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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
The $5,000 figure is a floor counted per licensed premises, not one bond per company. Get the count right before the application goes in and the bond is a simple filing: one DCC Form 8113, the State of California as obligee, and a continuous bond that runs alongside the license so it does not have to be rewritten every license period.
California Business and Professions Code 26051.5(a)(10) requires every applicant for a state commercial cannabis license to provide proof of a bond covering the cost of destroying cannabis or cannabis products if a violation makes destruction necessary. The Department of Cannabis Control requires a surety bond of at least $5,000 for each licensed premises, payable to the State of California and written on DCC Form 8113.
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This is not a tax bond and it is not a general guarantee of good conduct. Business and Professions Code 26051.5(a)(10) ties it to one cost: destroying cannabis or cannabis products when a violation of the cannabis licensing law makes destruction necessary. The bond form itself repeats that purpose, covering destruction costs if necessitated by a violation of licensing requirements.
The Department of Cannabis Control (DCC) says an application for an annual cannabis license must include proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises. The requirement sits in section 15002 of the DCC regulations. A business that holds several licenses may use an aggregated bond instead of separate ones. Ask DCC how the aggregated amount should be stated before the bond is issued.
The bond goes on DCC Form 8113, Commercial Cannabis Licensee Bond (DCC-8113, New 10/2023). It must be issued by a corporate surety licensed to transact surety business in California. Coverage begins when the licensee receives its license, the bond is continuous in form, and it runs concurrently with the license period. The surety can cancel by giving 30 days written notice to the Department and to the licensee. The surety's attorney in fact signs a certification under penalty of perjury that the power of attorney is valid.
If you switch sureties or change the bond, DCC asks for Form 27 (Notifications and Requests to Modify a License), a copy of the new or changed bond and Form 8113, sent to licensechange@cannabis.ca.gov.
DCC requires at least $5,000 for each licensed premises. A business holding multiple licenses may use an aggregated bond instead of separate ones, but the amount still has to account for each premises. Confirm the aggregated figure with DCC before the bond is issued.
The bond in Business and Professions Code 26051.5(a)(10) is tied to the cost of destroying cannabis or cannabis products when a violation makes destruction necessary. That is the obligation the Form 8113 bond is written to cover.
The State of California. The bond is submitted to the Department of Cannabis Control as part of the annual license application.
Form 8113 is continuous in form and runs concurrently with the license period, so it stays in force until cancelled. The surety may cancel by giving 30 days written notice to the Department and to the licensee. Keep the premium paid so the surety has no reason to cancel.
Email licensechange@cannabis.ca.gov with Form 27, a copy of the new or changed bond and Form 8113.
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