What are the Different Types of Texas Alcoholic Beverage Commission Bonds

Know which TABC Bond is the right one for you!

Texas Alcoholic Beverage Commission BondsBefore we give you the different types of Texas Alcoholic Beverage Commission Bonds or TABC, it is important to know what role the commission will play in your business.

The TABC is the governing body of the alcohol industry in Texas. In other words, it is the overlord of the said industry. You cannot and should not operate a business that involves alcohol without abiding by their requirements, and one of these is a bond.

The bonds will post as a guarantee that the business owner will follow the Alcoholic Beverage Code, TABC rules, and state laws. They are a pertinent requirement when applying for or renewing certain licenses and permits.

 

Types of TABC Bonds

Conduct Surety Bonds

Conduct Surety Bond is an important requirement for business establishments that sell alcoholic beverages without a Food and Beverage Certificate.

A Conduct Surety Bond must be submitted along with each of the application for the licenses and permits below:

  • 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
  • Retail Dealer’s On-Premise License
  • Package Store Permit
  • Wine Only Package Store Permit
  • Wine & Beer Retailer’s Off-Premise Permit

The bond amount depends on how far the establishment is from a public school. If it is more than 1,000 feet away from a public school, the bond amount is $5,000. If it is less than 1,000 feet away, the bond amount is $10,000.

Performance Bonds

Performance bonds are specific to certain counties – Bexar, Dallas, Harris, and Tarrant. Similar to Conduct Bonds, Performance Bonds are required for business establishments that do not have Food and Beverage Certificate.

However, unlike Conduct Surety Bonds, Performance Bonds are required for the application or renewal of these two permits only:

  • Wine and Beer Retailer’s Permit
  • Beer Retailer’s On Premise License

The initial bond amount is $2,000. If the business establishment’s initial bond is forfeited to the TABC due to a code violation, a second bond must be filed, and the bond amount will increase to $4,000. If the second bond is again forfeited to TABC, a third bond must be set in place for $6,000.

Fee Interest Bonds

Fee interest means ownership. This type of bond is geared towards a licensed manufacturer or nonresident manufacturer who is not an owner of a brewery facility in Texas but still is directly connected to the said facility.

This bond is required for the following permits:

  • Brewer’s Permit
  • Nonresident Brewer’s Permit
  • Manufacturer’s License
  • Nonresident Manufacturer’s License

 

Bond Benefits

The TABC requires the bonds to make sure that the business owner will comply with the code plus the rules of the commission in order to protect the public.

As the business owner, the bond will ensure that you will maintain a good standing with the TABC and operate your business properly.

Ready to get bonded? Call us today! We will help you regardless of your credit standing!

Share this content!