Hawaii Medical Marijuana Dispensary Bond

What is a Hawaii Medical Marijuana Dispensary Bond?

It is a way to ensure that the person seeking a medical marijuana dispensary license will comply with the rules and regulations of the Medical Cannabis Program of the Hawaii Department of Health as well as the relevant laws of the State (Act 241).

Aside from that, this type of surety bond will serve as a way for the Hawaii Department of Health to recover any financial losses due to the violation/s of the medical marijuana dispensary.

 

Who is required to get a Hawaii Medical Marijuana Dispensary Bond?

Every medical marijuana dispensary in the State of Hawaii is required to obtain and maintain a Marijuana-Cannabis Surety Bond as part of the licensure requirement.

A medical marijuana dispensary is a person licensed by the State to own, operate, or subcontract up to 2 production centers and up to 2 retail dispensing locations.

Aside from this submitting bond, an individual applicant must… 

  • Be a legal resident of the State for not less than 5 years prior to the date of application
  • Be at least 21 years old
  • Had no felony convictions 

The criteria for an applying entity (aside from this surety bond) is as follows: 

  • Has been organized under the laws of the State
  • Has a Hawaii tax identification number
  • Has a department of commerce and consumer affairs business registration division number and suffix
  • Has a federal employer identification number
  • Is not less than 51% held by Hawaii legal residents or entities wholly controlled by Hawaii legal residents who have been Hawaii legal residents for not less than 5 years immediately before the date the application was submitted
  • Has financial resources under its control of not less than $1,000,000 for each license applied for, plus not less than $100,000 for each retail dispensing location allowed under the license applied for, in the form of bank statements or escrow accounts, and that the financial resources have been under the control of the applying entity for not less than 90 days immediately preceding the date the application was submitted
  • The principals or members must have no felony convictions.

 

How does a Hawaii Medical Marijuana Dispensary Bond work? 

This bond is composed of 3 parties: Principal, Obligee, and the Surety.

The Principal is the medical marijuana dispensary. The Obligee, on the other hand, is the Hawaii Department of Health. The Surety is the party that will serve as the financial guarantor of the Principal to the Obligee.

If the Principal violates any of the bonded obligations, the Obligee will be eligible to file a claim against the bond. The Surety will check if the claim is valid and if the claim is covered by the bond.

If it is, the Surety must pay the Obligee. Once the Surety has paid the Obligee, the Principal must reimburse the Surety of all the payments made.

 

How much does a Hawaii Medical Marijuana Dispensary Bond cost? 

The bond premium is typically 1% of the bond amount for Principals that have excellent credit scores. 

The bond amount is $1,000,000. 

Get your FREE bond premium quote HERE today!

 

How to get a Hawaii Medical Marijuana Dispensary Bond 

Get your bond by following these 3 simple and secured steps: 

  1. Apply for this bond HERE
  1. Submit all the necessary requirements needed for the prequalification process such as: 
  • Financial statements
  • Credit score
  • Job/business performance history 
  1. Sign the indemnity agreement and pay the bond premium 

That’s it! Apply for your bond today!

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