Ohio Marijuana Surety Bond
Ohio cannabis licensees are required to post a cannabis surety bond at the time of licensure, with amounts ranging from $50,000 to $750,000 depending on the type of license. Ohio’s program operates under the Ohio Division of Cannabis Control (DCC), which sits within the Ohio Department of Commerce, and the program now covers both medical and adult-use cannabis (adult-use sales began in August 2024 following the November 2023 voter approval of Issue 2).
We have been writing surety bonds since 1971. If you are facing one of these requirements, 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 an Ohio Cannabis Bond?
Ohio’s program licenses four primary types of cannabis businesses, and each is subject to a surety bond requirement. The bond amount depends on the license category:
- Level I cultivator: $750,000. Large-scale cultivation operations.
- Level II cultivator: $50,000. Smaller-scale cultivation operations.
- Processor: $250,000. Businesses processing cannabis into finished product.
- Testing laboratory: $50,000. Licensed cannabis testing labs.
- Dispensary: $50,000. Retail dispensaries serving medical patients and adult-use consumers.
The bonds protect the State of Ohio and the public by guaranteeing that licensees will operate in compliance with state law and the rules of the Division of Cannabis Control. If a licensee fails to meet its obligations, the state can claim against the bond, and the licensee is required to repay the surety in full.
How Much Does an Ohio Cannabis Bond Cost?
The face amounts above are the bond coverage, not what you pay. What you actually pay is the annual premium, which depends on the size of the bond, your credit profile, the licensee entity’s financial strength, and the carrier’s appetite. The Level I cultivator bond at $750,000 is large enough that carriers underwrite carefully and may require collateral for first-year applicants. The $50,000 dispensary and testing lab bonds are more straightforward.
Cannabis bond regulations and underwriting are evolving, so call us at 800-333-7800 for the latest pricing that applies to your situation.
Statute and Regulator
Ohio’s medical cannabis program operates under the Ohio Medical Marijuana Control Program statute, and the adult-use program operates under Chapter 3780 of the Ohio Revised Code (the adult-use cannabis chapter created by Issue 2). Implementing regulations are codified in Title 3796 of the Ohio Administrative Code (medical) and the parallel adult-use rules.
The bonds are filed with the Ohio Division of Cannabis Control (DCC), which is housed within the Ohio Department of Commerce. The DCC handles licensing, compliance, and enforcement across the cannabis program.
What the Bond Covers
Ohio cannabis bonds are financial guarantees that licensees will meet their state-imposed obligations, including:
- Compliance with the Ohio Medical Marijuana Control Program rules and the adult-use program rules
- Faithful payment of fees and taxes owed to the state
- Operating in a manner that maintains the integrity of the seed-to-sale tracking system
- Accurate recordkeeping and required regulatory reporting
- Compliance with security, packaging, and product-handling requirements appropriate to the license type
If a valid claim is filed by the state, the surety pays up to the bond face amount, and the licensee is required to reimburse the surety in full plus expenses.
What Underwriting Looks Like
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. For the Level I cultivator $750,000 bond and the $250,000 processor bond, carriers will typically want to see:
- Personal credit reports for the owners and key decision-makers
- Audited or reviewed financial statements for the cannabis entity
- Operating history and compliance record with the Division of Cannabis Control, where applicable
- For first-year licensees, additional collateral may be required by some carriers
For the $50,000 dispensary and testing lab bonds, the underwriting bar is lower but still real for cannabis-specific risk. Cannabis bond underwriting standards are evolving, so reach out to us at 800-333-7800 for guidance specific to your situation.
Ohio Cannabis Bond FAQs
How much is the Ohio dispensary bond?
$50,000. The same amount applies to testing laboratories and Level II cultivators.
How much is the Ohio Level I cultivator bond?
$750,000. This is the largest of the Ohio cannabis bond categories.
How much is the Ohio processor bond?
$250,000.
Who is the obligee on Ohio cannabis bonds?
The Ohio Division of Cannabis Control (DCC), within the Ohio Department of Commerce.
Does the bond requirement apply to adult-use licenses?
Yes. Ohio’s adult-use program (created by Issue 2 in November 2023, with sales beginning August 2024) operates within the same Division of Cannabis Control structure and carries surety bond requirements.
How long does it take to get bonded?
Timelines depend on the size of the bond, your credit, and the completeness of your financials. For applicants with strong credit and clean financials, we can move quickly. Call us at 800-333-7800 and we will tell you exactly where you stand.
What happens if my Ohio cannabis bond lapses?
A lapse in coverage puts your cannabis license at risk. Always have a renewal or replacement bond filed before the existing bond term ends.
Get Your Ohio Cannabis Bond Today
Ohio’s cannabis program covers everything from a small $50,000 dispensary bond to a $750,000 Level I cultivator bond. We have been writing surety bonds since 1971 and we work with the carriers that have appetite for Ohio cannabis bonds. If you are facing this requirement, the sooner we start the conversation, the faster we can get you bonded.
Get a free quote online or call us at 800-333-7800. For broader cannabis bond context across other states, see our national marijuana and cannabis surety bond page.