BILL ANALYSIS Ó AB 2138 Page 1 Date of Hearing: April 19, 2016 ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS Rudy Salas, Chair AB 2138 (Low and Bonta) - As Introduced February 17, 2016 NOTE: This bill is double-referred and, if passed by this Committee, it will be referred to the Assembly Committee on Arts, Entertainment, Sports, Tourism, and Internet Media. SUBJECT: Tour guides: regulation. SUMMARY: Establishes the California Tour Guide Act (Act) and provides for the examination, certification, and regulation of tour guides by the California Travel and Tourism Council, as specified. EXISTING LAW: 1)Establishes the sellers of travel registration program which provides for the regulation of advertising, sales, and business practices of sellers of travel by the office of the Attorney General, Consumer Law Section (OAG) and establishes civil and criminal penalties for violations of the program. (Business and Professions Code (BPC) §§ 17550-17550.30) 2)Defines "seller of travel" as 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, AB 2138 Page 2 either of the following: a) Air or sea transportation either separately or in conjunction with other travel services. b) Land or water vessel transportation, other than sea carriage, either separately or in conjunction with other travel services if the total charge to the passenger exceeds three hundred dollars ($300). (BPC § 17550.1) 3)Specifies that to "advertise" is to make a 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. (BPC § 17550.2) 4)Defines "travel services" as including 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. (BPC § 17550.9) 5)Requires, not less than 10 days prior to doing business in this state, a seller of travel to apply for registration with the OAG, as specified. Provides that 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. (BPC § 17550.20) 6)Establishes the Public Utilities Commission (PUC) and grants the commission the authority to establish and enforce a system AB 2138 Page 3 for regulating public utilities, which include private corporations and persons that own, operate, control, or manage a line, plant, or system for the transportation of people or property. (California Constitution Article XII, §§ 1 - 9) THIS BILL: 7)Establishes the Act. 8)Defines "certificate" as a valid certificate issued by the Council pursuant to this chapter. 9)Defines "compensation" as anything of value, including, but not limited to, a payment, loan, advance, donation, contribution, deposit, or gift of money. 10)Defines "Council" as the California Tour Guide Council, a nonprofit organization exempt from income taxation as an organization described in Section 501(c)(3) of the Internal Revenue Code. Authorizes the Council to commence activities pursuant to the Act once the Council has submitted an application to the Internal Revenue Service seeking the exemption. 11)Defines "tour guide" as a person who provides sightseeing commentary, who is certified by the Council pursuant to this chapter, and who practices tour guiding for compensation. Excluded from this definition are guides who give tours at museums, state or national parks, attractions, theme parks, private and government facilities, and similar places of interest and who are employees of these specific places. AB 2138 Page 4 12)Provides that although the tour and travel-related employees are not required to be certified, they will be strongly encouraged to apply for certification and take the examination, as may any qualified resident of the State of California. 13)Defines "tour manager" as a person who manages a group's logistics and itinerary related factors over a multiday tour. Other industry accepted titles for a tour manager include tour conductor, tour courier, tour escort, tour director, or tour leader. 14)Defines "tour operator" or "tour guide business" as a business or establishment that provides or employs tour guides in California for compensation. 15)Establishes the California Tour Guide Council (Council) and declares that it shall have the responsibilities and duties set forth in the Act. 16)Authorizes the Council to take any reasonable actions necessary to carry out the duties and responsibilities under the Act, including hiring staff and entering into contracts. 17)Provides that the Council shall be governed by a board of directors comprised of the following members: a) Two actively working tour guides collectively selected by each professional society, association, or other entity that chooses to participate in the Council and meets all of the following criteria: i) Is comprised of tour guides and other tour-related professionals. AB 2138 Page 5 ii)Has sustained a membership of at least 100 dues-paying individuals in California for the previous three years. iii)Has bylaws that require members to comply with a code of ethics. b) Two members who are employees or are independent contractors employed by a California based tour operator to give sightseeing commentary. c) One member selected by an accredited public or private high school, college, or similar institution in California that chooses to participate in the Council and that offers at least one course in its curriculum that focuses on the tour segment of the travel industry and the role of a tour guide in the tour process. d) One member selected by the League of California Cities (League), unless the League chooses not to exercise this right of selection. e) One member selected by the California State Association of Counties (CSAC), unless the CSAC chooses not to exercise this right of selection. f) One member selected by the Director of Consumer Affairs (DCA), unless the DCA chooses not to exercise this right of selection. g) The Council's bylaws shall establish a process for appointing other professional directors as determined by the board. AB 2138 Page 6 18)Specifies that board member terms shall be for three years. 