Who requires a Medical Marijuana Surety Bond in Illinois?
The Cannabis Regulation and Tax Act provides for the controlled legalization of adult use cannabis in Illinois, beginning January 1, 2020. The Illinois Department of Financial and Professional Regulations, or IDFPR, is tasked with implementing and administrating certain aspects of the program, including the licensing and oversight of dispensing organizations.
What is an Illinois Medical Marijuana Surety Bond?
An Illinois Medical Marijuana Surety Bond is a $50,000 bond that is required to be posted by an adult use dispensing organization before they can begin operations in the state of Illinois. Per the Cannabis Regulation and Tax Act, an adult use dispensing organization is defined as a facility operated by an organization or business that is licensed to acquire cannabis from a cultivation center, craft grower, processing organization, or another dispensary for the purpose of selling or dispensing cannabis, cannabis-infused products, cannabis seeds, paraphernalia, or related supplies to purchasers or qualified registered medical cannabis patients and caregivers.
What is the purpose of an Illinois Medical Marijuana Surety Bond?
These license and permit surety bonds ensure the adult use dispensing organization abides by all regulations in the Cannabis Regulations and Tax act governing their operations. These requirements include the timely and successful completion of dispensary construction, operating in a manner that provides an uninterrupted supply of cannabis, faithfully paying license renewal fees, keeping accurate books and records, making regulatory required reports and complying with state tax requirements.
These bonds provide compensation to the state of Illinois if the adult use dispensing organization does not abide by the terms of the bond. 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 (dispensing organization) to the surety.
How much does an Illinois Medical Marijuana Surety Bond cost?
Pricing for Illinois Medical Marijuana Surety Bonds will differ from applicant to applicant. Your premium will be based on a number of different factors including the following:
- Personal credit of the applicant
- Business credit
Individuals with excellent credit can expect to pay 1%-5% of the bond amount. To find out how much your Illinois Medical Marijuana Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get an Illinois Medical Marijuana Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Illinois 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 an Illinois 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 I get licensed to distribute marijuana in Illinois?
The following is a list of items that will need to be submitted to the IDFPR to obtain your license:
- Completed Application
- Application Fee – $60,000
- Business plan
- Proposed floor plan
- Recalls, quarantine and destruction plan
- Inventory monitoring and recordkeeping plan
- Operation plan
- Plan for community engagement
- Diversity plan
- Knowledge and experience of principal officers
- Security plan
Please consult the IDFPR for a full list of items needed to complete the licensing process.