Month: November 2017

In Alabama, auctioneers are licensed and bonded through the State Board of Auctioneers. Keep reading to find out how to get a license and bond.

Alabama auctioneer licensing

Alabama auctioneers begin by serving as apprentices to an auctioneer who has been licensed for at least two years, and they serve as apprentices for one or two years. They then apply for a resident auctioneer’s license. Applicants can also be licensed in Alabama as non-resident, non-reciprocal auctioneers or as reciprocal auctioneers, meaning they are already licensed in another state.

All applicants submit some of the same information to the Board, including apprentices:

• ASBA Form 1�Statement to the Board
• ASBA Form 2�General Information
• ASBA Form 3�Qualifying Questionnaire
• ASBA Form 4�Affidavit of Endorsement (two)
• Proof of Citizenship
• Request for criminal history records plus $20 fee
• $10,000 surety bond and power of attorney

Applicants who completed a one-year apprenticeship need to include proof of five auctions and an auction school diploma, while those who completed a two-year apprenticeship need proof of ten auctions, in the form of ads or canceled checks.�The license fee for resident and non-resident Alabama auctioneers is $200, and apprentice applicants pay $100. Neither the surety bond nor the license fee need be submitted until after the applicant has passed the license exam, which includes a $100 fee.

In addition to the listed information, apprentice applicants need their sponsoring auctioneer’s affidavits on ASBA Forms 6A and 6B. Resident auctioneer applicants need proof of their apprenticeship and a letter of recommendation from a sponsor. Reciprocal auctioneers pay a license fee based on the state their license is coming from, and they need to submit proof of residence in their home state and complete ASBA Form 7. Reciprocal licensees do not need to take the exam. Non-resident, non-reciprocal applicants reside in states that don’t participate in license reciprocity with Alabama, and they pay an additional processing fee of $50 and complete ASBA Form 7.

The Alabama auctioneer surety bond is licensees’ promise to follow the provisions of the Auctioneer License Act. The bond protects consumers from financial loss as a result of an auctioneer’s illegal practices, and protects the state from liability in the same case. Claims paid out from a surety bond must be reimbursed in full by the bondholder, up to the bond’s full amount.

Alabama auctioneers’ licenses need to be renewed annually and include a $200 renewal fee, or $150 for apprenticeship licenses. The information above is not exhaustive and Alabama auctioneer applicants should consult the Board’s website and FAQs.

Ready to get an auctioneer’s surety bond? Get in touch with Single Source Insurance and get started!�

Looking to open a health club in Tennessee? Health clubs operating in the state need to be registered and bonded�keep reading to find out how it works.

Health clubs, as Tennessee defines them, are clubs offering exercise and athletic equipment per the terms of an agreement between the club and consumer—a gym. Every agreement has to follow the state’s rules for a valid agreement:

• In writing
• Signed by the buyer
• Dated with correct date of signature
• Buyer’s right to cancel statement as worded in Tennessee Code Annotated��47-18-305
• No more than 36 months in length

Some health clubs can be exempt from registration with the Tennessee Department of Commerce and Insurance if they have maintained sufficient registration for at least five years prior to July 1, 2015; those years can be consecutive or not, as long as there were gaps of no more than five years between registrations.

Tennessee health clubs need to get a $25,000 surety bond for each business location they maintain in the state. The surety bond provides consumer protection: should the gym go out of business or charge clients after cancellation or when the gym is unavailable, clients can file a claim against the bond. Violating other provisions of the health club law is classified a Class A misdemeanor in Tennessee, punishable by no more than a year in jail and fines of up to $2,500 per violation.

Surety bonds need to be maintained for two years after a health club closes. Gyms can be exempt from the surety bond requirement if the business has been under the same ownership for at least seven consecutive years. Health clubs can also be exempt if they file an audited financial statement showing a net worth of at least $10,000,000.

See recent amendments to the Tennessee health club law here. Ready to get a surety bond? Get in touch with Single Source Insurance today!�

Oregon collection agencies need to get a license and a surety bond to do business in the state. Keep reading to find out how to get licensed and bonded.

Oregon collection agency license

An ever-increasing number of financial professions are submitting license applications through the Nationwide Multistate Licensing System (NMLS), including Oregon collection agencies. Collection agencies are defined as those that collect third-party debts, collect on debts for their own company, or repossess vehicles in the state. They register with the Oregon Division of Financial Regulation. New agency applicants need to provide the Division with the following information, fees and documents:

• $350 application fee
• $15 credit report fee per control person
• Completed form MU1
• Surety bond in the required amount
• Other trade name or DBA for business (if applicable) along with proof of registration with theSecretary of State
• Registered agent and primary contact employee(s)
• Disclosure questions, form MU2
• Business plan
• State-issued Certificate of Authority/Good Standing
• Formation documents for business entity: corporation, LLC, partnership, etc.

