Single Source Blog - Surety News - Page 24

New York City limousine and other for-hire vehicle base stations need to get a license and surety bond before they can begin offering services.

What’s a for-hire vehicle base station?

New York for-hire vehicle base stations are the locations from which for-hire vehicles are dispatched. The New York City Taxi & Limousine Commission (TLC) licenses for-hire vehicle bases as either livery, black car, or luxury limousine bases. For-hire vehicles cannot be taxis or commuter buses and must hold 20 or fewer passengers with three or more doors. Here’s the difference between the three license types:

• Livery base stations dispatch for-hire livery vehicles that have been reserved ahead of time�what you might think of as a car service. Livery vehicles carry six or fewer passengers and charge based on mileage, time, or another predetermined metric.
• Black car base stations also dispatch vehicles on a pre-arranged basis, but the vehicles are owned by franchisees of the base station or are members of the cooperative that operates the base station. In addition, more than 90% of the base’s business must be paid by a method other than direct cash payments from the customer.
• Luxury limousine base stations dispatch pre-arranged limousines, and like black car base stations, 90% of business is not done via cash payments from customers. And, like livery base stations, limousine stations charge by the mile, by the minute or flat rate. Limousines seat 20 or fewer passengers.

For-hire vehicle base station licensees must schedule an appointment with the NYC TLC in order to submit their applications and fees. Each license type is required to submit proof of insurance coverage in varying amounts, and all vehicles affiliated with the base station need to be on file with the TLC. See the TLC’s extensive resources to be sure you don’t miss a step in the application process.

How to get licensed and bonded

In addition to licenses and insurance, for-hire vehicle base stations in New York City need to be bonded in the amount of $5,000. The surety bond is to protect the city of New York if the licensee violates the terms of the bond and consequently, of their license. If you are seeking this license, get familiar with the state laws pertaining to operating a for-hire vehicle base station.�All vehicles your base station uses as for-hire vehicles must be licensed by the TLC and have a current NYC commercial use motor vehicle tax stamp. If you are fined any civil penalties and do not pay them, the city can file a claim against your bond.

Ready to become a licensed NYC for-hire vehicle base station? Get started by getting your surety bond with Single Source Insurance!

Photo by�Alice Donovan Rouse on Unsplash

In Nebraska, some alcoholic beverage licensees will need to get a surety bond along with their license. Keep reading to see who needs the bond.

Nebraska alcoholic beverage seller licensing

If you’re seeking an alcoholic beverage seller’s license in Nebraska, it will be issued by the Nebraska Liquor Control Commission. These are the license classifications that need a surety bond:

• Class L�Craft Brewery
• Class V�Manufacturer (beer, wine, spirits)
• Class X�Wholesale Liquor
• Class Y�Farm Winery
• Class Z�Microdistillery

Linked above are the license applications for each of those classes�you can find other licensing forms here. The Commission also provides a guide for licensees with a quick rundown of the information they’ll need to provide the state depending on the type of business the licensee applies as (LLC, corporation, etc.). The Commission also provides an informational brochure of some helpful things to know as a liquor licensee. Here are a few key rules and regulations you need to know as a licensee:

• Employees must be 19 years old before they can serve alcohol.
• Alcohol cannot be sold, delivered, or dispensed between one and six a.m., and no alcohol can be consumed after 1:15 a.m.
• Alcohol is not to be sold on Sunday, unless permitted by local ordinance.
• Beer gardens must be fenced or walled in to prevent passing alcohol back and forth.
• Liquor licenses must be framed and displayed, and renewed yearly.
• Open containers of alcohol cannot leave the premises.

Because the sale and handling of alcoholic beverages is highly regulated, make sure you’re familiar with the Commission’s Rules and Regulations�and the Nebraska Liquor Control Act before beginning the license application process.

Why is this bond required?

The Commission requires certain alcoholic beverage licensees to get a surety bond as a guarantee that the licensee will pay their taxes on time and in the correct amount. The amount of bond that’s required varies depending on the license type, but a minimum bond of $1,000 is specified, except for wholesalers who must post a minimum $5,000 bond. This prevents the state from losing money for nonpayment of taxes. Be aware that if a claim is filed against your bond and subsequently proven and paid out, you’ll need to reimburse the surety company for the amount of the paid claim.

Refer to��53-164.01 of the Nebraska Revised Statutes for more information on paying taxes and calculating surety bond liability amounts. If you’re ready to get a Nebraska alcoholic beverage tax bond, get in touch with Single Source Insurance today!

Photo by�Carl Raw on Unsplash

Arkansas arcade game operators need to register and get a surety bond before they can do business in the state.

What’s a coin-operated amusement machine?

