Bill Text: CA AB2138 | 2015-2016 | Regular Session | Chaptered
Bill Title: Sellers of travel.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Passed) 2016-09-09 - Chaptered by Secretary of State - Chapter 262, Statutes of 2016. [AB2138 Detail]
Download: California-2015-AB2138-Chaptered.html
BILL NUMBER: AB 2138 CHAPTERED
BILL TEXT
CHAPTER 262
FILED WITH SECRETARY OF STATE SEPTEMBER 9, 2016
APPROVED BY GOVERNOR SEPTEMBER 9, 2016
PASSED THE SENATE AUGUST 15, 2016
PASSED THE ASSEMBLY AUGUST 22, 2016
AMENDED IN SENATE AUGUST 10, 2016
AMENDED IN ASSEMBLY APRIL 20, 2016
INTRODUCED BY Assembly Members Low and Bonta
FEBRUARY 17, 2016
An act to amend Section 17550.20 of the Business and Professions
Code, relating to business.
LEGISLATIVE COUNSEL'S DIGEST
AB 2138, Low. Sellers of travel.
Existing law regulates sellers of travel, as defined, and requires
their registration with the Attorney General. Under existing law, a
seller of travel is 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.
This bill would clarify that a seller of travel is 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.
This bill would incorporate additional changes to Section 17550.20
of the Business and Professions Code proposed by AB 2106 that would
become operative if this bill and AB 2106 are enacted and this bill
is enacted last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17550.20 of the Business and Professions Code
is amended to read:
17550.20. (a) 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 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.
(c) Whenever, prior to expiration of a seller of travel's 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) 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 travel's place of business set forth in the registration
statement that the seller of travel's 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:
(1) Has a written contract with a registered seller of travel to
act on that registered seller of travel's 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 person's Web site and shall be prominently set forth
in the first electronic mail message sent to the passenger that
refers to the passenger's 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. 1.5. 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 travel's 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 travel's place
of business set forth in the registration statement that the seller
of travel's 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 travel's 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 person's Internet Web site and shall be prominently
set forth in the first electronic mail message sent to the passenger
that refers to the passenger's 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. Section 1.5 of this bill incorporates amendments to
Section 17550.20 of the Business and Professions Code proposed by
both this bill and Assembly Bill 2106. 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 2106, in which case Section 1 of this bill shall not
become operative.
