California Assembly Bill (AB) 5 continues to make its way through the state Senate. On July 10, it passed a vote by a state Senate Committee and September 13 is the deadline for a vote before the full Senate. October 13 is the deadline for Governor Gavin Newsom to sign or veto the bill. Currently, California legislature is on “recess” through August 12 but the American Society of Travel Advisors (ASTA) and the California Coalition of Travel Organizations (CCTO) are ramping up their efforts to receive an exemption for the travel industry.
Most recently, the CCTO and ASTA announced they have organized a joint lobbying day, August 6, and created a survey to sign up advisors and agency owners. Despite the continued fight, ASTA hosted a webinar recently, providing five options for host agency owners should the bill pass without an exemption.
Luxury Travel Advisor wants to know how the bill, if it passes as it’s currently worded (sans travel industry exemption), would affect your business? Let us know in the polls below and we will share the results!
Previously, Robin Sanchez, chief operating officer, Montecito Village Travel, has told us she’s not sure how many ICs Montecito Village Travel would be able to convert into employees if required by the state. And every host agency in the state would be faced with this decision. ASTA has said that to bring on ICs as employees, it would likely require a 30-plus percent increase in labor costs for an agency.
Additionally, ASTA has reported that 41 percent of ICs could leave the industry or state if the bill passes as-is.
Other ways agency owners and independent contractors can spread the word is by contacting local news organizations. ASTA has created a portal on its Advocacy site to assist in reaching them.