A conduct bond is required by the Texas Alcoholic Beverage Commission from bar and lounge operators that do not hold concurrently a food and beverage license. The surety bond guarantees that the licensee will follow the Texas Alcoholic Beverage Code and Rules of the Commission. If the licensee violates a law relating to its compliance with alcoholic beverage laws or a rule of the commission, the amount of the bond is forfeited to the state.
The amount of the conduct bond is determined by the licensee's proximity to a public school. If the location is over 1,000 feet from a public school, the bond penalty is $5,000. If the location is within 1,000 feet from a public school, the bond penalty is $10,000. The surety bond must remain in effect until canceled by the surety or until the license and succeeding renewals have expired. The same conduct bond form is used for multiple permit classes, which must be identified on the bond. Per TABC:
|Type of Permit||Bond Amount|
|Mixed Beverage Permit (MB)||$5,000 or $10,000|
|Private Club Registration Permit (N)||$5,000 or $10,000|
|Private Club for Beer and Wine Permit (NB)||$5,000 or $10,000|
|Private Club Exemption Certificate Permit (NE)||$5,000 or $10,000|
|Wine and Beer Retailer's Permit-Excursion Boat (V)||$5,000 or $10,000|
|Wine and Beer Retailer's Permit-Railway Car (Y)||$5,000 or $10,000|
|Wine and Beer Retailer's Permit (BG)||$5,000 or $10,000|
|Retail Dealer's On Premise License (BE)||$5,000 or $10,000|
|Package Store Permit (P)||$10,000|
|Wine Only Package Store Permit (Q)||$10,000|
|Wine & Beer Retailer's Off Premise Permit (BQ)||$10,000|
Pursuant to Section 11.11 and 61.13 of the Texas Alcoholic Beverage Code, the conduct bond must be filed with TABC attached to an original application. There are also special bond requirements for those businesses operating in a county with a population of 1.4 million or more. (Contact us for further information about the TABC performance bond.)
Texas surety bond leader, Surety One, Inc., is a specialist in the bonding needs of craft brewery and brewpub sector. We offer our support in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here for a live chat about a brewer's bond application of if you would like our advice on the TABC conduct bond.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.