See the NMLS checklist for a complete list of materials the Division needs from collection agency applicants. Registrations expire annually on December 31 and renewals require a $120 fee.

Collection agencies need to register branch locations if they are located outside the state and conduct business in Oregon, unless the agency gets a waiver from the state.

Getting a surety bond

Oregon collection agencies’ surety bond requirement is their promise to abide by the provisions of Oregon Administrative Rules Chapter 441, Division 810 and Oregon Revised Statutes�Chapter 697. Agencies based in the state need a $10,000 surety bond. Out-of-state agencies that do not qualify for the waiver need to add $5,000 to that amount and obtain a $15,000 surety bond.

Should a collection agency’s fraudulent or unlawful practices cause financial damages to a consumer, the consumer can file a claim against the surety bond to recover those damages. If the claim is valid, the consumer can be awarded the amount of their claim, which the surety pays out initially. The bondholder�the collection agency�is responsible for reimbursing the surety for any paid claims.

Ready to get licensed as an Oregon collection agency? Get started by getting bonded with Single Source Insurance!

Florida agricultural dealers are required to get a license and surety bond to do business in the state. The license is issued by the Florida Department of Agriculture and Consumer Services.

What do agricultural dealers do?

Agricultural dealers, or dealers in agricultural products�as the law refers to them, are individuals or business entities that purchase, receive, or solicit products from producers. Dealers also include individuals acting as agents for agricultural producers and those that negotiate sales between buyers and producers.

Agricultural products are natural products from farms, nurseries, groves, orchards, vineyards, gardens, and apiaries. Livestock, sod, horticultural products, milk products, and poultry are also included in the definition, found in Florida Statutes��604.15.

How to get licensed and bonded

Here’s some of the information the Department asks for from agricultural dealer applicants:

• Federal Employer Identification Number (FEIN)
• Business type (sole proprietorship, LLC, corporation, partnership)
• Business’s legal name and trade name
• Business contact information (address, phone number, email)
• License fee for first location + $100 for each additional location
• Surety bond
• Contact information for each partner or business owner

On the application, dealers need to specify the types of agricultural products they will be handling. Licenses are good for one year and agricultural dealers can incur a $100 penalty if they file for license renewal after its expiration.

To determine their surety bond amount, dealers use the dollar value from the month in which they bought or handled the highest volume of agricultural products in the preceding 12 months. If a dealer is submitting a new business application, they should estimate the highest volume of monthly purchases they expect to make. The surety bond amount the dealer needs is twice that amount. If new agricultural dealer applicant estimated their highest monthly purchase amount would be $15,000, the dealer would need to get a $30,000 surety bond.

Agricultural dealers’ annual license fee for the first business location is dependent on their surety bond amount:

• $5,000-$9,999 surety bond�$170 license fee
• $10,000-$14,999 surety bond�$230 license fee
• $15,000-$100,000 surety bond�$300 license fee

More questions about getting a Florida agricultural dealer’s license? See the Department’s FAQ or contact them. Ready to get the required surety bond? Call Single Source Insurance today!�

In Texas, health spas�businesses that sell “memberships that provide the members instruction in or the use of facilities for a physical exercise program”�need to be registered with the state to legally operate. Their registration also includes a surety bond requirement.

Texas health spas are registered with the Secretary of State by the health spa operator. Each location must be registered separately and registrations expire annually. Initial and renewal health spa applications are submitted on the same form, and any changes to that information must be submitted to the Secretary of State within 30 days of the change. Applicants need to provide their contact information and if the business is a corporation, a type of partnership, LLC, or sole proprietorship, the contact information for controlling members or owners. Other information the application asks for includes:

• Litigation disclosure�If any complaints or litigation has been filed against any controlling member, officer, owner, etc. in the past two years regarding the closure or failure to open a health spa.
• Business’s trade name, address, phone number, and square footage of the spa
• Description of offered or proposed facilities and services
• Sample contract
• Surety bond
• $100 filing fee

The application must also be notarized. The required health spas surety bond needs to be between $20,000 and $50,000, depending on the total of prepaid memberships at the location:

