17540.  The Legislature finds and declares that certain advertising,
sales and business practices of travel promoters 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 which are
peculiar to the travel promoter business; and that the public welfare
requires regulation of travel promoters in order to eliminate unfair
advertising, sales and business practices; to establish standards
which will safeguard the people against financial hardship and to
encourage competition, fair dealing and prosperity in the travel
business.



17540.1.  "Travel promoter" 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
services.  Travel promoter does not include:  (1) an air carrier, (2)
an ocean carrier, (3) an officially appointed agent of the air
carrier or ocean carrier which provides the transportation and where
the transportation is offered or sold pursuant to that agency
appointment, or (4) any person or organization certified under the
provisions of Part 5 (commencing with Section 12140) of Division 2 of
the Insurance Code.



17540.2.  "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.




17540.3.  "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 travel by air
or sea.



17540.4.  An air carrier is a transporter by air of persons subject
to regulation as such by any governmental agency.



17540.5.  "Ticket or voucher" means a writing which is itself good
and sufficient to obtain the entire air or ocean transportation, or
both, for which the passenger has contracted.



17540.6.  A travel promoter shall not advertise that air or sea
transportion is or may be available unless he or she has, prior to
the advertisement, contracted for the transportation advertised with
the air carrier or sea carrier.


17540.7.  (a) "Adequate bond" means a bond executed by an admitted
surety insurer in an amount at least equal to the amount required
under the contract between the travel promoter and the transportation
carrier or company or person providing any other services in
conjunction with such transportation, for the benefit of every person
injured by the wrongful act of the principal acting in the course
and scope of his or her occupation or business or by any official,
agent or employee of the principal acting in the course or scope of
his or her employment or agency.  A travel promoter filing such a
bond shall maintain the bond in force in the proper amount as a
condition of continuing to engage in business.
   (b) No person may recover upon the bond a sum greater than that
which such person paid to the principal, provided that this
limitation shall not restrict a person from recovering sums greater
than those paid to the principal from sources other than the bond.




17540.8.  A travel promoter shall not receive money or other
valuable consideration in payment for air or sea transportation or
any other services offered by the travel promoter in conjunction with
such transportation unless at the time of such receipt the travel
promoter furnishes to the person making such payment a written
statement conspicuously setting forth the following information:
   (a) The name and business address and telephone number of the
travel promoter.
   (b) The amount paid, the date of such payment, the purpose of the
payment made, and an itemized statement of the balance due, if any.
   (c) The location and number of the trust account or bond required
by this article.
   (d) The name of the carrier with which the travel promoter has
contracted to provide the transportation, the type of equipment to be
used, and the date, time and place of each departure.
   (e) The conditions, if any, upon which the contract between the
travel promoter and the passenger may be canceled, and the rights and
obligations of all parties in the event of such cancellation.
   (f) The conditions, if any, upon which the contract between the
travel promoter and the carrier may be canceled, and the rights and
obligations of all parties in the event of such cancellation.
   (g) A statement in eight point boldface type that upon
cancellation of the transportation through no fault of the passenger,
all sums paid to the travel promoter for services not performed in
accordance with the contract between the travel promoter and the
passenger will be, unless the passenger otherwise advises the travel
promoter in writing, promptly refunded by the travel promoter to the
passenger or the party who contracted for the passenger.



17540.9.  (a) In the event the transportation contracted for is
canceled through no fault of the passenger, and unless the passenger
otherwise advises the travel promoter in writing, the travel promoter
shall promptly return to the passenger all moneys paid for services
not performed and goods not delivered in accordance with the
contract.
   (b) Any misrepresentation with regard to the date, time, place of
all departures or arrivals or type of aircraft or ocean carrier or
similar occurrence shall be deemed to be a cancellation necessitating
the refund required by this section.