19)Requires the initial board of directors to establish the Council, initiate the application for tax-exempt status from the Internal Revenue Service, and solicit input from the tour guide community concerning the operations of the Council. 20)Authorizes the initial board of directors to immediately undertake to issue the certificates authorized by this chapter after adopting the necessary bylaws or other rules or may establish, by adoption of bylaws, the permanent governing structure of the Council prior to issuing certificates. 21)Requires the board of directors to establish membership fees not to exceed the reasonable cost of providing services and carrying out the board's ongoing duties and responsibilities pursuant to this chapter and annually establish the initial renewal fees for certificates. 22)Provides that the meetings of the Council shall be subject to the rules of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code). 23)Requires an applicant, in order to obtain certification as a tour guide professional, to fill out an application form and provide the Council with satisfactory evidence that he or she meets all of the following requirements: a) The applicant is 18 years of age or older. b) The applicant has passed a California tour guide competency assessment examination. c) "The applicant must be a United States citizen or legal AB 2138 Page 7 resident and must reside in the State of California." d) All fees required of the applicant by the Council have been paid, either by the applicant or the employer or a combination of both. 24)Specifies that the California tour guide competency assessment examination will be based primarily on a California Tour Guide Study Manual created by the Council, which must meet the following: a) The online document will be viewable or downloadable as a PDF file and will meet generally recognized principles and standards that are approved by the Council. b) It will focus on California geography, history, attractions, cultural diversity, significant events, places of interest, notable persons, environmental issues, and similar topics. c) It will address safe and secure tour operations. d) It will not cover best practice topics such as efficient tour operation and tour related routines and practices, how to deliver effective commentary, and similar content. 25)Specifies that the examination and study guide will be updated on a quarterly basis. 26)Specifies that the test will be administered online, as specified. Each online test will be composed of questions randomly selected from a large database of test questions, so that each test will be unique to the applicant for certification. The exam will focus on California, with a general state emphasis. AB 2138 Page 8 27)Specifies that applicants will be permitted to take the exam no more than three times per year- one test and two re-tests within 12 months of having taken the first test. The successful completion of this examination may have been accomplished before the date the Council is authorized by this chapter to begin issuing certificates. 28)Specifies that any certificate issued pursuant to the Act shall expire after two years unless renewed in a manner prescribed by the Council. Authorizes the Council to, "in some cases, provide for the late renewal of a certificate." 29)Specifies that a certified guide will be given and must wear a state-issued photo identification badge, visible to the public at all times, while conducting a sightseeing tour. 30)Requires a school, association, business, or similar institution that wishes to offer a test preparation course for potential applicants for the California Tour Guide Certification Test, to first obtain approval from the Council, pay a fee to the Council, which shall be determined by the Council, complete an application form provided by the Council, and attach a lesson plan. Applicants to offer a test-prep course must be one of the following: a) A school approved by the Bureau for Private Postsecondary Education. b) A school approved by the DCA. c) A school accredited by the Accrediting Commission for Senior Colleges and Universities or the Accrediting Commission for Community and Junior Colleges of the Western Association of Schools and Colleges and that is any of the following: AB 2138 Page 9 i) A public institution. ii)An institution incorporated and lawfully operating as a nonprofit public benefit corporation, as specified, and that is not managed by any entity for profit. iii)A not-for-profit institution that employs or educates tour guides. iv)A for-profit institution or business that employs or educates tour guides. v) A college or university of the state higher education system, as defined in Education Code § 100850. 31)Authorizes the Council, under special circumstances, to authorize an organization or business which is approved to give a test-prep study course, to administer a certification test at the completion of the course, but only in a live setting and with a monitor authorized by the Council in attendance. 