Receptive Tour Operator Bond - Statewide in Florida

Brief Summary

Most receptive operators starting out in Florida assume they need the full $25,000 bond. Many qualify for less. A new business can request $10,000, and an established one with modest sales can drop to $10,000, $15,000 or $20,000. We write the bond at the amount FDACS approves for you, on the department's own bond form, usually the same day.

A receptive tour operator that sells prearranged travel or tourist related services in or from Florida registers as a seller of travel with the Florida Department of Agriculture and Consumer Services and posts security under Section 559.929, Florida Statutes. The standard bond is $25,000, or $50,000 if the business offers vacation certificates. Qualifying businesses can reduce it to $10,000, $15,000 or $20,000 based on gross annual sales, and the annual registration fee is $300.

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How to Apply for a Receptive Tour Operator Bond:

• Decide your security amount: $25,000 standard, $50,000 with vacation certificates, or a reduced amount if you qualify.
• For a reduction, gather your most recent federal tax return or an audited financial statement for the prior fiscal year. New businesses skip this.
• Complete FDACS form FDACS-10200, the Sellers of Travel registration application.
• Obtain the Sellers of Travel Surety Bond on the FDACS form, naming the State of Florida, Department of Agriculture and Consumer Services as obligee.
• Pay the $300 annual registration fee, plus the $100 document submission fee if you sell vacation certificates.
• Mail the application and original bond to FDACS, Sellers of Travel Program, 2005 Apalachee Parkway, Tallahassee, FL 32399-6500.

Detailed Information About the Florida Receptive Tour Operator Bond:

The amount depends on your sales and your products

FDACS application form FDACS-10200 sets the standard security at $25,000, or $50,000 for a vacation certificate seller. The same form lets a business ask for less:

• Under $500,000 in gross annual sales, after at least one year under the same ownership and control: $10,000
• $500,000 to $1,000,000: $15,000
• $1,000,000 to $2,000,000: $20,000
• A newly established business, or one under new ownership: may apply for $10,000

An established business asking for a reduction submits its most recent federal tax return or an audited financial statement for the prior fiscal year.

Why a receptive operator is covered

Section 559.927 defines a seller of travel as anyone who offers prearranged travel or tourist related services for individuals or groups in exchange for a fee, commission or other consideration. Those services include car rentals, lodging, transfers and other services tied to air, sea, rail, motor coach or other transportation. A receptive operator packaging transfers, hotels and sightseeing for visiting groups fits that definition.

Higher tiers

Section 559.929 ties larger bonds to the certification categories in Section 559.9285. A business in the second category posts up to $100,000, or $150,000 with vacation certificates. A business in the third category posts up to $250,000, or $300,000 with vacation certificates. In those two categories the bond first covers the department's costs, investigation expenses and fines before consumer claims.

Waivers and exemptions

FDACS may waive the bond each year for a seller with five or more consecutive years of experience in Florida, no civil, criminal or administrative actions and a satisfactory complaint history. The waiver is not available to sellers in the second or third category. Section 559.935(2) exempts sellers that directly issue airline tickets and have contracted with the Airlines Reporting Corporation for the most recent three consecutive years under the same ownership and control, or five years if they offer vacation certificates, from the security section and several others, subject to an annual certification. Bona fide employees of a registered seller are exempt from the part.

What the bond covers

The bond runs in favor of the department for the use and benefit of consumers injured by fraud, misrepresentation, breach of contract, financial failure or any other violation of the Sellers of Travel Act. The surety must be authorized to do business in Florida.

How premium is set

The surety prices the bond from the approved security amount, the owner's personal credit and, for larger amounts, company financials. Getting a reduction approved before the bond is written lowers the premium because the bond itself is smaller.

Eligibility and Requirements for a Florida Receptive Tour Operator Bond:

• Registration as a seller of travel under Sections 559.926 through 559.939, Florida Statutes, and Rule 5J-9.002, Florida Administrative Code.
• Security under Section 559.929 in the amount FDACS approves.
• A surety company authorized to do business in Florida.
• Business name on the bond matching the registration application exactly.
• Annual renewal of the registration with the security kept in place.

Florida Receptive Tour Operator Bond FAQs:

Official and Additional Resources for the Florida Receptive Tour Operator Bond: