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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
Lab owners tend to focus on ISO/IEC 17025 accreditation and treat everything else as paperwork. The bond is its own line item. A Type 8 testing laboratory license needs proof of a surety bond of at least $5,000 for each licensed premises, payable to the State of California on DCC Form 8113, and accreditation does not stand in for it.
California's Department of Cannabis Control requires a Type 8 testing laboratory 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. The bond is written by a California licensed corporate surety on Form 8113 and covers the state's costs of destroying cannabis or cannabis products if a violation makes destruction necessary, under Business and Professions Code section 26051.5(a).
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DCC issues one testing laboratory license, Type 8, for labs that test cannabis goods before they are sold at a retailer. Labs must obtain and maintain ISO/IEC 17025 accreditation, and an interim testing license is available while accreditation is in progress. Those are licensing conditions. The bond is a different requirement in the annual license application.
Section 15002 of Title 4 of the California Code of Regulations calls for proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises. A lab operating at more than one licensed premises needs coverage for each. 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 of the cannabis laws makes destruction necessary. Those costs include DCC's administrative, investigatory and enforcement costs. A lab holds samples received from licensees, and the bond backs the state's cost if any of that material has to be destroyed.
The bond is written on DCC Form 8113, the Commercial Cannabis Licensee Bond, by a corporate surety licensed to transact surety business in California. It takes effect when the license is received and runs concurrently with the license period. The surety can cancel only with 30 days written notice to the department and the lab. Bond changes go to licensechange@cannabis.ca.gov with Form 27, a copy of the new bond and Form 8113.
Lab 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 license expires. Testing laboratory license fees are calculated on gross annual revenue, so renewal includes revenue documents such as tax filings or a profit and loss statement.
Yes. Accreditation is a separate condition of the Type 8 license. Section 15002 still requires proof of a surety bond of at least $5,000 for each licensed premises with the annual application.
No. Section 15002 uses the same floor for every annual license: at least $5,000 payable to the State of California for each licensed premises.
The costs of destroying cannabis or cannabis products when a violation makes it necessary, including administrative, investigatory and enforcement costs. The surety's total liability is limited to the penal sum.
Email Form 27, a copy of the new or changed bond and Form 8113 to licensechange@cannabis.ca.gov.
The surety quotes an annual premium after reviewing the owners' credit and the business. The $5,000 figure is the coverage amount, not the price.
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