The Texas Performance Bond is a permit requirement for licensed beer and/or wine retailers in Bexar, Dallas, Harris and Tarrant Counties that do not hold a Food and Beverage Certificate. A $2,000 surety bond amount is needed, unless you have had prior disciplinary action which will result in a higher bond amount.
Jet Insurance Company has the lowest rate available for purchase online. And it can be done in minutes.
With Jet the $2,000 Performance Surety Bond starts at $10 monthly or $100 annually. Rates are based on the personal credit of the applicant.
Bond Term | Cost |
---|---|
Monthly | $10 |
1 Year | $100 |
2 Years | $175 |
For those with a larger bond limit needed ($4,000 or $6,000) an underwriter will need to review the bond submission before an offer can be made. Jet will likely have to review the nature of the bond increase.
The Performance Bond is required if you meet the following specifications:
The rule that sets this law into motion can be found in the Texas Administrative Code Title 16, Part 3, Chapter 33. The Texas Alcoholic Beverage Commission (TABC) enforces the bond and may place a claim upon the bond.
The bond is used as a financial and compliance tool by the TABC and Counties enforcing the surety requirement. Should the permit holder violate the law and cause damages, then the TABC or County can file a claim against the bond for itself or in lieu of the public in order to recompense losses.
The first step is to purchase the bond with Jet. This can be done in a minute online or by calling (214) 915-2192. Jet will send the original bond signed and sealed to you for counter signature and filing.
The Texas Alcoholic Beverage Commission requires applicants who are applying for the first time or renewing their permit to submit the original signed and sealed surety bond to the following mailing address:
Texas Alcoholic Beverage Commission
PO Box 13127
Austin, TX 78711
Once the bond is on file and the permit holder makes all recurring surety payments (whether monthly or annually) then Jet will send an update bond form each year for filing.
You may cancel your surety bond at any time. All we ask is that you send a written cancellation request to us at [email protected] and we will begin the process. An official termination notice will be sent to the Texas Alcoholic Beverage Commission, and once received, the liability of the bond will be released within a 30-day period.
Wine and Beer Retailer’s need to sell beer and/or wine to appropriately aged and sober customers, charge correct amounts, collect appropriate taxes, display proper permits and keep proper records. A complete list of what not to do can be found on the TABC Regulator Violations Chart.
Should a retailer find themselves in violation and having to pay fines, they should pay them in the appropriate timeline. Not doing so will jeopardize the ability to continue the retail business.
If the TABC is unable to recoup fines or for other fiscal damages, then it can exercise its right to place a claim on the surety bond. Jet will verify the validity of the claim and, if justified, make payment up to but not to exceed the bond limit.
This retailer is still not off the hook at this point (especially if they wish to remain operational). A surety bond is more like an extension of credit, not insurance. The surety company (Jet) is indemnified against losses from the principal (retailer) and will seek compensation for payouts made. This is true for all surety relationships. Once the surety has been indemnified (paid pack) the retail may return to business. But would have been better off following the rules and regulations set upon their business.
The Texas Comptroller of Public Accounts may require you to obtain a Mixed Beverage Gross Receipts Tax Bond and a Mixed Beverage Sales Tax Bond. Just click on the links to find out more details regarding these types of bonds.
Do you also need a Texas Conduct Bond for another permit from the TABC? Jet can help there as well.
Are you a brewer that outsources the brewing? You may need the Fee Interest Bond.