Surety Bond Encyclopedia

Cannabis Commercial Permit Bond - Calaveras County, CA in California

Brief Summary

Calaveras County will not issue a commercial cannabis cultivation permit until it holds $5,000 in security for clean-up. A surety bond satisfies that requirement for an annual premium and leaves your cash available for the grow.

Calaveras County Code Section 17.18.070 requires a $5,000 cash deposit or surety bond before the Division of Cannabis Control issues a commercial cannabis cultivation permit. The security covers the cost of destroying cannabis or cannabis products and cleaning up trash, debris or other waste from the site if a permit violation makes that necessary, and the permittee must show it is still in force at every annual continuation.

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How to Apply for a Cannabis Commercial Permit Bond:

  • Submit a complete commercial cannabis activity permit application under Section 17.18.060.
  • Pass the county site inspection.
  • Obtain the $5,000 bond naming Calaveras County as obligee, or post a $5,000 cash deposit.
  • Pay the road impact mitigation fee and provide the well report if you rely on wells.
  • Deliver the bond to the Division of Cannabis Control before the permit is issued.
  • Show the bond is renewed with each annual permit continuation.

Detailed Information About the California Cannabis Commercial Permit Bond:

Which permit needs the bond

Calaveras County regulates commercial cannabis under Chapter 17.18 of the county code, administered by the county Division of Cannabis Control. The $5,000 security appears in Section 17.18.070.A.4, the list of extra items required for a commercial cannabis cultivation permit. Retailers are regulated separately under Chapter 17.17.

The bond is only one of several cultivation prerequisites. The division also needs a complete application, a passing site inspection, any required conditional or administrative use permit, payment of the road impact mitigation fee under Chapter 12.10, and, where the operation relies on wells, a licensed professional's water supply report. If cultivation is moving from a parcel used under the May 10, 2016 version of the chapter, the former site must first be fully remediated.

What the $5,000 covers

The county can use the cash deposit or surety bond to cover the costs of destroying cannabis or cannabis products and cleaning the site of trash, debris or other wastes from the commercial operation if a violation of permit requirements makes that necessary. Calaveras County is the obligee.

Keeping it in force

The bond is not a one-time filing. Under Section 17.18.140, each cultivation permittee applying for annual continuation must submit evidence that the surety has been renewed or remains fully collectable by the county if the permittee fails to perform. The annual continuation fee is due at least thirty days before the anniversary of permit validation, and the amount is set by resolution of the board of supervisors.

A permit can be issued before the state license arrives, but it is not validated, and cultivation stays prohibited on the premises, until the division receives a copy of the state license and verifies all conditions are met. Confirm the current bond form and filing steps with the Division of Cannabis Control before the bond is issued.

Eligibility and Requirements for a California Cannabis Commercial Permit Bond:

  • Bond amount of $5,000 under Calaveras County Code 17.18.070.A.4(d).
  • Calaveras County named as obligee.
  • Bond covering destruction of cannabis and site clean-up after a permit violation.
  • Bond kept collectable by the county for the life of the permit.
  • Applicant and premises meeting every other Chapter 17.18 eligibility rule.

California Cannabis Commercial Permit Bond FAQs:

How much is the Calaveras County cannabis bond?

$5,000. Section 17.18.070 allows either a $5,000 cash deposit or a $5,000 surety bond.

What can the county use the bond for?

Destroying cannabis or cannabis products and cleaning up trash, debris or other waste from the site when a permit violation makes that necessary.

Do I have to renew the bond?

Yes. Each annual permit continuation requires evidence that the surety has been renewed or remains fully collectable by the county.

Can I get the county permit before my state license?

The county may issue the permit first, but it is not validated and cultivation remains prohibited on the premises until the division receives your state license and confirms all conditions are met.

How is the premium set?

The surety prices the $5,000 bond from the owners' credit and business background. You see the quote after completing the application.

Official and Additional Resources for the California Cannabis Commercial Permit Bond:

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