies that the annual assessment for the operations fund shall not exceed $60 (currently $35) per year for each location in the state from which a participant does business.
2. Authorizes the TCRC, with the approval of the AG, to increase the maximum amount of this assessment no more than once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year as compiled and reported by the Department of Industrial Relations.
3. States that the Act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.

FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel.

COMMENTS:

Purpose. This bill is sponsored by the California Coalition of Travel Organizations. According to the author:

For nearly three decades, the cap on assessments supporting California’s Travel Consumer Restitution Fund has remained unchanged. In that time, costs have increased, putting pressure on a program that protects consumers when travel services are not delivered. [This bill] makes a modest update to ensure the fund remains stable and continues to serve Californians. This bill provides a responsible and measured approach by allowing limited adjustments tied to inflation while maintaining oversight.

Background.

Sellers of Travel. An SOT is anyone who sells, provides, furnishes, contractors for, arranges, or advertises they can arrange air or sea transportation, either separately or in conjunction with other travel services such as hotels and rental cars, or land or water vessel transportation (other than sea carriage), either separately or in conjunction with other travel services, that costs the consumer more than $300. Air carriers, ocean carriers, lodging establishments, government-authorized transportation providers, and individual agents of registered SOT are not SOT.

SOT must register with the AG’s office before they can operate lawfully in California. Registration is valid for one year and costs $100 per business location. Registered SOT must display their registration number on all advertising, are required to provide the services purchased by the passenger or provide a refund, and comply with various other financial, disclosure, and advertising requirements. Registered SOT range from small businesses such as Yoga Shala Sacramento, which offers international yoga retreats, to large companies such as Costco Travel, which offers packaged vacations, hotels, cruises, and rental cars exclusively for Costco members.

Travel Consumer Restitution Corporation and Travel Consumer Restitution Fund. In addition to registering with the AG’s office, any SOT that does business in California and whose principal place of business is in California, or that does business in California from at least one location in California and is a publicly traded company, must participate in the restitution fund administered by the TCRC. The TCRC is a nonprofit organization that manages the restitution fund and decides restitution claims. The restitution fund provides refunds to customers who paid for travel services they did not receive and who, at the time of sale, were in California.

Participating SOT are currently required to pay an initial $75 assessment per business location to cover the TCRC’s operating costs and an initial $200 assessment per business location to be deposited into the restitution fund. Thereafter, SOT are subject to annual assessment capped at $35 per business location for the TCRC’s operating costs and $200 per business location for the restitution fund, if the restitution fund is less than $1,600,000. The TCRC may charge an emergency assessment up to $65 per business location once per year to cover the TCRC’s operating expenses and $150 per business location twice per year if the balance of the restitution fund is less than $900,000. Since its inception, the TCRC has collected only one emergency assessment. In 2020, the TCRC changed administrators, necessitating the creation of a new website. The TCRC collected a $50 emergency assessment to cover the cost of the new website.

Since then, the number of registered SOT has declined from approximately 6,000 in 2020 to less than 4,000 at present, and this does not account for the loss of additional locations associated with these SOT. Meanwhile, the TCRC reports that operating costs (e.g., insurance, wages, office supplies, website maintenance, telephone expenses, and credit card service fees) have increased. In Fiscal Year 2024-2025, the TCRC’s reported operating and administrative costs were $204,314. According to the TCRC’s administrator, SOT paid $235,475 in assessments to fund the TCRC’s operations, including $71,885 in late fees. Had SOT paid their annual assessments on time, the TCRC would have experienced a deficit. As late fees are an unreliable source of revenue, the TCRC feels it is necessary to increase the annual assessment paid by SOT.

The $35 annual assessment cap for operations has been in statute since 1998. Adjusted for inflation, $35 in 1998 is equal to roughly $70 today. This bill would allow the TCRC to charge up to $60 and increase the maximum assessment annually in accordance with the Consumer Price Index.

Prior Related Legislation. SB 95 (Umberg) of 2025 would have specified that a travel consolidator is a SOT, defined “travel consolidator” as an entity that purchases tickets or vouchers for air transportation from an air carrier and resells the tickets or vouchers to travel agencies or directly to passengers at a discount, and required an air carrier to refund a person who purchases a ticket or voucher for air transportation if they are a victim of fraud committed by the SOT, the air carrier has actual knowledge of the SOT’s fraudulent business practice, and the person is unable to procure a refund from the SOT within a reasonable time. SB 95 was held on the Senate Appropriations Committee Suspense File.

SB 2175 (Alpert), Chapter 924, Statutes of 1998, in part, authorized the TCRC to impose an emergency assessment of up to $65 per year if the TCRC determines that its operations fund is insufficient to cover its costs.

SB 1348 (Senate Business, Professions and Economic Development Committee), Chapter 790, Statutes of 1997, in part, increased the annual fee assessed by the TCRC for administering the restitution fund from $25 to $35.

AB 918 (Speier), Chapter 1123, Statutes of 1994, required all SOT to register annually with the AG, created a non-profit-trust corporation supervised by the AG to administer a consumer restitution fund, also created by AB 918, and required registered California SOT to pay an initial assessment of not more than $200 to the restitution fund and $25 as an operations assessment.

ARGUMENTS IN SUPPORT:

As the sponsor of this bill, the California Coalition of Travel Organizations writes:

Operation of the [Restitution] Fund is supported entirely through annual assessments paid by participating travel businesses. The current maximum assessment of $35 per location was last increased in 1997 and has never been adjusted. Over time, administrative and operational costs associated with maintaining the fund have increased, creating concerns about the long-term stability of the program The bill increases the cap from $35 to $60 per year for each location in California from which a travel business operates and allows limited future adjustments tied to inflation. This update helps ensure the fund remains financially stable and able to reimburse consumers when travel services are not provided due to fraud, bankruptcy, or business closure.

REGISTERED SUPPORT:

California Coalition of Travel Organizations (Sponsor)

REGISTERED OPPOSITION:

None on file

Analysis Prepared by: Kaitlin Curry / B. & P. / (916) 319-3301