Conduct Bond
Texas Conduct Surety Bond is required by the Texas Alcoholic Beverage Commission (TABC). 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.
What is the 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.
Most conduct bonds can be obtained on the same day and they are inexpensive. Check www.allstatesuretybonds.com for more information.