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California Cannabis Bonds: The State $5,000, Plus Local Permits

California cannabis bonding has two layers: a $5,000 bond every state licensee posts, and the separate local permit bonds some cities and counties require. Here is how both work, and what each costs.

Illustration for the guide: California Cannabis Bonds: The State $5,000, Plus Local Permits

The state bond: $5,000

Every California cannabis license carries a $5,000 surety bond, payable to the state and filed with the Department of Cannabis Control. It is a condition of getting and keeping your license, and it helps cover the cost of destroying cannabis goods if that ever becomes necessary. One bond, per license, statewide.

Local permit bonds vary

Cannabis is also permitted locally, and a city or county that licenses cannabis businesses can require its own permit or regulatory bonds on top of the state bond. These local bonds vary widely.

  • Los Angeles runs its own cannabis permitting through the city.
  • Oakland and other cities operate local cannabis programs too.
  • Your jurisdiction may differ. Amounts, and whether a bond is required at all, change from place to place.

Because local rules move, confirm the exact requirement with your local cannabis authority rather than assuming.

What each costs

These are small bonds. The $5,000 state bond carries a modest annual premium, and most local permit bonds are inexpensive too. Your exact price depends on the bond amount and your credit, which is why a quick quote beats a guess.

We place state and local cannabis bonds

We handle the $5,000 state cannabis bond and the local permit bonds a city or county may add, so you can license and operate without chasing paper. See our commercial bonds for the full list.

Questions

FAQs

Reviewed by Michael Melshenker, CEO. Updated June 2026.

How much is the California state cannabis bond?
It is a $5,000 surety bond, payable to the state and filed with the Department of Cannabis Control. Each state license carries one. It helps cover the cost of destroying cannabis goods if that becomes necessary.
Do cities require their own cannabis bonds?
They can. Cities and counties that permit cannabis businesses, such as Los Angeles and Oakland, may require local permit or regulatory bonds that vary by jurisdiction. Confirm the exact requirement with your local cannabis authority.
What does a cannabis bond cost?
The $5,000 state bond carries a small annual premium, and most local bonds are modest too. Exact pricing depends on the bond amount and your credit, so a quick quote beats a guess.