CARSON CITY, Nev. -- Nevada's Department of Administration
submitted to the state legislature Monday a proposal to bond ARC
agencies, eliminating an exemption provided when the current state
registration law was passed two years ago.
Today, the law demands a $50,000 bond of non-ARC sellers of
travel and a $10,000 bond of tour brokers and tour operators. The
new proposal, developed in the office of the consumer affairs
commissioner, Patricia Jarman-Manning, would reduce the bond to
$25,000 for travel agencies and raise it to the same figure for
tour companies.
The smallest agencies and tour firms could apply for bond
reductions if they have been under the same ownership for at least
two years, as follows: $10,000 bond on gross sales of less than
$100,000; $15,000 on sales of $100,000 to $250,000; and $20,000 on
sales of $250,000 to $500,000.
For retailers, the registration and renewal fee remains $25,
paid annually, but for tour companies, the fee is $100.
The Jarman-Manning bonding proposal follows by a week the
introduction by Assemblyman John Carpenter (R-33) of legislation
that would retain the ARC bond exemption, make it easier for some
non-ARC agencies to become exempt and would reduce the bond to
$10,000 for the remainder.
The proposal also would require trust accounts at all agencies
and offer those who must have a bond the option of obtaining errors
and omissions insurance instead.
The current law requires registration for individual travel
sellers as well as the agencies that employ them.
Carpenter's proposal would remove that requirement for staffers
and outside sales personnel under certain conditions. The
Jarman-Manning proposal does not address this point.
Both proposals were referred to the Assembly Commerce and Labor
Committee.