Hawaii Medical Marijuana Dispensary Bond
If you are licensed (or applying to be licensed) to operate a medical marijuana dispensary in Hawaii, state law requires you to post a $1,000,000 cannabis surety bond. The requirement is set out in Hawaii Act 241 and is administered by the Hawaii Department of Health through its Office of Medical Cannabis Control and Regulation.
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.
Who Needs a Hawaii Medical Marijuana Dispensary Bond?
Every licensed medical marijuana dispensary in Hawaii is required to maintain the bond as part of its licensure. Hawaii operates a strictly limited dispensary program. The state authorized a small number of vertically licensed dispensaries, each able to operate production centers and retail dispensing locations under the same licensee.
The bond protects the State of Hawaii and the public by guaranteeing that the licensee will operate in compliance with Hawaii Act 241 and the rules of the Department of Health Medical Cannabis Program. If the licensee fails to meet its obligations, the state can claim against the bond, and the licensee is then required to repay the surety in full.
How Much Is the Bond?
The face amount of the Hawaii medical marijuana dispensary bond is $1,000,000. This is the coverage amount, not what you pay. What you actually pay is the annual premium for the bond, which is a smaller percentage of the face amount.
Cannabis bond regulations are fairly new and constantly changing, so call us at 800-333-7800 for the latest underwriting and pricing policies. Premiums for bonds at this size depend on the applicant’s credit, the licensee entity’s financial strength, and the carrier’s appetite.
Statute and Regulator
The underlying authority is Hawaii Act 241, the state’s medical marijuana dispensary law, codified in Hawaii Revised Statutes Chapter 329D. The bond is filed with and runs to the Hawaii Department of Health, specifically the Office of Medical Cannabis Control and Regulation, which administers the dispensary program.
The bond must be issued by an authorized surety insurance company, and the form is dictated by the Department of Health. The bond must be filed before the dispensary license is issued or renewed, and any lapse in coverage can put the license at risk.
What Underwriting Looks Like
A $1 million bond is large enough that carriers underwrite carefully. As a general rule, bonds over $10,000 typically require a credit check on the company owners, and bonds at this size require more. Carriers writing the Hawaii medical marijuana dispensary bond typically want to see:
- Personal credit reports for the owners and key decision-makers
- Financial statements for the dispensary entity (audited or reviewed for larger applicants)
- Operating history and compliance record with the Hawaii Department of Health, where applicable
- For first-year licensees, additional collateral may be required by some carriers
For renewals on established dispensaries in good standing, the conversation generally moves faster. Cannabis bond underwriting standards are evolving, so reach out to us at 800-333-7800 for guidance specific to your situation.
What the Bond Covers
The Hawaii dispensary bond is a financial guarantee that the licensee will operate in compliance with Hawaii’s medical cannabis law and the rules of the Department of Health. If a valid claim is filed by the state (for example, for unpaid penalties, taxes, or compliance failures), the surety pays the claim up to the bond’s face value. The licensee is then required to reimburse the surety in full, plus expenses. That repayment obligation is exactly why underwriting matters on the front end.
Hawaii Medical Marijuana Dispensary Bond FAQs
How much is the Hawaii medical marijuana dispensary bond?
The bond face amount is $1,000,000.
Who is the obligee on the bond?
The Hawaii Department of Health, through the Office of Medical Cannabis Control and Regulation.
What law requires the bond?
Hawaii Act 241, codified in Hawaii Revised Statutes Chapter 329D.
Does Hawaii allow alternatives to a surety bond?
Hawaii’s dispensary law accepts a surety bond as the financial assurance instrument. Confirm with the Office of Medical Cannabis Control and Regulation whether any alternative instrument is acceptable for your specific situation.
How long does it take to get bonded?
Timelines depend on the size of the bond, your credit profile, and the completeness of your financials. For applicants with strong credit and clean financials, we can move quickly. Call us at 800-333-7800 and we will tell you exactly where you stand.
What happens if my dispensary bond lapses?
A lapse in coverage can put your dispensary license at risk. Always have a renewal or replacement bond filed before the existing bond term ends.
Get Your Hawaii Medical Marijuana Dispensary Bond Today
Hawaii’s $1 million dispensary bond is one of the larger cannabis surety requirements in the country, and the underwriting reflects that. We have been writing surety bonds since 1971 and we work with the carriers that have appetite for Hawaii medical cannabis bonds. If you are facing this requirement, the sooner we start the conversation, the faster we can get you bonded.
Get a free quote online or call us at 800-333-7800. For broader cannabis bond context across other states, see our national marijuana and cannabis surety bond page.