Who requires a Medical Marijuana Surety Bond in Florida?
The Florida Department of Health (DOH) is tasked with implementing and regulating the state’s Medical Marijuana Program. Within the DOH, the Office of Medical Marijuana Use was created to license businesses, handle the medical marijuana use registry and implement the department’s rules.
What is a Florida Medical Marijuana Surety Bond?
A Florida Medical Marijuana Surety Bond is a $5,000,000 bond that is required to be posted by a MMTC after its license to conduct business in the State of Florida has been approved. MMTC’s have 10 business days to post the bond once given the approval to start operations. The State of Florida defines a MMTC as one that acquires, possesses, cultivates, processes, transfers, transports, sells, dispenses, distributes or administers marijuana, or products containing marijuana-related supplies or education materials, to qualifying patients or their caregivers, as registered by the Florida Department of Health. Under Florida Statutes 381.986, a MMTC will be required to maintain a $2,000,000 surety bond upon the serving of 1,000 qualified patients. The bonds are valid for a two-year period that runs concurrently with the state licensing for the business.
What is the purpose of a Florida Medical Marijuana Surety Bond?
These license and permit surety bonds ensure that Medical Marijuana Treatment Centers (MMTC) abide by all requirements set by the rules, regulations and laws of the state of Florida. These regulations include the use of pesticides, where cannabis can by grown, the inspection of seeds and plants for pests, where cannabis can be processed, the testing of processed cannabis, the packaging requirements of cannabis, when and how cannabis is dispensed, the keeping of accurate records, the safety and security of facilities and the safe transport of cannabis. MMTC’s must also be able to demonstrate the financial ability to maintain operations for the duration of the two-year approval cycle.
These bonds provide compensation to the state of Florida if the MMTC 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 to the surety.
How much does a Florida Medical Marijuana Surety Bond cost?
Pricing for Florida 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 all applicants
- Personal financials of all applicants
- Business financials
- Background/experience in the industry
Individuals with strong financials can expect to pay 1%-5% of the bond amount. To find out how much your Medical Marijuana Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Florida Medical Marijuana Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Florida 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 Florida 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 a license to distribute marijuana in Florida?
The following is a list of items that will be needed to be submitted to the DOH to obtain your license:
- Completed application
- Initial application fee of $60,830
- Documentation demonstrating that the applicant has been registered to do business in the State of Florida for the previous 5 consecutive years
- List of all owners, managers, officers and board members along with date of each individual’s most recent level-2 background screening
- Fingerprints and background check for all applicants if not done recently
- Certified copy of a valid certificate of registration used by the Department of Agriculture and Consumer Services
- Information about personnel, technical ability, accountability, security and infrastructure. This information includes details about knowledge and experience in the cultivation, processing and dispensing of medical marijuana as well as information about their medical director, diversity plan and financial assurance.
Please consult with the DOH for a full list of requirements needed to complete the licensing process.