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)  brewers of malt beverages in the state; and
(3)  all other permittees.
(b)  A bond is not required of a holder of a mixed beverage, private club registration, carrier, local cartage, wine and malt beverage retailer's, or nonresident seller'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 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) is also exempt from the bonding requirement for any other wholesaler's permit, class B wholesaler's permit, winery 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) 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.
Amended by: 
Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 380, eff. September 1, 2021.