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State
California
BPC Sec 17550-17550.30

BUSINESS AND PROFESSIONS CODE
SECTION 17550-17550.30





17550. The Legislature finds and declares that certain advertising,
sales, and business practices of sellers of travel have worked
financial hardship upon the people of this state; that the travel
business has a significant impact upon the economy and well-being of
this state and its people; that problems have arisen that are
peculiar to sellers of travel business; and that 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.
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,
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.



17550.1. "Seller of travel" means 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 air or sea
transportation either separately or in conjunction with other travel
services. Seller of travel does not include: (a) an air carrier,
(b) an ocean carrier, (c) a hotel, motel, or similar lodging
establishment where in the course of selling, providing, furnishing,
contracting for, or arranging transient lodging accommodations and
related services for its registered guests, it (1) also arranges for
transportation, and (2) does not directly or indirectly receive any
money or other valuable consideration for arranging or providing that
transportation, or (d) any person or organization certified under
Part 5 (commencing with Section 12140) of Division 2 of the Insurance
Code, except such a person or organization shall comply with the
registration and fee provisions of Sections 17550.20 and 17550.21 for
each location at which air or sea transportation is sold either
separately or in conjunction with other travel services.




17550.2. "Advertise" means to make any representation in the
solicitation of air or sea transportation, and includes communication
with other members of the same partnership, corporation, joint
venture, association, organization, group, or other entity.




17550.3. "Passenger" is a person on whose behalf money or other
consideration has been given or is to be given to another, including
another member of the same partnership, corporation, joint venture,
association, organization, group, or other entity, for air or sea
transportation, other travel services, or both, for that person.




17550.4. An air carrier is a transporter by air of persons that
operates under a certificate of convenience and necessity issued by
the United States Department of Transportation or under the
certification of a foreign government that is recognized by the
United States Department of Transportation.



17550.5. "Ticket or voucher" means a writing that is itself good
and sufficient to obtain the entire air or ocean transportation, or
travel services, which the passenger has purchased.



17550.6. "Officially appointed agent" means an agent expressly
appointed as such, without reservation, for a specified time period,
in a written instrument executed by the principal or an authorized
representative of the principal. The written instrument shall
identify the current name, address, and telephone numbers of the
principal and agent.



17550.7. "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, and that meets the
requirements of paragraph (16) of subdivision (e) of Section 17511.1.




17550.8. "Provider" means the person or entity who actually
provides any transportation or travel services.



17550.9. "Travel services" includes, but is not limited to,
lodging, surface transportation, transfers, tours, meals, guides,
baggage transfer, sightseeing, recreational activities, vehicle
rental, or other travel-related services, however denominated,
including, but not limited to, travel certificates, registration
fees, and processing fees. "Travel services" does not include travel
services rendered by providers of lodging such as a hotel, motel, or
similar lodging establishment where the provider of lodging supplies
only that service.


17550.10. "Travel certificate" means a writing that represents the
holder is entitled to air or sea transportation or travel services,
to a discount or reduced price for that transportation or those
travel services, or to purchase that transportation or those travel
services from a specified source, whether or not the holder is
required to pay additional money or fulfill any requirements in order
to utilize the certificate.



17550.11. (a) "Adequate bond" means a bond executed by an admitted
surety insurer in an amount at all times no less than at least equal
to the amount required to be held in a trust account pursuant to
Section 17550.15 by any seller of travel in conjunction with such
transportation, for the benefit of every passenger who sustains a
monetary loss as a result of any violation of this article by a
seller of travel or any failure by a seller of travel or by any
official, agent, or employee of the seller of travel acting in the
course or scope of his or her employment or agency. A seller of
travel filing the bond shall maintain the bond in force in the proper
amount as a condition of continuing to engage in business. The
admitted surety insurer issuing the bond shall provide 30 days'
written notice prior to cancellation or termination of the bond to
the seller of travel filing the bond and the office of the Attorney
General, Consumer Law Section. Cancellation of the bond shall not
limit or exonerate the surety insurer from claims against the bond
arising during the period it was in force.
(b) No passenger may recover upon the bond a sum greater than that
which the passenger paid to the seller of travel, provided that this
limitation shall not restrict a passenger from recovering sums
greater than those paid to the seller of travel from sources other
than the bond.



