Texas TABC Conduct Bond Cost in 30 Seconds.

Most retail permittees without a Food and Beverage Certificate pay $100-$300 for the 2-year bond. The calculator factors permit type, school proximity, FICO band, and prior TABC violations to give you a realistic premium range.

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When TABC Requires a Conduct Bond

The conduct surety bond is the security mechanism TABC uses to ensure a retail permittee actually follows the Alcoholic Beverage Code. The bond is required under Tex. Alco. Bev. Code Sec. 11.11 (security generally) and the retail-specific Sec. 61.135 (conduct bond) when one of the following triggers is present:

• The permittee does NOT hold a Food and Beverage Certificate (FB). Retail permittees that primarily sell alcohol rather than food are required to post the bond as a condition of permit issuance.
• TABC has identified the permittee as a compliance risk. Prior violations, suspensions, sale-to-minor findings, or hidden ownership flags can trigger a bond requirement.
• Reissuance after suspension. When TABC reinstates a permit after suspension, posting (or increasing) the conduct bond is a standard reinstatement condition.
• Change of ownership / location with elevated risk. A transfer or move into a higher-enforcement zone can prompt TABC to require security.

See the TABC bonds page at tabc.texas.gov for the agency's official list of permit categories that require security.

Permit Types and Bond Differences

The face amount of the conduct bond is the same across most retail permits ($5,000, or $10,000 if within 1,000 ft of a public school), but the underwriting profile and likelihood of being asked for a bond varies sharply by permit type.

• Mixed Beverage Permit (MB): On-premise sale of distilled spirits, beer, and wine. If the permittee secures a Food and Beverage Certificate (FB), the conduct bond is generally not required. Mixed beverage permittees may also owe a separate mixed beverage tax security bond filed with the Texas Comptroller under Tex. Tax Code Sec. 183.052.
• Beer Retailer's On- or Off-Premise (BE / BF): Lower-fee retail beer permits. Conduct bond required without an FB Certificate.
• Package Store Permit (P): Off-premise liquor stores. The conduct bond is the standard security; FB Certificates are uncommon in package store contexts.
• Wine and Beer Retailer (BG) / Wine-only Package Store (Q): Same Sec. 11.11 / Sec. 61.135 framework applies; bond required when no FB Certificate is on file.
• Brewer, Distiller, and Wholesaler permits are governed by separate statutes and do NOT use the Sec. 61.135 retail conduct bond. They have their own bond requirements that are not covered by this calculator.

Rate by FICO and Prior Violations

Conduct bonds are small-penal-sum bonds, so most carriers price them as flat 2-year products rather than as a percentage rate. The owner or principal's FICO drives the band; prior TABC violations push the band higher because they elevate expected claim frequency.

The $10,000 near-school tier is roughly 1.6x the $5K tier (carriers discount the per-$1,000 rate at larger penal sums). Prior violations add a surcharge: ~30% for one minor violation and ~75% for a suspension, sale-to-minor finding, or fine over $1,000.

How to File with TABC

1. Confirm the bond is required for your permit type. Check the TABC bonds page at tabc.texas.gov or the conditions on your AIMS application checklist.
2. Apply for the conduct surety bond. Underwriting is light - typically a credit pull on the owner and a review of any prior TABC enforcement history. Same-day issuance is common for credit-qualified applicants.
3. Submit the executed bond through AIMS. The surety company provides the bond signed by an authorized attorney-in-fact. TABC accepts uploads through the Alcohol Industry Management System (AIMS) as part of the original or renewal application.
4. Wait for TABC approval. TABC verifies the surety's authorization to write business in Texas (the carrier must be on the Treasury 570 list and licensed by the Texas Department of Insurance) before approving the permit.
5. Keep continuous coverage. If the bond is cancelled, the surety files a notice with TABC. The permit can be suspended within days of an effective cancellation unless a replacement bond is filed.
6. Alternative security: If credit is a barrier, you can post a letter of credit or assign a CD to TABC in lieu of the surety bond (Tex. Alco. Bev. Code Sec. 11.11). The dollar amount is the same.

Renewal Cycle

Texas retail TABC permits run on a 2-year cycle. The conduct bond is written to match - your renewal premium comes due about 60-90 days before the permit's expiration date.

• Renewal notices: The surety company typically sends a renewal invoice 60 days before expiration. TABC also surfaces the renewal in AIMS.
• Re-underwriting: Carriers re-pull credit and review any TABC enforcement activity on the prior cycle. A clean 2 years usually means flat renewal pricing; a violation or sub-prime credit shift can move you to the next band up.
• Continuous filing: Always keep the new bond in place before the old one expires. A lapse, even for one day, can trigger a TABC compliance review.
• Increased bond after violations: If TABC increases the required bond amount after a serious violation, you must post a rider or replacement bond for the new amount before renewal.

Frequently Asked Questions

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Lock In Your TABC Conduct Bond

$5,000 or $10,000 face amount. 2-year term. Same-day issue for credit-qualified permittees.