• $0-$20,000 in prepaid memberships�$20,000 surety bond
• $20,001-$25,000 in prepaid memberships�$25,000 surety bond
• $25,001-$30,000 in prepaid memberships�$30,000 surety bond
• $30,001-$35,000 in prepaid memberships�$35,000 surety bond
• $35,001-$40,000 in prepaid memberships�$40,000 surety bond
• $40,001-$45,000 in prepaid memberships�$45,000 surety bond
• Over $45,000 in prepaid memberships�$50,000 surety bond

Health spas have the option of obtaining a certificate of deposit as security in place of a surety bond. Health spas can also apply for exemptions from the security requirement—read more about exemptions in the Secretary of State’s FAQs. The Secretary of State maintains a list of registered health spas where consumers can see if a health spa is registered and has posted a surety bond or other security.

Texas health spas are required to be bonded to protect consumers. Should the spa close and customers suffer financial loss�like being charged for membership after the spa or gym has closed�they can file a claim against the surety bond. If the claim is proven, they can receive compensation from the surety. Any claims paid out by the surety must be reimbursed by at-fault health spas.

Ready to get a Texas health spas surety bond? Get in touch with Single Source Insurance today!�

South Carolina has enacted regulations that will require some cigarette distributors to get a surety bond. The new regulations from the Department of Revenue (DOR) will take effect on January 1, 2019.

Cigarette distributors or retailers purchase untaxed cigarettes or tobacco products�the excise tax is paid only once, by the person purchasing the tobacco products. Since distributors collect this tax, they must record all monies collected and pay them to the state. Distributors need to get a license for each location where they will sell cigarettes in South Carolina—there is no cost for licensure. Licenses must be returned to the DOR if the distributor’s business is sold or closed.

Regulation #4702 requires tax stamps to be placed on cigarettes sold in South Carolina, and requires cigarette distributors to get a surety bond in order to purchase the stamps on thirty-day credit. This is how the state will distribute the stamps to all cigarette distributors. The surety bond must be 110% of the distributor’s estimated 30-day tax liability, but it can be no less than $2,000. Tax records must be submitted to the state and taxes paid on or before the 20th of the following month.

South Carolina cigarette distributors agree to pay taxes as required in the�Cigarette and Tobacco Tax Manual with the purchase of the surety bond. Since the tax stamps are purchased on credit, cigarette distributors simply report and pay taxes as required to the state, meaning they never purchase the stamps outright. Think of how you’re charged interest when you make purchases on credit—the surety bond is a form of ‘interest’ the state can seek payment from if the distributor does not pay required taxes or keep records as the law requires.

Ready to get a South Carolina surety bond? Get in touch with Single Source Insurance!

South Carolina private investigators must be licensed and bonded before they can legally work in the state. Both private detective agencies and their employees must submit applications for licensure, but only agencies need a bond.

Private investigators’ license and surety bond

Private investigators�agencies and employees�apply for a license through the South Carolina Law Enforcement Division (SLED). New business applicants need to gather the following information to submit to SLED:

• Nonrefundable $350 license fee
• Completed, signed, and notarized application
• Two sets of fingerprint cards
• Recent digital photo submitted according to SLED’s directions
• $10,000 surety bond
• Completed, signed and notarized Judgement Statement Affidavit
• Completed Form PD/PS-9 if company is incorporated
• Completed Disclosure of Principles form
• Sample contract for approval

Applicants must have three years’ experience as a law enforcement officer, employee of a licensed private investigator agency, or as an investigator for a government agency or another organization that is exempt from private investigator agency licensing. There are some criteria that render an applicant ineligible for licensure, including being under 18 years of age, not being a U.S. citizen, and conviction of a felony. Private investigator agency employees apply on the same form as armed and unarmed security guards, however investigators cannot choose a distinction because they are not legally allowed to be armed.

Private investigators renewing their license must submit proof of at least 12 hours of continuing education over the previous 24 months, or six hours per year. It is agency licensees’ responsibility to ensure their employees meet continuing education requirements. Consult SLED’s FAQs for private detective applicants with more questions about licensing requirements.

The state of South Carolina requires private investigator agencies to get a $10,000 surety bond to protect against loss to the state and to consumers. Should a private investigator violate a state law and incur fines or cause damages to a consumer, and then close their business to avoid the fines, the surety bond provides a way to recover those unpaid charges. Private investigators should note that they must reimburse the surety for any claims paid from their bond.

Ready to become a South Carolina private investigator? Get started by getting bonded with Single Source Insurance!