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How much does a conduct surety bond cost in Texas?
The cost of a Texas conduct surety bond depends on the required bond amount. Businesses located more than 1,000 feet from a public school need a $5,000 surety bond, which costs $100; businesses located within 1,000 feet of a public school need a $10,000 bond, which costs $120.
TABC conduct bonds are renewed annually; however, applicants can save 25% on their renewal premium when they opt for a multi-year term when purchasing their bond.
Why do I need a conduct surety bond in Texas?
The Texas Alcohol Beverage Commission (TABC) requires retailers to obtain a TABC conduct surety bond, along with a permit application, before anyone can sell, import, or distribute alcoholic beverages in the state of Texas (the bond qualifies as a license for the retailer). The bond ensures the business owner—the principal on the bond— will not infract the provisions of TABC rules and will follow the Texas Alcohol Beverage Code.
Section 33.24 of the TABC Administrative Rules, a part of the Secretary of State’s Texas Administrative Code, further outlines the reasoning for this bond, along with other TABC bonds.
What types of permits require a conduct surety bond?
The TABC typically requires the following type of permit-holders to obtain a conduct surety bond in an amount based on their distance from a public school:
- Mixed beverage permit
- Private club registration permit
- Private club for beer and wine permit
- Private club exemption certificate permit
- Wine and beer retailer’s permit - excursion boat
- Wine and beer retailer’s permit - railway car
- Wine and beer retailer’s permit
- Beer retailer’s on-premise license
Some permit holders such as package stores, wine-only package stores, and off-premise wine and beer retailers are required to post $10,000 conduct surety bonds regardless of their distance from a public school.
Other Texas Alcohol Beverage Commission Bond Requirements
For more information regarding TABC performance bonds, liquor tax surety bonds, tax bonds or fee interest bonds, visit our Texas Alcoholic Beverage Commission bond page.