17550.13. (a) A seller of travel shall not receive any money or
other valuable consideration in payment for air or sea transportation
or other travel services offered by the seller of travel unless at
the time of or prior to the receipt of payment the seller of travel
first furnishes to the person making that payment written materials
conspicuously setting forth the following information:
(1) The name and business address and telephone number of the
seller of travel.
(2) The total amount to be paid by or on behalf of the passenger,
amount paid to date, the date of any future payment, the purpose of
the payment made, and an itemized statement of the balance due, if
any.
(3) The name of the provider of the air or sea transportation, and
the date, time, and place of each departure, or the circumstances
under which the date, time, and place of departure will be
determined.
(4) All terms and conditions relating to the air or sea
transportation or travel services being purchased by the passenger,
including cancellation conditions. An air carrier's or an ocean
carrier's standard contract of carriage is not required to be
disclosed prior to the seller of travel receiving any money or other
valuable consideration.
There is no violation of this subdivision if both of the following
occur:
(A) Compliance was rendered impossible as a direct result of an
unforeseen condition beyond the control of the seller of travel.
(B) The seller of travel obtains from each passenger written
acknowledgment that the passenger has not received disclosure of the
terms and conditions required by this section.
(5) A clear and conspicuous statement that upon cancellation of
the transportation or travel services, where the passenger is not at
fault and has not canceled in violation of any terms and conditions
previously clearly and conspicuously disclosed to and agreed to by
the passenger, all sums paid to the seller of travel for services not
provided will be promptly paid to the passenger, unless the
passenger otherwise advises the seller of travel in writing, after
cancellation.
(6) If the seller of travel is required by this article to have a
trust account or bond, a clear and conspicuous disclosure stating:
"California law requires certain sellers of travel to have a trust
account or bond. This business has (a trust account) or (a bond
issued by (company) in the amount of ($X))."
(7) If the seller of travel is a participant in the Travel
Consumer Restitution Fund and the passenger, or the person making
payment for the passenger, was located in California at the time of
the sale of air or sea transportation or travel services, a clear and
conspicuous notice of the right of the passenger, or the right of
the person making payment for the passenger, to make a claim on that
fund. The notice shall include a description of the losses covered,
the method for making a claim, the time limit within which the claim
shall be made, and the amount which may be claimed.
(8) If the seller of travel is a participant in a Consumer
Protection Deposit Plan that meets the criteria set forth in
subdivision (b) of Section 17550.16, a clear and conspicuous notice
of the passenger's right to make a claim on the plan. That notice
shall include a description of the losses covered, the method for
making a claim, the time limit within which the claim shall be made,
and the amount that may be claimed.
(9) If the seller of travel is a participant in a Consumer
Protection Escrow Plan that meets the criteria set forth in
subdivision (c) of Section 17550.16, a clear and conspicuous notice
of the passenger's right to make a claim on the plan. That notice
shall include a description of the losses covered, the method for
making a claim, the time limit within which the claim shall be made,
and the amount that may be claimed.
(10) If the seller of travel is not a participant, a clear and
conspicuous disclosure that the seller of travel is not a participant
in the Travel Consumer Restitution Fund. That disclosure shall be
made both orally and in writing.
(11) If the seller of travel is a participant in the Travel
Consumer Restitution Fund and the passenger is located outside
California, a clear and conspicuous disclosure that the transaction
is not covered by the Travel Consumer Restitution Fund. That
disclosure shall be made both orally and in writing.
(b) If a seller of travel offers, sells, provides, or distributes
a travel certificate as defined in Section 17550.10 and any passenger
payment is nonrefundable, in whole or in part, the seller of travel
shall obtain the written acknowledgment of that limitation from the
end user prior to, or at the time of, receipt of any money or other
valuable consideration.
(c) Notwithstanding any other provision of this section, if money
or other valuable consideration is received from a customer to whom
the seller of travel has sold air or sea transportation within the
preceding 12 months and the disclosures required by this section are
substantially the same as the disclosures given in connection with
the prior travel, the disclosures required by this section shall be
made within five days of receipt of that money or other valuable
consideration.
(d) Notwithstanding any other provision of this section, if money
or other valuable consideration is received in payment for air
transportation and (1) the seller of travel is an officially
appointed agent in good standing of the Airlines Reporting
Corporation and (2) the seller of travel forwards the amount paid,
without offsetting or reducing the amount forwarded by any amounts
due or claimed in connection with any other transaction, to the
airline providing the transportation or to the Airlines Reporting
Corporation, the disclosures required by this section with respect to
that air transportation may be made orally.



