Lakeway Solicitor Bond Now Required

lakeway solicitor bond

Effective immediately, a $1,000 Lakeway solicitor bond is required as part of the licensing process for anyone wishing to become a solicitor in Lakeway, Texas. In a Lakeway Council meeting on October 17, the council voted to amend the current process in favor of more stringent licensing requirements with the hope that they will better protect the public from what Councilman Jim Powell calls, “shoddy” services.

How to Get a License

Along with the submission of a surety bond, applicants seeking a license must also complete and submit an application to Lakeway’s Building and Development Services Department. Once the application has been submitted to the Department, the applicant will be notified of their approval or rejection within 5 business days. Grounds for rejection include a felony or Class A or B misdemeanor conviction or if the Department discovers any information included on the application is untrue.

If the applicant will be using a vehicle to conduct business, proof of liability insurance must also be submitted to the Department with the application packet.

City of Lakeway Solicitor Bond

The inclusion of Sec. 6.03.035 to the current city ordinance means that the people of Lakeway are now protected from financial harm resulting from misconduct on the part of the solicitor. Should the solicitor fail to abide by all rules and regulations pertaining to their status as a solicitor, a claim may be made against their bond in an amount up to $1,000.

Submitting a bond relieves the licensee from the financial burden of tying up $1,000 of their own money, because the surety is guaranteeing the department that the money is available if a claim is made against the licensee’s bond. In short, the bond is similar to a line of credit. However, if a claim is made and the surety pays to settle it, it is the responsibility of the principal (licensee) to reimburse them for all money paid, including court costs.

The new ordinance also mandates that, in the case of “a person, firm, company, partnership, corporation or association engaging in commercial solicitation through one or more agents or employees,” a single $5,000 Lakeway solicitor bond is sufficient for licensure.

Other Amendments to Ordinance

Although the new bond requirement is the most significant change to the previous city ordinance, two other amendments are also noteworthy.

  1. Applicants should be aware of the exemption for students enrolled in a Lake Travis Independent School District School or a private school, so long as they meet specific requirements stated in Sec. 6.03.032, including respecting Lakeway’s “no visit” list.
  2. The fees associated with a solicitor license have increased. Previously, licensees paid $25 every 6 months to maintain their license. Also, every individual engaging in solicitation paid $10 every 6 months.  The amounts have increased to $200 for an application and $50 for each individual solicitor to be paid every 90 days. The increased amount and frequency with which is is due was implemented with the intent to cover the cost to the city.

If you have any questions regarding Lakeway solicitor bonds or would like a free, no-obligation quote, call 1 (800) 308-4358 to speak with an Account Manager at SuretyBonds.com.

About the Author

Jon Gottschalk
Jon Gottschalk is the Senior Marketing Director for Suretybonds.com and regularly blogs at the Surety Bond Insider to keep consumers informed on new legislation and updates in the commercial surety industry. He is also a licensed property & casualty insurance producer in Missouri.