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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Distributors and retailers usually ask how much bond the business needs. California asks a different question: how many licensed premises do you have? Each one needs at least $5,000 of coverage payable to the State of California, on DCC Form 8113, whether it is a Type 11 distribution warehouse or a Type 9 delivery-only retailer. One aggregated bond can cover several licenses held by the same business.
The Department of Cannabis Control requires every annual distributor and retailer license applicant to submit proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises, under 4 CCR section 15002. The bond is written by a California licensed corporate surety on Form 8113 and covers the state's costs of destroying cannabis goods when a violation makes destruction necessary, as Business and Professions Code section 26051.5(a) requires.
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This page covers the four license types that move and sell finished cannabis goods. Type 11 distributors move cannabis between cultivation, manufacturing and distribution premises, deliver finished goods to retailers, provide storage and arrange testing. Type 13 transport-only distributors move cannabis between cultivation, manufacturing and distribution premises. Type 10 storefront retailers sell from a physical location and may also deliver. Type 9 non-storefront retailers sell only through delivery.
Section 15002 of Title 4 of the California Code of Regulations requires proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises. A company that runs a distribution premises and a storefront as separate licensed premises needs coverage for both. An aggregated bond may be used when the same business holds multiple licenses.
Business and Professions Code section 26051.5(a) requires a bond to cover the costs of destroying cannabis or cannabis products if a violation makes it necessary, including the department's administrative, investigatory and enforcement costs. Distributors and retailers hold finished inventory, and this is the money that pays for disposing of it when the state orders it.
The bond is DCC Form 8113, the Commercial Cannabis Licensee Bond. It starts when the license is issued and runs concurrently with the license period until the surety cancels with 30 days written notice to the department and the licensee. For a bond change, email Form 27, a copy of the new bond and Form 8113 to licensechange@cannabis.ca.gov.
Distribution and retail licenses renew through DCC's CLEaR system. The window opens 60 calendar days before expiration, and the renewal and license fee are due before the expiration date. License fees for these types are based on gross annual revenue, so renewal includes revenue documents such as state tax returns, city or county tax filings, or a profit and loss statement showing the legal business name.
Yes. Section 15002 does not scale the bond by license type. A Type 9 non-storefront retailer and a Type 10 storefront each need at least $5,000 for their licensed premises.
The requirement is at least $5,000 for each licensed premises. If the two licenses are separate premises, both need coverage. Section 15002 lets the same business use one aggregated bond, so ask DCC how the penal sum should read before the surety issues it.
No. The Type 13 transport-only license carries reduced license fees, but section 15002 sets the same bond floor of $5,000 for each licensed premises.
The cost of destroying cannabis goods when a violation requires it, including DCC's administrative, investigatory and enforcement costs. The surety's total liability is capped at the penal sum.
The surety must give DCC and the licensee 30 days written notice. Replace the bond before that date and send Form 27, the new bond and Form 8113 to licensechange@cannabis.ca.gov.
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