17550.14. (a) The seller of travel has an obligation either to
provide the air or sea transportation or travel services purchased by
the passenger or to make a refund as provided by this section. The
seller of travel shall return to the passenger all moneys paid for
air or sea transportation or travel services not actually provided to
the passenger, within either of the following periods, whichever is
earlier:
(1) Thirty days from one of the following dates:
(A) The scheduled date of departure.
(B) The day the passenger requests a refund.
(C) The day of cancellation by the seller of travel.
(2) Three days from the day the seller of travel is first unable
to provide the air or sea transportation or travel services.
As used in this section, "unable to provide" includes, but is not
limited to, any day on which the passenger's funds are not in the
trust account required by Section 17550.15 and subdivision (g) of
Section 17550.21 or the funds necessary to provide the passenger's
transportation or travel services have been disbursed other than as
allowed by Section 17550.15 or subdivision (a) of Section 17550.16.
(b) If the seller of travel has disbursed the passenger's funds
pursuant to paragraph (1), (2), (3), or (4) of subdivision (c) of
Section 17550.15, the seller of travel may, instead of providing a
refund, provide to the passenger a written statement accompanied by
bank records establishing that the passenger's funds were disbursed
as required by those provisions and, if disbursed to a seller of
travel, proof of current registration of that seller of travel. A
seller of travel who is exempt from the requirements of Section
17550.15 pursuant to subdivision (a) of Section 17550.16 and who is
in compliance with subdivision (a) of Section 17550.16 may comply
with this section by maintaining and providing to the passenger
documentary proof of disbursement in compliance with subdivision (a)
of Section 17550.16, and proof of current registration of the seller
of travel to whom the funds were disbursed, which registration shall
note that the registered seller of travel either has a trust account
in compliance with Section 17550.15, or is exempt from the
requirements of Section 17550.15 pursuant to subdivision (b) or (c)
of Section 17550.16. This subdivision does not apply to refunds
subject to subdivision (c) or subdivision (d).
(c) If terms and conditions relating to a refund upon cancellation
by the passenger have been disclosed and agreed to by the passenger
and the passenger elects to cancel for any reason other than a seller
of travel being unable to provide the air or sea transportation or
travel services purchased, the making of a refund in accordance with
those terms and conditions shall be deemed to constitute compliance
with this section.
(d) Any material misrepresentation by the seller of travel shall
be deemed to be a violation of this article and cancellation by the
seller of travel, necessitating a refund as required by subdivision
(a).



