Surety Bond Encyclopedia

Cannabis Commercial License Bond - Del Norte County, CA in California

Brief Summary

A cannabis business in Del Norte County needs a state license from the Department of Cannabis Control, and that license application has to include a $5,000 surety bond for each licensed premises. The bond is a small annual premium, and the same continuous bond carries through every renewal.

California Code of Regulations, Title 4, section 15002 requires every annual cannabis license application to include proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises. Operators in Del Norte County use DCC Form 8113, written by a corporate surety licensed in California. A business holding several licenses may use one aggregated bond.

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How to Apply for a Cannabis Commercial License Bond:

  • Count every licensed premises, since each one needs $5,000 in bond coverage.
  • Have the business legal name and all fictitious business names exactly as filed with the Department of Cannabis Control.
  • Complete the bond application and review the quoted premium.
  • Pay the premium and receive the signed bond on Form DCC-8113.
  • Upload proof of the bond with your annual license application.
  • For a later bond change, email the new bond and Form 27 to licensechange@cannabis.ca.gov.

Detailed Information About the California Cannabis Commercial License Bond:

One bond per premises

The figure most applicants get wrong is the count. The $5,000 requirement applies to each licensed premises, not to the business as a whole. A Del Norte operator with a cultivation site and a separate distribution premises needs bonding for both. The Department of Cannabis Control does allow an aggregated bond when the same commercial cannabis business holds multiple licenses, which can simplify the paperwork.

What the bond covers

Form DCC-8113 cites Business and Professions Code sections 26051.5 and 26070 and Title 4, section 15002 of the regulations. The bond runs to the State of California and covers the cost of destroying cannabis or cannabis products if a licensing violation makes destruction necessary. It also guarantees that the licensee, its agents and employees comply with the Medicinal and Adult Use Cannabis Regulation and Safety Act and pay any money owed to the state under it.

How long it lasts

The bond is continuous. It starts when the license is received and runs with the license through each renewal period until the surety cancels it. A surety must give the Department and the licensee 30 days written notice to cancel.

The county side

The state bond does not replace local approval. Del Norte County Code Chapter 20.67 bars commercial cannabis activity in the unincorporated county without a use permit, so applicants work through the county planning process as well as the state license. Confirm any county conditions of approval with Del Norte County before your bond is issued.

Changing the bond later

If you replace or change the bond after licensing, send a copy of the new bond on Form 8113 together with Form 27, Notifications and Requests to Modify a License, to licensechange@cannabis.ca.gov.

Eligibility and Requirements for a California Cannabis Commercial License Bond:

  • Bond of at least $5,000 for each licensed premises.
  • State of California named as obligee.
  • Department of Cannabis Control Form DCC-8113.
  • A corporate surety licensed to transact surety business in California.
  • Owner credit review, which mainly sets the premium rate.

California Cannabis Commercial License Bond FAQs:

How much is the bond?

At least $5,000 for each licensed premises, payable to the State of California, under Title 4, section 15002 of the California Code of Regulations.

I hold more than one license. Do I need separate bonds?

Not necessarily. The Department of Cannabis Control allows an aggregated bond when multiple licenses are held by the same commercial cannabis business.

Does the bond need to be renewed every year?

No. Form DCC-8113 is continuous and runs with the license through each renewal until the surety cancels it on 30 days written notice.

Does the state bond cover my Del Norte County permit?

No. The county requires a use permit for commercial cannabis activity in the unincorporated area. Check with Del Norte County for any local conditions tied to that permit.

What does the bond cost?

You pay a premium set by the surety after it reviews the owners' credit and the business. Many applicants receive a quote the same day.

Official and Additional Resources for the California Cannabis Commercial License Bond:

All Del Norte County, CA bonds · All California surety bonds