California Cannabis Surety Bonds
California adult use cannabis regulations have been released, and all new applicants must have a $5,000 product destruction surety bond payable to the state of California.
Who needs a bond?
- Event Planners
What is a Marijuana Surety Bond?
A surety bond is a contract among at least three parties:
- Obligee: State or Municipality administering the licensing.
- Principal: Company that is seeking licensing in the cannabis industry.
- Surety: Company obligated by a contract to pay a debt or perform a duty if the other person who is bound to pay the debt or perform the duty fails to do so.
The surety bond is taken out by the principal (cannabis company) with a surety (our surety provider) in order to provide assurance to the obligee (state or municipality) that the company will perform their duties as a licensed cannabis company. If the cannabis company were to be in non-compliance with the state or municipality, the state of California would be able to use the $5,000 bond to destroy cannabis products.
WHAT ARE THE STEPS TO GETTING A cannabis SURETY BOND?
- Fill out a surety company application
- Applicant credit score check