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Michigan Marihuana Surety Bonds

What is a Michigan Medical Marihuana Facility Bond?

  • A Michigan Medical Marihuana Facility Bond is a $100,000 surety bond that medical marihuana facility applicants may use to demonstrate proof of financial responsibility before they are granted a license to conduct business in the State of Michigan.

**ATTENTION**- Currently, there are no surety companies throughout the entire country that are willing to write the $100,000 Michigan Medical Marihuana Facility Surety Bond. The requirement is for financial responsibility for liability for bodily injury; this would be a traditional liability insurance policy, not a surety bond.
We are, however, able to write any other marijuana/cannabis related surety bond in Michigan, including the $50,000 City of Lansing Medical Marijuana Surety Bond. We apologize for the inconvenience.

  • There are five different medical marihuana facility licenses available in Michigan:
    • Michigan Medical Marihuana Grower License (Class A, B, or C)
    • Michigan Medical Marihuana Processor License
    • Michigan Medical Marihuana Secure Transporter License
    • Michigan Medical Marihuana Provisioning Center License
    • Michigan Medical Marihuana Safety Compliance Facility License
  • Each license requires proof of financial responsibility in an amount not less than $100,000.
  • Under the Medical Marihuana Facility Licensing Act (MMFLA), a municipality may adopt an ordinance authorizing one or more types of marihuana facilities to operate within its boundaries. However, if municipalities do nothing, marihuana facilities will be unable to be licensed at the state level to operate within the municipality’s locality. Below, to the best of our knowledge, are the municipalities that have passed ordinances allowing medical marihuana facilities and require a surety bond:
    • City of Lansing Medical Marijuana Surety Bond - $50,000
      • Lansing Medical Marihuana Safety Compliance Surety Bond
      • Lansing Medical Marihuana Provisioning Center Surety Bond
      • Lansing Medical Marihuana Processor Facility Surety Bond
      • Lansing Medical Marihuana Secure Transporter Surety Bond
      • Lansing Medical Marihuana Grower Facility Surety Bond
    • City of Hazel Park Medical Marihuana Surety Bond – Varies
      • Hazel Park Medical Marihuana Facility Surety Bond
      • Hazel Park Medical Marijuana Growing Operation Surety Bond
    • City of Adrian Commercial Medical Marihuana Facility Surety Bond - $100,000
  • We also write:
  • If you need a Michigan 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!

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  • Michigan Medical Marijuana Surety Bonds can be written for a small percentage, usually between 1% and 5% of the bond amount, when applicants meet certain underwriting criteria such as excellent credit, excellent personal and business financials, and excellent industry experience.
  • 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, and corporate financials will be required. In most cases, a business plan will also be required. Of course, we can typically handle all credit types and financial situations — from excellent to poor — as such those terms vary.
  • The ProSure Group has a handful of markets willing and able to write marijuana/cannabis surety bonds. Through these markets we have been able to secure the ability to waive personal indemnity for owners under certain circumstances.
  • Michigan Medical Marijuana Facility Surety Bonds are in place to ensure the Principal (Medical Marijuana Facility) is financially responsible for liability for bodily injury to lawful users resulting from the manufacture, distribution, transportation, or sale of adulterated marihuana or adulterated marihuana-infused product.
  • Adulterated marihuana is defined as a product sold as marihuana that contains any unintended substance or chemical or biological matter other than marihuana that causes adverse reaction after ingestion or consumption.
  • Bodily injury is defined as injury that does not include expected or intended effect or long-term adverse effect of smoking, ingestion, or consumption of marihuana or marihuana-infused product.
  • In September of 2016, the Michigan Legislature passed three bills (House Bill 4209, House Bill 4827, and House Bill 4210) that were then signed into law by the governor. These bills will create a regulatory and licensing framework for medical marijuana in the State of Michigan. The regulatory framework must be implemented by Dec. 15, 2017.
  • House Bill 4209 is also known as the Medical Marihuana Facilities Licensing Act (MMFLA). The Act provides for the licensing of marijuana facilities and establishes the licensure process within the Michigan Department of Licensing and Regulatory Affairs (LARA). Within the department, the Bureau of Medical Marihuana Regulation (BMMR) was created and is responsible for the oversight and regulation of the state’s medical marijuana facilities and licenses.   
  • Section 333.27408 Proof of Financial Responsibility, of the MMFLA stipulates the need for proof of financial responsibility before the Medical Marihuana Licensing Board grants or renews any medical marijuana facility license. Proof of financial responsibility may be in the form of a constant value bond, cash, a liability insurance policy, or unencumbered securities.
  • The Obligee on the Michigan Medical Marihuana Facility Surety Bond is the Michigan Department of Licensing and Regulatory Affairs, Bureau of Medical Marijuana Regulation.

Michigan Medical Marihuana Surety Bonds remain in full force and effect from the effective date until they are cancelled. Therefore, the bond will renew every year and the bonding company will bill for the bond on an annual basis. The medical marijuana bond may be cancelled with thirty (30) days written notice to the Obligee (Michigan Department of Licensing and Regulatory Affairs).

  • Yes, you read that correctly, Michigan spells marihuana with an “h” instead of a “j”. The reasoning is simply because that’s how they’ve always spelled it, going back to the Marihuana Tax Act of 1937. It would literally take an act of the Michigan Legislature to change the spelling.
  • A Marihuana Facility is defined as a location at which a license holder is licensed to operate under the MMFLA.
  • A Grower is defined as a licensee that is a commercial entity that cultivates, dries, trims, or cures and packages marihuana for sale to a processor or provisioning center.
    • Class A Grower is authorized to grow up to 500 plants.
    • Class B Grower is authorized to grow up to 1,000 plants
    • Class C Grower is authorized to grow up to 1,500 plants
  • A Processor is defined as a licensee that is a commercial entity that purchases marihuana from a grower and that extracts resin from the marihuana or creates a marihuana-infused product for sale and transfer in packaged form to a provisioning center.
  • A Secure Transporter is defined as a licensee that is a commercial entity that stores marihuana and transports marihuana between marihuana facilities for a fee.
  • A Provisioning Center is defined as a licensee that is a commercial entity that purchases marihuana from a grower or processor and sells, supplies, or provides marihuana to registered qualifying patients, directly or through the patients’ registered primary caregivers.
  • A Safety Compliance Facility is defined as a licensee that is a commercial entity that receives marihuana from a marihuana facility or registered primary caregiver, tests it for contaminants and for tetrahydrocannabinol (THC) and other cannabinoids, returns the test results, and may return the marihuana to the marihuana facility.

Contact The ProSure Group! As surety bond experts in business since 1993, The ProSure Group has experience handling bonds of this type and has partnerships with more than 30 different surety companies, most of which are A.M. Best Rated and Treasury Listed. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.

What you will need to submit to obtain your license:

** The regulatory framework is not scheduled to be implemented until December 15, 2017. Therefore, the department is not currently accepting applications or issuing licenses. Check back after that date for more details about what you will need to submit to obtain your license.

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
Michigan Marihuana Surety Bond Experts!
Type Bond Obligee Bond Amount
License City of Adrian Commercial Medical Marihuana Facility Surety Bond City of Adrian, Michigan
$100,000
License City of Hazel Park Medical Marihuana Surety Bond City of Hazel Park, Michigan
Varies
License City of Lansing Medical Marijuana Surety Bond City of Lansing, Michigan
$50,000