(Sellers of Travel)
Preproposal statement of inquiry was filed as WSR 99-22-028.
Title of Rule: WAC 308-129-100 and 308-129-230.
Purpose: To allow the department to clarify by rule, criminal violation reporting requirements, surety bonding requirements and to eliminate duplicating of statute in rule for advertising as determined by legislative mandate.
Statutory Authority for Adoption: RCW 19.138.170(1).
Statute Being Implemented: RCW 19.138.100(1), 19.138.140(7).
Summary: Legislative changes to chapter 19.138 RCW has deemed it essential to revise the rules to the Seller of Travel Act in order to provide effective protection to Washington state consumers.
Reasons Supporting Proposal: The new legislation passed in 1999 mandates the criminal violation reporting period be extended to ten years from five years, allows a sellers of travel company to file a surety bond in lieu of a trust account, and further clarifies advertising stipulations for the industry by eliminating a rule that duplicates a statute.
Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Michael Schneider, 405 Black Lake Boulevard, Building #2, Olympia, WA 98502, (360) 586-0396.
Name of Proponent: , governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: Sets the annual gross income or business dollar amount conducted in relationship to the surety bond amount, requires certain law violations to be reported within the past ten years, and repeals advertising language which now appears in the RCW.
Proposal Changes the Following Existing Rules: This amended rule establishes the legislative mandated surety bond amounts according to annual gross income, establishes the reporting method for the gross annual income, and clarifies law violations reporting period for the application process. The second WAC change, pertaining to advertising, is repealed as the same language now appears in the RCW.
No small business economic impact statement has been prepared under chapter 19.85 RCW. Legislative mandates do not require a small business economic impact statement.
Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption.
Hearing Location: Department of Licensing, 405 Black Lake Boulevard, Building #2, BPD Conference Room #1, Olympia, WA 98502, on May 11, 2000, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact Randy Renfrow by May 5, 2000, TYY [TTY] (360) 586-2788, or (360) 586-0396.
Submit Written Comments to: Michael Schneider, Deputy Administrator, Department of Licensing, Sellers of Travel Section, P.O. Box 9649, Olympia, WA 98507-9649, phone (360) 586-0396, fax (360) 664-2550, by May 5, 2000.
Date of Intended Adoption: May 12, 2000.
March 21, 2000
Michael W. Schneider
AMENDATORY SECTION(Amending WSR 96-14-092, filed 7/2/96, effective 8/2/96)
Applications -- Conditions.
Any person desiring to be registered as a seller of travel shall submit with the application form:
(1) If the applicant, within the past ((
five)) ten years,
has been found guilty of a felony involving moral turpitude, a
misdemeanor concerning fraud or conversion, or suffers a judgment
in a civil action involving willful fraud, misrepresentation, or
conversion, a copy of such conviction or judgment shall be
(2) In lieu of the CPA/LPA/bank officer report required by RCW 19.138.110(5), an applicant may submit an affidavit or declaration signed under penalty of perjury setting out the information required by RCW 19.138.110(5).
(3) Applicants who certify under penalty of perjury that they do not hold for more than five business days any non-exempt funds received from any person or entity for retail travel services shall not be required to report or maintain a trust account or other approved account under RCW 19.138.110(5).
(4) A seller of travel applying to be licensed under chapter 19.138 RCW may submit a surety bond as described in RCW 19.138.140 (7)(a)(i) or other instrument approved by the department as described in RCW 19.138.140 (7)(a)(iv). The amount of the surety bond or other approved instrument shall be based upon the prior year's annual gross income of business conducted as outlined in the following scale:
|Annual Gross Income of Business Conducted:||Amount of Surety Bond or other instrument approved by the department:|
|$199,999 and under||$10,000|
|$200,000 through $499,999||$20,000|
|$500,000 through $749,999||$30,000|
|$750,000 through $999,999||$40,000|
|$1,000,000 and above||$50,000|
(5) Sellers of travel companies upon application and renewal shall attest to their gross annual income of business conducted on a form provided by the department.
[Statutory Authority: Chapter 19.138 RCW. 96-14-092, § 308-129-100, filed 7/2/96, effective 8/2/96.]
The following section of the Washington Administrative Code is repealed: