Bonding Amounts Revisited for Louisiana Public Tag Agents
The amendments in House Bill 455 include an increase of the required public tag agent bond amounts, as well as stricter rules that can lead to revocation or suspension of an agent’s license. The legislation becomes effective as of July 1st, 2016.
The new public tag agent bond amounts
The requirement for public tag agents in Louisiana to post bonds is not a novelty. Previously, tag managers had to provide a bond between $10,000 and $100,000 to the Louisiana Department of Public Safety and Corrections.
The legal amendments stipulate that for a single office, agents will now have to provide a $100,000 bond. If they would like to operate multiple offices, the bond amount will be $125,000.
While the increase is significant in some cases, public tag agents should not worry about covering the new amounts. The surety bond cost is only a fraction of the required amount, usually in the range of 1%-4%. Getting bonded with Lance Surety Bonds also means that you will get the top bonding rates on the market.
New rules for a public tag agent in Louisiana
As a public tag agent in Louisiana, you will now have to pay special attention to certain business practices, so that you avoid revocation or suspension of your license.
The amended bill aims to scrutinize practices such as not forwarding collected taxes and fees, working without a contract or surety bond or from an unauthorized location, as well as a variety of fraudulent and deceitful actions.
By specifically outlining these malpractices, legislators aim to reduce problems with using public tag agents’ services and to guarantee high standards in the industry.
If you are prepared to start your bonding process, you can apply online for your public tag agent bond today. We will provide you with a free bond quote in no time. Have questions? Lance Surety Bonds’ specialists are here to help. Just call us at (877) 514-5146.