CHAPTER 204. BONDS
ALCOHOLIC BEVERAGE CODE
TITLE 5. TAXATION
CHAPTER 204. BONDS
Sec. 204.01. BOND REQUIRED. (a) Except as otherwise provided
in this section, the following licensees and permittees shall
furnish a bond:
(1) those authorized to import alcoholic beverages into the
state;
(2) manufacturers of beer and brewers of ale or malt liquor in
the state; and
(3) all other permittees.
(b) No bond is required of a holder of a mixed beverage, private
club registration, carriers, local cartage, wine and beer
retailers, nonresident seller's, manufacturer's agent's, or
agent's permit.
(c) No bond is required of a retail licensee or permittee who is
not responsible for the primary payment of an alcoholic beverage
excise tax to this state.
(d) The holder of a wholesaler's or class B wholesaler's permit,
or the holder of a distributor's license may furnish, in lieu of
all or part of the amount of the bond required:
(1) one or more certificates of deposit or savings assigned to
the state, issued by one or more banks or savings institutions
authorized to do business in this state; or
(2) one or more letters of credit issued by one or more banks or
savings institutions authorized to do business in this state.
(e) If certificates of deposit or savings or letters of credit
are furnished under Subsection (d) of this section, the
administrator shall keep them in his possession. Interest earned
on a certificate of deposit or savings is not subject to the
assignment and remains the property of the owner of the
certificate.
(f) The holder of a wholesaler's or class B wholesaler's permit,
the holder of a winery or wine bottler's permit, or the holder of
a distributor's license is not required to furnish a bond if for
the preceding 36 months the permittee or licensee has paid all
taxes and fees required by this code on or before the due date.
(g) An exemption under Subsection (f) of this section terminates
and the permittee or licensee must furnish a bond or tax security
if the permittee or licensee fails to pay a tax or fee imposed by
this code on or before the due date.
(h) A permittee or licensee required to furnish a bond or tax
security under Subsection (g) of this section is again entitled
to exemption from the surety requirement if the permittee or
licensee:
(1) pays all delinquent taxes and fees and any applicable
penalties; and
(2) pays all taxes and fees required by this code on or before
the due date for 18 consecutive months after the month in which
the delinquent taxes and fees and the penalties are paid.
(i) A permittee or licensee who qualifies for an exemption under
Subsection (f) of this section is also exempt from the bonding
requirement for any other wholesaler's permit, class B
wholesaler's permit, winery permit, wine bottler's permit, or
distributor's license currently held by or subsequently issued to
the same permittee or licensee for use at licensed premises
different from and additional to those covered by the permit or
license under which the permittee or licensee qualified for
exemption. However, if a permittee or licensee fails to pay a tax
or fee imposed by this code on or before the due date and the
permittee or licensee holds multiple permits or licenses, the
requirement for a bond or tax security shall be imposed or
reimposed under Subsection (g) of this section only on the permit
or license covering the licensed premises for which the tax or
fee and any applicable penalty were not timely paid.
Acts 1977, 65th Leg., p. 541, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1977, 65th Leg., p. 1183, ch. 453, Sec. 11,
eff. Sept. 1, 1977; Acts 1979, 66th Leg., p. 732, ch. 325, Sec.
1, eff. June 6, 1979; Acts 1983, 68th Leg., p. 5053, ch. 914,
Sec. 1 to 5, eff. Sept. 1, 1983; Acts 1991, 72nd Leg., ch. 436,
Sec. 1, eff. June 8, 1991; Acts 1993, 73rd Leg., ch. 934, Sec.
99, eff. Jan. 1, 1994; Acts 1999, 76th Leg., ch. 584, Sec. 1,
eff. Sept. 1, 1999.
Sec. 204.02. FORM AND CONDITIONS. (a) A bond required under
this chapter must be executed with the permittee or licensee as
principal, a qualified surety company doing business in this
state as surety, and the state as payee. All bonds of permittees
must be payable in Travis County.
(b) The bond must be conditioned as required by the commission.
Bonds required of permittees must be conditioned that as long as
the applicant holds the permit he will not violate any law of
this state relating to the traffic in or transportation, sale, or
delivery of liquor or any valid rule of the commission. The bonds
of permittees who are required to account for taxes and fees must
also be conditioned that the permittee will account for and pay
all permit fees and taxes levied by this code.
(c) The form of all bonds must be approved by the attorney
general.
(d), (e) Repealed by Acts 1993, 73rd Leg., ch. 934, Sec. 110,
eff. Jan. 1, 1994.
Acts 1977, 65th Leg., p. 541, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1977, 65th Leg., p. 1184, ch. 453, Sec. 12,
eff. Sept. 1, 1977; Acts 1993, 73rd Leg., ch. 934, Sec. 110, eff.
Jan. 1, 1994.
Sec. 204.03. AMOUNT OF BOND. (a) The commission or
administrator shall set the amount of all bonds required under
this chapter.
(b) Repealed by Acts 1993, 73rd Leg., ch. 934, Sec. 110, eff.
Jan. 1, 1994.
(c) Bonds of other permittees, except those permittees covered
by Subsection (d) of this section, may not be set at an amount
less than $1,000 or more than $25,000.
(d) Bonds, letters of credit, or certificates of deposit to
insure the payment of the tax on distilled spirits imposed by
Section 201.03 of this code, the tax on vinous liquor imposed by
Section 201.04 of this code, the tax on ale and malt liquor
imposed by Section 201.42 of this code, or the tax on beer
imposed by Section 203.01 of this code, shall be set at an amount
that will protect the state against the anticipated tax liability
of the principal for any six-week period.
Acts 1977, 65th Leg., p. 541, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1977, 65th Leg., p. 1184, ch. 453, Sec. 13,
eff. Sept. 1, 1977; Acts 1993, 73rd Leg., ch. 934, Sec. 100, eff.
Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 110, eff. Jan.
1, 1994.
Sec. 204.04. MULTIPLE PERMITS, ONE BOND. If another permit is
required, incidental to the operation of a business for which a
basic permit is procured, the commission may accept one bond to
support all of the permits. The commission shall determine the
amount of the bond.
Acts 1977, 65th Leg., p. 542, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 204.05. CANCELLATION OF BOND. The commission may not
cancel a surety bond until the surety company has paid and
discharged in full all of its liabilities on the bond to the
state as of the date of cancellation.
Acts 1977, 65th Leg., p. 542, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds both
a winery permit and a wine bottler's permit may execute a single
bond in an amount determined by the commission instead of
multiple bonds to secure the performance of different activities
by the holder.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 101, eff. Sept. 1,
1993.
Sec. 204.07. WAIVER OF BOND REQUIREMENT. The commission may
waive the requirement that a licensee or permittee furnish a bond
under this chapter if the commission by rule determines the
submission of the bond is no longer necessary.
Added by Acts 2001, 77th Leg., ch. 751, Sec. 1, eff. Sept. 1,
2001.