What Maine requires of cannabis and marijuana businesses
When Maine began implementing adult use legalization, the legislation that carried the licensing framework (proposed 7 M.R.S. § 2447(7)) would have required every applicant to demonstrate financial responsibility with a surety bond: $500,000 for a retail store or social club, $600,000 for a cultivation facility of 3,000 square feet of canopy or less and for a products manufacturing facility, $800,000 for a testing facility without ISO/IEC 17025 accreditation, and $1,100,000 for a cultivation facility above 3,000 square feet.
The adult use program that ultimately took effect under Title 28-B is administered by the Office of Cannabis Policy, and the Office has moved away from those financial assurance amounts in its operative rules. What remains is local authority. Under 28-B M.R.S. § 401 a municipality may regulate cannabis establishments within its borders and impose its own licensing conditions, which can include a bond.
| Bond | Penal sum | Who files it | Obligee | Authority |
|---|---|---|---|---|
| Maine Cannabis Establishment Bond (municipal) | Set by the municipality | Establishments in municipalities that require a bond | The licensing municipality | 28-B M.R.S. § 401; local ordinance |
What the bond guarantees
A municipal bond in Maine typically secures compliance with the local licensing ordinance and the cost of closing a site that is abandoned. If your town or city has asked for a bond, send us the ordinance and we will confirm the form. If you hold an older bond written on the proposed state amounts, ask us to review whether it is still required.
Like every surety bond, this is a three party agreement and it is not insurance for the operator. If the surety pays a valid claim to the obligee, the principal must reimburse the surety under the general indemnity agreement signed when the bond is issued. Read how the different cannabis bond obligations work.
How we underwrite Maine cannabis and marijuana bonds
This obligation is larger than, or worded more heavily than, a simple compliance bond, so it is underwritten on financial disclosure: the application, a current personal financial statement from each owner holding ten percent or more, current business financial statements (CPA prepared for the largest bonds) and a copy of your complete state or local license application. A cannabis bond is in substance an unsecured credit instrument. The surety extends its credit to you in front of the regulator, so financial strength, operating experience and the exact wording of the bond form drive both the decision and the rate. Where the numbers are thin, partial collateral can close the gap. No applicant is automatically declined.
More on cost, credit and collateral.
The parties to a Maine bond
On a Maine bond the principal is your licensed business, named exactly as it appears on the license or application. The obligee is The licensing municipality. The surety is an insurance company admitted in Maine, placed by Surety One, Inc. as producer and underwriting manager. Who files in Maine: Establishments in municipalities that require a bond (Set by the municipality).
Claims, cancellation and renewal in Maine
If The licensing municipality believes the bonded obligation has been breached, it makes a written claim on the surety. The surety opens a file, asks for documentation and notifies you, and you have the opportunity to respond and to cure. A valid, unresolved claim is paid up to the penal sum, and the surety then recovers that payment and its expenses from the business and the individual indemnitors. Because the Maine obligation is large or carries performance, decommissioning or supply language, a claim can reach the full penal sum, which is why the indemnity agreement deserves the same attention as a personal guarantee on a loan.
Most forms let the surety cancel on written notice to the obligee, commonly 30 to 90 days. If a replacement is not on file before the effective date, the regulator can suspend the cannabis license. We send renewal notices 45 days ahead, and renewing at least 30 days early removes the risk of a gap.
Getting a Maine bond issued, step by step
- Confirm the form and amount. Ask Maine Office of Cannabis Policy for the current bond form and penal sum, or send us the license type and we will confirm them.
- Apply. Complete the online application. It collects the business details and the name, home address and Social Security number of each owner for a soft inquiry credit report.
- Send financial statements. Personal financial statements from owners of ten percent or more, current business financials and your license application let us quote in about three to five business days.
- Bind and file. Pay the premium and sign the indemnity agreement. We deliver the executed bond to you and, where it accepts electronic filing, to the obligee. Wet signature originals go out overnight.
Keeping a Maine bond in good standing
- File and pay every cannabis tax and fee on time. Delinquent taxes are the most common trigger for claims.
- Keep seed to sale records reconciled to physical inventory, and document every destruction event with photographs, witnesses and waste manifests.
- Tell us before you change the business name, ownership, location or license type, so the bond can be amended by rider before the regulator notices a mismatch.
- Protect the personal credit of every indemnitor and keep quarterly financial statements. Both are reviewed at renewal.
Terms such as penal sum, obligee and indemnitor are defined in the glossary. Changes to Maine and other state requirements are logged with dates in regulatory updates, and an underwriter is available through the contact page.
What to send us
- Cannabis license bond application
- Personal financial statement from each owner of ten percent or more
- Current business financial statements
- A copy of your complete license application
Send documents to Cannabis@SuretyOne.com or apply online. Confirm the current form and amount with the Maine Office of Cannabis Policy before you file.
A note on vocabulary: cannabis and marijuana are the same plant and, for bonding purposes, the same business. Maine law uses the term "cannabis". Operators look for this bond as a Maine marijuana bond, a Maine marijuana license bond, a Maine cannabis bond and a Maine cannabis surety bond. They are one instrument, and this site uses the words interchangeably. See marijuana surety bonds.
Primary sources
Official texts behind this page. We link to citation based addresses on legislature, code and agency sites because those are the least likely to move.
- 28-B M.R.S. § 401, local regulation of cannabis establishments (Maine Legislature)
- Maine Office of Cannabis Policy
Maine marijuana and cannabis bond questions
Does Maine require a statewide cannabis bond in 2026?
We have not identified a current statewide surety bond requirement in the Office of Cannabis Policy's adult use rules. The amounts that circulate online come from the original implementing bill. Always confirm with the Office and with your municipality before you apply.
Why do some sources still quote $500,000 to $1,100,000?
Those figures appeared in the early legislative text on financial responsibility. They were widely republished and never updated. We keep them on this page for context because clients still ask about them.
Is a Maine marijuana bond the same as a Maine cannabis bond?
Yes. Marijuana bond, cannabis bond, marijuana license bond and cannabis surety bond are different names for the same instrument. Maine law uses the term cannabis, operators search under all of these names, and the bond form and amount are the same whichever word you use.
How much does a Maine cannabis or marijuana surety bond cost?
You pay a premium, not the penal sum. The premium is a small fraction of the bond amount and depends on the size and wording of the obligation, your credit and your financial strength. Small compliance bonds carry low fixed annual premiums. Larger Maine bonds are rated individually. Quotes are free.
Can I get a Maine cannabis bond with bad credit?
Yes in most cases. Surety One does not automatically decline any applicant. Files with damaged or limited credit go to our non-standard program, which carries a higher rate and sometimes partial collateral.
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 .