Conduct Surety Bonds

The Texas Alcoholic Beverage Commission may require a Conduct Surety Bond to be filed as part of the alcoholic beverage licensing or permitting process. This bond is commonly required for certain new on-premise businesses during their first three years of operation.

A Conduct Surety Bond is generally set at either $5,000 or $10,000, depending on the circumstances of the applicant and the business location. In many cases, these bonds are relatively easy to obtain, but they must still be handled properly to avoid delays in the licensing process.

When Is a Conduct Surety Bond Required?

Conduct Surety Bonds are regularly required for new businesses that allow alcohol to be consumed on the premises. This may include restaurants, bars, lounges, clubs, and other on-premise alcoholic beverage businesses.

The bond helps ensure that the permit holder operates in compliance with applicable alcoholic beverage laws, rules, and regulations.

Conduct Surety Bond Amounts

The required bond amount is typically one of the following:

• $5,000 Conduct Surety Bond
• $10,000 Conduct Surety Bond

The exact amount depends on the applicant’s circumstances, the type of business, and specific requirements connected to the location or application.

When a $10,000 Conduct Surety Bond May Be Required

A $10,000 Conduct Surety Bond may be required in certain situations, including when:

• The applicant has been charged with an offense under the applicable alcoholic beverage code and currently has no bond posted.
• The applicant’s premises are located within 1,000 feet of a public or private school that exists in an alcohol exclusion zone ordinance passed by the city or county.

Can the Conduct Surety Bond Requirement Be Waived?

In some cases, the Conduct Surety Bond requirement may be waived. This may apply if the applicant qualifies for a Food and Beverage Certificate.

A waiver may also be possible when there is majority ownership interest connected to another on-premise location where a Conduct Surety Bond has already been issued.

Get Help With Your Conduct Surety Bond

Conduct Surety Bond requirements can depend on the type of permit, the applicant’s history, the business location, and whether the business qualifies for an exemption or waiver. It is important to identify this requirement early so your application can move forward without unnecessary delays.

Lone Star Liquor Licensing can help determine whether your business needs a Conduct Surety Bond and assist with the steps required to satisfy the bond requirement as part of your Texas alcoholic beverage permit application.

Contact Lone Star Liquor Licensing today for assistance with Conduct Surety Bonds and Texas alcohol permit requirements.