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Ohio Medical Marijuana Surety Bonds
What is an Ohio Medical Marijuana Bond?
An Ohio Medical Marijuana Bond is a surety bond that is required to be posted by medical marijuana businesses before they are issued a license, called a Certificate of Operations, to conduct business in the State of Ohio.
Ohio currently requires 5 different surety bonds for 4 different marijuana related businesses. The four types of businesses are cultivators, processors, testing laboratories, and dispensaries. The required bond for each type of business is as follows:
If you need an Ohio marijuana surety bond but don’t see it above, please give us a call on our toll free number, 1-800-480-3883. Legislation is always changing, so we may not have had the chance to update our website yet. Most bonds are required at the state level, but some may be required at the county and/or city level. Regardless if it is listed or not, we can write your bond!
Due to the risk from the perspective of the bonding company, Marijuana Bonds are very carefully underwritten and priced accordingly. Part of the cost of this bond will be the time and effort needed to provide the documentation and information the bonding company will need. In all cases, personal credit, personal financials, business financials, and industry experience will be required. Of course, we can typically handle all credit types and financials situations - from excellent to poor - as such those terms vary.
Most marijuana surety bonds can be written for 1-5% of the bond amount when applicants meet certain underwriting criteria such as excellent credit, excellent personal and business financials, and excellent industry experience.
Additionally, The ProSure Group has been able to secure these bonds without the use of collateral and we have also been also to secure the ability to waive personal indemnity for owners under certain circumstances.
Ohio marijuana/cannabis bonds are in place to ensure marijuana businesses follow the rules and regulations set forth under the agreement of their license. Each bond is different, some guarantee the principal (the marijuana business) will pay sales tax and provide accurate record keeping, others guarantee the company will grow and provide enough product, some guarantee the quality and safety of the product, while others guarantee all of these things and more. Speak with your surety professional to gain a better understanding of the marijuana/cannabis bonds’ protections and how that affects you.
In most cases, the bonds are required to be posted within 6-9 months from the date the business is notified of selection for a provisional license and before they are issued a Certificate of Operations.
The Ohio General Assembly passed House Bill 523, effectively legalizing medical marijuana in Ohio on September 8, 2016. The bill not only legalized medical marijuana in the State of Ohio, but also established the basic framework for Ohio’s Medical Marijuana Control Program (MMCP).
Three state agencies were given the responsibility of developing, implementing and overseeing the MMCP. The three state agencies and their respective roles are:
The Ohio Department of Commerce - is tasked with oversight of the medical marijuana cultivators, processors and testing laboratories in the state. The DoC’s role is also to develop a program that ensures the safety of the public and access to a safe medical product.
The State of Ohio Board of Pharmacy - is responsible for overseeing medical marijuana retail dispensaries, the registration of medical marijuana patients and caregivers, the approval of new forms of medical marijuana and coordinating the Medical Marijuana Advisory Committee.
The State Medical Board of Ohio - is responsible for certifying physicians to recommend medical marijuana and may add to the list of qualifying conditions for which medical marijuana can be recommended.
Chapter 3796 of the Ohio Administrative Code, details the rules and regulations concerning medical marijuana in the State of Ohio.
Ohio Medical Marijuana Surety Bonds remain in full force and effect from the effective date until they are cancelled. Therefore, they will renew every year and the bonding company will bill for the bond on an annual basis. The bond may be cancelled by the surety with thirty (30) days written notice to the Obligee.
However, according to the Ohio Administrative Code, cultivators, processors, and testing labs can receive a reduction in the surety bond penalty upon the successful achievement of certain milestones.
Contact The ProSure Group! As surety bond experts in business since 1993, The ProSure Group has experience handling many bonds of this type and has partnerships with more than 30 different surety companies.
However, there are only a few companies willing to write recreational marijuana and medical marijuana bonds. Luckily, we have great relationships with all of these companies. For weed bonds we only use sureties that are A.M. Best rated “A” or higher and appear on the Department of the Treasury’s Listing of Certified Companies.
We can ensure that you will get the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application or give us a call, and one of our specialists will gladly assist you with your medical marijuana surety bond needs.
Get Bonded Now to get your Ohio Marijuana Surety Bonds
If you don't see the bond you're looking for give us a call at (800) 480-3883 and speak to one of our many Ohio Marijuana Surety Bonds Surety Bond Experts!
