Combative sports have become exceedingly popular in Texas over the years, so it’s no surprise that the state’s Department of Licensing and Regulation utilizes surety bonds to help regulate the industry.
According to the “History of Texas Combative Sports Statues,” the Texas legislature first established surety bond requirements for combat sports promoters in 1941. Since that time the legislature has increased the required penal sum as deemed appropriate. The most recent changes to the regulations went into effect in October.
There are two specific surety bonds that Texas combat sports promoters must purchase before they submit their licensing applications. The Department of Licensing and Regulation requires combat sports promoters to maintain both a general license bond and a gross sales tax receipts bond. Each has a penal sum of $15,000. Before the new legislation took effect last year, the general license bond had a penal sum of just $10,000.
According to §61.40 of the Justification for Administrative Rule Adoption Combative Sports, the general license bond guarantees that the promoter will pay all obligations (except gross receipts taxes) that will arise from events to be promoted by the applicant. The gross sales tax receipts bond guarantees that the promoter will pay all gross receipts taxes owed for promoted events. Both bonds remain in effect for four years after the effective cancellation date.
If there are any questions about obtaining a surety bond or you think you are ready to get one, you can contact our experts right here.