Dispensary bond amounts by state
| State | Bond amount | Notes |
|---|---|---|
| Ohio | $50,000 | Bond or escrow under OAC 1301:18-3-08. One bond covers a dual use license. |
| Illinois | $50,000 | Dispensing organizations, IDFPR. |
| Arkansas | $100,000 | Performance bond for licensed dispensaries. |
| Louisiana | $100,000 | Marijuana pharmacy permit, Board of Pharmacy. |
| California | $5,000 per license | Storefront and delivery retailers, plus local bonds in some cities and counties. |
| Massachusetts | Equal to the license fee | Marijuana Retailers and Medical Marijuana Treatment Centers. |
| Vermont | $5,000 | Cessation of operations bond for retailers. |
| North Dakota | Set by the Department, up to $1,000,000 | Dispensary compassion centers. |
| Alaska | $10,000 minimum | Anchorage retail marijuana sales tax bond. |
Select a state for the statute or rule, the obligee, what the bond guarantees and the primary sources. States that are not listed do not require this bond at the state level, although a county or city may. See states with no statewide bond.
What a dispensary bond guarantees
Retail is where the state's money and the public meet, so dispensary bonds concentrate on two promises. The first is compliance: selling only tracked, tested product to eligible customers and following the security, labeling and recordkeeping rules. The second is money: remitting excise and sales taxes and paying the state's cost of closing the store and destroying inventory if the license ends badly. Arkansas spells the second promise out in full, down to the cost of retaining a replacement operator. Anchorage bonds nothing but the sales tax.
How dispensary bonds are underwritten
California, Vermont and most Massachusetts retail bonds fall under $25,000 and are written on the application alone, usually the same day. The $50,000 bonds in Ohio and Illinois need a light financial review. The $100,000 bonds in Arkansas and Louisiana are underwritten on personal and business financial statements. Retail operators are cash intensive, so underwriters also like to see point of sale controls and a banking relationship. A fidelity bond is the natural companion, because employee theft is the largest uninsured loss most dispensaries carry.
Multiple stores
A bond attaches to a license, not to a company. An operator with five Ohio dispensaries files five $50,000 bonds. We issue them together on one application and one indemnity agreement, and adding a store later takes a day.
What to send us
- The online application with the name, home address and Social Security number of each owner
- The amount and bond form your regulator gave you
- For bonds above $25,000: personal financial statements from owners of ten percent or more and current business financials
Questions
How much is a marijuana dispensary bond?
It depends on the state: $5,000 per license in California and Vermont, $50,000 in Ohio and Illinois, $100,000 in Arkansas and Louisiana, and an amount equal to the license fee in Massachusetts. You pay a premium that is a small fraction of that amount.
Is a cannabis retailer bond the same as a dispensary bond?
Yes. Dispensary, retailer, provisioning center and marijuana pharmacy are different state names for the retail license, and the bond serves the same purpose.
Do I need one bond per store?
Yes. Each retail license carries its own bond.
Written and reviewed by C. Constantin Poindexter, MA, JD, CPCU, AFSB, ASLI, ARe, AINS, AIS, CPLP, CICS. Founder of Surety One, Inc., Cannabis Insurance Coverage Specialist, attorney and surety underwriter for more than thirty years. Author of The Contractor's Guide to Surety Bonds. View his cannabis insurance credentials. Last reviewed .