Texas Conduct Surety Bond

The Texas Conduct Surety Bond is required by the Texas Alcoholic Beverage Commission (TABC).

Even though prohibition ended in 1933, it was not until 1935 that Texas approved the sale of alcoholic beverages in the state. In 1935, when the sale of alcoholic beverages was legalized in the state, the state was faced with building an entire framework for the distribution of alcoholic beverage products. From that the TABC was born.

This bond is necessary in order to obtain a permit to sell alcoholic beverages, and it must be on file and continuous in order for the permit or license to be valid. The bond is usually only required for the first 3 years. Failure to get this bond or to renew this bond in a timely manner could result in the TABC suspending the permit or license.

Required Bond Amount

The Conduct Surety Bond amount is either $5,000 or $10,000 depending on the type of permit and how close to a public school the location selling alcohol. For most permits, the required amount is $5,000 unless the business is located within 1,000 feet of a public school. If within 1,000 feet of a public school, a bond in the amount is $10,000. The bond states that the bond holder shall faithfully conform with the Texas Alcoholic Beverage Code and rules of the commission.

Permit Types

The TABC requires the Texas Conduct Surety Bond by all retailers who do not hold a Food and Beverage Certificate. The following permit types either need to post a $5,000 or $10,000 conduct surety bond:

• Mixed Beverage Permit (MB)
• Private Club Registration Permit (N)
• Private Club for Beer and Wine Permit (NB)
• Private Club Exemption Certificate Permit (NE)
• Wine and Beer Retailer’s Permit-Excursion Boat (V)
• Wine and Beer Retailer’s Permit-Railway Car (Y)
• Wine and Beer Retailer’s Permit (BG)
• Retail Dealer’s On Premise License (BE)

These are the permit types that require a $10,000 conduct surety bond regardless of proximity to a public school:

• Package Store Permit (P)
• Wine Only Package Store Permit (Q)
• Wine & Beer Retailer’s Off Premise Permit (BQ)