17540.10.  (a) A travel promoter shall deposit 90 percent of all
sums received, including, but not limited to, those made by cash,
credit card, or any other method of payment, for air or sea
transportation or any other services or goods offered by the travel
promoter in conjunction with that transportation directly into a
trust account in a federally insured bank or savings and loan
association.
   (b) The trust required by this section shall be created and
maintained for the benefit of the persons paying money to the travel
promoter.  The travel promoter shall not in any manner encumber the
corpus of the account and shall not withdraw money therefrom except:
(1) in partial or full payment for the goods or services contracted
for by the passengers to the carrier or person providing the other
goods or services offered by the travel promoter; or (2) to make the
refunds as required by this article or provided for by written
contract between the travel promoter and passengers.  This section
shall not prevent the withdrawal from that account of any interest
earned and credited to the trust account for the sole benefit of the
travel promoter after all goods and services have been provided as
contracted for or the withdrawal at that time of any other sums on
deposit in that account.
   (c) In lieu of that trust account, an adequate bond shall be
maintained by the travel promoter.  A copy of that bond shall be
filed with the office of the Attorney General prior to the
advertisement of air or sea transportation, or both, by the travel
promoter.


17540.11.  (a) Upon payment in full by the passenger for air or sea
transportation and any related services with a credit card or with
cash, the travel promoter shall issue and deliver the ticket or
voucher to the passenger or his or her designated agent within 48
hours.
   (b) Upon payment in full by the passenger for air or sea
transportation and any related services with a check, the travel
promoter shall issue and deliver the ticket or voucher to the
passenger or his or her designated agent within 48 hours of the
earlier of the following:
   (1) The time the passenger's payment is credited to the travel
promoter's account.
   (2) The expiration of the maximum hold period specified in Section
10.190405 of Title 10 of the California Administrative Code.
   (c) 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.
   (d) Where the travel promoter is unable to issue tickets or
vouchers upon payment as set forth in subdivisions (a), (b), (c), and
(d), the travel promoter may comply with this  section by either:
(1) forwarding to the air or sea carrier, or provider of related
services the portion of the sum paid by the passenger which is
required by the air or sea carrier or provider of related services
from the travel promoter in order to provide the transportation or
services purchased by that passenger.  The travel promoter may not
offset or reduce the amount forwarded by any amounts due or claimed
in connection with any other transaction, or (2) by complying with
either the provisions of Sections 17540.8 and 17540.9, and
subdivisions (a), (b), and (c) of Section 17540.10, or depositing
directly into a trust account in a federally insured bank or savings
and loan association the portion of the amount paid by the passenger
which is required by the air or sea carrier or provider of related
services from the travel promoter in order to provide the
transportation or services purchased by the passenger.  The travel
promoter may not offset or reduce the amount deposited by any amount
due or claimed in connection with any other transaction.
   (e) The trust required by this section shall be created and
maintained for the benefit of the persons paying money to the travel
promoter.  The travel promoter shall not, in any manner, encumber the
corpus of such account and shall not withdraw money therefrom
except:  (1) in partial or full payment for the goods or services
contracted for by the passenger to the carrier or person providing
the other goods or services offered by the travel promoter; or (2) to
make the refunds as required by this section.  This section shall
not prevent the withdrawal from that account of any interest earned
and credited to the trust account for the sole benefit of the travel
promoter.
   (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 travel promoter's control, and, (2)
the travel promoter complied with this section or made restitution to
the passenger within 30 days after receiving the passenger's
payment.
   A travel promoter has the burden of producing evidence to
establish this exception in a criminal action, and the burden of
proof to establish this exception in a civil action.
   (g) For purposes of this section only, "travel promoter" includes
an officially appointed agent of an air carrier or ocean carrier, but
does not include:
   (1) Any person or organization licensed under Chapter 14A
(commencing with Section 1851) of Division 1 of the Financial Code.
   (2) Any person or organization certified under the provisions of
Part 5 (commencing with Section 12140) of Division 2 of the Insurance
Code.
   (h) For purposes of this section, "48 hours" means two business
days as defined in Section 9 of the Civil Code.



17540.12.  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.



