California: Ruling on Online Booking Tax overturned

A Los Angeles Superior Court judge has overturned an earlier ruling that would have given the city of Anaheim $21.3 million in back taxes and penalties from online travel companies such as Expedia and Travelocity. (See posting of Feb. 20, 2009)

The city in 2007 had sued the online travel companies for a larger share of hotel-bed fees – so-called transient occupancy taxes – collected through online booking. The law suit was based on the argument that he online companies were collecting taxes from customers on the retail price of hotel rooms, but only paying the city the tax on the wholesale price. However, superior court agreed with the defendants that the plain meaning of this type of occupancy tax stature simply did not cover online-travel companies.

The ruling in the Anaheim case is likely to set a precedent for several similar cases.

Source: The Orange County Register; find article here>>.

San Francisco: Sea Lions abandon Pier 39

San Francisco Bay’s famous herd of sea lions has mysteriously begun vanishing as quickly and inexplicably as they appeared, leaving behind throngs of disappointed tourists and puzzled marine biologists. Marine experts in the region speculate that the sea lions came in droves because of an abundance of food.

Source: eTurboNews; find article here>>.

California: YTB case settled

The state of California's lawsuit against the multilevel marketing travel company YTB and its founders (see posting of Jan. 8, 2009) has been settled.

In addition to paying $1 million in penalties costs and restitution, YTB will have more difficulty selling websites to prospective travel sellers. Plus, limits were imposed on recruiters’ earning potential. YTB also has to register with California as a franchise business.

Source: Travel Weekly; find article here>>.

California: Court extends Restaurant Tipping Pool

In a 2-1 split decision, the California court of appeal for the appellate district that includes Los Angeles expanded the class of restaurant employees who can participate in an employer’s tip pool. Following the decison in Etheridge v. Reins International California, Inc. the tipping pool is no longer dedicated only to restaurant employees, such as servers or bussers, who provide "direct table service" to patrons but includes all employees in the "chain of service"—meaning any employee who contributes to the service a restaurant patron receives.

The issue on appeal was whether a mandatory tip pool, in which tips are shared with employees who do not provide direct table service, violated California Labor Code Section 351, which states: "Every gratuity is hereby declared to be the sole property of the employee or employees to whom it was paid, given, or left for."

It is likely that the case will be brought to the California Supreme Court for review.

Opinion available for download here>>.

California: tax ruling against online travel companies

After years of underpaying transient occupancy taxes on hotel rooms, U.S. top online travel companies are being forced to pay the City of Anaheim the difference, plus penalties and interest, said a spokesman for the city's legal counsel. The US$21.3 million ruling is expected to influence a host of similar suits filed on behalf of local governments throughout the country.
At issue in the case was the companies' tax liability per the Anaheim Municipal Code - and the assessment of taxes owed over an undetermined period of time. According to the hearing officer, the defendants in the case will be required to pay the 15 percent transient occupancy taxes on the difference between the wholesale and retail rates of hotel rooms they purchased and resold in Anaheim between 2000-2008, as well as all service fees associated with the transactions.

Source: eTurboNews; find article here>>.

California: trial against alledged pyramid scheme company

The Los Angeles County Superior Court set a Sept. 21 trial date for California’s lawsuit against the multilevel marketing/online travel company YTB.

The state is accusing YTB of operating an illegal pyramid scheme and engaging in deceptive business practices.

Source: Travel Weekly; find article here>>.

TV news about the case can be forund at YouTube here>>.

USA: cruise safety bill rejected

A California state Assembly committee Tuesday rejected a bill strongly opposed by cruise companies that would have placed peace officers on passenger ships sailing from California ports.The bill already had been approved by the state Senate but failed to move past the Assembly's Public Safety Committee on concerns that it would create a jurisdictional and legal mess.
It would have been the most stringent regulation in an industry that victim-rights advocates contend is governed by a vague web of federal and international rules that allows crime and crime reporting to fall through the cracks.

Source: LA Times; find article here>>.

USA: Lawmakers discuss crimes on cruise ships

As reported by Los Angeles Times the Assembly Judiciary Committee in California voted 7 to 1 on Tuesday in favor of a bill to place peace officers aboard cruise ships, bringing the legislation closer to a full vote in the chamber; it has already passed the state Senate.

Meanwhile, in Washington, a U.S. Senate subcommittee will hold its first hearing on the issue Thursday, a possible precursor to federal legislation to tighten crime reporting requirements.
Currently, cruise ships are not required to have law enforcement on board and there is only a voluntary agreement in place to report the most serious crimes, such as homicide and rape, to the FBI.

Read article here>>.

California: Cruise industry urges agents to oppose bill

CLIA is calling on travel agents to mobilize and vocalize against a bill in the California legislature that would mandate that the state's "ocean rangers" board cruise ships as they enter and exit the Golden State's waters, according to CLIA president and CEO Terry Dale at Travel Trade's 26th Annual CRUISE-A-THON .
Dale's message was echoed by Celebrity Cruises president Dan Hanrahan, in his featured address at the conference. Hanrahan said that proposed legislative and regulatory actions, such as the California bill, are redundant and an obstacle to the cruise industry's growth.

Source: Travel Trade; full article here>>.

California: Assembly adopts airline passenger bill of rights

California lawmakers last Thursday approved legislation requiring airlines to provide passengers with food, water, lights, air and working toilets when they're stuck on airport tarmacs for long periods of time.The measure cleared the Assembly by a 54-16 vote, with critics challenging whether California has the authority to regulate airlines. It now goes to the Senate.
The law applies to California airports and is modeled after a New York law struck down by a federal appeals court in March. The 2nd U.S. Circuit Court of Appeals sided with the airline industry and ruled that only the federal government had the authority to pass regulations governing airlines.

Find full mercurynews.com-article here>>.