North Dakota Marijuana Compassion Center Bond
North Dakota medical marijuana compassion centers are required to post a cannabis surety bond as a condition of registration. The bond amount is determined by the North Dakota Department of Health and Human Services (NDHHS) on a per-applicant basis, with statutory maximums set by license type. For a compassion center acting solely as a marijuana manufacturing facility, the bond amount cannot exceed $1,000,000. For a dispensary, the total bond amount cannot exceed $100,000.
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.
North Dakota Compassion Center Bond Amounts
- Marijuana manufacturing facility (compassion center). Up to $1,000,000 (statutory maximum).
- Dispensary (compassion center). Up to $100,000 (statutory maximum).
The actual bond amount for any specific applicant is set by NDHHS based on circumstances that include facility scope, operational risk, and the agency’s assessment of what is necessary to protect public health and safety. The bond must ensure protection of public health, safety, and the environment in the event of abandonment, default, or other inability or unwillingness to meet the requirements of the regulating statutes.
Statute and Regulator
North Dakota’s medical marijuana program operates under the North Dakota Compassionate Care Act (Measure 5 of 2016) and subsequent amendments, codified primarily in North Dakota Century Code Chapter 19-24.1. The program is administered by the North Dakota Department of Health and Human Services (NDHHS), Division of Cannabis (formerly Medical Marijuana Division).
What Underwriting Looks Like
The North Dakota manufacturing bond can be up to $1 million, which 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 $100,000 or larger usually require company financials. Carriers will typically want personal credit reports for owners, financial statements for the compassion center entity, operating history and compliance record where applicable, and possibly additional collateral for first-year licensees.
Cannabis bond underwriting standards are evolving, so reach out to us at 800-333-7800 for guidance specific to your situation.
North Dakota Cannabis Bond FAQs
How much is the North Dakota manufacturing compassion center bond?
Up to $1,000,000, with the actual amount set by NDHHS.
How much is the North Dakota dispensary compassion center bond?
Up to $100,000, with the actual amount set by NDHHS.
Who is the obligee?
The North Dakota Department of Health and Human Services (NDHHS).
What does the bond cover?
The bond ensures protection of public health, safety, and the environment in the event of abandonment, default, or other failure to meet the requirements of the underlying statute.
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 North Dakota Cannabis Bond Today
We have been writing surety bonds since 1971 and we work with the carriers that have appetite for North Dakota medical cannabis compassion center bonds. Call 800-333-7800 or request a free quote online. See our national cannabis surety bond page for broader context.