17540.13.  In addition to any civil penalties provided in this
chapter, violation of this article is  a misdemeanor.  In addition,
any violation of Section 17540.9, where money or real or personal
property received by a travel promoter aggregates one thousand
dollars ($1,000) or more in any consecutive 12-month period, or the
payment made by or on behalf of any one passenger exceeds four
hundred dollars ($400), is punishable either as a misdemeanor by
imprisonment in the county jail for not more than one year, or as a
felony punishable by imprisonment in the state prison for 16 months,
two, or three years.


17540.14.  "Travel certificate," as used in this article, means a
writing that represents the holder is entitled to air or sea
transportation or lodging, to a discount or reduced price for that
transportation or lodging, or to purchase that transportation or
lodging 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.



17540.15.  (a) Not less than 10 days prior to doing business in this
state, a travel promoter shall register with the office of the
Attorney General by filing with the Consumer Law Section the
information required by Section 17540.16 and a filing fee of fifty
dollars ($50).  A travel promoter shall be deemed to do business in
this state if the travel promoter solicits prospective purchasers
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 and may be annually renewed by making the filing
required by Section 17540.16 and paying a filing fee of fifty dollars
($50).
   (c) Whenever, prior to expiration of a travel promoter's annual
registration, there is a material change in the information required
by Section 17540.16, the travel promoter shall, within 10 days, file
an addendum updating the information with the Consumer Law Section of
the office of the Attorney General.
   (d) This section does not apply to any of the following:
   (1) An officially appointed agent of an air carrier that operates
under a certificate of convenience and necessity issued by the United
States Department of Transportation.
   (2) An individual, natural person who meets all of the following
conditions:
   (A) Has a written contract with an officially appointed agent of
an air carrier or ocean carrier to act on that agent's behalf in
offering or selling air or sea transportation and other goods or
services in connection with the transportation.
   (B) Acts only on behalf of an agent 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, goods,
or services to that passenger.
   (C) Provides air or sea transportation that is offered or sold
pursuant to the agency appointment of the agent with whom the person
has a written contract.
   (D) Does not receive any consideration for air or sea
transportation or other services from the passenger.
   (E) Requires the passenger to pay all consideration for air or sea
transportation or other services directly to the air carrier or
ocean carrier or to the officially appointed agent.



17540.16.  Each filing pursuant to Section 17540.15 shall contain
the following information:
   (a) The name or names of the travel promoter, including the name
under which the travel promoter is doing or intends to do business,
if different from the name of the travel promoter.
   (b) The travel promoter's business form and place of organization
and, if operating under a fictitious business name, the location
where the fictitious name has been registered.
   (c) The complete street address or addresses of all locations from
which the travel promoter will be conducting business, including,
but not limited to, locations at which telephone calls will be
received from, or made to, prospective purchasers.  The statement
shall designate which location is the principal place of business.
   (d) The complete business and residential address, the driver's
license number and state of issuance, and the date of birth of each
owner and principal of the travel promoter.  "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
travel promoter.  "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 any owner or principal has had
entered against him or her a final judgment or order in a civil or
administrative action, including a stipulated judgment or order, if
the complaint or petition in the civil or administrative action
alleged acts constituting a violation of this article, or alleged
acts which would constitute acting as a travel promoter, as defined
in Section 17540.1.  The statement shall identify the person, the
court or administrative agency rendering the judgment or order, the
docket number of the matter, and the date of the judgment or order.
   (f) A copy of the travel certificates, if any, which are or will
be sold, marketed, or distributed to any person or entity by the
travel promoter.
   (g) The location and number of all trust accounts required by
Section 17540.10 to be maintained by the travel promoter or, if a
bond is maintained in lieu of the trust account as provided by
Section 17540.10, a copy of that bond.
   (h) A statement signed by each owner and principal granting
permission to the office of the Attorney General to obtain from any
bank or savings and loan association at which any trust account
required by Section 17540.10 is maintained information relating to
that trust account.
   The information required by this section shall be verified by a
declaration signed by each owner and principal of the travel promoter
under penalty of perjury.  The declaration shall specify the date
and location of signing.