Vacation and travel clubs who provide their members with lodging opportunities outside of a hotel reservation system, and companies who sell or give away vacation certificates, continue to have a free pass from regulation in Nevada because the state's repeal of “Seller of Travel” laws has been extended through 2013.
This all started in 2009, when the Nevada Legislature passed Assembly Bill 561 which temporarily disbanded the state’s Consumer Affairs Division and almost all of the state’s Seller of Travel laws from July 1, 2009 through July 1, 2011. This move appears to have been at least partially budget related, since the bill specifically provided that all money in the Nevada Seller of Travel consumer restitution fund be transferred into the state’s General Fund.
This 2009 legislation created challenges for vacation and travel clubs, and providers of vacation certificates, who suddenly were not sure how to comply—or even if they needed to comply— with Nevada Seller of Travel laws.
Once the desert dust settled, it became clear that these companies have a free pass in Nevada: no registration, fees, or bonding are required.
The Nevada Legislature extended this free pass when it passed Senate Bill 473 in its 2011 session. The suspension of Seller of Travel laws now will continue through at least the end of June, 2013. With the regulator out of commission for four years and no money in the fund to get it going again, the Vegas odds that this free pass will continue past 2013 is probably hovering at 10 to 1.