In the state of Arkansas, arcade games fall under the coin-operated amusement machine umbrella. Here are a few of the other games the definition includes:

• Pinball machines
• Claw and crane machines
• Target or shooting gallery machines
• Skeeball
• Air hockey
• Coin-operated billiards or pool

The definition explicitly excludes these coin-operated amusement machines:

• Machine for playing poker, blackjack, or any variant of those games
• Vending machines
• Pay phones
• Gumball machines
• Parking meters
• Washing machines and dryers

Getting registered and bonded

Arkansas arcade game operators register with the Department of Finance and Administration. Registration is required to ensure all game operators pay the required privilege taxes annually ($5 per machine per year), as well as their annual license fees:

• $500 for one-three machines
• $1,000 for four or more machines

To be eligible for licensure, the applicant must be at least 21 years old and a resident of Arkansas for at least one year. Follow the Department’s instructions and submit the following documents to get a permit:

• $6,000 surety bond
• Completed form AR-1R
• Completed form AR-1R-AMU

Those forms register the arcade game operator as a taxpaying entity in the state of Arkansas and allow applicants to apply for the machine decals for their games. Each game needs a decal that displays the licensee’s license number, and those decals must be renewed annually.�Use form AMU-AR if you need more decals throughout the year. Renew your permit by July 1 each year.

Game operators using coin-operated machines exclusively at carnivals and fairs and operating less than three months per calendar year pay a smaller permit fee and do not need a surety bond�unless they exceed the three months their permit allows.

Ready to open an Arkansas arcade? Get your coin-operated amusement machine surety bond today from Single Source Insurance!�

Late last month, Virginia governor Ralph Northam signed HB 674 into law, adding a surety bond provision for timeshare developers. The bill takes effect on July 1, 2018.

HB 674 modifies a portion of the Virginia Real Estate Timeshare Act. A timeshare is an arrangement wherein individuals own property in conjunction with other individuals on a floating or fixed schedule. The industry is regulated by the Common Interest Community Board, a division of the Department of Professional and Occupational Regulation (DPOR). Timeshare projects and programs need to be registered with the Board, and developers cannot accept any deposits until the project or program has been registered.

That’s where surety bonds come in. Under current law, when a timeshare developer begins accepting deposits, the funds need to be held in escrow until further action is taken. That is, until the cancellation period ends and the buyer can no longer cancel, until the buyer defaults on the contract, or until the deposit is refunded to the buyer. Requiring that the funds are held in an escrow account is a buyer protection measure, and this option is still available to developers to use.

HB 674’s passage means that developers now have another option that still protects buyers’ funds�a surety bond. If the timeshare project consists of 25 or more units, the developer can get a surety bond rather than holding the funds in escrow. If the total deposits equal less than $10,000, the developer needs surety bonds for each separate deposit. But, if the deposits exceed $10,000, they can get a blanket bond in varying amounts instead:

• More than $10,000 but less than $75,000�$75,000 bond
• More than $75,000 but less than $200,000�$200,000 bond
• $200,000 or more but less than $500,000�$500,000 bond
• $500,000 or more but less than $1,000,000�$1,000,000 bond
• More than $1,000,000�Bond equaling 100% of deposits

Timeshare developers are still on the hook for refunding deposits when necessary, and for refunding the surety for any claims it pays out.

Questions about HB 674? Get in touch with the Board. Questions about getting a Virginia surety bond? You’re in the right place�get in touch with Single Source Insurance!

Photo by�Lyndsey Marie�on�Unsplash

If you want to be a Tennessee real estate appraiser, you’ll apply for a license with the Department of Commerce & Insurance. Appraisal management companies need to register and get a surety bond.�Keep reading to find out how to get licensed and bonded, and to learn more about what’s new in May.

Real estate appraiser licensing

Appraisers in Tennessee are regulated by the Department’s Real Estate Appraiser Commission. They start as Registered Trainees and must work under licensed appraisers for 36 months. Trainees also must complete 75 hours of qualifying education in the five years prior to taking the licensure exam. After training is complete, appraiser applicants choose a licensing qualification based on their educational experience:

• State Licensed Appraiser
• State Certified Residential Appraiser
• State Certified General Appraiser

Each type of license allows appraisals of different types of property in varying values�certified general appraisers can appraise any property. OnMay 1, 2018, new rules for each license level’s educational experience will take effect. One notable change is that licensed residential Tennessee real estate appraisers will no longer need 30 hours of college-level education. See the complete breakdown of what kinds of education are accepted for each license qualification. Besides education, the new rule will change the required hours of experience for each license type:

• Licensed Residential Appraisers�1,000 hours in no fewer than six months
• Certified Residential Appraisers�1,500 hours in no fewer than 12 months
• Certified General Appraisers�3,000 hours in no less than 18 months; at least 1,500 hours in non-residential appraisal

Once approved to take the exam, Tennessee real estate appraiser applicants have 12 months and four chances to pass. Then they must submit their application and $555 fee to the Commission.

Appraisal management company registration and bonding

Appraisal management companies (AMCs) need to be certified if they provide appraisal services and during a twelve-month period, oversee 15 or more licensed appraisers in one state, or 25 or more licensed appraisers in two or more states. AMC registration asks for the business’s address and contact information, and asks that a controlling person is specified.

AMCs need to renew their registration every two years, and the Commission does not charge a fee. AMCs need a $20,000 surety bond at the time of registration. The bond is the company’s promise that they will uphold the provisions of the Tennessee Appraisal Management Company Registration and Regulation Act.

Ready to get a Tennessee surety bond? Get in touch with Single Source Insurance for a free quote today!