17550.15. (a) This section applies to a seller of travel as defined
in Section 17550.1.
(b) The seller of travel shall deposit directly into a trust
account in a federally insured bank, savings and loan association, or
credit union 100 percent of all sums received from any person or
entity, including, but not limited to, those payments made in cash,
by credit card, or any other method of payment, for air or sea
transportation for any person, or for any travel services offered by
the seller of travel, and any refunds made by carriers or providers
of travel services. This subdivision does not require that a seller
of travel establish a separate trust account for each transaction.
(c) The seller of travel shall not in any manner encumber the
corpus of the trust account and shall not withdraw money therefrom
except as follows:
(1) In partial or full payment to the carrier for transportation,
or to the provider of travel services, for the services or
transportation purchased by the passenger.
(2) In partial or full payment to the carrier or provider of
travel services if payment is made by wire transfer directly to an
account of the Airlines Reporting Corporation, or by check or draft
paid to the Airlines Reporting Corporation for the transportation or
services contracted for by the passenger.
(3) Upon delivery of all tickets or vouchers necessary for the
passenger to obtain from the carrier or provider of travel services
the transportation or services purchased by the passenger, at which
time the seller of travel may withdraw the portion of the sum paid by
the passenger that is due the seller of travel as compensation for
sale of the transportation or travel services to that passenger.
Tickets or vouchers shall be deemed delivered if personally
delivered, turned over to an independent third-party delivery service
for regular delivery to the passenger at the address designated by
the passenger on the next business day, or deposited in the United
States mail with first-class postage prepaid.
(4) Upon full payment to the provider of transportation or travel
services, directly to the trust account identified in the
registration of another seller of travel to whom the funds are paid,
or to another registered seller of travel whose registration states
that the other registered seller of travel is exempt pursuant to
subdivision (b) or (c) of Section 17550.16 from the requirements of
this section, of the total amount that is required by the carrier or
provider of transportation or travel services or other registered
seller of travel in order to provide the transportation or services
purchased by the passenger, at which time the seller of travel may
withdraw from the trust account that portion of the sum paid by the
passenger which is commission due the seller of travel for sale of
the transportation or travel services to that passenger.
(5) To make refunds to the passenger.
(d) Subdivision (c) shall not prevent payment of the interest
earned on the trust account to the seller of travel.
(e) The seller of travel shall serve as trustee of the trust
accounts required by this article. If an individual person is the
seller of travel, the individual person shall be the trustee; if the
seller of travel is a corporation, partnership, limited liability
company, or other legal entity, a managing partner or partners, or
the chief executive officer of the corporation, or executive officer
or manager of a limited liability company shall be the trustee. The
trustee may designate in writing that an officer or employee may
manage the trust account if that officer or employee is under the
trustee's supervision and control, and the original of that writing
is on file with the Attorney General's office.
(f) (1) Except as otherwise provided in this section, all trust
accounts required by this article shall be maintained at a branch of
a federally insured bank, savings and loan association, or credit
union.
(2) The seller of travel shall file with the Attorney General an
irrevocable agreement in writing allowing the Attorney General, a
district attorney, or their representatives, upon written request, to
examine and obtain copies of all business records, including, but
not limited to, those related to the trust account wherever those
records may be, and including, but not limited to, those records
relating to any travel business account, or any account used for any
travel business transaction, or account to which trust funds have
been deposited. The statement shall indicate that the authorization
remains in effect as long as the seller of travel, financial
institution, or other custodian of records retains records.
(g) Every seller of travel has a fiduciary responsibility with
respect to all sums received for transportation or travel services.
(h) The following are deemed to be held in trust for passengers:
(1) All sums received by the seller of travel for transportation
or travel services whether or not required to be deposited in an
actual trust account and regardless of whether any of these sums were
required to be deposited or actually were deposited in a trust
account.
(2) All property with which any of the sums described in paragraph
(1) has been commingled if any of these sums cannot be identified
because of the commingling.
(i) Upon any judicially ordered distribution of any money or
property required to be held in trust and after all expenses of
distribution approved by the court have been paid, every passenger
has a claim on the trust for payments made for transportation and
other travel services not provided. Unless a passenger can identify
his or her funds in the trust within the time established by the
court, each passenger shall receive a proportional share based on the
amount paid.
(j) The seller of travel is not required to comply with the direct
deposit requirement set forth in subdivision (b) if all of the
following apply:
(1) The payment is made by credit card.
(2) The seller of travel does not deposit, negotiate, or factor
the credit card charge or otherwise seek or obtain payment of the
credit card charge or the crediting of the amount of the credit card
charge to any account over which the seller of travel has any
control.
(3) (A) If the charge includes transportation, the carrier that is
to provide the transportation processes the credit card charge.
(B) If the charge is only for services, the provider of services
processes the credit card charge.
(k) In lieu of the trust account required by this article, an
adequate bond as set forth in Section 17550.11 may be maintained by
the seller of travel. Prior to the advertisement of transportation
or services, or both, by the seller of travel, the seller of travel
shall file a copy of that bond with the Attorney General.



