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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
Most first time promoters budget for one $15,000 bond and find out TDLR wants two. This page covers the promoter bond that guarantees your event obligations. Line up the separate $15,000 gross receipts tax bond at the same time and your license application goes in complete.
The Texas Department of Licensing and Regulation requires every combative sports promoter to post a $15,000 surety bond at licensure and at each renewal under 16 TAC 61.40. The bond is payable to the State of Texas, is written on TDLR form BOX LIC 005, and guarantees payment of all obligations arising from events the promoter puts on, other than gross receipts taxes. A second $15,000 bond on form BOX LIC 006 covers those taxes.
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16 TAC 61.40 requires a promoter applicant, at the time of licensure and at each renewal, to submit proof of financial responsibility in the form of two surety bonds. Each is $15,000 and each must be written by a bonding company authorized to do business in Texas:
1. A $15,000 bond guaranteeing payment of all obligations, except gross receipts taxes, arising out of events the applicant promotes. This is the bond on this page, filed on TDLR form BOX LIC 005. 2. A $15,000 bond guaranteeing payment of gross receipts taxes owed for promoted events, filed on TDLR form BOX LIC 006.
The amount is flat. It does not change with venue size, ticket sales or the number of events you run.
Both bonds must remain in effect for four years after the effective cancellation date. The BOX LIC 005 form lets the surety cancel on 30 days written notice to TDLR, but the surety stays liable for defaults committed before the end of four years after the promoter stops being licensed. Plan on the bond following you well past your last card.
The obligee is the State of Texas, and the form cites Texas Occupations Code Chapter 2052. It covers damages and restitution of expenses, including reasonable attorney's fees, arising from the promoter's events. It is open to successive recovery, but the surety's total liability to all claimants cannot exceed the $15,000 face amount.
The promoter license application, TDLR form BOX LIC 009, carries a $900 nonrefundable application fee and must be completed within 12 months of filing or it is terminated. Once licensed, a promoter must give TDLR written notice of proposed event dates, ticket prices and main event participants at least 21 days before the event, and get written approval before advertising or selling tickets.
No. 16 TAC 61.40 requires two $15,000 bonds. One guarantees event obligations other than gross receipts taxes, which is this bond. The other guarantees the gross receipts taxes owed for your events.
No. The requirement is a flat $15,000 for each bond regardless of venue size or ticket sales.
The rule requires the bond to remain in effect for four years after the effective cancellation date, and the TDLR form keeps the surety liable for defaults committed up to four years after the promoter stops being licensed.
Form BOX LIC 009, the $900 nonrefundable application fee and both bonds. All requirements have to be met within 12 months of filing or TDLR terminates the application.
The surety looks at the owners' credit, the promoter's financial strength and its event history. The long tail after cancellation is part of what the surety is underwriting.
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