California Marijuana Surety Bonds

As the cannabis industry grows, so will the need for marijuana surety bonds. States and cities have surety bond requirements in place to ensure that companies conduct their business as required by state and local regulations, as well as pay their taxes. California currently has the most marijuana surety bond requirements.

There are three entities within the California state government that regulate the cannabis industry: the Bureau of Cannabis Control (BCC), Manufactured Cannabis Safety Branch, and Cal Cannabis Cultivation Licensing. Each branch monitors different types of cannabis businesses and has its own bonding requirements. Cultivators, retailers, distributors, testing laboratories, microbusinesses, event organizers, and manufacturers in the marijuana industry must obtain a surety bond in order to apply for and maintain a business license. If engaged in more than one sector, multiple bonds must be obtained.

Below is a list of the cannabis or marijuana-related surety bond requirements that currently exist in California:

  • Cannabis Cultivator License Bond (Bond Amount: $5,000) – Cannabis Cultivators are required to have a surety bond in order to apply and maintain a business license to plant, harvest, grow, and prepare cannabis products from plants. The bond form can be found here.
  • Cannabis Retailers License Bond (Bond Amount: $5,000) – Cannabis Retailers are required to have a surety bond in order to apply and maintain a business license to sell cannabis products to consumers either at their storefront or by delivery. The bond form can be found here.
  • Cannabis Distributor License Bond (Bond Amount: $5,000) – Cannabis Distributors are required to have a surety bond in order to apply and maintain a business license to transport cannabis and cannabis goods between manufacturers and cultivators. The bond form can be found here.
  • Cannabis Microbusiness License Bond (Bond Amount: $5,000) – Cannabis Microbusinesses are required to have a surety bond in order to apply and maintain a business license to cultivate, manufacture, distribute, and perform retail sales of cannabis products. The business must perform cultivation in an area less than 10,000 square feet. There are limitations to the manufacturing they can perform. The bond form can be found here.
  • Cannabis Testing Laboratory License Bond (Bond Amount: $5,000) – Cannabis Testing Labs are required to have a surety bond in order to apply and maintain a business license in addition to obtaining an ISO/IEC 17025 accreditation to perform tests of cannabis products. The bond form can be found here.
  • Cannabis Manufacturer License Bond (Bond Amount: $5,000) – Cannabis Manufacturers are required to have a surety bond in order to apply and maintain a business license to produce, prepare, and work with the compounding of cannabis products in order to repackage the product in various forms. The bond form can be found here.
  • $25,000 City of Coalinga Commercial Marijuana Operations Surety Bond (Bond Amount: $25,000) – Cannabis cultivation, processing, extraction, manufacturing, testing, and distribution must obtain a surety bond in order to obtain a conditional use permit and regulatory permit to conduct business within the city of Coalinga. This bond must be purchased in addition to the $5,000 bond required by the state of California. The bond form can be found here.
  • $5,000 City of Los Angeles Commercial Cannabis Surety Bond (Bond Amount: $5,000) – Cannabis related businesses must obtain an additional surety bond if they are conducting business within city limits of Los Angeles in order to guarantee payment of taxes and compliance with city regulations.
  • $5,000 City of Shasta Lake Commercial Cannabis Business Surety Bond (Bond Amount: $5,000) – Cultivators, distributors, manufacturers, retailers, and testing labs must obtain a surety bond with the city in order to obtain a business license. More information can be found here.
  • Yolo County Cannabis Surety Bond (Bond Amount: $10,000) – Manufacturers, cultivators, and distributors in Yolo county must obtain an additional license and permit bond in order to conduct cannabis-related business. More information can be found here.
  • City of Palm Desert Cannabis and Marijuana Tax Bond (Bond Amount: Varies) – Recreational and medical retailers and operations must obtain a surety bond in order to ensure all taxes are paid. Bond requirements are at the discretion of the City Manager. More information can be found here.
  • Shasta County Cannabis Surety Bond (Bond Amount: $5,000) – In order to obtain a license, all cannabis-related businesses will need to purchase an additional Shasta county cannabis license bond. More information can be found here.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s