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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
A Type P manufacturer that only packages and labels posts the same bond as a Type 7 volatile solvent extraction lab: at least $5,000 for each licensed premises, payable to the State of California on DCC Form 8113. Extraction method changes your license type and fees, not your bond. It is a small, continuous bond that stays in place for as long as the license does.
California's Department of Cannabis Control requires every annual manufacturing license applicant to provide 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. A California licensed corporate surety issues it on Form 8113. The bond pays the costs of destroying cannabis products when a violation makes destruction necessary, under Business and Professions Code section 26051.5(a).
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DCC issues five manufacturing license types. Type 7 uses volatile solvents for extraction or post-extraction processing. Type 6 uses non-volatile solvents or mechanical methods. Type N makes cannabis products through infusion and may package and label them. Type P can only package and label. Type S covers manufacturers operating in a shared-use facility, extracting with butter, food-grade oils, water, glycerin, vegetable oil, animal fat or mechanical methods, plus infusion and packaging.
None of that changes the bond. 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, with no tiers by license type or volume.
Business and Professions Code section 26051.5(a) requires a bond to cover the costs of destruction of cannabis or cannabis products if a violation makes destruction necessary. Those costs include DCC's administrative, investigatory and enforcement costs. For a manufacturer, that can mean extracts, infused products and finished packaged goods on site.
The bond is DCC Form 8113, the Commercial Cannabis Licensee Bond. It must be issued by a corporate surety licensed to transact surety business in California. Coverage begins 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. A business holding several licenses may use one aggregated bond.
Manufacturing licenses renew in DCC's CLEaR system, starting 60 calendar days before expiration, with the renewal and license fee due before the expiration date. Manufacturing license fees are calculated on gross annual revenue, so expect to upload revenue documentation such as tax filings or a profit and loss statement.
No. Type 7, Type 6, Type N, Type P and Type S all carry the same requirement under section 15002: at least $5,000 for each licensed premises.
Section 15002 allows an aggregated bond when the same business holds multiple licenses. The minimum remains $5,000 for each licensed premises, so confirm with DCC how the penal sum should be stated on an aggregated bond before it is issued.
A violation that makes it necessary to destroy cannabis or cannabis products. The bond reimburses the state's destruction costs, including administrative, investigatory and enforcement costs, up to the penal sum.
Form 8113 runs concurrently with the license period and stays in force until the surety cancels it. Keep it active and pay the renewal premium the surety bills so it does not lapse.
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