Assembly BillChaptered/SignedBusiness and Professions
AB 1758: Sellers of travel.
What AB 1758 does, verified September 17, 2026
This bill amends the Business and Professions Code to increase the annual assessment for registered sellers of travel from $35 to $60. The assessment is used to cover operational costs and administration of the Travel Consumer Restitution Corporation. The corporation is responsible for providing restitution to individuals affected by unscrupulous travel sellers. The bill also allows the corporation to increase the assessment once per year, up to a maximum one-year increase in the California Consumer Price Index. This change requires a two-thirds majority vote in both houses of the legislature to pass. The bill takes effect immediately as a tax levy.
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Last action: Chaptered by Secretary of State - Chapter 201, Statutes of 2026. (2026-09-15)Alert me
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| Sep. 15, 2026 | Chaptered by Secretary of State - Chapter 201, Statutes of 2026. |
| Sep. 15, 2026 | Approved by the Governor. |
| Aug. 27, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 20, 2026 | In Assembly. Ordered to Engrossing and Enrolling. |
| Aug. 20, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 10.). |
Latest bill textChaptered version, September 14, 2026 · 2,123 words
Assembly Bill No. 1758
CHAPTER 201
An act to amend, repeal, and add Section 17550.44 of the Business and Professions Code, relating to sellers of travel, to take effect immediately, tax levy.
[ Approved by Governor September 14, 2026. Filed with Secretary of State September 14, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 1758, Nguyen. Sellers of travel.
Existing law regulates sellers of travel, as defined, and requires a seller of travel to annually register with the Attorney General. Existing law establishes the Travel Consumer Restitution Corporation to provide restitution to a person aggrieved by the failure of a seller of travel, as specified, and provides for payment of claims from the Travel Consumer Restitution Fund established by the corporation. Existing law requires the corporation to establish and maintain an operations fund for the payment of costs of operations and administration. Existing law requires the corporation to bill and collect from each registered seller of travel an annual assessment not to exceed $35 for the operation fund.
This bill would increase the maximum amount of the assessment for the operations fund to $60, then, starting January 1, 2031, to $70. The bill would authorize the corporation to increase the maximum amount once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.
The people of the State of California do enact as follows:
SECTION 1.
Section 17550.44 of the Business and Professions Code is amended to read:17550.44.
(a) In addition to the assessments required by Section 17550.43, the Travel Consumer Restitution Corporation shall bill and collect from each participant an annual assessment that in the aggregate shall consist of assessments for the operations fund and the restitution fund. For each participant, the due date of that annual assessment shall be 30 days prior to the annual renewal date for registration pursuant to Section 17550.20 or 45 days after billing, whichever is later. For a participant registering for the first time, the assessments required by Section 17550.43 shall be due 10 days prior to the seller of travel doing business in this state. 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 due date specified in this section until the assessment is paid.(b) The annual assessment for the operations fund shall be determined no later than January 15 of each year for the next fiscal year in an amount that does not exceed the amount necessary to fund the operations and administration of the corporation, based upon the annual operational budget required by subdivision (a) of Section 17550.43, and shall become effective immediately. The annual assessment for the operations fund shall not exceed sixty dollars ($60) per year for each location in the state from which a participant does business. The corporation may increase the maximum amount of this assessment no more than once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year as compiled and reported by the Department of Industrial Relations.
(c) If, as of January 15 of any year, the balance in the restitution fund is less than one million six hundred thousand dollars ($1,600,000), the Travel Consumer Restitution Corporation shall make an assessment of participants, up to a maximum amount of two hundred dollars ($200) for each location in the state from which a participant does business, to bring the restitution fund to an expected balance of one million six hundred thousand dollars ($1,600,000). Every participant’s assessment shall be determined pro rata based upon the ratio of the number of locations in the state from which the participant does business to the total number of locations for all participants as of the preceding December 15.
(d) If, on May 1 or October 15 of any year, the balance in the restitution fund is less than nine hundred thousand dollars ($900,000), the corporation shall make an emergency assessment of participants, not more than twice per year, up to a maximum amount of one hundred fifty dollars ($150) per year for each location in the state from which the participant does business, for deposit in the trust account to return the level of the restitution fund to an expected balance of one million six hundred thousand dollars ($1,600,000). The corporation shall estimate the total cost of billing, collecting, and processing the emergency restitution fund assessment and shall assess and collect, together with the emergency restitution fund assessment, an emergency operations fund assessment that is in the aggregate sufficient to offset the estimated cost. Each participant’s assessments shall be determined pro rata based upon the ratio of the number of locations in the state from which the participant does business to the total number of locations for all participants as of the first day of the preceding month. The board of directors shall adopt rules for the notification of emergency assessments.
