Opening an alcoholic beverage business is a great opportunity that comes with a lot of responsibility. Certain businesses must post a bond with TABC before they can get their license or permit.
For questions, contact your local TABC Office.
Types of Bonds
- Conduct Surety Bond
- Performance Bond
- Fee Interest Bond
Conduct Surety Bond
You will need this if you’re a retailer who does not hold a Food and Beverage (FB) Certificate. The amount of the bond is based on your business’ distance from a public school:
- $5,000 bond — Businesses more than 1,000 feet from a public school.
- $10,000 bond — Businesses less than 1,000 feet from a public school.
You can submit the Conduct Surety Bond as a bond, letter of credit or assignment of a certificate of deposit (CD).
You’ll only need this bond if you meet all of the following criteria:
- Your business is located in Bexar, Harris, Dallas or Tarrant counties.
- You’re a holder or applicant for a Retailer Dealer’s On-Premise License (BE) or a Wine and Beer Retailer’s Permit (BG).
- You do not hold a Food and Beverage (FB) Certificate.
If all the above points apply to you, you’ll need a $2,000 bond. This amount will increase if you violate the Alcoholic Beverage Code or TABC Rules.
You can submit the Performance Bond as a bond, letter of credit, or assignment of a certificate of deposit (CD).
Fee Interest Bond
You’ll only need this bond if you’re participating in an alternating brewery proprietorship or contract brewing arrangement and:
- You hold a Nonresident Seller’s Permit that has a Nonresident Brewer’s License as a subordinate
- Or you hold a Nonresident Manufacturer’s License and you do not own a fee interest in any brewing facility.
If one of the above situations apply to you, you’ll need a $30,000 fee interest bond.
You can submit the Fee Interest Bond as a bond, letter of credit or assignment of a certificate of deposit (CD).
TABC will send a notice to you if your bond gets canceled. You will need to provide us with certain information to prevent the possible cancellation of your license or permit.
Contact the Licensing staff at your local TABC office right away if you get this notice.