Cannabis Commercial Operations ($25,000) Bond - City of Coalinga, CA in California

Brief Summary

Coalinga will not issue a commercial cannabis regulatory permit without proof of a $25,000 bond. Posting it through a surety costs a yearly premium rather than $25,000 in cash, and the bond stays with you through each annual renewal with the Police Chief.

Coalinga Municipal Code Section 9-5.128(x) requires every applicant for a commercial cannabis regulatory permit covering cultivation, manufacturing, testing, transportation or distribution to provide proof of a $25,000 bond. The bond pays the cost of destroying cannabis or cannabis products if a violation of the licensing requirements makes destruction necessary. Regulatory permits are issued by the Police Chief, last one year, and must be renewed at least 45 days before they expire.

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How to Apply for a Cannabis Commercial Operations ($25,000) Bond:

• Process a conditional use permit before or with the regulatory permit application.
• Obtain the $25,000 bond naming the City of Coalinga as obligee.
• File the regulatory permit application with the Police Chief, with proof of bond and the nonrefundable application fee.
• Complete fingerprinting and background checks for owners, employees and contractors.
• Renew the permit at least 45 days before the one year expiration date and keep the bond in force.

Detailed Information About the California Cannabis Commercial Operations ($25,000) Bond:

What the bond is for

Most applicants assume this is a general compliance bond. It is narrower than that. Section 9-5.128(x) of the Coalinga Municipal Code says the $25,000 bond covers the costs of destruction of cannabis or cannabis products if a violation of licensing requirements makes destruction necessary. If the City has to destroy product at your site, the bond pays for it. The amount is a single flat figure with no tiers.

Who posts it

Section 9-5.128 governs commercial cannabis cultivation, manufacturing, testing, transportation and distribution in Coalinga. Any business owner applying for a regulatory permit under that section must show proof of the bond. A conditional use permit must be processed before or alongside the regulatory permit application.

How the permit works

Applications are filed with the Police Chief, who runs background checks on the applicant, employees and independent contractors before approving or denying the permit. Each application carries a nonrefundable fee set by City Council resolution, in addition to any business license fee. Regulatory permits expire one year after issuance. Renewal applications are due at least 45 days before expiration with the renewal fee. The Police Chief renews for another year if nothing material has changed since the original application.

The bond is one of several conditions

The same section requires liability insurance with the City named and a 30 day notice of cancellation, an annual regulatory license fee, a site at least 930 feet from any existing or proposed school, and security measures set by the Police Chief. Keep the bond active for as long as the permit is in force.

Eligibility and Requirements for a California Cannabis Commercial Operations ($25,000) Bond:

• Bond amount of $25,000 under Coalinga Municipal Code 9-5.128(x).
• Bond conditioned to cover cannabis destruction costs caused by a licensing violation.
• Business owner includes officers and any shareholder holding 20 percent or more.
• Liability insurance naming the City, with 30 days notice of cancellation.
• Annual regulatory license fee and business license fee paid.

California Cannabis Commercial Operations ($25,000) Bond FAQs:

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