Blog Posts Categorized: General - Page 18

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!�

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Collection agencies that are located in or that contact consumers in Arkansas need to be licensed and bonded. Here’s how to get a license and surety bond in the state.

Arkansas collection agency licensing

The state defines collection agencies as third parties collecting on a client’s behalf, meaning that companies that collect on accounts for themselves are not included in that definition. They receive licenses through the Arkansas State Board of Collection Agencies. Collection agency licensees need to submit the following information to the Board for consideration:

• Completed, notarized application
• Completed, notarized�Proposed Manager Information form
• Completed Registration of Collectors form
• Surety bond in the correct amount
• $125 licensing fee
• $20 fee for agency manager + $20 fee per collector
• Organizational chart showing agency’s parent companies and/or affiliates

The applicant must also have good credit and be of good character. Review the application instructions to be sure all required materials are submitted.

Collection agencies’ licenses expire annually on June 30 and renewal applications must be received by the Board by May 15. Late renewals not submitted by July 15 incur a $125 late fee and operating after license expiration can incur fines of up to $500 per day.

Bonds for collection agencies

Arkansas collection agencies need surety bonds as part of the licensing process, and their bond amount is based on the number of collectors at the agency. The scale is as follows:

• Five or fewer collectors�$10,000 surety bond
• Six to 12 collectors�$20,000 surety bond
• 13 or more collectors�$25,000 surety bond

A separate bond is required for each location where collections business is conducted. Failure to obtain or keep the bond current can result in loss of licensure. The bond ensures that Arkansas collection agencies follow the state’s Rules and Regulations for the industry and adheres to the provisions of the Arkansas Code Annotated (ACA). The ACA includes the Arkansas Fair Debt Collection Practices Act, which are laws preventing harassment and misrepresentation by collectors and setting guidelines for communication with consumers. Collection agencies are also expected to adhere to the federal Fair Debt Collection Practices Act.

Get started on the Arkansas collection agency licensing process by getting a surety bond today!

Washington consumer loan companies will see some small changes in their surety bond regulations in the new year, mostly in the form of legislative clarification. Keep reading to find out more about what’s new on January 1, 2018.

Currently, Washington consumer loan companies are regulated by the Washington Consumer Loan Act. As is becoming common for many financial professions, they submit their license applications to the Nationwide Multistate Licensing System (NMLS). The Washington State Department of Financial Institutions is consumer loan companies’ regulatory and licensing agency. Applicants must register with three state agencies:

• Secretary of State—corporate registration
• Business Licensing Services—business license
• Department of Revenue—must have an open account

The NMLS provides a complete checklist of information for new applicants, requiring $1,162.21 in fees plus fingerprinting and credit authorization report fees for each control person at $36.26 and $15 per person, respectively. Licensees need a toll-free phone number, web address with specific information, and registered agent information.

Surety bonds for Washington consumer loan companies are based on the amount of residential and/or nonresidential loans they originate, with bond amounts determined as follows:

• $0-$20,000,000�$30,000 surety bond
• $20,000,000 to $40,000,000�$50,000 surety bond
• $40,000,000 to $50,000,000�$100,000 surety bond
• $50,000,000 or more�$150,000 surety bond

If a consumer loan company only services (collects payments on) mortgage loans, their bond amount is based on the dollar amount of residential mortgage loans serviced:

• $0-$50,000,000 in loan principal�$30,000 surety bond
• $50,000,000 or more in loan principal�$50,000 surety bond

The new legislation (underneath the old legislation) clarifies that the amount of loans originated, whether residential or nonresidential, are determined from the previous year. If there is no prior year volume to use, the bond amount is set at $30,000. Washington consumer loan companies that both originate and service residential mortgage loans will use the same schedule above to determine their bond amount using the origination volume. Surety bond amounts have not changed, but the new legislation clears up some confusing language in the prior version.

Getting a Washington consumer loan company license? Check an item off your list and get a surety bond today!

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Nebraska investment advisors need to submit a surety bond as part of the licensing process. Read on to learn more about what’s required.

Investment advisors register with the Nebraska Department of Banking and Finance. They are defined as persons who advise others on the value of securities, or in the buying and selling of securities for compensation. In Nebraska, financial planners also fall under the investment advisor licensing umbrella. The definition does not include the following professionals, among others:

• Investment advisor representatives (solicit clients or provide advice on behalf of an investment advisor)
• Banks, savings institutions, or trust companies
• A lawyer, accountant, teacher, or engineer who performs these services as part of their profession
• Publishers of newspapers or other publications whose writing does not advise a specific client’s situation

Nebraska investment advisors are licensed according to the terms of Revised Statute 8-1103, submitting applications and supplemental information to the DBF electronically through the Investment Advisor Registration Depository (IARD). Here are some of the items required with submission:

• $200 application fee
• Form ADV Parts 1 and 2
• Executed Affidavit of Investment Advisor Activity in Nebraska
• Current audited financial statement or certified balance sheet
• Articles of incorporation, LLC agreement, or articles of partnership
• If business is a corporation, Corporate Resolution form
• Net Capital Computation if firm is Nebraska-based
• $25,000 surety bond
• Specimen contracts/agreements
• Promotional and/or disclosure literature
• Web address if applicable

The surety bond required of investment advisors is to protect the funds of their clientele in the event that the advisor violates the law at a cost to the client. Among other violations, Nebraska investment advisors promise not to intentionally mislead their clients or commit fraud. If any claims are paid out from the advisor’s $25,000 surety bond, the advisor must reimburse the surety for that amount.

Nebraska investment advisors’ registration is valid for one year and expires annually on December 31 unless renewed. At renewal, advisors must have a current surety bond. In lieu of the bond, investment advisors can maintain a net capital of $25,000.

Ready to get a Nebraska surety bond? Single Source Insurance is ready to help!