Connecticut Marijuana Surety Bond
Connecticut medical marijuana production facilities post two large cannabis performance bonds with the Connecticut Department of Consumer Protection (DCP): a $2,000,000 construction bond and a $1,500,000 operation bond. Connecticut also operates an adult-use cannabis program following the passage of the Responsible and Equitable Regulation of Adult-Use Cannabis Act in June 2021. Different license categories have different financial assurance requirements.
We have been writing surety bonds since 1971. If you are facing this requirement, call us at 800-333-7800 or request a free quote online. Cannabis bond regulations are fairly new and constantly changing, so feel free to reach out to us regarding the latest underwriting and pricing policies that apply to your specific situation.
Connecticut Medical Producer Bonds
The Connecticut medical cannabis producer is subject to two performance bond requirements:
- Construction Performance Bond: $2,000,000. Required for the construction of the production facility.
- Operation Performance Bond: $1,500,000. Required for ongoing operation of the production facility.
The Department of Consumer Protection allows the operation bond amount to be reduced upon meeting certain milestones. If the production facility remains operational without substantial interruption and without violations of state rules for a one-year period, the operation bond may be reduced to $1,000,000. Additional reductions can apply for continued clean operation over additional consecutive years.
Adult-Use Cannabis in Connecticut
Connecticut’s adult-use cannabis program operates under Public Act 21-1 (the Responsible and Equitable Regulation of Adult-Use Cannabis Act, passed June 2021). The program is administered by the Connecticut Department of Consumer Protection through its Drug Control Division. Adult-use licenses include cultivator, micro-cultivator, retailer, hybrid retailer, product manufacturer, food and beverage manufacturer, product packager, delivery service, transporter, and others. Financial assurance and bond requirements vary by license type. Call us at 800-333-7800 to confirm what applies to your specific category.
Statute and Regulator
Connecticut’s medical marijuana program operates under Connecticut General Statutes Chapter 420f, and the adult-use program operates under Public Act 21-1 and subsequent amendments. Both are administered by the Connecticut Department of Consumer Protection.
What Underwriting Looks Like
The medical producer bonds are large. As a general rule, bonds over $10,000 typically require a credit check on the company owners, and bonds at this size require company financials. Carriers will typically want personal credit reports for owners, audited or reviewed financials, construction progress and operational readiness documentation, and a compliance record with the DCP if applicable. For first-year licensees, additional collateral may be required by some carriers.
Cannabis bond underwriting standards are evolving, so reach out to us at 800-333-7800 for guidance specific to your situation.
Connecticut Cannabis Bond FAQs
How much is the Connecticut medical cannabis producer construction bond?
$2,000,000.
How much is the operation bond?
$1,500,000, reducible to $1,000,000 after one year of clean operation, with additional reductions possible thereafter.
Who is the obligee?
The Connecticut Department of Consumer Protection (DCP).
What about adult-use licenses?
Adult-use license categories under PA 21-1 have varying financial assurance requirements. Call us at 800-333-7800 to confirm what applies to your license.
How long does it take to get bonded?
Timelines depend on the size of the bond, your credit, and the completeness of your financials. Call us at 800-333-7800 and we will tell you exactly where you stand.
Get Your Connecticut Cannabis Bond Today
Connecticut’s medical producer bonds are among the larger cannabis surety requirements in the country. We have been writing surety bonds since 1971 and we work with the carriers that have appetite for Connecticut cannabis bonds. Call 800-333-7800 or request a free quote online. See our national cannabis surety bond page for broader context.