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California — Cannabis Cultivation License Bond

Match your California cultivation license and premises before arranging the DCC bond. Cultivation classes depend on production, lighting and plant count or mature flowering canopy; nursery and processor licenses cover distinct activities. DCC's commercial cannabis bond instructions require at least $5,000 for each licensed premises.

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Recorded state
California
Bond type
Cannabis / Marijuana Bond
Category
Business operations & taxes

What this bond does

Secure the State's commercial cannabis license condition for the actual cultivator and licensed premises, including violation-related destruction costs and the compliance duties in the accepted undertaking.

Who needs it
Cultivation applicants and licensees matching an outdoor, indoor, mixed-light, nursery or processor operation to DCC's actual license and bond request. The bond does not expand the activities or growing area the license authorizes.
Who it protects
The DCC-selected model names the State of California as obligee and addresses violation-required destruction of cannabis or cannabis products, MAUCRSA compliance and money due to the State under its condition. It does not insure a harvest or guarantee a private buyer's purchase.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details for cultivation class and licensed premises

DCC distinguishes outdoor, indoor and mixed-light cultivation and bases the class on the production and lighting method and plant count or canopy size. Canopy means the area of mature flowering plants, not automatically the whole parcel. Use the actual approved class and premises when identifying the license covered by the bond.

The guide separately identifies nursery cultivation for clones, immature plants, seeds and other propagation material. Its processor category concerns trimming, sifting, curing, drying, grading, packaging or labeling. Identify those activities accurately rather than assuming a processor license authorizes a growing operation or cannabis manufacturing.

The Form 8113 instructions call for at least $5,000 for each licensed premises and allow aggregation for multiple licenses of the same business. That minimum is not a per-plant or per-acre cultivation formula, and it does not automatically cover every property. Match the complete license and premises schedule, legal and trade names and the State's accepted undertaking.

The model's coverage runs from receipt of the license through its renewals, subject to cancellation, and its aggregate limit does not reset annually. It requires 30 days' written cancellation notice delivered to DCC and the principal, preserving earlier covered liability. DCC directs changes through Form 27 with the changed or new bond copy and Form 8113. Bond issuance does not grant cultivation or local land-use approval.

Sources

Have these ready

  1. Provide the legal licensee, trade or fictitious names, cultivation license numbers and actual premises addresses.
  2. Identify the approved production and lighting method, plant count or mature flowering canopy and any nursery or processor role.
  3. Match DCC's accepted condition, required sum and complete covered-license and premises schedule.
  4. Confirm license receipt, renewal continuity, aggregate coverage, cancellation provisions and execution authority.
  5. Use DCC's filing and change instructions and keep separate licensing and land-use approvals in place.

Questions about this bond

Does cultivation canopy size set a per-acre bond calculation?

DCC uses production, lighting and plant count or mature flowering canopy to distinguish cultivation classes. Its Form 8113 instructions instead specify at least $5,000 for each licensed premises. Match the actual Department request and covered sites rather than calculating a bond amount per plant or acre.

Does a cultivation processor license authorize growing?

DCC describes that category for operations limited to trimming, sifting, curing, drying, grading, packaging or labeling. Match the actual licensed activities; do not treat the processor label or a bond purchase as permission to cultivate plants or manufacture cannabis products.

What follows Purchase Now?

Propeller's California cannabis cultivation application opens in a new tab. Match the legal licensee, actual cultivation class and activities, premises, license schedule, DCC condition, sum, dates and signatures. File the issued evidence through the Department's process; payment does not approve a cultivation license, enlarge canopy authorization or grant local land-use approval.

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