California Cannabis Surety Bond (DCC Form 8113)
Every annual commercial cannabis license application in California still has to show a surety bond. The current Department of Cannabis Control path is Form 8113 — Commercial Cannabis Licensee Bond: a bond of at least $5,000 payable to the State of California for each licensed premises, issued by a corporate surety licensed to transact surety business in California. That number is the penal sum — the face amount the State can call — not the premium you pay the surety.
Lions & Coventry Insurance Services is an independent brokerage in Citrus Heights that places cannabis business insurance and surety for licensed operators. This page is a field guide to the bond itself. It is brokerage guidance, not legal advice. Confirm current text with DCC and your license counsel before you treat any summary as complete.
What the regulation and Form 8113 actually require
DCC’s Form 8113 page states the rule plainly: under Section 15002 of the regulations, an application for an annual cannabis license must include proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises. Bonds must come from a corporate surety licensed in California. An aggregated bond may be used when the same commercial cannabis business holds multiple licenses. Primary source: DCC Form 8113.
If the bond changes after licensure, DCC directs licensees to email licensechange@cannabis.ca.gov with Form 27 (Notifications and Requests to Modify a License), a copy of the new or changed bond, and Form 8113. Do not assume a phone call to your broker updates the State file — the paper has to land in DCC’s inbox.
What the $5,000 bond is — and is not
- It is surety, not insurance. A three-party agreement: you (principal), the State of California (obligee), and the surety company. If the State has a covered claim against the bond, the surety pays the obligee and can seek reimbursement from you. That is different from a liability policy that pays on your behalf without a standard indemnity backcharge.
- It is not general liability, product liability, or property. Landlords, distributors, and trading partners who want a certificate of insurance are asking for a different instrument. Distributor CGL minimums live in a separate regulation (4 CCR §15308) — see our California cannabis insurance overview.
- It is not "free coverage" for tax mistakes. Older industry write-ups sometimes framed the bond as a catch-all for unpaid taxes or unfinished buildouts. Treat those as historical commentary. Your live obligation is the Form 8113 / Section 15002 path DCC publishes today, plus whatever your local permit or landlord separately requires.
- Premium is not $5,000. You post collateral or pay a bond premium that is a fraction of the penal sum, based on credit, entity history, and surety appetite. Shop the surety and the indemnity language — not just the cheapest quote that still uses the wrong form.
Per-premises math and aggregated bonds
One premises, one $5,000 floor on the DCC form path. Multiple licensed premises under the same business can sometimes sit on an aggregated bond instead of a stack of separate five-thousand-dollar instruments — still issued by a California-licensed corporate surety, still payable to the State. When you add a second location or split licenses, ask whether the existing bond already covers the new premises or whether DCC needs a rider, increase, or new Form 8113 package. Getting licensed on paper and leaving a premises off the bond is how renewals get messy.
How operators get stuck
The bond is usually the easy line item until something changes. Common friction we see from Citrus Heights:
- Entity name on the bond does not match the DCC license or the SOS filing.
- Premises address on the bond does not match the licensed location.
- Surety cancellation or non-renewal with no replacement filed before the old bond ends.
- Operator treats a landlord’s lease bond or a city business-tax bond as a substitute for Form 8113 — they are not interchangeable.
- Broker of record changes mid-term and nobody resubmits the change packet to licensechange@cannabis.ca.gov.
Bring the current license, premises list, and any prior bond PDF when you call. We would rather rebuild the submission once than explain a DCC deficiency letter after you already scheduled an inspection.
Where this sits in the cannabis insurance silo
The surety bond is a licensing condition. The insurance program is what keeps landlords, employees, and product claims from becoming existential. Read this page next to:
- Cannabis business insurance (hub)
- Cannabis insurance in California (DCC / surplus-lines pillar)
- Surety bonds (broader surety overview)
- Contact for a live review
California cannabis surety bond FAQ
Short answers for California cannabis operators preparing a DCC bond, renewal, or premises change. Brokerage guidance — not legal advice. Confirm current requirements with the Department of Cannabis Control and your license counsel.
What is the DCC Form 8113 bond?
Form 8113 is the Commercial Cannabis Licensee Bond used for the California licensing process. It is a surety bond payable to the State of California, generally for at least $5,000 per licensed premises, issued by a corporate surety licensed to transact surety business in California. The business is the principal, the State is the obligee, and the surety issues the bond. Review the current DCC form and instructions for your application.
Is the $5,000 the bond premium?
No. The $5,000 is the minimum penal sum, or face amount, on the DCC bond path — not the premium you pay. A surety evaluates the applicant and may require an application, indemnity, collateral, or other underwriting information. Premium and underwriting terms vary by applicant and surety, so do not treat the penal sum as a quoted price or assume a premium without an actual quote.
Is the cannabis surety bond the same as general liability insurance or a COI?
No. A surety bond is a three-party agreement connected to the licensing obligation; it is not general liability, product liability, property insurance, or a certificate of insurance. A COI is evidence of insurance and does not replace Form 8113. Landlords, distributors, and other partners may request a COI or endorsements separately. See the cannabis business insurance hub and California cannabis insurance guide for the insurance side.
Can one aggregated bond cover multiple licensed premises?
Sometimes. The DCC materials allow an aggregated bond for a commercial cannabis business with multiple licenses, but the structure still has to satisfy the current DCC requirement and be issued by a California-licensed corporate surety. Ask the surety or broker to confirm every licensed premises, entity name, penal sum, effective date, and any rider or amendment before adding or moving a location. Do not assume an existing bond automatically covers a new premises.
How do I replace a cancelled bond, and what should I email DCC?
Start with a replacement bond before the current bond ends, then confirm the current DCC change process. DCC directs licensees changing a bond to email licensechange@cannabis.ca.gov with Form 27 (Notifications and Requests to Modify a License), a copy of the new or changed bond, and Form 8113. Keep the submission and confirmation for your records. A broker call does not by itself update the State file. For a bond review, call (916) 967-7715 or use our contact form. Office: Citrus Heights, CA — License #0G22084.
Talk to a Citrus Heights cannabis broker about Form 8113
Licensing up, adding a premises, or replacing a cancelled bond? Call (916) 967-7715. Office: 7816 Uplands Way, Ste C, Citrus Heights, CA 95610. License #0G22084. Monday—Friday 9am—5pm. Or use our contact form. Bring licenses, premises addresses, and the last bond PDF. We will tell you what the surety needs and what still has to go to DCC — without confusing a $5,000 penal sum with a liability policy.
Sources: DCC Form 8113: Commercial Cannabis Licensee Bond (Section 15002 cite on that page); DCC application resources summarizing the $5,000-per-premises requirement.