The California cannabis bond is a surety bond required of every commercial cannabis licensee. The Department of Cannabis Control (DCC) — which took over cannabis licensing from the former Bureau of Cannabis Control and two other state agencies in 2021 — requires proof of the bond as a condition of licensure.
The State Bond Requirement
- Amount: at least $5,000 for each licensed premises (California Code of Regulations, title 4, § 15002).
- Payable to: the State of California.
- Surety: must be issued by a corporate surety licensed to do business in California.
- Multiple licenses: the regulations allow an aggregated bond covering more than one license.
- Form: DCC’s surety bond form (DCC Form 8113).
What the Cannabis Bond Covers
Under Business and Professions Code § 26051.5, the bond covers the cost of destroying cannabis or cannabis products if destruction becomes necessary because of a licensing violation — including the state’s administrative, investigatory, and enforcement costs. It keeps taxpayers from paying to clean up after a non-compliant business. If the surety pays, the licensee must repay it.
Who Needs a Cannabis Bond?
Any business holding or applying for a California commercial cannabis license, including:
- Cultivators
- Manufacturers
- Distributors
- Retailers and delivery businesses
- Testing laboratories
- Microbusinesses
City and County Requirements
The $5,000 bond is the state minimum. Cities and counties that permit cannabis businesses can set their own requirements, which may include separate bonds. Check your local permit conditions — we can place those bonds too.
How Much Does It Cost?
You do not pay the full bond amount. You pay a premium — a percentage of the bond amount based mainly on your personal credit and business history. We submit your application to several surety companies, and each sets its own rate, so your premium depends on which surety approves you and isn’t set until you’re approved. If one surety declines, we go to the next.
How to Get Your Cannabis Bond
- Tell us your license type and how many premises need to be bonded.
- Complete a short application.
- Get approved and pay your premium.
- Receive your bond to submit with your DCC application or renewal.