32)Authorizes the Council, for purposes of receiving factual information as a condition of taking action, to conduct oral interviews of the applicant and others or conduct any investigation the Council deems necessary to establish that the information received is accurate and satisfied the criteria established by the Act. 33)Authorizes the Council to authorize any institution within the specified categories to offer an advanced level program of study that addresses topics that the California certification program does not, such as consumer needs, delivering effective commentary, cultural factors, and similar topics. AB 2138 Page 10 34)Provides that institutions wishing to offer the advanced program must first obtain approval from the Council, pay a fee to be determined, complete an application form, attach a lesson plan, and satisfy any other requirements, as determined by the Council. Tour guides who successfully complete this advanced program shall be awarded the status of "Master Guide" by the Council, which will be displayed on their identification badge and indicated on the Council's Internet Web site. 35)Specifies that, before issuing a certificate to an applicant or designating a custodian of records, the Council shall require the applicant or the custodian of records candidate to submit fingerprint images as directed by the Council, as specified. 36)Requires the Council to submit the fingerprint images and related information to the Department of Justice (DOJ) for the purpose of obtaining information as to the existence and nature of a record of state and federal level convictions and of state and federal level arrests for which the DOJ establishes that the applicant or candidate was released on bail or on his or her own recognizance pending trial. 37)Requires the DOJ to forward requests for a federal level full background check received by the DOJ to the Federal Bureau of Investigation (FBI). The DOJ shall review the information returned from the FBI and shall compile and disseminate a fitness determination regarding the applicant or candidate to the Council. The DOJ shall provide information to the Council pursuant to Penal Code § 11105(p). 38)Provides that the DOJ and the Council shall charge a fee not AB 2138 Page 11 to exceed the reasonable cost of processing the request for state and federal level full background check. 39)Requires the Council to request subsequent arrest notification service from the DOJ, as provided under Penal Code § 11105.2, for all applicants for certification or custodian of records candidates for whom fingerprint images and related information are submitted to conduct a search for state and federal level full background check. 40)Authorizes the Council to require all employees, volunteers, and board members to undergo the background investigation process, as specified. 41)Declares that it is a violation of the Act and grounds for discipline or denial of an application for a certificate if a certificate holder or applicant commits any of the following acts: a) Unprofessional conduct. b) Procuring a certificate by fraud, misrepresentation, or mistake. c) Impersonating an applicant or acting as a proxy for an applicant in any examination referred to in this chapter for the issuance of a certificate. d) Impersonating a certificate holder, or permitting or allowing a noncertified person to use a certificate. e) Violating or attempting to violate, directly or indirectly, or assisting in or abetting the violation of, AB 2138 Page 12 or conspiring to violate any provision of this chapter or any rule or bylaw adopted by the Council. f) Committing any fraudulent, dishonest, or corrupt act that is substantially related to the qualifications or duties of a certificate holder. g) Committing any act punishable as a sexually related crime. h) Being convicted of any felony or misdemeanor that is substantially related to the qualifications, functions, or duties of a certificate holder. A record of the conviction shall be conclusive evidence of the crime. 42)Authorizes the Council to discipline a certificate holder by any of the following methods, including any combination of the following: a) Placing the certificate holder on probation. b) Suspending the certificate and the right conferred by this chapter on a certificate holder for a period not to exceed one year. c) Revoking the certificate. d) Suspending or staying the disciplinary order, or portions of it, with or without conditions. e) Taking other actions as the Council deems proper, as authorized by this chapter or the Council's bylaws. AB 2138 Page 13 43)Authorizes the Council to issue an initial certificate on probation, with specific terms and conditions, to any applicant. 44)Specifies that, if the Council receives notice that a certificate holder has been arrested and charges have been filed by the appropriate prosecuting agency against the certificate holder alleging a violation of Penal Code § 647(b), as specified, the Council shall take all of the following actions: a) Immediately suspend, on an interim basis, the certificate of that certificate holder. b) Within 10 business days, notify the certificate holder at the address last filed with the Council that the certificate has been suspended and the reason for the suspension. c) Within 10 business days, notify any business that the Council's records list as employing the certificate holder that the certificate has been suspended and the reason for the suspension. 45)Specifies that, upon notice to the Council that the specified charges have resulted in a conviction, the suspended certificate shall become subject to permanent revocation. The Council shall provide notice to the certificate holder within 10 business days that it has evidence of a valid record of conviction and that the certificate will be revoked unless the certificate holder provides evidence within 15 days from the mailing date of the notice that the conviction is either invalid or that the information is otherwise erroneous. 