Michigan Medical Marijuana Facility Bond
Michigan cannabis licensees are subject to cannabis surety bond requirements administered by the Michigan Cannabis Regulatory Agency (CRA), which oversees both medical and adult-use cannabis programs. Michigan’s adult-use program operates under the Michigan Regulation and Taxation of Marihuana Act (MRTMA), passed by voters in November 2018, and the medical program operates under the Medical Marihuana Facilities Licensing Act (MMFLA). The CRA was renamed from the Marijuana Regulatory Agency (MRA) in 2022, so older references to MRA describe the same agency under its prior name.
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 Michigan Cannabis Bond?
The CRA licenses several types of cannabis businesses, and bond requirements apply across categories that include:
- Class A, B, and C growers under MMFLA (medical) and excess marihuana growers under MRTMA (adult-use)
- Processors
- Secure transporters
- Provisioning centers (medical) and retailers (adult-use)
- Safety compliance facilities (testing labs)
- Marihuana microbusinesses, designated consumption establishments, and others
The bond amount is determined by the CRA at the time of licensure and varies by license category and operational scale. The bond guarantees the licensee will comply with state law, including accurate tax reporting and payment.
How the CRA Sets the Bond Amount
Michigan’s approach is different from states that set fixed statutory bond amounts. The CRA determines the bond amount applicable to your license type and category. Because of this, the most accurate way to confirm what your bond will be is to contact the CRA or call us at 800-333-7800 and we will help you confirm.
Statute and Regulator
Michigan’s medical cannabis program operates under the Medical Marihuana Facilities Licensing Act (MMFLA), and the adult-use program operates under the Michigan Regulation and Taxation of Marihuana Act (MRTMA). Both programs are administered by the Cannabis Regulatory Agency (CRA), formerly the Marijuana Regulatory Agency.
What Underwriting Looks Like
Underwriting depends on the bond amount the CRA assigns. 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. Carriers will typically want personal credit reports for owners, financial statements for the cannabis entity, and a compliance record with the CRA where applicable.
Cannabis bond underwriting standards are evolving, so reach out to us at 800-333-7800 for guidance specific to your situation.
Michigan Cannabis Bond FAQs
How much is the Michigan cannabis bond?
The bond amount is determined by the Cannabis Regulatory Agency at the time of licensure and varies by license type. Call us at 800-333-7800 and we will help you confirm what applies to your license.
Who is the obligee?
The Michigan Cannabis Regulatory Agency (CRA), formerly the Marijuana Regulatory Agency (MRA).
What statutes require the bond?
The Medical Marihuana Facilities Licensing Act (MMFLA) for medical cannabis, and the Michigan Regulation and Taxation of Marihuana Act (MRTMA) for adult-use cannabis.
When was the MRA renamed?
The Marijuana Regulatory Agency was renamed the Cannabis Regulatory Agency (CRA) in 2022. Same agency, updated name.
How long does it take to get bonded?
Timelines depend on the size of the bond and the completeness of your application. Call us at 800-333-7800 and we will tell you exactly where you stand.
Get Your Michigan Cannabis Bond Today
We have been writing surety bonds since 1971 and we work with the carriers that have appetite for Michigan cannabis bonds. Call 800-333-7800 or request a free quote online. See our national cannabis surety bond page for broader context.