Calaveras County Commercial Cannabis Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Calaveras County Commercial Cannabis bond
At a Glance:
- Lowest Cost: $100 per year or $10 a month
- Bond Amount: $5,000
- Who Needs It: Individuals and businesses applying for a commercial cannabis cultivation permit in Calaveras County, California
- Purpose: To protect the county from financial harm if the permit holder fails to dispose of all cannabis and clean up all trash and debris if ordered to as a result of a permit violation
- Who Regulates Commercial Cannabis Permits in Calaveras County: The Calaveras County Division of Cannabis Control
Background
Calaveras County Ordinance 17.95.060 requires all persons seeking to engage in commercial cannabis cultivation activity to obtain a permit from the Division of Cannabis Control. The Calaveras County Board of Supervisors enacted the permit requirement to ensure that those seeking to cultivate cannabis for commercial purposes do not engage in unethical business practices. To provide financial security for the enforcement of the permitting law, applicants must purchase and maintain a $5,000 surety bond to be eligible for a permit.
All individuals and businesses conducting commercial cannabis operations in California must obtain a state license from the Department of Cannabis Control and purchase a $5,000 surety bond per license activity. The $5,000 surety bond for Calaveras County is in addition to, not instead of, the state requirement.
What is the Purpose of the Calaveras County Commercial Cannabis Bond?
Calaveras County requires all persons seeking to cultivate cannabis for commercial purposes to purchase a surety bond as part of the application process to obtain a commercial cannabis cultivation permit. The bond ensures that the Division of Cannabis Control will receive compensation for financial harm if the permittee fails to abide by the regulations outlined in Calaveras County Ordinance 17.95.070. Specifically, the bond protects the Division if the permittee fails to properly destroy all cannabis and clear all waste and debris as a result of a violation of permitting law. In short, the bond is a type of insurance that protects the public if the permittee violates permitting law.
How Can an Insurance Agent Obtain a Calaveras County Commercial Cannabis Bond?
BondExchange makes obtaining a Calaveras County Commercial Cannabis bond easy. Simply log in to your account and use our keyword search to find the “commercial cannabis” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Calaveras County Commercial Cannabis Bond?
Surety companies will run a credit check on the permitee to determine eligibility and pricing for the California Commercial Cannabis bond. Permitees with excellent credit and work experience can expect to receive the best rates. Permitees with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the permitee’s credit.
How Much Does the Calaveras County Commercial Cannabis Bond Cost?
The Calaveras County Commercial Cannabis surety bond can cost anywhere between $100 to $400 per year or $10 to $40 per month. Monthly subscription options are also available. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on the $5,000 bond requirement.
$5,000 Commercial Cannabis Bond Cost
| Credit Score* | Bond Cost (1 Year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $100 | $10 |
| 660 – 679 | $125 | $13 |
| 649 – 659 | $150 | $15 |
| 629 – 648 | $200 | $20 |
| 619 – 628 | $250 | $25 |
| 600 – 618 | $275 | $28 |
| 580 – 599 | $300 | $30 |
| 550 – 579 | $325 | $33 |
| 525 – 549 | $350 | $35 |
| 500 – 524 | $400 | $40 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Calaveras County Commercial Cannabis Bond?
Calaveras County requires applicants to purchase a surety bond as a prerequisite to obtaining a commercial cannabis cultivation permit. To paraphrase Calaveras County Ordinance 17.95.020, “cultivation” includes planting, growing, harvesting, drying, curing, grading, or trimming cannabis.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How do Applicants Obtain a Commercial Cannabis Cultivation Permit in Calaveras County?
Persons engaging in commercial cannabis cultivation activity in Calaveras County must navigate several steps to obtain a permit. Below are the general guidelines, but applicants should refer to the county’s permitting ordinances and the application forms for details on the process.
Permit Period – Permit holders must pay an annual continuation fee that is due at least 30 before the anniversary of their permit’s validation
Step 1 – Meet the Eligibility Requirements
Calaveras County Ordinance 17.95.050 dictates that applicants must meet all of the following criteria to be eligible for a permit.
