California Commercial Cannabis Licensee Bond

All commercial cannabis licensees in California need to post a surety bond in the amount of $5,000. It should be presented to the Bureau of Cannabis Control, which is the licensing authority. You should use the official bond form.

The bond ensures your compliance with the Medicinal and Adult-Use Cannabis Regulations and Safety Act (MAUCRSA). It is defined in Division 10 of California’s Business and Professions Code.

Your surety bond cost is based on the bond amount which you have to obtain. In the case of California commercial licensee bonds, this is $5,000. However, to get bonded, you need to pay only a fraction of it, which is called the bond premium. If your finances are stable you can expect a rate between 1% to 3% of the bond amount.

How exactly is your cost set? Your surety has to examine a number of factors. It assesses the strength of your personal and business finances to measure the level of bonding risk. The criteria that matter include your personal credit score, business finances, and any assets and liquidity you can showcase. Your bond price will be lower if these factors are strong and show trustworthiness.

Yes, with Lance Surety Bonds you are able to get bonded even if your finances are far from perfect. We are operating our Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.

The usual bonding rates for bad credit applicants are in the range of 5%-10%. Still, we are able to offer you a great bonding option tailored to your circumstances. This is due to our excellent collaboration with a number of A-rated, T-listed surety companies.

Do you want to learn more about the way bonding works? Don’t miss out our How to Get Bonded page, which is an in-depth resource on the topic.

For further question, don’t hesitate to call us at (877) 514-5146. Lance Surety Bonds’ experts will be happy to assist you.

The purpose of your California commercial cannabis licensee bond is to protect the state and the general public from potential unlawful activities you may engage in. If you fail to abide by the law, you may get a claim against the surety bond. This is how affected parties can seek a financial compensation. The amount can be up to the penal sum of your bond, which is $5,000.

At first, it may be your surety that covers the costs to ensure a quick reimbursement. However, you have to repay it in full afterwards. Thus, bond claims are a financial and reputational threat that is best to be avoided.