California Medical Marijuana Cultivation Surety Bonds

Who requires a Medical Marijuana Surety Bond in California?

Medical marijuana and other licensed marijuana businesses that operate in California are subject to surety bond requirements. There are three California state government agencies that are tasked with regulating and licensing marijuana businesses:

California Bureau of Cannabis Control

Licenses and regulates retailers, distributors, testing laboratories, micro-businesses and temporary cannabis events

California Department of Food and Agriculture

Licenses and regulates marijuana cultivators

California Department of Public Health – Manufactured Cannabis Safety Branch

Licenses and regulates marijuana manufacturers

In addition to the state requirements, California allows local city and county governments to pass their own ordinances regulating marijuana businesses, as long as they comply with the state’s regulations. The cities of Los Angeles, Coalinga, Palm Springs, Lake Elsinore, Shasta Lake and Yolo County have all passed legislation establishing local marijuana bond requirements. Please contact your state or local authority for specific information regarding the requirements in your area.

How much are California Medical Marijuana Surety Bonds written for?

The penalty amount for this type of bond is typically $5,000, but will vary depending on which type of business license you are applying for and the jurisdiction it falls under. Pacific Surety is proud to offer the following California Medical Marijuana Surety Bonds:

If you do not see the bond type you require, please contact us and one of our knowledgeable underwriters will assist you with your bond.

How much does a California Medical Marijuana Surety Bond cost?

Pricing for California Medical Marijuana Surety Bonds will differ from applicant to applicant, and your premium will be based on a number of different factors, including the following:

Type of Bond
Amount of the bond
Personal credit of the applicant

Individuals with good credit can expect to pay .5%-5% of the bond amount. This means qualified applicants could pay as little as $100 annually for a $5,000 California Medical Marijuana Bond. To find out how much your Bond is going to cost, please complete our online application for your free, no obligation price quote.

Can I get a California Medical Marijuana Surety Bond with bad credit?

Pacific Surety offers a wide range of approvals, regardless of credit, for California Medical Marijuana Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants regardless of how bad their credit is, and our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.

How do I get a quote for a California Medical Marijuana Surety Bond?

The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.

After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.

How do Medical Marijuana Surety Bonds work in California?

Depending on the specific area and its current marijuana legislation, these license and permit surety bonds can range in type and scope. Many ensure that all applicable taxes and fees associated with the operation are met in a satisfactory manner, while others can address specific matters such as the THC content of the plant and its associated products or payments related to the cost incurred for the destruction of cannabis goods in the event of a violation. California Medical Marijuana Surety Bonds ensure that the associated growers, manufacturers and retailers adhere to all applicable laws and regulations.

The bond also provides financial relief for parties harmed by the licensed medical marijuana business. If a claim is filed against the bond and it is found to be valid, the surety company will pay out up to the penal sum of the bond to resolve the claim. Any monies paid out by the surety, including attorney’s fees, must be reimbursed by the principal (medical marijuana business).

Do California Medical Marijuana Surety Bonds renew every year?

Yes, these license and permit surety bonds have an annual term and must be renewed every year they are in force. The surety company will review the personal credit report of all owners of the medical marijuana business and provide renewal pricing 90 to 120 days in advance of the bonds expiration date. Please contact our knowledgeable underwriting staff for any questions you have regarding this type of bond.

California Medical Marijuana Surety Bonds