-
- Registered with the Planning Department before June 30, 2016, under the urgency ordinance program
- The registration was not withdrawn or denied
- Submitted an application for a temporary state license before June 7, 2018
- The temporary state license was never suspended or revoked
Prospective applicants that do not meet all of these requirements may purchase or procure the right to apply from someone who does.
Step 2 – Obtain a State License
California requires all persons engaging in commercial cannabis activity to obtain a state license from the Department of Cannabis Control. The state license and all of its requirements are in addition to, not instead of, the Calaveras County permit and its requirements.
To obtain a state license, applicants must:
-
- Determine their license classification
- Purchase a $5,000 surety bond
- Submit a completed application online here
More information on how to obtain a state license can be found on our California Commercial Cannabis License bond page located here.
Step 3 – Complete the Pre-Application Forms
Applicants must complete all required pre-application forms and submit them to the Division of Cannabis Control at the following address:
891 Mountain Ranch Road
Building E
San Andreas, CA 95249
Applicants must submit the following attachments with their pre-application forms:
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- Proof of the designated responsible party’s authority (if applicable)
- Transfer of right to apply (if applicable)
- No Cash Policy Waiver form (if applicable)
- Proof of ownership
- Landowner consent (if applicable)
- Indemnity Agreement
Additionally, permit applicants must obtain a business license for their cultivation site.
Step 4 – Pay the Application Fee
Once the Department approves the pre-application, they will set up an appointment for the applicant to pay the $12,561 application fee and receive their letter of conditional authorization.
Step 5 – Pass Inspection
Applicants must pass a site inspection, administered by the Division of Cannabis Control, before receiving their full permit.
Step 6 – Purchase a Surety Bond
Commercial Cannabis Cultivation Permit holders must purchase and maintain a $5,000 surety bond.
How do Permit Holders Renew the Calaveras County Commercial Cannabis Cultivation Permit?
Permittees can renew the Calaveras County Commercial Cannabis Cultivation permit by submitting a completed Annual Permit Continuation form, including a $2,606 fee, to the Division of Cannabis Control at the following address:
891 Mountain Ranch Road
Building E
San Andreas, CA 95249
The annual continuation fee is due at least 30 before the anniversary of the permit’s validation.
What are the Insurance Requirements for California Commercial Cannabis License Holders?
Calaveras County does not require applicants to purchase any form of liability insurance as a prerequisite to obtaining a Commercial Cannabis Cultivation permit. Permittees must purchase and maintain a $5,000 surety bond to obtain their county permit, as well as an additional $5,000 surety bond to obtain a state license.
How do Calaveras County Commercial Cannabis Cultivation Permit Holders File Their Bonds?
Commercial Cannabis Cultivation Permit holders in Calaveras County should submit their completed bond forms, including the power of attorney, to the Division of Cannabis Control at the following address:
891 Mountain Ranch Road
Building E
San Andreas, CA 95249
The surety bond requires signatures from the surety company and the permittee. The surety company should include the following information on the bond form:
- Premium on the bond
- Legal name and address of the individual buying the bond
- Surety company’s name, state of incorporation, address, and address for service of process
- Date the bond goes into effect
- Date the bond is signed
What Can Calaveras County Commercial Cannabis Cultivation Permit Holders Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, Commercial Cannabis Cultivation Permit holders in Calaveras County must ensure that they properly destroy all cannabis and clear all waste and debris as a result of a violation of permitting law.
What Other Insurance Products Can Agents Offer Commercial Cannabis Cultivation Permit Holders in Calaveras County?
Most reputable Commercial Cannabis Cultivation Permit holders will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Calaveras County Commercial Cannabis Cultivation Permit Holders?
Calaveras County unfortunately does not provide a public database of active Commercial Cannabis Cultivation permit holders in the county. We suggest contacting the Division of Cannabis Control to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
