California cannabis and marijuana cultivators, manufacturers, retailers, distributors, lab testing facilities, and microbusinesses are required to apply for a license and obtain a surety bond. The California Department of Food and Agriculture, California Department of Public Health and the Bureau of Cannabis Control regulate the cannabis industry in California and ensure compliance of state laws and the issuing of licenses.
State laws and regulations address issues such as: where the cannabis can be grown, methods of cultivation, water source, land utilization, delivery and display of products, labeling and packaging, extraction and infusion processes, and the definitions of medicinal verses recreational and the THC levels appropriate for each. The laws also stipulate the tracking of cannabis from seed to the outcome of product including the sales of or destruction of the cannabis.
The Obligee is the entity that requires a surety bond for those working in the cannabis industry. The bond ensures compliance of state laws for the proper destruction of cannabis. Failure to comply or perform in the manor prescribed by the Obligee may result in a claim filed against the surety bond. When the Obligee files a claim against the surety bond, the applicant (named as the principal on the bond form) will be responsible for repayment of the claimed amount that the surety paid out. This may be a portion of the bond amount or the entire bond amount.
License requirements vary depending on the services provided.
A $5,000 surety bond is required as a license condition.
The California Bureau of Cannabis Control requires cannabis retailers, distributors, testing laboratory’s, and microbusinesses to have a $5,000 surety bond.
The California Department of Public Health requires cannabis manufacturers to have a $5,000 surety bond.
The California Department of Food and Agriculture requires a $5,000 surety bond for the cultivation of cannabis.
The premium that you pay for a California cultivation, manufacturing, and/or retail cannabis surety bond is dependent on credit. Call our Surety Bond Specialists for a free quote.
The Bureau of Cannabis Control approved changes to the California Code of Regulations clarifying the annual license fee which does not need to be paid until after the license has been approved.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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