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Ohio Medical Marijuana Dispensary Surety Bond
What is an Ohio Medical Marijuana Dispensary Bond?
An Ohio Medical Marijuana Dispensary Bond is a $50,000 surety bond that is required to be posted by medical marijuana dispensaries before they are issued a license, called a Dispensary Certificate of Operations, to conduct business in the State of Ohio.
A surety bond will need to be established for each dispensary location.
A copy of the surety bond must be submitted to the state board of pharmacy within ninety (90) days after the effective date of the provisional license.
A Dispensary is an entity authorized to sell medical marijuana to qualifying patients and caregivers. Dispensaries can obtain medical marijuana from one or more processors.
The State intends to issue up to sixty (60) dispensary provisional licenses by September 8, 2018.
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 documentation and information the bonding company will need. In all cases, personal credit, personal financials, and corporate financials will be required. A business plan and proof of industry knowledge and experience is also required. Of course, we can typically handle all credit types and financial situations - from excellent to poor - as such those terms vary.
Ohio Marijuana Dispensary 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.
The ProSure Group has multiple markets willing and able to write marijuana/cannabis surety bonds. These companies are all A.M Best Rated and Treasury Listed.
Ohio Medical Marijuana Dispensary Bonds are in place to ensure the Principal (Medical Marijuana Dispensary) faithfully performs all obligations in connection with the license. The Principal and Surety are liable to the Obligee (State of Ohio Board of Pharmacy) for any of the following reasons:
Compliance with state tax requirements;
Conducting the dispensary operations in accordance with Chapter 3796 of the Ohio Revised Code.
The Ohio General Assembly passed House Bill 523 on September 8th, 2016. This bill legalized medical marijuana in the state of Ohio and 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 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 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 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.
Ohio Administrative Code, Chapter 3796:6-2-11 Medical Marijuana Dispensary - License Bond, stipulates the need for dispensaries to, among other things, post a surety bond before a certificate of operation is issued.
The Obligee on the Ohio Medical Marijuana Dispensary Surety Bond is the Treasurer of the State of Ohio.
Ohio Medical Marijuana Dispensary 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) calendar days written notice to the Obligee (Treasurer, State of Ohio).
Contact The ProSure Group! As surety bond experts in business since 1993, The ProSure Group has experience handling bonds of this type. We have 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.
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 Medical Marijuana Dispensary Surety Bond Experts!
