California now boasts the largest legal market for recreational marijuana in the US after new laws came into effect on January 1, 2018 that legalized the industry within the state. However, businesses that think hopping into this new market will be a quick and easy process will be in for a surprise! The legalization of marijuana for recreation has come with a hefty list of requirements that a business will need to meet in order to legally grow, process, or sell marijuana within California.
New Rules and Regulations
It’s fair to say that California didn’t exactly give marijuana businesses in the state a lot of time to prepare for the transition to the new regulations, with requirements and application steps only being finalized just over 6 months before the new laws took effect. Although some people may think that the new rules are excessive, California is being careful to create an industry that provides a safe product for consumers.
Let’s take a closer look at some of the steps you’ll need to take to legally operate a business in California’s recreational or medical marijuana industry. There are several boxes a business will need to check off in order to be approved in the state. The first is that the business will need to be licensed at both local and state level, this is to ensure that both local and state agencies have a clear idea of the businesses that are operating in their jurisdiction. Many businesses are surprised to learn that a surety bond is a key requirement of the licensing process and is required at state level and may also be needed at local level. Put simply, a business will need at least one $5,000 California Marijuana surety bond for state licensing and may need an additional bond of $5,000-$25,000 to get locally licensed to cultivate, grow, distribute, manufacture, or sell marijuana in California.
Surety bonds are used as part of licensing processes to give states a form of financial security to fall back on should the licensed business fail to follow all rules and regulations. Although they are often mistaken for insurance, they are not an insurance product and do not provide protection for the business.
Getting a California Marijuana Surety Bond
Viking Bond Service is a leading bonding company serving California and the entire US and can help you secure the $5,000 California marijuana surety bond needed for state licensing and any other bonds you may need for local licensing. Our experienced team of bond agents can help you identify the bonds you need and secure an affordable bond in a few simple steps. Use our online application to get started!