The California cannabis bond is a surety bond required of licensed commercial cannabis businesses in the state. It is required by the California Department of Cannabis Control (DCC) as a condition of holding a cannabis license. The minimum bond amount is $5,000 per licensed premises, though some local jurisdictions require higher amounts.
Who Needs a Cannabis Bond?
You need a cannabis surety bond if you hold or are applying for a California commercial cannabis license, including:
- Cultivators
- Manufacturers
- Distributors
- Retailers and dispensaries
- Testing laboratories
- Microbusinesses
What the Cannabis Bond Guarantees
The state-required cannabis bond primarily guarantees that, if a licensee's cannabis products must be destroyed — for example, following license revocation or a regulatory action — the state can recover the cost of that destruction. It ensures taxpayers don't bear the expense of disposing of cannabis products from a non-compliant business.
Local Requirements Vary
Beyond the $5,000 state minimum, many cities and counties impose their own bonding requirements for cannabis operators, which can be significantly higher. We help you navigate both state and local requirements.
How Much Does It Cost?
You pay an annual premium — a percentage of the bond amount — not the full bond. For the $5,000 state minimum, premiums are affordable. Larger local bond requirements are underwritten based on your credit and business financials. We shop multiple sureties to find you competitive rates.
How to Get Your Cannabis Bond
- Contact us with your license type and bond requirement.
- Complete a short application.
- Get approved and pay your premium.
- Receive your bond for state and local licensing.
Why Advanced Surety?
The cannabis industry has specialized bonding needs, and requirements differ across California's many jurisdictions. We understand the DCC's rules and local variations, and we work with sureties comfortable writing cannabis bonds — getting you licensed without the runaround.