What is a Conduct Bond? Requirements and Instructions.
Posted by All State Bonds on
A conduct bond is a surety bond required by the Texas Alcoholic Beverage Commission (TABC). This surety bond is required by retailers that do not hold a food and beverage certificate but sell or serve alcoholic beverages on the premises. A Conduct bond may be required of a retailer whose gross receipts come primarily from the sale of alcoholic beverages.
TABC offices may require a business to carry both a conduct and a performance bond.
Conduct Surety Bond – Required by all retailers who do not hold a Food and Beverage Certificate. The amount of the bond is determined by the distance to a public school. If the location is over 1,000 feet from a public school, the conduct bond amount will be $5,000. If the location is less than 1,000 feet from a public school, the bond amount will be $10,000. The Conduct Bond can be submitted in a Form of a surety bond, letter of credit or assignment of a CD.
Performance Bond – Applies to Bexar, Dallas, Harris and Tarrant Counties only. Required by holders of a Beer Retailer’s On Premise License or a Wine and Beer Retailer’s Permit who does not hold a Food and Beverage Certificate. Initial Bond amount is $2,000 and will increase due to any violations of the TABC Code.
Instructions and Requirements of a Conduct Bond.
As required by TABC under Section 11.11 and 61.13 of the Texas Alcoholic Beverage Code, this bond must accompany all original applications for the licenses/permits listed below unless you qualify to hold a Food and Beverage Certificate and are in the process of applying for a Food and Beverage Certificate. For renewals, if you hold a Food and Beverage Certificate and are
renewing the certificate, you do not have to submit this bond. If the original/renewal application for the Food and Beverage
Certificate is not approved, a bond will be required.
Type of Permit Bond Amount:
Mixed Beverage Permit (MB) *$5,000 or $10,000
Private Club Registration Permit (N) *$5,000 or $10,000
Private Club for Beer and Wine Permit (NB) *$5,000 or $10,000
Private Club Exemption Certificate Permit (NE) *$5,000 or $10,000
Wine and Beer Retailer’s Permit-Excursion Boat (V) *$5,000 or $10,000
Wine and Beer Retailer’s Permit-Railway Car (Y) *$5,000 or $10,000
Wine and Beer Retailer’s Permit (BG) *$5,000 or $10,000
Retail Dealer’s On Premise License (BE) *$5,000 or $10,000
Only required if the business is located within 1000 feet of a public school measuring from property line to property line.
Package Store Permit (P) $10,000
Wine Only Package Store Permit (Q) $10,000
Wine & Beer Retailer’s Off Premise $10,000
Permit (BQ) $10,000
1. *$5,000/$10,000 – A bond is required in the amount of $5,000 unless the business is located within 1,000 feet of a public
school measuring from property line to property line. If within 1,000 feet of a school, a bond in the amount of $10,000 will be
2. On the face of the bond: No. (1) must indicate bond number No. (5) type of permit/license as shown above
No. (2) name of principal No. (6) city of business location
No. (3) the surety company name No. (7) county of business location
No. (4) bond amount
3. Ensure the principal date is entered and the principal has signed the bond.
4. The attorney-in-fact must date the bond; sign his/her name, enter surety company name, surety mailing address and surety
5. Power of Attorney authorizing attorney-in-fact to sign for Surety Company must attached.
6. This form will not be accepted with any alterations or whiteouts on the face of the bond. Bond riders will be accepted from
bonding company to correct errors noted by the Commission. Corrections in the acknowledgments will be accepted if the notary