What is a California Marijuana Surety Bond?

A California Marijuana-Cannabis Surety Bond is needed for those who want to be licensed to engage in California cannabis operations. This includes growers, manufacturers, and retail locations. (this entire cycle is often referred to as “seed to sale”).  In addition to the general $5,000 California Marijuana Surety Bond, some specific counties in California require a separate surety bond.

The application for this bond is easy and takes about 3 minutes to complete.  No other documentation is required.  Everybody is approved.  Once the application is completed, we can usually get the surety bond to you the same day!!!  Many of our competitors can take several weeks to complete this bond.

Click here for a free quote.  Or, feel free to call us at 800-333-7800.

Who are the three California  Cannabis Licensing Entities that require Surety Bonds?   

If you are obtaining California cannabis surety bonds, you will be purchasing your surety bond specifically to comply with the requirements of these three following California cannabis licensing entities:

1)  The Bureau of Cannabis Control (BCC) is the lead agency in developing regulations for medical and adult-use cannabis in California. BCC is responsible for licensing retailers, distributors, testing labs, and microbusinesses.

2)  The Manufactured Cannabis Safety Branch, a division of the California Department of Public Health (CDPH), is responsible for regulating the manufacturers of cannabis-infused edibles for both medical and nonmedical use.

3)  Cal Cannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA), is responsible for licensing cultivators of medicinal and adult-use (recreational) cannabis and implementing a track-and-trace system to record the movement of marijuana through the distribution chain.

Potentially, if you are conducting distribution, manufacturing, and cultivation, you could need at least three separate surety bonds (to satisfy the requirements of each licensing entity).   We suggest that you contact us to determine the proper number (and type) of surety bonds required for your business.

How much does a California Marijuana Surety Bond Cost? 

It depends on several factors. There is not a set price.  Usually, the price is $250 or less.

What does this bond cover?

If the state of California determines that you have a cannabis product that needs to be destroyed, the bond will cover the expense of the destruction of the product.  In essence, it is an environmental bond.

Who are the parties involved in a Surety Bond?

Marijuana surety bonds, like all surety bonds, are an agreement between three parties:

• Obligee: the state or municipality requiring the licensing.
• Principal: the business seeking licensure and permit to conduct business in the marijuana sector.
• Surety: the company that provides financially-backed guarantees to the Obligee that the Principal will act in compliance with the set regulations of the state or municipality.

California marijuana bonds enable the Surety to be financially subject to actions carried out by the Principal. If the principal does unfavorably administer the business, the Obligee could make claims against the marijuana bonds to help regain any financial damages or cover any huge fees or penalties charged to the Principal for those actions.

Why do you need a California Marijuana Surety Bond?

My most business owners, the only reason they obtain the Marijuana surety bond is that the State of California mandates that you have it.  You will not be able to obtain your Cannabis license without the necessary surety bonds. You could face judicial actions, substantial fines, and penalties if you do not comply with state or municipal laws regarding legal marijuana transactions and operations.

Before opening a marijuana dispensary or retail shop in California, make sure that you fully understand its legal implications and laws that you will need to follow.