17550.16. (a) A seller of travel is exempt from the requirements of
subdivisions (a) to (f), inclusive, of Section 17550.15 for all
transactions in which the seller of travel is in compliance with
paragraphs (1) to (6), inclusive, or with paragraph (7).
(1) The seller of travel sells, provides, furnishes, contracts
for, or arranges air or sea transportation in transactions with
persons in California, only from locations in California, and the air
or sea transportation or travel services are to be furnished by (A)
a registered seller of travel that is in compliance with this article
and Article 2.7 (commencing with Section 17550.35) or (B) an air or
sea carrier.
(2) The seller of travel forwards the passenger's funds, without
offsetting or reducing the amount forwarded by any amounts due or
claimed in connection with any other transaction, to (A) the provider
of the transportation or travel services, (B) the Airlines Reporting
Corporation, (C) the trust account identified in the registration of
the seller of travel to whom the funds are forwarded, or (D) a
registered seller of travel whose registration states that the
registered seller is exempt pursuant to subdivision (b) or (c) from
the requirements of Section 17550.15, and the seller of travel who
forwards funds pursuant to subparagraph (C) or (D) obtains and keeps
a copy of the registration referred to in subparagraph (C) or (D).
(3) The seller of travel is an officially appointed agent in good
standing of the Airlines Reporting Corporation and the air
transportation, if any, is sold to the passenger pursuant to that
agency appointment.
(4) The seller of travel has been in business under the same
ownership for a period of three years, unless acquired or formed by a
registered seller of travel that has been in business under the same
ownership for a period of three years. For the purposes of this
paragraph, the following shall not constitute a change in ownership:

(A) Any structural change involving a change in the type of
entity, such as from a corporation to a partnership, and not
involving the addition of any new, underlying ownership interest.
(B) The deletion of any owner or ownership interest.
(5) The seller of travel sells, provides, furnishes, contracts
for, or arranges air or sea transportation or travel services only at
retail directly to the general public and not through any other
seller of travel, all of which air or sea transportation and travel
services are to be furnished by other, unrelated providers or sellers
of travel.
(6) The seller of travel is in compliance with the requirements of
Section 17550.20 and Article 2.7 (commencing with Section 17550.35).
Any seller of travel seeking to qualify for this exemption shall
provide all information necessary for the Attorney General or his or
her delegate to determine that the seller of travel meets the
criteria set forth in paragraphs (1) to (6), inclusive.
(7) A seller of travel in a transaction where the air or sea
transportation or travel services are furnished by a business entity
that (A) is located and providing transportation or travel services
outside of the United States and (B) is not in compliance with the
provisions of this article is exempt from the requirements of Section
17550.15 for that transaction if the seller of travel obtains each
passenger's written acknowledgment of receiving, prior to making any
payment, a clear, conspicuous, and complete written disclosure that
the provider of transportation or travel services is not in
compliance with the Seller of Travel Law and the transaction is not
covered by the Travel Consumer Restitution Fund, and of the attendant
risks and consequences thereof.
(8) If the Attorney General or his or her delegate finds, pursuant
to Section 17550.52, that the Travel Consumer Restitution
Corporation has failed or ceased to operate, a seller of travel who
was a participant in the Travel Consumer Restitution Fund shall no
longer be exempt from compliance with the requirements of Section
17550.15 and 17550.17.
If Article 2.7 (commencing with Section 17550.35) ceases to
operate for any reason, including, but not limited to, repeal
pursuant to Section 17550.59, no seller of travel shall be exempt
from compliance with the requirements of Sections 17550.15 and
17550.17 unless in compliance with subdivision (b) or (c).
(b) A seller of travel who is a participant, with respect to all
sales of air or sea transportation and travel services, in a Consumer
Protection Deposit Plan that meets the criteria of paragraphs (1) to
(3), inclusive, and who complies with paragraph (4) need not comply
with Section 17550.15.
(1) The plan is operated and administered by an entity who
demonstrates to the satisfaction of the Attorney General or his or
her delegate that the operating and administering entity is competent
and reliable and that the plan will achieve fully the purposes and
objectives of this article. Each approved plan shall include
provisions requiring that each participating seller of travel (A) has
been engaged in business as a seller of travel in the United States
under the same ownership for not less than three years, unless
acquired or formed by a seller of travel already participating and in
good standing in the plan, and (B) has deposited with the
administrator of the plan a minimum of one million dollars
($1,000,000) in security in the form of a bond, letter of credit, or
certificate of deposit, which security shall be (i) in favor solely
of the plan, (ii) held by the plan pursuant to the terms of the plan,
(iii) used solely to refund passenger payments or deposits or to
complete tours, and (iv) payable solely in the event that (I) the
seller of travel fails to refund passenger payments or deposits due
as a result of the bankruptcy, insolvency, or cessation of operations
of the seller of travel or after the cancellation or material
failure by the seller of travel to complete performance of the
passenger's transportation or travel services or (II) the seller of
travel fails to replace the security with another meeting the
criteria set forth in subparagraph (B) no later than 30 days prior to
its expiration.
(2) Claims filed against the Consumer Protection Deposit Plan are
decided within 45 days of receipt and paid within 30 days of
decision.
(3) The Consumer Protection Deposit Plan has been reviewed and
approved in writing by the Attorney General or his or her delegate as
meeting the criteria set forth above, including a finding that the
plan will effectuate the purposes of this article. Should the
approved plan cease to provide the consumer protections set forth in
paragraph (1), the Attorney General or his or her delegate shall
revoke his or her approval immediately. Upon that revocation, the
seller of travel shall no longer be exempt from compliance with the
requirements of Sections 17550.15 and 17550.17.
(4) Any participant in a Consumer Protection Deposit Plan seeking
to qualify for this exemption shall provide all information necessary
for the Attorney General or his or her delegate to determine (A)
that the Consumer Protection Deposit Plan in which the seller of
travel is a participant meets the criteria set forth in paragraphs
(1), (2), and (3), (B) that the seller of travel is a participant in
full compliance with the terms and conditions of an approved consumer
protection deposit plan, and (C) provide a written agreement from
the authorized representative of the Consumer Protection Deposit Plan
in which the plan administrator agrees to give the office of the
Attorney General, Consumer Law Section, immediate written and
telephonic notice in the event of termination of the seller of travel'
s participation in the plan.
(c) A seller of travel who utilizes for all transactions a
Consumer Protection Escrow Plan which meets the criteria of
paragraphs (1) to (6), inclusive, and who complies with paragraph (7)
is exempt from the requirements of Section 17550.15.
(1) The plan is operated and administered as escrow holder by a
federally insured bank that demonstrates to the Attorney General or
his or her delegate that the manner in which it will administer the
plan will be consistent with the purposes of this article. Each
approved escrow plan shall include provisions requiring that all air
tickets sold by participants in the plan be issued through the
Airlines Reporting Corporation.
(2) All funds delivered to the escrow holder, by cash, check,
charge card, or otherwise, are held and disbursed by the escrow
holder for the benefit of, and to protect the interests of, the
passenger.
(3) All funds are separately accounted for by booking number and
passenger name.
(4) Claims filed against the escrow plan are decided within 45
days of receipt and paid within 30 days of decision.
(5) All passenger funds are to be delivered to the escrow holder
as required by Section 17550.15.
(6) The Consumer Protection Escrow Plan has been reviewed and
approved in writing by the Attorney General or his or her delegate as
meeting the criteria set forth herein, including a finding that the
plan will effectuate the purposes and objectives of this article.
Should the approved plan cease to provide the consumer protections
set forth in paragraphs (1) to (5), inclusive, the Attorney General
or his or her delegate shall revoke his or her approval of the plan
immediately. Upon that revocation, the seller of travel shall no
longer be exempt from compliance with the requirements of Sections
17550.15 and 17550.17.
(7) Any participant in a consumer protection plan seeking to
qualify for this exemption shall provide all information necessary
for the Attorney General or his or her delegate to (A) determine that
the Consumer Protection Escrow Plan in which the seller of travel is
a participant meets the criteria set forth in paragraphs (1) to (6),
inclusive, (B) determine that the seller of travel is a participant
in full compliance with the terms and conditions of an approved
Consumer Protection Escrow Plan, and (C) provide a written agreement
from the authorized representative of the Consumer Protection Escrow
Plan in which the plan administrator agrees to give the office of the
Attorney General, Consumer Law Section, immediate written and
telephonic notice in the event of termination of the seller of travel'
s participation in the plan.



17550.17. (a) This section does not apply to sellers of travel who
are exempt from the requirements of Section 17550.15 pursuant to
Section 17550.16.
(b) Upon payment in full by the passenger for air or sea
transportation and any related services with a credit card or with
cash, the seller of travel shall issue and deliver the ticket or
voucher to the passenger or his or her designated agent within 72
hours.
(c) Upon payment in full by the passenger for air or sea
transportation and any related services with a check, the seller of
travel shall issue and deliver the ticket or voucher to the passenger
or his or her designated agent within 72 hours of the earlier of the
following:
(1) The time the passenger's payment is credited to the seller of
travel's account.
(2) The expiration of the maximum hold period specified in Section
10.190405 of Title 10 of the California Code of Regulations.
(d) Tickets, vouchers, or receipts shall be deemed to have been
delivered if they have been turned over to an independent third-party
delivery service or the United States Postal Service for regular
delivery.
(e) Where the seller of travel is unable to issue tickets or
vouchers upon payment as set forth in subdivisions (b) and (c), the
seller of travel may comply with this section by either: (1)
forwarding to the air or sea carrier, or provider of travel services
the portion of the sum paid by the passenger that is required by the
air or sea carrier or provider of travel services from the seller of
travel in order to provide the transportation or services purchased
by that passenger; the seller of travel may not offset or reduce the
amount forwarded by any amounts due or claimed in connection with any
other transaction, or (2) complying with Sections 17550.13,
17550.14, and 17550.15.
(f) There is no violation of this section if (1) compliance with
this section was rendered impossible as a direct result of an
unforeseen condition beyond the control of the seller of travel, and,
(2) the seller of travel complied with this section or made
restitution to the passenger within 30 days after the transportation
or travel services purchased by the passenger were not provided.
(g) For purposes of this section, "72 hours" means three business
days as defined in Section 9 of the Civil Code.



17550.18. (a) If any provision of this article or the application
thereof to any person or circumstance is held invalid, such
invalidity shall not affect other provisions or applications of the
article which can be given effect without the invalid provision or
application, and to this end the provisions of this article are
severable.
(b) In a criminal action, a seller of travel has the burden of
producing evidence to establish any exception to the provisions of
this chapter; and in a civil action, a seller of travel has the
burden of proof to establish any exception to the provisions of this
chapter.
(c) Any action or proceeding to attack, review, set aside, void,
change, or annul any decision, determination, or finding of the
Attorney General or his or her delegate pursuant to Article 2.6
(commencing with Section 17550) or Article 2.7 (commencing with
Section 17550.35) shall be in accordance with the provisions of
Section 1094.5 of the Code of Civil Procedure.
In such action or proceeding, the inquiry shall extend only to
whether there was a prejudicial abuse of discretion. Abuse of
discretion shall be found by the court only if the decision,
determination, or finding was not supported by substantial evidence
in light of the entire written record before the Attorney General or
his or her delegate at the time the decision, determination, or
finding was made. The record before the court shall be the same
written record upon which the Attorney General or his or her delegate
acted.



17550.19. In addition to any civil penalties provided in this
division, violation of this article is punishable as follows:
(a) As a misdemeanor by a fine of not more than ten thousand
dollars ($10,000), by imprisonment in a county jail for not more than
one year, or by both that fine and imprisonment for each violation.

(b) In addition, any violation of Section 17550.14 or subdivision
(b) or (c) of Section 17550.15 where money or real or personal
property received or obtained by a seller of travel for
transportation or travel services from any and all persons aggregates
one thousand dollars ($1,000) or more in any consecutive 12-month
period, or the payment or payments by or on behalf of any one
passenger exceeds in the aggregate four hundred dollars ($400) in any
12-month period, is punishable either as a misdemeanor or as a
felony by imprisonment in the state prison for 16 months, or two or
three years, by a fine of not more than twenty-five thousand dollars
($25,000), or by both that fine and imprisonment for each violation.

(c) In addition, any intentional use for any purpose of a false
seller of travel registration number, with intent to defraud, by an
unregistered seller of travel is punishable as a misdemeanor or
felony as provided in this section.
(d) Any violation of Section 17550.15 shall be a misdemeanor and
shall be punished as provided in this section. Every act in
violation of Section 17550.15 may be prosecuted as a separate and
distinct violation and consecutive sentences may be imposed for each
violation.
(e) Sellers of travel shall also comply with Sections 17537,
17537.1, and 17537.2 of the Business and Professions Code and all
other applicable laws. This section shall not be construed to
preclude the applicability of any other provision of the criminal law
of this state that applies or may apply to any transaction.



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 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.



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 travel's 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 driver's 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 indicating (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, and (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 travel's 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 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 (continued)