(a) For the purposes of this section, “travel business discount program” means a membership, benefit program, identification card, identifying number, or other arrangement that identifies the purchaser of the travel business discount program as engaged in the travel business or otherwise qualified to receive discounts or reduced prices made available to persons involved in the travel business for transportation or any travel services.
(b) A person may sell a travel business discount program if the following conditions are satisfied:
(1) The represented discounts or reduced prices offered under the travel business discount program are not made generally available to the public.
(2) The benefits and limitations of the travel business discount program are clearly and conspicuously disclosed to the purchaser, in writing, before any consideration is paid by the purchaser.
(3) The sale is made only to a purchaser who is any of the following:
(A) A duly registered seller of travel.
(B) An owner or principal of a seller of travel listed on the seller of travel’s registration form.
(C) An employee of a seller of travel who was paid at least five thousand dollars ($5,000) in compensation in the prior 12 months by that seller of travel.
(D) A person described in subdivision (g) of Section 17550.20 who is listed on a seller of travel’s registration form and who was paid at least five thousand dollars ($5,000) in compensation in the prior 12 months by that seller of travel.
(c) A seller of a travel business discount program shall maintain records in this state establishing that each purchaser satisfies one of the criteria described in paragraph (3) of subdivision (b) and shall produce those records for inspection and copying without charge at an office of the Attorney General within 10 calendar days of a written request by the Attorney General.
(d) A seller of a travel business discount program shall comply with the requirements for discount buying services pursuant to Title 2.6 (commencing with Section 1812.100) of Part 4 of Division 3 of the Civil Code.
(Added by Stats. 2006, Ch. 628, Sec. 7. Effective January 1, 2007.)
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