California Tobacco Product Distributors are required under the California Cigarette and Tobacco Products Tax Law Section 30141 to file a California Tobacco Product Distributor Bond as a condition of licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The California Tobacco Product Distributor Bond holds you accountable for your business decisions.
By possessing a California Tobacco Product Distributor Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.