Who requires a Medical Marijuana Surety Bond in Connecticut?
The Connecticut Department of Consumer Protection (DCP) is tasked with implementing and regulating the state’s Medical Marijuana Program. The DCP licenses all Medical Marijuana Producers that wish to operate in the state. Per State regulations, a surety bond must be filed with the DCP before a license can be granted to the business.
What is a Connecticut Medical Marijuana Surety Bond?
Pursuant to Chapter 420f – Section 21a-408 of the Connecticut General Statutes, there are two surety bond requirements covering the construction and operation of a medical marijuana production facility.
Medical Marijuana Producer Performance Bond – Construction of a Production Facility
$2,000,000 Surety Bond Amount
- If the Commissioner of DCP determines that the principal has timely and successfully met its obligation to construct a production facility, the bond obligation is null and void.
Medical Marijuana Producer Performance Bond – Operation of a Production Facility
$1,500,00 Surety Bond Amount
- The bond obligation shall become null and void after the 5-year anniversary of the effective date if certain milestones are achieved. These include providing uninterrupted services without violation for a period of time, as outlined by Sections 21a-408-1 to 21a-408-70.
How much does a Connecticut Medical Marijuana Surety Bond cost?
Pricing for Connecticut Medical Marijuana Surety Bonds will differ from applicant to applicant. Due to the risk, an underwriter will carefully review your documentation and your premium will be based on a number of different factors including the following:
- Type of Bond
- Amount of the bond
- Personal credit of the applicant
- Personal financials
- Business financials
Individuals with excellent credit and financials can expect to pay 1%-5% of the bond amount. To find out how much your Connecticut Medical Marijuana Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Connecticut Medical Marijuana Surety Bond with bad credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Connecticut Medical Marijuana Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is, and our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I get a quote for a Connecticut Medical Marijuana Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
How do Medical Marijuana Surety Bonds work in Connecticut?
The Connecticut Medical Marijuana Producer Performance Surety Bond for the construction of a Production Facility is in place to guarantee that the principal will construct a production facility that is fully operational and able to commence production of marijuana as provided for in the license application.
The Connecticut Medical Marijuana Producer Performance Surety Bond for the operation of a Production Facility is in place to guarantee that the principal provides a substantially uninterrupted supply of marijuana to its usual dispensary facility customers during the term of the license.
These bonds provide financial relief to the state if the licensed medical marijuana business fails to adhere to the terms of the bonds. If the state files a claim against the bond and it is found to be valid, the surety company will pay out up to the penal sum of the bond to resolve the claim. Any monies paid out by the surety, including attorney’s fees, must be reimbursed by the principal (medical marijuana business) to the surety.
How do I get licensed to provide Medical Marijuana In Connecticut?
The following is a list of items that will need to be submitted to the DCP to obtain your license:
- Completed Application
- Initial Application Fee – $25,000
- Registration Fee – $75,000
- Financial Statements and Organizational Structure
- Agricultural and Production Experience
- Product and Site Safety Plan
- Proposed Marijuana Transport
- Location and Site Plan
- Business Information of Applicant
- Proposed Business Plan
- Proposed Marketing Plan
- $2,000,000 Connecticut Medical Marijuana Producer Performance Bond – Construction of a Production Facility
- $1,500,000 Connecticut Medical Marijuana Producer Performance Bond – Operation of a Production Facility
Please consult the DCP for a full list of items needed to complete the licensing process.