46)Specifies that, upon notice that the specified charges have resulted in an acquittal or have otherwise been dismissed prior to conviction, the Council shall immediately reinstate the certificate and notify the certificate holder and any business that received notice of the reinstatement within 10 AB 2138 Page 14 business days. 47)Specifies that an applicant for a certificate shall not be denied a certificate, and a certificate holder shall not be disciplined pursuant to the Act, except according to procedures that satisfy the following conditions: a) Any denial of discipline shall be decided upon and imposed in good faith and in a fair and reasonable manner. i) A procedure is fair and reasonable if the procedures specified in § 9416 of the Act are followed or if all of the following apply: (1)The provisions of the procedure are set forth in the articles of bylaws of the Council or copies of those provisions are annually sent to all of the members of the Council. (2)The procedure provides 15 business days prior notice of the denial or discipline and the reasons for the denial or discipline. (3)The procedure provides an opportunity for the applicant or certificate holder to be heard, orally or in writing, not less than five days before the effective date of the denial or discipline, by a person or body authorized to decide whether the proposed denial or discipline should go into effect. b) A court has determined the procedures to be fair and reasonable when the full circumstances of the denial or discipline are considered. 48)Specifies that any notice required under Act for denials or discipline may be given by any method reasonably calculated to provide actual notice. Any notice given by mail shall be given by first-class or certified mail sent to the last AB 2138 Page 15 address of the applicant or certificate holder shown on the Council's records. 49)Specifies that it is the responsibility of the certificate holder or applicant to notify the Council of the applicant's home address, as well as the address of any business establishment where the applicant regularly works as a tour guide professional, whether as an employee or as an independent contractor. 50)Specifies that a certificate holder or applicant who is denied or disciplined shall be liable for any charges, dues, assessments, and fees incurred by, services or benefits actually rendered to and obligations arising from contract or otherwise of, the certificate holder or applicant before the denial or discipline. 51)Requires any action challenging a denial or discipline, including any claim alleging defective notice, to be commenced within one year after the effective date of the denial or discipline. If the action is successful, the court may order any relief, including reinstatement, that it finds equitable under the circumstances. 52)Provides that the specified procedures for denial or discipline govern only the procedure and not the substantive grounds for the denial or discipline. Denial or discipline based upon substantive grounds that violates contractual or other rights of the applicant or certificate holder, or is otherwise unlawful, is not made valid by compliance with the specified procedures. 53)Requires the Council, upon the request of any law enforcement agency or any other representative of a local government agency with responsibility for regulating or administering a local ordinance relating to California tour guide businesses, AB 2138 Page 16 to provide information concerning a certificate holder, including, but not limited to, any of the following: a) The current status of a certificate. b) Any history of disciplinary actions taken against the certificate holder. c) The home and work addresses of the certificate holder. d) Any other information in the Council's possession that is necessary to verify facts relevant to administering the local ordinance. 54)Requires the Council to accept information provided by any law enforcement agency or any other representative of a local government agency with responsibility for regulating or administering a local ordinance relating to California tour guide businesses. The Council shall have the responsibility to review any information received and take any actions authorized by the Act that are warranted by the information. 55)Provides that it is an unfair business practice to hold oneself out as or to use the title of "certified tour guide," "tour guide professional," or any other term such as "licensed," "registered," or "CTG" that implies or suggests that the person is certified as a tour guide professional, unless the person currently holds an active and valid certificate issued by the Council pursuant to the Act. 56)Declares that it is an unfair business practice for any tour guide business to hire tour guides to provide sightseeing in California to paying customers that is not performed by a certified tour guide professional. AB 2138 Page 17 57)Specifies that enforcement of the rules and regulations governing certified guides shall be administered by the PUC. 58)Authorizes the superior court of a county where a person acts as a tour guide professional in violation of the Act to, upon a petition by any person, issue an injunction or other appropriate order restraining the conduct, as specified. 