Texas Alcoholic Beverage Code 11.11 – Conduct Surety Bond
(a) Except as provided in Subsection (e) of this section, an applicant for a permit or a holder of a permit issued under:
(1) Chapter 25, 28, or 32 of this code shall file with the commission a surety bond in the amount of $5,000 conditioned on the applicant’s or holder’s conformance with alcoholic beverage law; or
(2) Chapter 22, 24, 25, 26, 28, or 32 and whose place of business is within 1,000 feet of the property line of a public school shall file with the commission a surety bond in the amount of $10,000 conditioned on the applicant’s or holder’s conformance with alcoholic beverage law.
(b) A surety bond required under this section shall contain the following statements on the face of the bond:
(1) that the holder of the permit will not violate a law of the state relating to alcoholic beverages or a rule of the commission; and
(2) that the holder of the permit agrees that the amount of the bond shall be paid to the state if the permit is revoked or on final adjudication that the holder violated a provision of this code, regardless of whether the actions of an employee of a holder are not attributable to the holder under Section 106.14.
Terms Used In Texas Alcoholic Beverage Code 11.11
- Alcoholic beverage: means alcohol, or any beverage containing more than one-half of one percent of alcohol by volume, which is capable of use for beverage purposes, either alone or when diluted. See Texas Alcoholic Beverage Code 1.04
- Applicant: means a person who submits or files an original or renewal application with the commission for a license or permit. See Texas Alcoholic Beverage Code 1.04
- Commission: means the Texas Alcoholic Beverage Commission. See Texas Alcoholic Beverage Code 1.04
- Premises: has the meaning given it in § 11. See Texas Alcoholic Beverage Code 1.04
- Property: means real and personal property. See Texas Government Code 311.005
- Rule: includes regulation. See Texas Government Code 311.005
(c) The commission shall adopt rules relating to the:
(1) form of the surety bond;
(2) qualifications for a surety;
(3) method for filing and obtaining approval of the bond by the commission; and
(4) release or discharge of the bond.
(d) A holder of a permit required to file a surety bond may furnish instead of all or part of the required bond amount:
(1) one or more certificates of deposit assigned to the state issued by a federally insured bank or savings institution authorized to do business in this state; or
(2) one or more letters of credit issued by a federally insured bank or savings institution authorized to do business in this state.
(e) A holder of a permit issued under this code who has held a permit for three years or more before the date the holder applied for renewal of the permit is not required to furnish a surety bond if the holder:
(1) has not had a license or permit issued under this code revoked in the five years before the date the holder applied for renewal of the permit;
(2) is not the subject of a pending permit or license revocation proceeding; and
(3) has continuously operated on the permitted premises for three years or more before the date the holder applied for renewal of the permit.
(f) If a holder of a permit is exempt from furnishing a conduct surety bond under Subsection (e) of this section, the holder shall be exempt from furnishing the bond at another location where the holder applies for or holds a permit.
(g) Repealed by Acts 1995, 74th Leg., ch. 607, Sec. 3, eff. Sept. 1, 1995.