What Oklahoma requires of cannabis and marijuana businesses
Senate Bill 913 took effect on April 20, 2023 and made Oklahoma the first state to attach a land reclamation bond to a cannabis license. Under 63 O.S. § 427.26 and OAC 442:10-5-3.3, it is unlawful for a licensed commercial grower to conduct growing operations without a bond covering the area of land within the permit area.
The bond must be at least $50,000 for each license sought or held, issued by a surety holding a certificate of authority from the Oklahoma Insurance Department. The Oklahoma Medical Marijuana Authority (OMMA) may require more depending on the reclamation needs of the site. The one alternative is an attestation, with a recorded deed or similar proof, that the licensee has owned the permit area for at least five years before applying.
Legislative watch, 2026: OMMA's legislative update reports a measure (HB 3519) that would replace the commercial grower bond with a $2,000 land reclamation fee paid into a remediation fund, keeping the exemption for land owned five years or more. Until a change takes effect, OMMA continues to verify the bond or attestation on every new and renewal grower application. Confirm the current rule with OMMA or with us before you renew.
| Bond | Penal sum | Who files it | Obligee | Authority |
|---|---|---|---|---|
| Oklahoma Commercial Medical Marijuana Grower Bond | $50,000 minimum per license | Commercial grower applicants and licensees, new and renewal | State of Oklahoma, Oklahoma Medical Marijuana Authority | 63 O.S. § 427.26; OAC 442:10-5-3.3; SB 913 (2023) |
What the bond guarantees
The bond is conditioned on compliance with the statute, building codes and OMMA rules, and on payment of all money due the state. OMMA or the Department of Environmental Quality may call on it to recover the cost of restoring an abandoned grow: disposing of unused marijuana, hazardous materials and other waste and reclaiming the land. Bonds must be filed on OMMA's own Surety Bond Form, and an expiring bond must be renewed or replaced at least 30 days before it lapses.
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 Oklahoma 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 Oklahoma bond
On a Oklahoma bond the principal is your licensed business, named exactly as it appears on the license or application. The obligee is State of Oklahoma, Oklahoma Medical Marijuana Authority. The surety is an insurance company admitted in Oklahoma, placed by Surety One, Inc. as producer and underwriting manager. Who files in Oklahoma: Commercial grower applicants and licensees, new and renewal ($50,000 minimum per license).
Claims, cancellation and renewal in Oklahoma
If State of Oklahoma, Oklahoma Medical Marijuana Authority 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 Oklahoma 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 medical marijuana license. We send renewal notices 45 days ahead, and renewing at least 30 days early removes the risk of a gap.
Getting a Oklahoma bond issued, step by step
- Confirm the form and amount. Ask Oklahoma Medical Marijuana Authority 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 Oklahoma bond in good standing
- File and pay every medical marijuana 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 Oklahoma 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
- OMMA Surety Bond Form
- OMMA Bond Requirement page
Send documents to Cannabis@SuretyOne.com or apply online. Confirm the current form and amount with the Oklahoma Medical Marijuana Authority before you file.
A note on vocabulary: cannabis and marijuana are the same plant and, for bonding purposes, the same business. Oklahoma law uses the term "medical marijuana". Operators look for this bond as a Oklahoma marijuana bond, a Oklahoma marijuana license bond, a Oklahoma cannabis bond and a Oklahoma 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.
Oklahoma marijuana and cannabis bond questions
Do Oklahoma dispensaries and processors need the bond?
No. The requirement applies to commercial grower licenses, because its purpose is to fund cleanup of abandoned grow sites.
I lease my grow site. Can I use the five year exemption?
No. The exemption is for a licensee that has owned the permit area for at least five years. A tenant, or an owner of less than five years, files the bond.
I have three grower licenses. Is one bond enough?
No. The statute requires at least $50,000 for each license sought or held.
Is a Oklahoma marijuana bond the same as a Oklahoma cannabis bond?
Yes. Marijuana bond, cannabis bond, marijuana license bond and cannabis surety bond are different names for the same instrument. Oklahoma law uses the term medical marijuana, operators search under all of these names, and the bond form and amount are the same whichever word you use.
How much does a Oklahoma 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 Oklahoma bonds are rated individually. Quotes are free.
Can I get a Oklahoma medical marijuana 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 .