Louisiana Marijuana Pharmacy Permit Bond
Louisiana medical marijuana pharmacies are required to post a $100,000 cannabis surety bond with the Louisiana Board of Pharmacy as a condition of their pharmacy permit. The bond ensures the licensee will complete construction and operation of the pharmacy in compliance with the rules of the Board. Louisiana operates one of the most narrowly structured medical cannabis programs in the country, with a small number of licensed marijuana pharmacies serving the state’s medical patients.
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.
The Louisiana Marijuana Pharmacy Bond
The face amount of the Louisiana marijuana pharmacy permit bond is $100,000. The bond must name the Louisiana Board of Pharmacy as the obligee (beneficiary) and must be available for the Board’s immediate claim if the Board determines, after due process, that the pharmacy has failed to timely complete construction of the pharmacy or to operate it in compliance with the Board’s rule.
The bond is subject to a possible reduction. At the Board’s discretion, the bond amount may be reduced by $25,000 upon successful achievement of certain operational milestones. Confirm the current reduction criteria with the Board of Pharmacy.
Statute and Regulator
Louisiana’s medical marijuana program operates under Louisiana statute (La. R.S. 40:1046 and related provisions) and is administered by multiple agencies, with the Louisiana Board of Pharmacy overseeing the marijuana pharmacy permit program. The Louisiana Department of Agriculture and Forestry oversees cultivation. The Board of Pharmacy is the obligee on the marijuana pharmacy permit bond.
What Underwriting Looks Like
A $100,000 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 usually require company financials. Carriers will typically want personal credit reports for owners, financial statements for the pharmacy entity, and a compliance record with the Board where 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.
Louisiana Cannabis Bond FAQs
How much is the Louisiana marijuana pharmacy bond?
$100,000, reducible by $25,000 at the Board’s discretion upon achievement of certain milestones.
Who is the obligee?
The Louisiana Board of Pharmacy.
What law requires the bond?
Louisiana’s medical marijuana statutes (La. R.S. 40:1046 et seq.) and implementing rules of the Board of Pharmacy.
What can trigger a claim against the bond?
Failure to timely complete construction of the pharmacy, or failure to operate the pharmacy in compliance with the Board’s rule, as determined by the Board after due process.
How long does it take to get bonded?
Timelines depend on 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 Louisiana Marijuana Pharmacy Bond Today
We have been writing surety bonds since 1971 and we work with the carriers that have appetite for Louisiana medical cannabis pharmacy bonds. Call 800-333-7800 or request a free quote online. See our national cannabis surety bond page for broader context.