59)Declares that, except as otherwise specified under the Act, a certificate holder has the right, consistent with this chapter and the qualifications established by his or her certification, to perform as tour guides in any city, county, or city and county in the State of California and shall not be required to obtain any other license, permit, or other authorization to engage in that practice. 60)Prohibits, notwithstanding any other law, a city, county, or city and county from enacting or enforcing an ordinance that requires a certificate holder to obtain any other license, permit, or other authorization to perform guided tours consistent with the qualifications established by the certificate holder's certification. 61)Provides that a city, county, or city and county is not precluded from requiring a tour guide business or establishment to file copies or provide other evidence of a certificate held by a person providing tour guide services at the business. 62)Specifies that a city, county, or city and county may charge a tour guide and other travel-related business or establishment that uses tour guides for sightseeing a business licensing fee sufficient to cover the costs of the business licensing activities established by a local ordinance as AB 2138 Page 18 specified. 63)Provides that a city, county, or city and county is not prohibited from adopting land use and zoning requirements applicable to tour guide and travel related businesses or establishments that use tour guides for sightseeing, unless those requirements differ from requirements uniformly applied to other professional or personal services businesses. 64)Provides that a city, county, or city and county is not precluded from doing any of the following: a) Requiring an applicant for a business license to operate a tour guide business or establishment to fill out an application that requests relevant information. b) Making reasonable investigations into the information. c) Denying or restricting a business license if the applicant provides materially false information. 65)Specifies that an owner or operator of a tour guide or other travel-related business or establishment subject to local business licensing requirements shall be responsible for the conduct of all of the employees or independent contractors working for the business. 66)Provides that a city, county, or city and county is not precluded from authorizing the suspension, revocation, or other restriction of a license or permit issued to a tour guide or other travel-related establishment or business if violations of the Act or local ordinance occur on the premises of that establishment or business. 67)Provides that the Act does not restrict or limit in any way AB 2138 Page 19 the authority of a city, county, or city and county to adopt a local ordinance governing any person who is not certified pursuant to this chapter. 68)Provides that the Act does not affect the rights of any person licensed by the state to practice or perform any functions or services pursuant to that license. 69)Declares that the Legislature finds and declares that, due to important health, safety, and welfare concerns that affect the entire state, establishing a uniform standard of certification for tour guides upon which consumers may rely to identify individuals who have achieved specified levels of education, training, and skill is a matter of statewide concern and not a municipal affair, as that term is used in Section 5 of Article XI of the California Constitution. Therefore, all cities, counties, and cities and counties, including charter cities and charter counties shall not enact any ordinance or regulation that conflicts with or duplicates the requirements under the Act. 70)Specifies that the Act shall remain in effect only until January 1, 2018, and as of that date is repealed. FISCAL EFFECT: Unknown. This bill is keyed fiscal by the Legislative Counsel. COMMENTS: Purpose. This bill is sponsored by the author. According to the author, the "tourism industry has allowed many types of businesses to thrive, from travel agents to tour operators, tour guides to bus drivers. However, there are growing concerns AB 2138 Page 20 about businesses, in this case, sellers of travel, who sell or promote a particular service or good to foreign visitors. The problem arises when a visitor arrives, and is given something less than what was expected and what was paid for. To keep businesses accountable, under the state's seller of travel law, this bill [as proposed to be amended] clarifies that any California based seller of travel is deemed to do business in California, regardless of the geographic location of the visitor in this country or abroad." Background. According to the author, there have been reports about travel companies in Southern California making misrepresentations about their travel offerings. Specifically, the reports describe companies that promote travel packages to visitors from other countries, such as China, to visit California. For example, one anecdote describes a situation where a travel agent sold a package that was advertised as including a stay at a five-star hotel and a trip to Disneyland, among other things, but what it actually included was a three-star hotel and a drive-by in front of Disneyland. Therefore, this bill seeks to regulate the travel and tour companies to protect consumers from the misrepresentations. Regulation of Sellers of Travel. Existing law requires sellers of travel to register with the OAG and establishes procedures and civil and criminal penalties to protect consumers against misrepresentations and harmful business practices (BPC §§ 17550-17550.30). The law includes, among others, a person who wishes to sell, provide, arrange, or advertise specified travel packages. However, existing