SENIOR SENATE PROPOSAL NO. 17

INTRODUCED BY SENIOR SENATOR ERVEN

LEGISLATIVE COUNSEL'S DIGEST

SP 17: SELLER OF TRAVEL: MOTOR COUCH AND INLAND WATER TRANSPORTATION.

EXISTING LAW PROVIDES A COMPREHENSIVE SCHEME FOR THE REGULATION OF SELLERS OF TRAVEL.

THIS MEASURE WOULD ENCOURAGE THE LEGISLATURE TO ENACT FUTURE LEGISLATION THAT WOULD APPLY THOSE PROVISIONS TO MOTOR COACH AND INLAND WATERWAY TRANSPORTATION.

VOTE: MAJORITY.

SP 17: RELATING TO THE SELLER OF TRAVEL LAW

WHEREAS, THE LEGISLATURE ESTABLISHED THE SELLER OF TRAVEL LAW AS A MEANS TO PROTECT THE CITIZENS OF CALIFORNIA FROM PREDATORY AND INEPT PRACTICES OF TRAVEL CONTRACTORS, WHOLESALERS, AND AGENCIES; AND

WHEREAS, THE ACT REQUIRES SPECIFIED PERSONS AND ENTITIES TO REGISTER WITH THE APPROPRIATE STATE AGENCY AND RECEIVE A CALIFORNIA SELLER OF TRAVEL (CST) NUMBER TO BE USED WITH ANY AND ALL ADVERTISEMENT OR PUBLICATION RELATING TO ANY SERVICE TO BE PROVIDED A CUSTOMER OR CLIENT; AND

WHEREAS, CURRENTLY, ONLY PERSONS AND ENTITIES SELLING AIR AND SEA TRAVEL ARE REQUIRED TO REGISTER FOR AND ACQUIRE A CST NUMBER; AND

WHEREAS, CONTRACTORS, WHOLESALERS, AND OPERATORS OF MOTOR COACH SERVICES ARE NOT REQUIRED TO COMPLY WITH THE CST REQUIREMENT TO DEPOSIT FUNDS RECEIVED INTO A TRUST ACCOUNT FOR PAYMENT OF SERVICES EXPECTED BY THE CLIENT OR CUSTOMER DURING THEIR TOUR; AND

WHEREAS, MANY MOTOR COACH OPERATORS HAVE GONE BANKRUPT, LEAVING THEIR CLIENTS OR CUSTOMERS STRANDED AT HOME, OR IN THE FIELD; AND

WHEREAS, IN A GREAT MAJORITY OF BANKRUPTCIES, THE CLIENTS OR CUSTOMERS ARE MEMBERS OF A SENIOR CITIZEN CLUB WHO HAD CONTRACTED FOR AN OUTING AS A GROUP TO EITHER A LOCAL OR DISTANT OR OUT OF STATE DESTINATION; AND

WHEREAS, THE CST REQUIREMENT DOES NOT PROVIDE FISCAL PROTECTION TO THE GENERAL TRAVELING PUBLIC AS IT ONLY PROVIDES THAT PROTECTION FOR AIR AND SEA TRAVEL; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR SENATE AND THE SENIOR ASSEMBLY, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2004 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT SUBSEQUENT LEGISLATION THAT WOULD APPLY THE SELLER OF TRAVEL LAW TO MOTOR COACH AND INLAND WATER TRANSPORTATION; AND BE IT FURTHER

RESOLVED, THAT ALL TRAVEL AGENCIES, TRAVEL CONTRACTORS, TRAVEL WHOLESALERS, AND OTHERS WHO DEAL IN TRAVEL, TOURS, CRUISES, AND OTHER FORMS OF TRANSPORTATION REGISTER WITH THE CALIFORNIA ATTORNEY GENERAL'S OFFICE UNDER THE CALIFORNIA SELLERS OF TRAVEL ACT; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE  STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER RESOLVED, 

THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE SPEAKER OF THE ASSEMBLY, THE PRESIDENT PRO TEMPORE OF THE SENATE, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.