Oklahoma Medical Marijuana Grower Surety Bond: What Changed Under SB 913
Key Takeaways
- Oklahoma commercial grower licenses require either a $50,000 minimum reclamation bond or proof of five years of land ownership.
- Senate Bill 913 (2023) changed the requirement so OMMA can require more than $50,000 depending on the size of the growing operation.
- The bond guarantees land reclamation and waste cleanup, not just general compliance penalties.
- A moratorium on new grower license applications is currently in effect through August 2028, though renewals continue as normal.
- Growers must renew the bond at least 30 days before it expires to avoid a lapse in licensing.
- OMMA can recall a bond for up to one year after a license is revoked, surrendered, or the bond is canceled.
A grower who abandons a facility leaves behind more than an empty building. Unused marijuana, hazardous byproducts, and contaminated soil don't clean themselves up, and someone has to cover that cost when the business that created it disappears. Oklahoma's $50,000 medical marijuana grower bond exists for exactly that reason, and it carries a more specific obligation than most first-time applicants expect.
The rules around this bond changed in 2023, and the framework in place today looks different from what growers dealt with in the early years of the program. Understanding what changed, and what OMMA can still require beyond the base $50,000, matters before you renew or plan ahead for when new licensing reopens.
What Is an Oklahoma Medical Marijuana Grower Surety Bond?
An Oklahoma medical marijuana grower surety bond is a $50,000 minimum surety bond required by OMMA before a commercial grower license is issued or renewed, guaranteeing land reclamation and legal compliance.
The Oklahoma Medical Marijuana Authority requires this bond of commercial grower license applicants as one of two paths to meeting the state's financial responsibility requirement. The Oklahoma Medical Marijuana Authority itself serves as the obligee on the bond. If the grower fails to comply with the terms of the bond, OMMA can file a claim against it, and the surety pays valid claims up to the bond's full amount. The grower is responsible for reimbursing that amount to the surety.
Why OMMA Requires a Reclamation Bond
The bond protects the state against cleanup costs tied to a grower's operations. Under the official OMMA bond form, the surety becomes liable if the permitted land is abandoned, the grower's license is revoked, or OMMA issues a violation notice that requires remedial action.
Compliance obligations tied to the bond extend beyond the core medical marijuana statutes to the Oklahoma Medical Marijuana Waste Management Act, which governs how growers dispose of plant material, packaging, and other regulated waste. Framing this bond around reclamation, rather than treating it as a generic license bond, sets clearer expectations for what actually triggers a claim.
How Senate Bill 913 Changed the Bond Requirement
Senate Bill 913 took effect April 20, 2023, and it rewrote how OMMA calculates and enforces this requirement. Before SB 913, the bond obligation applied more uniformly across grower licenses.
After the law took effect, the bond must specifically cover the area of land within the permit area where the licensee will conduct commercial growing operations. OMMA can also require a bond amount above $50,000 depending on the scope of the reclamation risk.
In practice, that means a small indoor grow and a sprawling outdoor canopy don't necessarily post the same bond. The $50,000 figure works as a starting minimum rather than the final number for every operation.
Growers with larger operations should expect underwriting and OMMA review to reflect that larger footprint. Budgeting for exactly $50,000 without confirming the number with OMMA and a surety first is a common and avoidable mistake.
Who Needs to Post the Bond (and Who's Exempt)
Under 63 O.S. §427.26, every applicant for a commercial grower license, along with existing licensees renewing their license, must satisfy one of two requirements before OMMA will approve the application:
- A surety bond of at least $50,000 per license: Issued by a surety company qualified to do business in Oklahoma, covering the permitted growing area.
- Proof of land ownership for at least five years: Documentation such as a recorded property deed or court order showing the licensee has owned the permitted land for the required period.
Section 427.14 of Title 63 sets out the broader licensing requirements for medical marijuana businesses and directs commercial growers to the bond obligation detailed in Section 427.26, where the $50,000 minimum and the bond's specific terms actually live. OMMA verifies whichever path an applicant chooses during its review of new and renewal grower license applications.
How Much Does the Bond Cost?
Bond premiums for this class of surety bond typically fall in the 1% to 3% range of the bond amount for well-qualified applicants. This figure isn't exact, as actual pricing depends on the applicant's credit, financial strength, and the reclamation risk tied to the size of the operation.
A larger canopy that pushes the bond amount above $50,000 will typically increase the premium in step with it. Getting an actual number requires underwriting review specific to the applicant and the license.
Applying for and Renewing the Bond
Oklahoma currently isn't accepting new grower, dispensary, or processor license applications. A moratorium first imposed in 2022 has been extended through August 1, 2028 under House Bill 3143. Existing licensees can still renew, and the bond requirement applies in full to renewals in the meantime.
Licensees renewing an existing grower license submit bond documentation as part of that renewal, and OMMA verifies it before approving the renewed license. Once a bond is in place, it needs attention on an ongoing basis.
A bond must be renewed at least 30 days before its expiration date, and the licensee has to provide proof of the new or continued bond to OMMA before the prior one lapses. If a surety wants to cancel a bond early, it must give OMMA 30 days' written notice, and the grower is responsible for lining up a replacement bond or attestation before that cancellation takes effect.
What Happens If Your Bond Lapses or Is Canceled
A lapsed or improperly replaced bond puts a grower's license at risk. OMMA can pursue disciplinary action, including suspension, for growers who fail to maintain continuous bond coverage.
Even after a bond is canceled, OMMA retains the ability to recall it and pursue a claim for up to one year following the license's revocation or surrender, or following the bond's cancellation or expiration. If OMMA pays a claim against the bond, the grower is contractually obligated to reimburse the surety in full, regardless of whether the license is still active.
Frequently Asked Questions
Is $50,000 always the required bond amount?
No. That figure is the statutory minimum. OMMA can require a higher bond amount based on the size of the permitted growing area and its reclamation risk.
Can I avoid posting a bond entirely?
Yes, if you can document at least five years of ownership of the permitted land, in place of the bond, through a recorded deed or other qualifying proof.
What triggers a claim against the bond?
Claims can arise if the permitted land is abandoned, the grower's license is revoked, or OMMA issues a violation notice requiring remedial action that isn't resolved.
What happens if I let my bond lapse?
OMMA can pursue license suspension for a lapse in required bond coverage, and the grower remains responsible for reimbursing any claim paid against a bond even after it's been canceled.
Can I apply for a new Oklahoma grower license right now?
Not currently. A moratorium on new grower, dispensary, and processor applications is in effect through August 1, 2028, though existing licensees can still renew.
Get Your Oklahoma Grower Bond in Place With ProSure Group
Getting the reclamation bond right the first time keeps a grower license renewal moving instead of stalling in review. As a surety-only agency working with more than 30 A-rated carrier partners in all 50 states, The ProSure Group can help Oklahoma growers secure the correct bond amount for their operation, whatever their credit picture looks like.
Learn more about our Oklahoma medical marijuana surety bond options, and if you need a similar bond in another state, review our medical marijuana bonds page for state-by-state requirements. You can also call (800) 480-3883 today to get started.