Fee Interest Brewer’s Permit(B) ($30,000) Bond - Statewide in Texas

Brief Summary

If your brewery works under a contract brewing arrangement or an alternating brewery proprietorship and does not own a brewing facility, TABC wants a $30,000 fee interest bond with every original and renewal application for your Brewer's License (BW) or Nonresident Brewer's License (BN). TABC's own form, L-2-18.5, fixes the amount and the wording, so there is nothing to negotiate on the bond itself.

Texas Alcoholic Beverage Code 62.14(e) requires a brewery that is a party to an alternating brewery proprietorship or contract brewing arrangement to post a bond of not less than $30,000 with the Texas Alcoholic Beverage Commission if it does not own a fee interest in a brewing facility. TABC sets the bond at $30,000 on form L-2-18.5, with the State of Texas as obligee. The requirement began under the Brewer's Permit (B) in former Section 12.06, which was repealed effective September 1, 2021, and now applies to the Brewer's License (BW) and Nonresident Brewer's License (BN).

We can help with all Texas bonds!

How to Apply for a Fee Interest Brewer’s Permit(B) ($30,000) Bond:

• Confirm you are a party to an alternating brewery proprietorship or contract brewing arrangement.
• Confirm you hold or are applying for a Brewer's License (BW) or Nonresident Brewer's License (BN) and do not own a fee interest in a brewing facility.
• Complete the bond application in the exact legal name used on the TABC application.
• Receive the executed $30,000 bond on TABC form L-2-18.5, signed by the principal and the surety's attorney in fact, with notary acknowledgments and the power of attorney attached.
• Submit the bond with the original license application and again with each renewal application.
• Have the federal TTB Brewer's Notice and Brewer's Bond on file if you operate under an alternating brewery proprietorship.

Detailed Information About the Texas Fee Interest Brewer’s Permit(B) ($30,000) Bond:

The B permit became the BW license

This bond was created for holders of the Brewer's Permit (B) under former Alcoholic Beverage Code 12.06. That section was repealed by House Bill 1545 of the 86th Legislature, effective September 1, 2021. The same fee interest requirement now sits in Section 62.14(e), and TABC applies it to the Brewer's License (BW) and the Nonresident Brewer's License (BN). A brewery whose records still say B permit needs this bond under its current license type.

Who has to post it

TABC's bonds page lists three conditions, and all three must apply:

• You participate in an alternating brewery proprietorship or contract brewing arrangement.
• You hold a Brewer's License (BW) or Nonresident Brewer's License (BN).
• You do not own a fee interest in any brewing facility.

TABC's form describes a fee interest as ownership of a brewery facility. A brewery that owns no brewing facility and brews on another license holder's equipment is the one this bond is written for.

Amount and terms

Section 62.14(e) calls for a bond of not less than $30,000 in an amount the commission determines, and TABC's bonds page and form both state $30,000. Section 62.14(d) separately allows the commission to require, by rule, a bond of up to $200,000 from parties to these arrangements, so confirm with TABC that no higher amount applies to you. The form names the State of Texas as obligee, payable at Austin, Travis County, and conditions the bond on the principal faithfully conforming with the Alcoholic Beverage Code and the commission's rules. It takes effect when the license is issued and stays in force until the license is canceled or the license and its renewals expire. If the surety cancels on 30 days written notice, the license holder must submit a replacement within 30 days of that notice.

Federal filings are a separate condition

For an alternating brewery proprietorship, Section 62.14(a) lists two separate conditions for each party: filing the Brewer's Notice and Brewer's Bond required by the federal Alcohol and Tobacco Tax and Trade Bureau, and, if applicable, posting a bond with TABC. Each party must also hold a Texas brewer's license at the location where brewing services are performed under Section 62.14(b-1).

Alternatives

TABC accepts a bond, a letter of credit or an assignment of a certificate of deposit for this requirement.

Eligibility and Requirements for a Texas Fee Interest Brewer’s Permit(B) ($30,000) Bond:

• Obligee: the State of Texas, payable at Austin, Travis County.
• Bond amount of $30,000, the minimum set by Alcoholic Beverage Code 62.14(e).
• TABC form L-2-18.5 with no alterations or whiteout on the face of the bond.
• Replacement bond within 30 days if the surety gives notice of cancellation.
• A letter of credit or assignment of a certificate of deposit is accepted in place of the bond.

Texas Fee Interest Brewer’s Permit(B) ($30,000) Bond FAQs:

Official and Additional Resources for the Texas Fee Interest Brewer’s Permit(B) ($30,000) Bond: