Hawaii Activity Desk Bond Update

HawaiiHawaii State implemented a new bill regarding activity desks. The new bill is labeled HB 2417 and revoked the surety bond requirement for activity desks, which are companies that operate as an intermediary to sell, contract for, or arrange for activities which are furnished by an activity provider who offers specialized air, land, or sea tour excursions. The present law requires the activity desk to sustain client funds in a trust account or attain a surety bond or irrevocable letter of credit. The surety bond indemnifies any consumer who may encounter damages as a consequence of an activity desk’s failure to execute its responsibilities. The surety bond must be in a quantity equivalent to the average monthly net sales revenues of the activity desk for a year. The surety bond cannot be any smaller than $50,000 but cannot exceed $100,000. The Senate companion bill, SB 2607, was modified and passed in the Senate. The bill boosted the maximum surety bond quantity from $100,000 to $250,000 as oppose to repealing the bond requirement.