Cannabis surety bonds, state by state.
Cultivators, processors, dispensaries, testing laboratories, distributors and delivery operators are required to post surety bonds in a growing number of states, counties and cities. Whether your regulator calls it cannabis or marijuana, it is the same bond. Surety One, Inc. writes cannabis and marijuana surety bonds in every jurisdiction where the business is lawful, and no applicant is automatically declined.
State of California
DCC Commercial Cannabis License Bond
- Penal sum
- $5,000
- Obligee
- State of California, Department of Cannabis Control
- Authority
- Bus. & Prof. Code § 26051.5(a)(10); 4 CCR § 15008
- Surety
- Placed by Surety One, Inc. with a carrier admitted in the state
A bond is not insurance for the operator
A cannabis surety bond is a three party agreement. A liability policy protects the operator. A surety bond protects the government and the public from the operator, and any loss the surety pays is recovered from the principal.
Principal
The cannabis business that must post the bond: the licensee or license applicant.
Obligee
The authority that requires it: a cannabis control board, a department of agriculture or revenue, a county or a city.
Surety
The insurance company that issues the bond and stands behind the guarantee. Surety One acts as producer and underwriting manager for carriers admitted in each jurisdiction.
Where cannabis and marijuana bonds are required
Each state page sets out the bond, the penal sum, the obligee, the statute or rule behind it and what we need to underwrite it. Requirements change every legislative session, so every page carries its review date.
| State | Principal bond | Penal sum |
|---|---|---|
| Alabama | Alabama Integrated Medical Cannabis Performance Bond | $2,000,000 |
| Alaska | Anchorage Marijuana Sales Tax Bond | $10,000 minimum |
| Arkansas | Arkansas Medical Marijuana Dispensary Bond and 1 more | $100,000 to $500,000 |
| California | DCC Commercial Cannabis License Bond and 10 more | $5,000 per license |
| Colorado | Colorado Commodity Handler Bond (hemp operators) and 1 more | $10,000 to $1,000,000 for hemp handlers and dealers |
| Connecticut | Connecticut Producer Facility Construction Performance Bond and 1 more | $2,000,000 and $1,500,000 |
| Florida | Florida Medical Marijuana Treatment Center Performance Bond | $5,000,000 |
| Georgia | Georgia Class 1 Production License Bond and 2 more | $625,000 to $1,500,000 |
| Illinois | Illinois Cannabis Dispensary Bond and 1 more | $50,000 to $2,000,000 |
| Louisiana | Louisiana Marijuana Pharmacy Permit Bond | $100,000 |
| Maine | Maine Cannabis Establishment Bond (municipal) | Local requirements vary |
| Massachusetts | Massachusetts Marijuana Establishment Bond | Equal to the license fee |
| Michigan | City of Adrian Commercial Medical Marihuana Facility Bond | $100,000 in Adrian |
| Montana | Montana Marijuana Testing Laboratory Bond | $25,000 |
| Nevada | Las Vegas Marijuana Establishment Bond and 1 more | $250,000 in Las Vegas |
| New York | New York Registered Organization Bond in Lieu of Lease Documentation | $2,000,000 (medical) |
| North Dakota | North Dakota Compassion Center Bond (Manufacturing Facility) and 1 more | Up to $1,000,000 |
| Ohio | Ohio Level I Cultivator Bond and 5 more | $50,000 to $750,000 |
| Oklahoma | Oklahoma Commercial Medical Marijuana Grower Bond | $50,000 minimum per license |
| Utah | Utah Cannabis Cultivation Performance Bond and 2 more | $50,000 to $100,000 |
| Vermont | Vermont Cannabis Cessation of Operations Bond and 1 more | $2,500 or $5,000 |
Searching for a marijuana dispensary bond, a marijuana grower bond or a marijuana license bond? They are all here. See marijuana surety bonds for the same requirements organized by the names operators use.
Operating somewhere else? See the states with no statewide bond, where a city or county may still ask for one.