law specifies that "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" (BPC § 17550.20). Because the law does not include business from locations out of the country, the OAG may need additional authority to regulate the companies that do so. AB 2138 Page 21 Tour Guide Examinations and Free Speech. Since 2014, a series of lawsuits have been filed in several Federal courts challenging tour guide examinations as infringing on the freedom of speech. The plaintiffs argue, among other things, that requiring tour guides to answer general questions from a tour guide manual is an unconstitutional suppression of free speech, particularly where the questions are drawn from a general tour guide manual and do not relate to the specific tours the plaintiffs wish to provide. The defendants argue that examinations and certification are not aimed at suppressing free speech. They state that the intent is to protect consumers by guaranteeing the tour guide is sufficiently knowledgeable to provide the paid services. However, there currently is a circuit split and the U.S. Supreme Court has not weighed in, so the case law is not settled. In 2014, the Fifth Circuit Court of Appeals upheld a New Orleans law with little discussion of free speech (Kagan v. City of New Orleans, 753 F.3d 560 (5th Cir. 2014)). Later that year, the D.C. Circuit Court of Appeals found otherwise and held that the District of Columbia's tour guide laws requiring the passage of a tour guide examination interfered with a person's freedom of speech (Edwards v. District of Columbia, 755 F.3d 996 (D.C. Cir. 2014)). A similar suit was filed in the District Court for the Southern District of Georgia, but Savannah's City Council voted to repeal the challenged ordinance before the court's decision was delivered. Currently, a suit is pending against the City of Charleston in the South Carolina District Court (Billups et al v. Charleston, 2:2016cv00264 (D.S.C. 2016)). Other States. Several cities and states have tour guide AB 2138 Page 22 certification programs with varying requirements. New York City has a voluntary program that includes a written test and a criminal declaration. The State of Hawaii issues a certification to tour guides that have completed an approved eight-hour tour guide course. In New Orleans, certified tour guides must provide a criminal background check with no felony convictions within five years, pass a drug test, be eighteen years or older, and successfully complete the written tour guide examination. In the District of Columbia, a licensed tour guide is required pay the required fees, pass a criminal background check, be eighteen years or older, and be fluent in English. As a result of the noted lawsuit, the District of Columbia no longer requires an examination. Current Related Legislation. AB 1715 (Holden) of the current legislative session establishes the Behavior Analyst Act, which provides for the licensure, registration, and regulation of behavior analysts and assistant behavior analysts, and requires the California Board of Psychology, until January 1, 2022, to administer and enforce the Act. STATUS: This bill is pending in the Assembly Committee on Appropriations. AB 2790 (Nazarian) of the current legislative session establishes the Taxicab Commission within the Department of Consumer Affairs to license and regulate taxicab drivers. STATUS: This bill is pending in the Assembly Committee on Transportation. Prior Related Legislation. AB 836 (Rendon) of 2015 would have established the California Tour Guide Act and provided for the certification and regulation of tour guides by the California Travel and Tourism Commission, as specified. NOTE: This bill was held in the Assembly Committee on Appropriations. AB 2138 Page 23 POLICY ISSUES FOR CONSIDERATION: Need for Licensure. In July 2015, the U.S. Department of the Treasury's Office of Economic Policy, the White House's Council of Economic Advisers, and the U.S. Department of Labor issued a report entitled: Occupational Licensing: A Framework for Policymakers. According to the report, the purpose of occupational licensing is to protect consumers from harm by establishing minimum competency standards. Therefore, the report recommended that when determining whether an occupation should be licensed, states should weigh the benefits to the public against the burden on the potential licensees. Here, the described harm to consumers is normally regulated through the sellers of travel registration program. However, the OAG may lack the authority to regulate the specific practice of soliciting visitors from other countries. Therefore, it may not be necessary to create a new certification scheme if the OAG's authority can be expanded to include the sellers of travel that offer packages to visitors from out of state. Using the registration program would also avoid any potential constitutional free speech issues. AMENDMENTS: To expand the OAG's authority to include the sellers of travel that offer packages to visitors from out of state, the author should make the following amendment: Strike the current language and insert: AB 2138 Page 24 Section 17550.20 of the Business and Professions Code is amended to read: (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 regardless of the geographic location of the prospective purchaser including persons located outside of this state or the country, or solicits prospective purchasers who are located in this state. REGISTERED SUPPORT: None on file. REGISTERED OPPOSITION: None on file. Analysis Prepared by:Vincent Chee / B. & P. / (916) 319-3301 AB 2138 Page 25