(e) In addition to the assessments required by Section 17550.43 and subdivision (d), if at any time during the fiscal year the board of directors of the Travel Consumer Restitution Corporation determines that the operations fund will be insufficient to pay the costs of operations and administration for the current or next fiscal year, the corporation, as determined by the board of directors, shall do either or both of the following:
(1) Make an emergency assessment of participants, not more than once per fiscal year, up to a maximum amount of sixty-five dollars ($65) per year for each location in the state from which a participant does business. The emergency assessment may be billed and collected either on an emergency basis from all participants upon the making of the assessment, or in conjunction with each participant’s annual assessment pursuant to subdivision (a).
(2) Transfer any or all interest earned on the Restitution Fund to the Operations Fund, provided that no transfer results in a restitution fund balance of less than one million two hundred thousand dollars ($1,200,000).
(f) The assessment required by subdivision (d) or (e) shall be due 45 days from the date the bill for that assessment is sent to the seller of travel by the Travel Consumer Restitution Corporation. 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 due date specified in this section until the assessment is paid.
(g) The Travel Consumer Restitution Fund shall report to the office of the Attorney General each levy of assessment within 10 business days after the levy.
(h) This section shall remain in effect only until January 1, 2031, and as of that date is repealed.
SEC. 2.
Section 17550.44 is added to the Business and Professions Code, to read:17550.44.
(a) In addition to the assessments required by Section 17550.43, the Travel Consumer Restitution Corporation shall bill and collect from each participant an annual assessment that in the aggregate shall consist of assessments for the operations fund and the restitution fund. For each participant, the due date of that annual assessment shall be 30 days prior to the annual renewal date for registration pursuant to Section 17550.20 or 45 days after billing, whichever is later. For a participant registering for the first time, the assessments required by Section 17550.43 shall be due 10 days prior to the seller of travel doing business in this state. 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 due date specified in this section until the assessment is paid.(b) The annual assessment for the operations fund shall be determined no later than January 15 of each year for the next fiscal year in an amount that does not exceed the amount necessary to fund the operations and administration of the corporation, based upon the annual operational budget required by subdivision (a) of Section 17550.43, and shall become effective immediately. The annual assessment for the operations fund shall not exceed seventy dollars ($70) per year for each location in the state from which a participant does business. The corporation may increase the maximum amount of this assessment no more than once per fiscal year in an amount not to exceed any one-year increase in the California Consumer Price Index for the immediately preceding year as compiled and reported by the Department of Industrial Relations.
(c) If, as of January 15 of any year, the balance in the restitution fund is less than one million six hundred thousand dollars ($1,600,000), the Travel Consumer Restitution Corporation shall make an assessment of participants, up to a maximum amount of two hundred dollars ($200) for each location in the state from which a participant does business, to bring the restitution fund to an expected balance of one million six hundred thousand dollars ($1,600,000). Every participant’s assessment shall be determined pro rata based upon the ratio of the number of locations in the state from which the participant does business to the total number of locations for all participants as of the preceding December 15.
(d) If, on May 1 or October 15 of any year, the balance in the restitution fund is less than nine hundred thousand dollars ($900,000), the corporation shall make an emergency assessment of participants, not more than twice per year, up to a maximum amount of one hundred fifty dollars ($150) per year for each location in the state from which the participant does business, for deposit in the trust account to return the level of the restitution fund to an expected balance of one million six hundred thousand dollars ($1,600,000). The corporation shall estimate the total cost of billing, collecting, and processing the emergency restitution fund assessment and shall assess and collect, together with the emergency restitution fund assessment, an emergency operations fund assessment that is in the aggregate sufficient to offset the estimated cost. Each participant’s assessments shall be determined pro rata based upon the ratio of the number of locations in the state from which the participant does business to the total number of locations for all participants as of the first day of the preceding month. The board of directors shall adopt rules for the notification of emergency assessments.
(e) In addition to the assessments required by Section 17550.43 and subdivision (d), if at any time during the fiscal year the board of directors of the Travel Consumer Restitution Corporation determines that the operations fund will be insufficient to pay the costs of operations and administration for the current or next fiscal year, the corporation, as determined by the board of directors, shall do either or both of the following:
(1) Make an emergency assessment of participants, not more than once per fiscal year, up to a maximum amount of sixty-five dollars ($65) per year for each location in the state from which a participant does business. The emergency assessment may be billed and collected either on an emergency basis from all participants upon the making of the assessment, or in conjunction with each participant’s annual assessment pursuant to subdivision (a).
(2) Transfer any or all interest earned on the Restitution Fund to the Operations Fund, provided that no transfer results in a restitution fund balance of less than one million two hundred thousand dollars ($1,200,000).
(f) The assessment required by subdivision (d) or (e) shall be due 45 days from the date the bill for that assessment is sent to the seller of travel by the Travel Consumer Restitution Corporation. 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 due date specified in this section until the assessment is paid.
(g) The Travel Consumer Restitution Fund shall report to the office of the Attorney General each levy of assessment within 10 business days after the levy.
(h) This section shall become operative on January 1, 2031.
SEC. 3.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.Text of AB 1758 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions