Getting properly licensed to sell and serve alcoholic beverages can seem expensive, especially when you consider you might have to get a conduct surety bond. Below is all of the information you need to understand what the surety bond is all about and who needs to have one.
What Is a Conduct Surety Bond?
A conduct surety bond is required by the state of Texas for any business that does not normally hold a food and beverage license, but sells alcoholic beverages to the public. They are mandatory to ensure that these businesses will work hard to follow all of the rules and regulations regarding the sale, storage, manufacture and serving of alcohol products.
How Is the Amount Determined?
The amount of a conduct surety bond is in direct correlation to the proximity of the establishment to a school. 1,000 feet or greater from a school requires a $5,000 bond and less than 1,000 feet away will require a steeper $10,000 bond, depending on the type of business you operate. These prices are accurate to the time of this writing, but are always subject to change.
How Does the Bond Work?
A bond will never be touched unless there is a violation in the rules and regulations established by the state of Texas. Violations can include non-payment of taxes, serving or selling to minors, or violations of any other established local and state regulation. At this point the state will place a hold on a portion of the bond money.
Will I Have to Pay the Money Back to a Bond Company?
It is convenient to utilize the services of a bond company, but if you violate the state regulations and they have to send in the money, it will demanded that you repay the amount to them. It does not work on the same basis as insurance.
How Can I Establish a Personal Bond?
You can post the bond personally by providing the cash, CD, or other means of proving acceptable lines of credit. This is money that will remain tied up and unusable for the duration of the time you are operating this type of business at your location.
Contain alcohol licensing professionals like Texas Alcohol Consulting to find out more about the specific rules for obtaining a liquor license in Texas right now!