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 Bill Text - SB-95 Sellers of travel: travel consolidators: fraud.

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 |Add To My Favorites |Track Bill | Version: 04/10/25 - Amended Senate
 03/12/25 - Amended Senate
 01/23/25 - Introduced

 SB-95 Sellers of travel: travel consolidators: fraud.(2025-2026)

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 Date Published: 04/10/2025 09:00 PM

SB95:v97#DOCUMENTBill Start

 Amended
 IN 
 Senate
 April 10, 2025

 Amended
 IN 
 Senate
 March 12, 2025

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Senate Bill

No. 95

Introduced by Senator Umberg

January 23, 2025

An act to amend Section 17550.1 of, and to add Section 17550.31 to, the Business and Professions Code, relating to business.

LEGISLATIVE COUNSEL'S DIGEST

SB 95, as amended, Umberg.
 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 travel’s 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.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 YES 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 17550.1 of the Business and Professions Code is amended to read:

17550.1.

 (a) “Seller of travel” means 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.

(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 three hundred dollars ($300).

(b) “Seller of travel” includes a travel consolidator. “Travel consolidator”
 means an entity that purchases airline tickets in bulk from an airline and resells the tickets to travel agencies or directly to consumers 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. 

(c) Seller of travel does not include any of the following:

(1) An air carrier.

(2) An ocean carrier.

(3) A hotel, motel, or