Massachusetts Marijuana Bond
Massachusetts marijuana establishment applicants are required to post a cannabis surety bond with the Massachusetts Cannabis Control Commission (CCC) as part of the licensure process. The bond requirement applies to all categories of marijuana establishment licenses (cultivator, product manufacturer, retail brick-and-mortar, transporter, and others) under 935 CMR 500.105(P). The bond amount is generally tied to the licensee’s annual license fee, with some categories having Commission-determined amounts. Public reporting has indicated escrow amounts in the range of $250,000 for certain establishment types.
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 Massachusetts Marijuana Bond?
The bond requirement applies to all marijuana establishment applicants under the Massachusetts adult-use program, regardless of license type. This includes:
- Marijuana cultivators
- Product manufacturers
- Retail brick-and-mortar establishments
- Independent testing laboratories
- Transporters
- Microbusinesses, delivery operators, and other categories
The bond guarantees that the licensee will maintain sufficient funds to dismantle (close down) the marijuana establishment if necessary, as required by the Commission.
How the Bond Amount Is Determined
Under 935 CMR 500.105(P), the bond amount for many establishment categories is equal to the applicant’s annual license fee. License fees vary by establishment type and (in some cases) operational size. For some categories, the bond does not have a set amount and is instead determined by the Commission. Public reporting has cited approximately $250,000 as the escrow or bond amount required by the Commission for certain categories. Call us at 800-333-7800 to confirm what applies to your specific license category and current Commission guidance.
Statute and Regulator
Massachusetts’s adult-use cannabis program operates under Chapter 94G of the Massachusetts General Laws, with implementing regulations in 935 CMR 500. The medical program operates under Chapter 94I with implementing regulations in 935 CMR 501. Both are administered by the Massachusetts Cannabis Control Commission (CCC).
The CCC has been working through updates following passage of An Act Modernizing the Commonwealth’s Cannabis Laws and related Commission rulemaking, so confirm current bond and license fee figures with the CCC or call us at 800-333-7800.
What Underwriting Looks Like
Underwriting depends on the bond amount. As a general rule, bonds over $10,000 typically require a credit check on the company owners, and bonds at $100,000 or larger usually require company financials. Cannabis bond underwriting standards are evolving, so reach out to us at 800-333-7800 for guidance specific to your situation.
Massachusetts Cannabis Bond FAQs
How much is the Massachusetts marijuana bond?
For many establishment categories, the bond amount equals the licensee’s annual license fee. For other categories, the amount is set by the Commission and has been reported in the $250,000 range. Call us at 800-333-7800 to confirm the current amount that applies to your specific license type.
Who is the obligee?
The Massachusetts Cannabis Control Commission (CCC).
What regulation requires the bond?
935 CMR 500.105(P) for the adult-use program, plus related provisions in 935 CMR 501 for the medical program.
What does the bond guarantee?
The bond guarantees that the licensee will maintain sufficient funds to dismantle the marijuana establishment if necessary, as required by the Commission.
How long does it take to get bonded?
Timelines depend on the size of the bond and your credit. Call us at 800-333-7800 and we will tell you exactly where you stand.
Get Your Massachusetts Cannabis Bond Today
We have been writing surety bonds since 1971 and we work with the carriers that have appetite for Massachusetts cannabis bonds. Call 800-333-7800 or request a free quote online. See our national cannabis surety bond page for broader context.