Have a question? 
+1 815-826-6324 (815-8-BondAI) 
phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
A fraternal or veterans club carries this bond only until it qualifies for the statutory exemption. The $5,000 conduct bond (or $10,000 if the club sits within 1,000 feet of a public school) goes in with the NE application, stays in place until the club earns the three year exemption, and then drops away at renewal if the club has kept a clean record.
The Texas Alcoholic Beverage Commission requires a conduct surety bond with a Private Club Exemption Certificate Permit (NE) unless the club qualifies for an exemption. The bond is $5,000, or $10,000 when the premises is within 1,000 feet of a public school, and it is written to the State of Texas on TABC Form L-2-60.2 under Alcoholic Beverage Code Section 11.11. It guarantees the club will follow Texas alcoholic beverage law and commission rules, and the full amount can be forfeited to the state.
We can help with all Texas bonds!
Section 32.11 of the Texas Alcoholic Beverage Code lets a qualifying fraternal or veterans organization satisfy the private club permit requirement through a certificate issued by the commission. TABC lists that credential as the Private Club Exemption Certificate Permit, code NE. The TABC fee chart effective September 1, 2021 shows the NE at $0, but the fee waiver is not a bond waiver. TABC Form L-2-60.2 lists the NE by name among the permits the conduct surety bond must accompany.
The amount is set by distance, not by club size or sales. Section 11.11 requires $5,000 for a Chapter 32 private club permit. If the place of business is within 1,000 feet of the property line of a public school, the bond is $10,000. TABC Form L-2-60.2 measures that distance property line to property line. Get this right before the bond is written, because a $5,000 bond does not satisfy the requirement for a location that needs $10,000.
Two groups skip the bond. First, a club holding a Food and Beverage Certificate, under Section 32.23(f). Second, a permit holder at renewal that has held a permit for three years or more, has had no license or permit revoked in the five years before renewal, is not facing a pending revocation, and has operated continuously on the permitted premises for at least three years. Under Section 11.11(f), a holder exempt at one location is also exempt at another location where it holds or applies for a permit. A new NE club posts the bond, and 16 TAC 33.41(b) requires the bond or alternative security to cover at least the time needed to reach that exemption.
The face of the bond states that the club will not violate Texas alcoholic beverage law or a commission rule, and that the bond amount is payable to the state if the permit is revoked or on final adjudication of a violation. Employee conduct counts even where Section 106.14 would otherwise shield the permit holder. Under 16 TAC 33.41(e), TABC gives written notice of intent to seek forfeiture when the permit is cancelled or after a final adjudication of three violations before the exemption date. The club has 30 days to request a hearing, and after a final order the surety is told to remit the bond amount within ten days.
Section 11.11(d) and 16 TAC 33.41(c) allow certificates of deposit assigned to the state or letters of credit from a federally insured bank or credit union authorized to do business in Texas, for all or part of the amount. A surety bond keeps the club's cash free for operations.
The fee waiver for fraternal and veterans clubs comes from Section 32.11(b), which lifts the Section 32.02 permit fee and some food service and locker rules. Section 32.11(d) says all other provisions of the code still apply, and TABC Form L-2-60.2 lists the NE among the permits the conduct surety bond must accompany.
It is $5,000 unless the premises is within 1,000 feet of a public school, measured property line to property line. Inside that line it is $10,000. Section 11.11 ties the higher amount specifically to a public school.
At renewal, once the club has held a permit for three years or more, has operated continuously on the permitted premises for at least three years, has had no license or permit revoked in the prior five years and has no revocation pending. Until then the bond must stay in force.
Revocation or cancellation of the permit, or a final adjudication of three Alcoholic Beverage Code violations before the club reaches its exemption date. Violations by employees and servers count toward that total. The club can request a hearing within 30 days of TABC's notice.
The surety underwrites the organization, looking at its finances, its history with TABC and, where required, the officers who sign the indemnity agreement. The premium is the charge for that guarantee, not a deposit, and it does not reduce the bond amount the state can collect.
This website is a referral and marketing platform that connects users with licensed insurance agents. We do not issue surety bonds directly except in states where we are licensed. All bond applications are processed and fulfilled by licensed agents. By using this site, you agree to our Terms & Conditions, Privacy Policy, and the use of cookies. If you do not agree, please exit the site.