Five kinds of cannabis bond obligation
Most cannabis bonds are simple license instruments. A smaller number are heavier obligations with decommissioning, reclamation or production guarantees. The category drives the underwriting and the rate.
License and compliance
Guarantees that the licensee follows the cannabis statutes and rules. California's $5,000 bond is the archetype.
Tax and excise
Guarantees filing and payment of cannabis taxes, as in Anchorage, Humboldt County and Trinity County.
Reclamation and performance
Secures land restoration, decommissioning or a level of production. Oklahoma, Utah, Alabama, Florida and Connecticut.
Bonds that replace cash
Where a state would otherwise hold your cash, escrow or assets, a bond satisfies the rule and the money stays in your business. Ohio, Illinois, Arkansas.
Hemp and CBD
Permit and processor bonds that followed the 2018 Farm Bill, in California counties, Colorado, Georgia and Ohio.
And for the operator itself
Fidelity bonds cover employee theft, the internal loss that cash heavy cannabis businesses face every day.
The Cannabis Operator's Guide to Surety and Fidelity Bonds
Seventeen pages on how cannabis bonds work: the three parties, the five categories of obligation, underwriting and pricing, a state table, claims and cancellation, fidelity coverage and the operating habits that keep a bonding record clean. Free, no form to fill in.
Program founded by a credentialed cannabis insurance specialist
The founder of Surety One, Inc., C. Constantin Poindexter, holds the Cannabis Insurance Coverage Specialist (CICS) designation and completed each course behind it: cannabis insurance, banking and financial services, business risk management, claims, real estate and workers' compensation. He is an attorney and a surety underwriter of more than thirty years, and he is the author and reviewer of the material on this site.
We treat cannabis as a legitimate, regulated and insurable class of business. Operators with strong financials get the same competitive treatment they would get in any commercial surety class. Operators with damaged or limited credit go to our non-standard program. Nobody is turned away at the door.
View all seven credentials
Cannabis Insurance Coverage Specialist (CICS) designation ALM PC360 Education, 2023
Cannabis Insurance 101 The National Underwriter Company, 2021
Managing the Risks of Cannabis-Related Businesses The National Underwriter Company, 2021
Understanding and Handling Cannabis Insurance Claims The National Underwriter Company, 2022
Common questions
What is a cannabis surety bond, and is it the same as a marijuana bond?
Yes, they are the same thing. It is a financial guarantee that a licensed cannabis business posts in favor of a government authority. The bond guarantees that the business will follow the cannabis laws, pay its cannabis taxes or restore and decommission its site, depending on the jurisdiction. If the business fails, the authority can claim against the bond and the surety recovers what it pays from the business.
Which states require a cannabis or marijuana license bond?
State agencies require them in Alabama, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Louisiana, Massachusetts, Montana, North Dakota, Ohio, Oklahoma, Utah and Vermont, and New York's medical program has used one. In Alaska, Michigan and Nevada the requirement comes from cities. California counties and cities add many local bonds. Colorado repealed its marijuana license bond in 2016 but requires a surety bond from hemp operators licensed as commodity handlers and commodity dealers, and Georgia, Ohio and several California counties bond hemp businesses as well.
How fast can I get a cannabis bond?
Compliance bonds of $25,000 or less are usually issued the same business day we receive a completed application. Larger bonds that need financial statements generally take three to five business days. Bonds with reclamation, decommissioning or production language can take longer because the wording is analyzed individually.
Will bad credit stop me from getting bonded?
No. Personal credit is one input among several and the inquiry is a soft pull that does not affect your score. Damaged credit routes the application to our non-standard program. No applicant is automatically declined.
Is a cannabis bond the same as cannabis liability insurance?
No. A bond is a guarantee to the state. Liability insurance protects the operator against third party claims. Most operators need both, and workers' compensation as well.
Get your cannabis bond quoted today
Application review and quoting are free, and there is no obligation to buy. Bonds of $25,000 or less are usually issued the same business day.