SCS/SB 721 - Currently, travel clubs are required to demonstrate liquid assets of $250,000. This act requires a travel club to demonstrate at least $50,000 in assets, unless it has been adjudged to have violated its legal obligations, in which case, it must demonstrate possession of at least $250,000. The additional assets must be proven within 30 days of the adjudication and failure to do so shall result in the registration statement being ineffective.
This act also allows the assets to be in the form of surety bonds. Such assets must be held in a bank in good standing with the division of finance, rather than a bank with at least $75 million in assets.
Upon written notification of the dissolution of a travel club, the attorney general shall release such assets to the club within 30 days if the travel club has satisfied its legal obligations and there are no alleged violations pending.
The act contains an emergency clause.
This act is similar to HB 2345 (2010).
SUSAN HENDERSON MOORE