What is a Texas Outdoor Advertisers Bond?

Outdoor Advertisers in Texas need to secure a bond! Learn how!

Texas Outdoor Advertisers BondOutdoor advertising is a very effective marketing tool for any product. It can also be a profitable business for every company or person. Outdoor advertisers who intend to install any sign whose purpose is to advertise or provide information on interstate and primary highways, as well as rural roads, are mandated to comply with the Highway Beautification Act of 1965.

Some of the types of outdoor signs are:

  • Plaque
  • Poster
  • Billboard
  • Display
  • Light
  • Device
  • Figure
  • Painting
  • Drawing


What is the bond for?

The Act requires that the outdoor advertiser secures a bond to be issued a license by the Texas Transportation Commission.

The purpose of the Texas Outdoor Advertisers Bond is to ensure that if the principal unlawfully installs any sign in Texas, the Commission will use the surety bond for the removal of the said sign.

Unlawful installation of signs include:

  • A sign that is painted on any natural feature such as trees or rocks
  • Having a sign installed within the person’s home or property that is:
  • Within 660 feet of the nearest right-of-way’s edge if the sign is visible from the interstate and primary highways
  • The property is located outside an urban area, but the sign can be seen on the interstate and primary highways
  • In rural roads, a sign cannot be similar to a traffic sign and an official signal or device


How much is the bond amount?

The surety bond amount is $2,500 per county where the sign will be installed.

For example, if you have one billboard being erected or maintained in Bexar County and the other billboard is located in Somerville County, your bond amount will be $5,000.

The maximum bond amount is $10,000. The bond should be payable to the Texas Transportation Commission and will run concurrently with the license’s validity period as well as the succeeding renewals until canceled.


How can I get an Outdoor Advertisers Bond?

First, you must seek the assistance of a surety bond company that is licensed in Texas such as Surety Bond Authority. You will be asked by the surety bond company to apply for this type of bond.

You will undergo a prequalification process in which an expert underwriter will evaluate your financial status, business history, and credit score. Those who have excellent credit scores can pay as little as 1% of the bond amount!

Once qualified, the surety bond company will complete Form ROW-OA-2 or the Outdoor Advertisers Bond form, execute the bond, and then send it to you.


What are the requirements for an Outdoor Advertisers License application aside from the bond?

  • You must complete Form ROW-OA-1 or the Outdoor Advertising License Application
  • Individuals should include their Social Security Number
  • Pay the $125 license fee

Do you need more information about this surety bond? Call one of our expert surety bond agents today!

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