SECTION 33.42. Performance Bonds

(a) This section applies to performance bonds, which are the bonds required by Alcoholic Beverage Code §11.61(b-1) and §61.71(l).

(b) The first performance bond filed by a licensee or permittee with the commission as prescribed under §11.61(b-1) and §61.71(l) of the Alcoholic Beverage Code shall be in the amount of $2,000. In the event the first bond is forfeited to the commission, a licensee or permittee must file a second bond with the commission as prescribed under those provisions in the amount of $4,000 before a license or permit may be reinstated. In the event the second bond is forfeited to the commission, a licensee or permittee must file a third bond issued under those provisions in the amount of $6,000 before a license or permit may be reinstated. If a permit or license that is secured by a performance bond is cancelled, the performance bond in place at the time of cancellation is forfeited to the commission.

(c) A permittee or licensee who is required to file a performance bond may furnish instead of all or part of the required bond amount:

(1) one or more certificates of deposit assigned to the state issued by a federally insured bank or by a credit union authorized to do business in this state; or

(2) one or more letters of credit issued by a federally insured bank or credit union authorized to do business in this state.

(d) Forfeiture of Performance Bonds.

(1) Except as provided by paragraph (2) of this subsection, the commission may seek forfeiture of a performance bond upon violation of any statute or rule under the commission's jurisdiction.

(2) For violations of Alcoholic Beverage Code §§102.31 and 102.32, the first six incidents may not be counted as violations supporting bond forfeiture. The seventh and subsequent violations will be counted as violations supporting bond forfeiture.

Source Note: The provisions of this §33.42 adopted to be effective December 31, 2020, 45 TexReg 8771