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California — Commercial Cannabis Licensee - Lex Bond

California DCC requires annual-license applicants to show a surety bond of at least $5,000 payable to the State for each licensed premises. For this Commercial Cannabis Licensee - Lex option, prepare the actual license and premises record and match the issued undertaking to DCC's accepted form. The catalog wording does not itself authorize cannabis activity.

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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 licensing obligation, including required destruction of cannabis or cannabis products after a licensing violation and the other compliance and State-payment duties in DCC Form 8113.

Who needs it
California commercial-cannabis businesses responding to DCC's annual-license bond requirement and selecting this particular catalog option. Identify the actual licensed activity, legal principal and premises before applying.
Who it protects
The State of California is the obligee in DCC's published model. Its condition concerns compliance by the principal and its agents and employees, lawful destruction when required, and monies due to the State under MAUCRSA. It does not establish general customer, landlord or business-debt protection.

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 premises and accepted State form

DCC's current Form 8113 page states the minimum security for each licensed premises and requires a corporate surety licensed to transact surety business in California. It allows an aggregated bond when multiple licenses are held by the same commercial cannabis business. Confirm the actual total and covered license/premises schedule with DCC; a single $5,000 entry does not establish that every location is covered.

The published model includes the principal's fictitious and trade names and service addresses, identifies the State as obligee and describes the destruction and compliance condition. Use the actual DCC-accepted undertaking for this option. Do not treat the Lex suffix as a substitute for the license record or assume it makes this option interchangeable with every other cannabis listing.

The model starts upon the principal's receipt of its license and runs continuously with the license and succeeding renewals until cancellation under its terms. Aggregate surety liability is limited to the bond's penal sum. The surety's thirty-day written cancellation notice goes to both DCC and the principal; cancellation does not erase liability for earlier matters.

For a new or changed bond, DCC's current instructions call for Form 27, a copy of the new or changed bond and Form 8113. Keep that Department filing separate from the provider application. An issued bond is security for the licensing process, not approval to open or expand a premises.

Sources

Have these ready

  1. Identify the legal applicant, all relevant trade names and service address.
  2. Provide the actual DCC license/application and licensed-premises record.
  3. Match Form 8113, the State obligee and any approved aggregated schedule.
  4. Confirm the required penal sum, license-triggered commencement and continuation.
  5. Complete principal and surety execution and DCC's new-or-changed-bond submission.

Questions about this bond

Does one bond automatically cover all my locations?

DCC states a requirement for each licensed premises and permits aggregation for multiple licenses held by the same commercial cannabis business. Confirm the approved total and schedule; the catalog entry alone does not show which premises an issued bond covers.

Does cancellation remove earlier liabilities?

DCC's published model preserves liability for matters occurring before cancellation takes effect. It requires thirty days' written notice to both the Department and principal and distinguishes later transactions from earlier matters.

What follows Purchase Now?

Propeller's California Commercial Cannabis Licensee - Lex application opens in a new tab. Match this option to the legal applicant, actual DCC license and premises, accepted undertaking, required sum and execution. File the required Department documents; provider payment does not award or amend the license.

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