FINAL BILL REPORT

SB 5167

C 38 L 03

Synopsis as Enacted

Brief Description: Modifying trust account provisions for sellers of travel.

Sponsors: Senators Regala, Hewitt, Franklin, Winsley and Kohl-Welles.

Senate Committee on Commerce & Trade

House Committee on Commerce & Labor

Background: Sellers of travel are regulated by the Department of Licensing. To register with the department, a seller of travel must meet several qualifications. These qualifications include possession of a valid business license and proof of a trust account. If sellers of travel maintain a trust account, they must deposit all funds held for more than five days into this account.

Sellers of travel may choose to use a bond instead of a trust account to meet the department's registration qualifications. The amount of the bond is determined by rule by the department, and is based upon a registrant's gross business income during the previous year. The minimum bond is set at $10,000 and the maximum bond is set at $50,000. The bond may be used to compensate consumers if they are injured by a registrant's violations of the law.

Summary: The amount of the bond, to be determined by the department, is based upon the gross income of business that the registrant conducted for Washington State residents in the previous year.

Votes on Final Passage:

Senate       48  0

House       95  0

Effective: July 27, 2003