California Cannabis License Surety Bond

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BondAbility - California Cannabis License Surety Bonds

California Cannabis License Surety Bonds

Understanding the Requirement

In California, obtaining a commercial cannabis license requires a surety bond of at least $5,000, payable to the State of California. This bond ensures compliance with state regulations and covers costs associated with the destruction of cannabis or cannabis products if necessitated by a violation of licensing requirements. For more details, visit cannabis.ca.gov.

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA)

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) (Bus. & Prof. Code, § 26000 et seq.) is the legal framework governing both medicinal and adult-use cannabis in California. Enacted to ensure the safe and controlled distribution of cannabis products, MAUCRSA outlines licensing requirements, compliance standards, and safety regulations to protect public health and promote responsible cannabis use within the state.

This act requires cannabis businesses to adhere to strict operational and safety guidelines, which include obtaining surety bonds to provide financial assurance for their compliance with state and local laws. Under MAUCRSA, license holders are held to high standards of accountability, making surety bonds an essential part of their licensing process.

Why Choose BondAbility for Your Cannabis License Surety Bond?

At BondAbility, we simplify the bonding process, offering:

  • Competitive Pricing: Secure your $5,000 surety bond for just $100.
  • No Credit Check or Underwriting: Our streamlined process eliminates the need for credit checks or extensive underwriting.
  • Instant Issuance: Provide the necessary information, make the payment, and receive your bond within minutes.
  • Email Delivery: Your bond will be promptly delivered to your inbox, ensuring quick access.

Steps to Obtain Your Bond with BondAbility

  1. Provide Information: Complete the required fields below.
  2. Make Payment: Pay the $100 premium securely via credit card or E-Check.
  3. Receive Your Bond: Your original bond will be issued and sent to your email.

Overview of California Cannabis License Types

California offers various cannabis license types based on the activities your business will perform. Understanding these licenses is crucial for compliance:

Cultivation Licenses

Cultivation licenses are categorized by production type and canopy size:

  • Specialty Cottage:
    • Outdoor: Up to 25 mature plants or 2,500 sq ft of canopy.
    • Indoor: Up to 500 sq ft of canopy.
    • Mixed-Light: Up to 2,500 sq ft of canopy.
  • Specialty:
    • Outdoor: Up to 50 mature plants or 5,000 sq ft of canopy.
    • Indoor: 501 to 5,000 sq ft of canopy.
    • Mixed-Light: 2,501 to 5,000 sq ft of canopy.
  • Small:
    • Outdoor: 5,001 to 10,000 sq ft of canopy.
    • Indoor: 5,001 to 10,000 sq ft of canopy.
    • Mixed-Light: 5,001 to 10,000 sq ft of canopy.
  • Medium:
    • Outdoor: 10,001 sq ft to 1 acre of canopy.
    • Indoor: 10,001 to 22,000 sq ft of canopy.
    • Mixed-Light: 10,001 to 22,000 sq ft of canopy.
  • Large:
    • Outdoor: More than 1 acre of canopy.
    • Indoor: More than 22,000 sq ft of canopy.
    • Mixed-Light: More than 22,000 sq ft of canopy.
  • Nursery: For cultivators growing clones, immature plants, seeds, or other propagation materials.
  • Processor: For those trimming, sifting, curing, drying, grading, packaging, or labeling cannabis.

Manufacturing Licenses

Manufacturing licenses depend on activities performed and chemicals used:

  • Type 7: Volatile solvent manufacturing.
  • Type 6: Non-volatile solvent and/or mechanical extraction.
  • Type N: Infusion of cannabis products.
  • Type P: Packaging and labeling only.
  • Type S: Shared-use facility manufacturing.

Other License Types

  • Distribution: For transporting cannabis products.
  • Testing Laboratory: For testing cannabis products.
  • Retail:
    • Storefront Retailer: Physical location sales.
    • Non-Storefront Retailer: Delivery-only sales.
  • Microbusiness: Engaging in at least three commercial cannabis activities.
  • Event Organizer: For holding events where cannabis is sold.

For detailed information on each license type, visit the California Department of Cannabis Control's License Types page.

Additional Cannabis Surety Bonds in California

Beyond the state-mandated $5,000 surety bond, certain local jurisdictions in California require additional bonds for cannabis businesses:

  • City of Coalinga: Requires a $25,000 Commercial Marijuana Operations Surety Bond.
  • City of Los Angeles: Mandates a $5,000 Commercial Cannabis Surety Bond.
  • City of Shasta Lake: Requires a $5,000 Commercial Cannabis Business Surety Bond.
  • Yolo County: Imposes a $10,000 Cannabis Surety Bond.
  • City of Palm Springs: Requires a Cannabis and Marijuana Tax Bond, with amounts varying based on specific operations.

These bonds are designed to ensure compliance with local regulations and provide financial assurance for the proper conduct of cannabis-related activities within these jurisdictions.

Get Started Today

Ensure compliance and expedite your licensing process by securing your California Cannabis License Surety Bond with BondAbility. Complete the information below to begin:

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