1. (a) Each holder of a general distributor's license, local distributor's license, or branch distributor's license, and each holder of a manufacturer's license acting under the authority of Texas Alcoholic Beverage Code §62.12, who has not made, on or before the due date, a required payment of $500 or more for a tax or fee imposed by the Alcoholic Beverage Code shall furnish a bond to insure the payment of the tax on beer imposed by the Texas Alcoholic Beverage Code, §203.01. Each holder of a wholesaler's or Class B wholesaler's license who has not made, on or before the due date, a required payment of $500 or more for a tax or fee imposed by the Alcoholic Beverage Code shall furnish a bond to insure the payment of the tax on ale and malt liquor imposed by Texas Alcoholic Beverage Code §201.42 and the payment of the taxes on liquor other than ale or malt liquor imposed by Texas Alcoholic Beverage Code §201.03 and §201.04. Each holder of a brewer's permit acting under the authority of Texas Alcoholic Beverage Code §12.05 who has not made, on or before the due date, a required payment of $500 or more for a tax or fee imposed by the Alcoholic Beverage Code shall furnish a bond to insure the payment of the tax on ale and malt liquor imposed by Texas Alcoholic Beverage Code §201.42. Each holder of a winery or wine bottler's permit who has not made, on or before the due date, a required payment of $500 or more for a tax or fee imposed by the Alcoholic Beverage Code shall furnish a bond to insure the payment of the tax on vinous liquor imposed by Texas Alcoholic Beverage Code §201.04. The requirement under this section to furnish a bond shall be imposed at the next renewal of the permit or license after the failure to make a timely payment of the amount specified in this subsection.
2. (b) Each bond required under this section shall be set by the administrator at an amount determined pursuant to §41.42 of this title that will protect the state against the anticipated tax liability of the principal for any six-week period based on previous average alcoholic beverage sales or estimates of the future average volume of sales.

3. (c) Form and contents.

   1. (1) A bond required under this section must be executed with the licensee or permittee as principal, a qualified surety company doing business in this state as surety, and the state as payee. All such bonds must be payable in Travis County.
   2. (2) The bond must be conditioned as required by the administrator and must include that the licensee or permittee will account for and pay all fees and taxes levied by the Texas Alcoholic Beverage Code.
   3. (3) The form of all bonds must be approved by the administrator.

4. (d) Bond alternatives.

   1. (1) A licensee or permittee required to furnish a bond under this section may furnish, in lieu of all or part of the amount of the bond required:

      1. (A) one or more certificates of deposit or savings assigned to the state, issued by one or more banks or credit unions authorized to do business in this state; or
      2. (B) one or more letters of credit by one or more banks or credit unions authorized to do business in this state.
   2. (2) If an assignment of a certificate of deposit or savings or a letter of credit is furnished under paragraph (1) of this subsection, 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.
5. (e) A finding of deficiency as a result of an audit does not constitute a failure to pay a tax when due, if the deficiency and any applicable penalty are paid within 10 days of the date of demand for payment by the commission.

6. (f) A licensee or permittee required to furnish a bond under subsection (a) of this section, is again entitled to exemption from the surety requirement if the licensee or permittee:

   1. (1) pays all delinquent taxes and fees and any applicable penalties; and
   2. (2) pays all taxes and fees required by the Texas Alcoholic Beverage Code on or before the due date for 18 consecutive months after the month in which the delinquent taxes and fees and penalties are paid.
7. (g) If a licensee or permittee fails to pay a tax or fee imposed by the Texas Alcoholic Beverage Code on or before the due date and the licensee or permittee holds multiple licenses or permits, the requirements for a bond shall be imposed under subsection (a) of this section only on the license or permit covering the licensed or permitted premises for which the tax or fee and any applicable penalty were not timely paid.
8. (h) A certificate of deposit or savings furnished by a licensee or permittee under this section must be assigned to the state in a manner approved by the administrator to secure the payment of the tax.
9. (i) A letter of credit furnished by a licensee or permittee under this section must be in a form and contain any conditions required by the administrator to secure the payment of the tax.
10. (j) If another license or permit is required, incidental to the operation of a business for which a basic license or permit is procured, the administrator may accept one bond to support all of the licenses and permits. The administrator shall determine the amount of the bond.
11. (k) The administrator 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.
12. (l) All bonds or other forms of security under this section that are in place on the effective date of this section, as amended, shall remain in place for the length of time specified on the bond or other form of security when it was furnished to the commission.

Source Note:The provisions of this §33.22 adopted to be effective May 27, 1985, 10 TexReg 1416; amended to be effective February 24, 1994, 19 TexReg 1039; amended to be effective November 15, 2012, 37 TexReg 8972.