What is a Marijuana-Cannabis Surety Bond?

As more states begin to allow for medical and recreational marijuana use, there is a growing need for dispensaries, cultivators, processors, and retailers in those states. Marijuana surety bonds are now required by state agencies to anyone planning to open such establishments before they can cultivate, manufacture, process, supply, sell and distribute medical and recreational marijuana in states that legalized them.

Generally, marijuana surety bonds serve these purposes:

  • part of the licensing requirements before being able to conduct business in a specific jurisdiction legally
  • ensure faithful performance of duties in the lawful cultivation, process, sale, and distribution of medical or retail marijuana
  • guarantee the payment of sale and use taxes due to the government when purchases are made
  • assure that the facility for cultivation, process or dispensation is legal and established according to state laws and ordinances

How do I obtain a Marijuana-Cannabis Surety Bond? 

If you are looking to open a medical or retail marijuana establishment in your state, we can help you with any questions you have about obtaining a surety bond so that you can complete your licensing requirements.  Usually, we can get you your bond the same day!!!  Please feel free to contact us today!

In most cases, it's easiest to give us a call at 800-333-7800.  Our licensed agent can walk you through the process.

How much does a Marijuana Surety Bond Cost?

The cost of a marijuana surety bond varies from state to state. Because of this, the amount you will need to pay for your surety bond will also vary.  You can easily request a fast and free surety bond quote by completing the application, and one of our agents will be ready to help you start the process.

State by State Marijuana-Cannabis Surety Bond requirements

Alaska Cannabis Bond

According to Alaska's AMC 12.50.010, marijuana is defined as “all parts of the plant of the genus Cannabis.” However, the state does not consider industrial hemp as marijuana. Hence, the Municipality of Anchorage considers industrial hemp as not subject to the retail marijuana sales tax.

The state requires these Alaska Marijuana Surety Bonds:

  • Medical Marijuana Dispensary Bonds
  • Anchorage Retail Marijuana Tax Bond
  • Marijuana Cultivation Facility Bond
Arkansas Cannabis Bond

There are two classifications of Arkansas Marijuana Surety Bonds:

  • Medical Marijuana Dispensary License Bond
  • Medical Marijuana Cultivation License Bond
California Cannabis Bond

There are 2 basic types of California Marijuana Bonds:

  • Medical Marijuana Surety Bond
  • Recreational Marijuana License Bond

There are three California Cannabis Licensing Entities that require the bond. If you are engaged in all three operations, you will need three separate bonds.

  1. Bureau of Cannabis Control (BCC):  retailers, distributors, testing labs and microbusinesses.
  2. Manufactured Cannabis Safety Branch:  manufacturers of cannabis-infused edibles.
  3. Cal Cannabis Cultivation Licensing: cultivators.

In California, there are also other types of surety bonds required by a specific city, agency or function:

Colorado Cannabis Bond

Since the House Bill 16-1041 was passed, the state no longer requires a surety bond for cultivation or dispensary licenses.

Connecticut Cannabis Bond

The state requires this type of marijuana surety bond for marijuana dispensaries and producers. The state only requires a minimum of 3 producers but no more than 20.

The state also requires a surety bond upon the development and completion of a production facility:

  • Medical Marijuana Producer Performance Bonds: Construction and Operation of Production Facility
Florida Cannabis Bond

The state requires a surety bond for dispensaries, cultivators, and nurseries to be posted within ten days of licensure.

  • Medical Marijuana Dispensary Bond

Florida Legislature has since passed Senate Bill 8A and set for the issuance of 10 new licenses for Medical Marijuana Treatment Centers (MMTCs) to cultivate, process, and dispense medical marijuana.

Once they meet State approval, dispensing organizations must post this surety bond:

  • Marijuana Low-THC Performance Bond
Illinois Cannabis Bond

The state requires a surety bond for cultivation and dispensing organizations. Both have different bond amounts.

  • Medical Cannabis Dispensing Organization Registration Surety Bond
  • Medical Cannabis Cultivation Center Surety Bond
Maine Cannabis Bond

The state requires surety bonds for retail marijuana establishments. Each has their own specific bond amounts:

  • Retail Marijuana store bond
  • Retail Marijuana cultivation facility bond
  • Retail Marijuana products manufacturing facility bond
  • Retail Marijuana testing facility bond
  • Retail Marijuana social club bond
Nevada Cannabis Bond

The state requires surety bonds for medical and recreational cannabis dispensaries and cultivation facilities as part of their licensing requirements:

  • Medical Marijuana Dispensary Bond
  • Medical Marijuana License Bond
Ohio Cannabis Bond

The state will license 60 dispensaries, 24 cultivators (as of present), and 40 processors throughout the region. Also, the state requires Level I and Level II cultivators to post surety bonds for licensing.

  • Medical Marijuana License Bond

How does a Marijuana-Cannabis Surety Bond work?

A marijuana surety bond, like all surety bonds, is simply an agreement between three parties: Obligee, Principal, and Surety.

  • Obligee: State agency or city regulation department that requires the bond.
  • Principal: Marijuana business requiring to post a surety bond.
  • Surety: The surety bond underwriter/bond provider that guarantees the Principal’s financial capability to the Obligee.

If for any reason the owner of a medical or retail marijuana establishment does not meet the requirements set by the state, the state can file a claim against the bond. The Surety will do an investigation and determine if the claim is valid. Payment will be made up of the total amount of the bond if it is a reasonable claim. The principal will then be required to repay the amount that is paid out of the bond.

Here's a brief overview of some of the commonly available types of Marijuana Surety Bonds:

Medical Marijuana Dispensary Bond

This bond is for dispensaries/cultivators/nurseries who wish to set up a medical marijuana business. Most states that have legalized marijuana laws require Principals to procure this type of bond.

Medical Marijuana Business/Retail License Bond

This bond involves all licensees, both new and renewing applicants, of medical marijuana and retail marijuana dispensaries/shops.

Retail Marijuana Excise Tax Bond

This bond is for retail cannabis shops and recreational pot sellers where it serves as tax guarantees that ensure the Principal will report and pay all sales and use taxes due to the government.

Medical Marijuana/Retail Marijuana Performance Bond

This bond helps reduce risks and ensures the faithful performance of duties by marijuana business owners, whether they are cultivators, dispensaries or retailers in the ethical and honest dealings concerning sale and distribution of medical and retail marijuana.



Learn more about Marijuana-Cannabis Bonds by watching the video below.

Check out this Infographic!

Have a better view of a Marijuana-Cannabis Surety Bonds through this infographic.

Marijuana-Cannabis Bond
Liked this content? Share it!