- Committee -

SCS/SB 1034 - This act regulates the business practice of travel clubs and vacation clubs (herein after "club"). The club must register to do business or possess a fictitious name in accordance with existing state law.

Before contracting with citizens of this state, the club shall file and maintain a bond with the Attorney General's office. The Attorney General shall set the bond or letter of credit amount by rule. Until the Attorney General's Office promulgates a rule, the amount of the bond is $50,000. The bond or letter of credit shall be in favor of any private client injured by a violation of the terms of this act. In lieu of a bond or letter of credit, a club must annually provide proof to the Attorney General that the company has insurance against nonperformance in an amount equal to what bonds have been issued.

The act also permits a purchaser to rescind the contract with the travel club within seven days. Notice to rescind does not need to take special form and is effective upon mailing

The act also requires that a seller provide a confirmation number to a buyer within five days.

HENRY T. HERSCHEL