The California Department of Food and Agriculture looks after and protects the state’s food safety practices. They also oversee the protection of the state’s agriculture and promote the growth of the agriculture industry. Their responsibilities also include oversight and regulation of food service professionals, food storage and transport companies, farmers, and growers.
The department enforces many laws that are specific to the industries that fall under the department’s jurisdiction. To help enforce these laws, the California Department of Food and Agriculture requires licensee applicants to also carry specific surety bonds relating to the license they wish to hold. These bonds help enforce the laws and protect the general public in the event that these laws are broken.
Common surety bonds that the California Department of Food and Agriculture requires:
California Cannabis Bonds
There are a variety of license requirements for any person doing business that deals with marijuana and cannabis. This includes cultivators, retailers, distributors, testing laboratories, event organizers, manufacturers, and more. If a person wishes to file for a license, they must first file for a California Cannabis Bond. The bond is typically in the amount of $5,000 but can be more depending on the business. Although the California Bureau of Cannabis Control is in charge of overseeing most business operations, the licensing and bonding requirements must go through CalCannabis. This is a division of the California Department of Food and Agriculture.
California Medical Marijuana Dispensary Bonds
If a business wishes to sell marijuana for medicinal purposes, they must first acquire the proper license. In order to be eligible for this license, a Medical Marijuana Dispensary Bond must first be obtained. This bond ensures that all laws and regulations are followed by the license holder, as well as all taxes and fees are paid.
California Produce Dealers Act Surety Bond
All produce dealers must obtain a license in order to do business in the state of California. Not all license holders must have a Produce Dealers Act Surety Bond to be granted a license. A surety bond is only required if the director of the Department of Food and Agriculture determines that there was a lack of financial responsibility by the license holder. This could be from delinquent accounts, bankruptcy, insolvency, and more. Even if they are not required to obtain a surety bond, some produce dealers obtain one to help protect themselves and their businesses in any situation.
California Milk Handler Bond
Any business that purchases, handles, or receives bulk unprocessed or pasteurized manufacturing milk must obtain the proper license in order to do business. That license also needs a surety bond for the license to be approved by the department. The amount of the surety bond depends on the number of gallons the business wishes to process. It can be anywhere from $5,000 to $20,000 or more.