16 Tex. Admin. Code § 33.41 - Conduct Surety Bonds
(a) This section
applies only to conduct surety bonds required by Alcoholic Beverage Code
§§
11.11 and
61.13.
(b) A conduct surety bond, assignment of
certificate of deposit, savings account, or letter of credit must cover the
minimum time required for the applicant to qualify for exemption from the
surety requirement imposed by Alcoholic Beverage Code §§
11.11 and
61.13.
(c) A permittee or licensee who is required
to file a conduct surety 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) Pursuant to
Alcoholic Beverage Code §
11.11(e),
a license or permit holder is exempt from the requirement to post a conduct
surety bond if, at the time the commission receives the second renewal
application for the license or permit, the holder of the license or permit:
(1) has not had any license or permit revoked
within the preceding five years;
(2) is not the subject of a pending
revocation or cancelation proceeding; and
(3) has continuously operated on the licensed
or permitted premises for at least three years before the date the holder
applied for renewal of the license or permit.
(e) Forfeiture of a Conduct Surety Bond.
(1) When a license or permit is cancelled, or
upon a final adjudication that the licensee or permittee has committed three
violations of the Alcoholic Beverage Code prior to the exemption date, the
commission shall notify the licensee or permittee, in writing, of its intent to
seek forfeiture of the bond or alternative form of surety.
(2) The licensee or permittee may, within 30
days of the notice specified in paragraph (1) of this subsection, request a
hearing on the question of whether the criteria established by Alcoholic
Beverage Code §§
11.11 and
61.13 and by
this section for forfeiture of the bond or alternative form of surety have been
satisfied. The hearing shall be conducted in accordance with Chapter 2001 of
the Government Code.
(3) Evidence
that an agent or servant of the licensee or permittee has been adjudicated
guilty of, or granted deferred adjudication for, an offense under the Alcoholic
Beverage Code, because of conduct occurring during the performance of their
duties for the licensee or permittee, shall constitute evidence of an
adjudication that the licensee or permittee has violated a provision of the
Alcoholic Beverage Code. This paragraph only applies to violations which were
not attributable to the licensee or permittee because of the operations of
Alcoholic Beverage Code §
106.14.
(4) Upon entry of final order
against the licensee or permittee in the hearing described in paragraph (2) of
this subsection, or upon waiver of said hearing by the licensee or permittee,
the commission shall notify the surety company, bank, or credit union to remit
to the state the amount of surety required within ten days after
notification.
(5) The commission
may institute action to recover the amount of the surety in its own name, for
the benefit of the state, as set forth in Alcoholic Beverage Code §
11.70.
(6) Counting Violations for Conduct Surety
Bond Forfeiture Purposes.
(A) Except as
provided by subsection (b) of this section, the commission may seek forfeiture
of a conduct surety bond upon the third violation during the effective period
of the bond, including warnings, of any statute or rule under the commission's
jurisdiction.
(B) 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.
(C)
Violations in which the license or permit holder has qualified for the legal
protections of Alcoholic Beverage Code §
106.14
(related to Actions of Employee) will be considered for forfeiture purposes
according to §§11.11(b)(2) and 61.13(b)(2) of the Code.
(7) The commission will not seek
forfeiture of a surety bond due solely to violations of Alcoholic Beverage Code
§§
102.31 and
102.32, but
may seek forfeiture based upon violations of §§102.31 and/or 102.32
in combination with at least one other violation of the Code or commission
rules.
Notes
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