SB 95: Sellers of travel: travel consolidators: fraud.

Existing law regulates sellers of travel, as defined, and requires a seller of travel to annually register with the Attorney General. Existing law, unless an exception applies, requires a seller of travel to establish a trust fund to deposit money received from persons for travel services and prohibits the seller of travel from withdrawing money from the trust account except for specified purposes, including to make refunds to the passenger. Existing law exempts a seller of travel from the requirement to establish a trust account under specified circumstances, including if the seller of travel is a participant in a Consumer Protection Deposit Plan or uses a Consumer Protection Escrow Plan and meets specified requirements. Existing law imposes an obligation on a seller of travel either to provide the air or sea transportation or travel service purchased by the passenger or to make a refund within a certain period of time, except as specified. Existing law establishes the Travel Consumer Restitution Corporation to provide restitution to a person aggrieved, as defined, and provides for payment of claims from the Travel Consumer Restitution Fund established by the Travel Consumer Restitution Corporation.

This bill would specify the term seller of travel includes a travel consolidator, as defined. The bill would require an air carrier to refund a person who purchased air travel a ticket or voucher for air transportation from a seller of travel if the person is a victim of fraud committed by the seller of travel, the air carrier had actual knowledge of the fraud, seller of travels fraudulent business practice, and the person was unable to procure a refund from the seller of travel within a reasonable time. If the seller of travel is not registered, the bill would specify that the sale is voidable by the purchaser. Because a violation of the provisions regulating sellers of travel is a misdemeanor or a felony, depending on the circumstances, this bill would expand the scope of a crime and would therefore impose a state-mandated local crime.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.