An act to amend amend, repeal, and add Section 17550.44 of the Business and Professions Code, relating to sellers of travel, to take effect immediately, tax levy.
Summary
AB 1758 would increase the annual assessment that the Travel Consumer Restitution Corporation collects from each registered seller of travel to support the corporation’s operations fund. Under current law, that assessment may not exceed $35 per location; the bill would raise the cap to $60, and then to $70 beginning January 1, 2031. It also allows the corporation, with Attorney General approval, to raise the cap once per fiscal year by no more than the prior year’s one-year increase in the California Consumer Price Index.
The bill keeps the existing structure for restitution-fund assessments and emergency assessments in place, including pro rata billing by location, late fees, minimum fund balance triggers, and reporting to the Attorney General. It also makes the measure operative immediately as a tax levy and includes a sunset/repeal framework for the current version of Section 17550.44, with the new version becoming operative in 2031.
Impact
AB 1758 would amend Business and Professions Code Section 17550.44, increasing the maximum annual operations-fund assessment paid by sellers of travel and authorizing future CPI-based increases with Attorney General approval. The bill affects registered sellers of travel and the Travel Consumer Restitution Corporation, which uses the assessment revenue to cover administrative and operational costs and to support the consumer restitution system for aggrieved travelers. Because the measure is treated as a tax levy and a higher tax under the California Constitution, it requires a two-thirds vote of each house and would take effect immediately if enacted.
Sentiment
The available vote history suggests generally favorable legislative sentiment. The bill received a 14-1 do pass recommendation in committee and was ordered to third reading on May 18, 2026. No committee transcript was provided, so there is no recorded floor or committee debate in the materials, but the strong committee vote indicates broad support for updating the funding mechanism for the travel seller restitution program.
Contention
The main point of contention is the higher cost imposed on sellers of travel, especially smaller businesses or multi-location participants that pay the assessment per location. Support for the bill appears to rest on maintaining adequate funding for the Travel Consumer Restitution Corporation’s operations and preserving the restitution system, while any opposition would likely focus on the assessment increase, the bill’s tax-levy status, and the potential for future CPI-linked increases. The bill’s requirement for a two-thirds vote also reflects the constitutional sensitivity around raising a charge characterized as a tax.