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California — Cannabis Microbusiness License Bond

A California Type 12 microbusiness combines at least three eligible cannabis activities at one location. Match that actual DCC license and premises when arranging the State licensee bond. DCC's annual-license requirement calls for at least $5,000 in surety security for each licensed premises; a microbusiness label does not authorize activities missing from the license.

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

What this bond does

Secure the microbusiness's State commercial-cannabis licensing condition, including required product destruction after a licensing violation and the compliance and State-payment duties in DCC's accepted licensee bond.

Who needs it
California Type 12 applicants and licensees coordinating bond proof for the actual combination of cultivation, permitted manufacturing, distribution or retail activities at their licensed location.
Who it protects
The State of California is protected under DCC's published Form 8113. Its condition covers the principal and its representatives' licensing compliance, lawful destruction when required and monies due to the State under MAUCRSA. It is not a general guarantee of a microbusiness's sales, customer refunds or private contracts.

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 the combined activities and licensed location

DCC describes Type 12 as at least three eligible activities at one location. Its guide lists cultivation within its stated categories and area limit; manufacturing using non-volatile solvents, mechanical extraction or infusion; distribution or transport-only distribution; and storefront or non-storefront retail. Match the approved combination rather than treating a microbusiness license as permission for every cultivation or manufacturing method.

The State's current Form 8113 instructions require annual-license bond proof for each licensed premises, with an admitted California corporate surety. DCC permits aggregation when multiple licenses belong to the same commercial cannabis business. Confirm the actual required total and covered premises; a list of several activities is not itself an approved aggregate schedule.

The model's term begins when the principal receives its license, runs with the license and succeeding renewals, and limits aggregate liability to the penal sum. Thirty days' written cancellation notice must be delivered to DCC and the principal. Earlier matters remain subject to the bond after cancellation; do not assume annual license renewal automatically restores a separate claim limit.

For a bond change, DCC asks for Form 27, a copy of the new or changed bond and Form 8113. Coordinate the legal principal, trade names, premises and actual licensed activities before submitting the security. Keep that filing distinct from approval to add another activity or operate at a different location.

Sources

Have these ready

  1. Identify the Type 12 legal applicant, trade names and exact licensed premises.
  2. Provide the approved or proposed combination of eligible activities.
  3. Match DCC's accepted licensee undertaking and State obligee.
  4. Confirm required sum and any actual approved aggregation or license-change record.
  5. Complete signatures and the Department's new-or-changed-bond submission.

Questions about this bond

Does Type 12 authorize all cannabis activities?

No. DCC describes a combination of at least three eligible activities at one location and limits the listed cultivation and manufacturing activities. Match the actual license and permitted methods; the bond does not expand them.

Does listing several activities establish an aggregated bond?

No. DCC's aggregation instruction concerns multiple licenses held by the same commercial cannabis business. Confirm the required total and actual covered license/premises schedule. The activity list alone is not an approved aggregation.

What follows Purchase Now?

Propeller's California cannabis microbusiness application opens in a new tab. Match the Type 12 principal, licensed premises and activities, DCC-accepted undertaking, required sum, dates and execution. File the Department's bond proof or change documents; provider payment does not award the license or authorize another activity or location.

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