Who requires a Medical Marijuana Surety Bond in Massachusetts?
The Cannabis Control Commission (CCC) regulates licensees that operate in the legal adult- and medical-use marijuana markets in Massachusetts. This includes reviewing applications and issuing licenses for adult-use marijuana establishments.
The following are the different types of marijuana establishment licenses offered by the CCC:
Marijuana Cultivators
- May cultivate, process, and package marijuana to transfer to other marijuana establishments, but not to consumers
Craft Marijuana Cooperative
- A type of Marijuana Cultivator which may cultivate, obtain, manufacture, process, package and brand marijuana and marijuana products to transport to marijuana establishments, but not to consumers
Marijuana Product Manufacturer
- An entity authorized to obtain, manufacture, process and package marijuana and marijuana products to transport to marijuana establishments, but not to consumers
Marijuana Retailer
- An entity authorized to purchase and transport marijuana and marijuana products from other marijuana establishments, and to sell or transfer marijuana and marijuana products to other marijuana establishments and consumers
Marijuana Transporter
- An entity that may only transport marijuana or marijuana products, and does not hold another marijuana establishment license nor is not licensed as a Medical Marijuana Treatment Center
Marijuana Research Facility
- An academic institution, non-profit corporation, domestic corporation or entity authorized to do business in the Commonwealth of Massachusetts cultivating, purchasing or otherwise acquiring marijuana for the purpose of conducting research regarding marijuana and marijuana products
Laboratories
- An entity that does not hold any other type of marijuana establishment license and is properly accredited to perform tests in compliance with the stringent requirements of the CCC’s protocols for testing marijuana and marijuana products
Microbusiness
- A collocated Tier 1 marijuana Cultivator and/or marijuana product manufacturer limited to purchase 2,000 pounds of marijuana from other marijuana establishments in 1 year. A Microbusiness licensee shall not be a person or entity having direct or indirect control for any other marijuana establishment except a Social Consumption Establishment.
Additional information for these license types can be found on the CCC website.
How do Medical Marijuana Surety Bonds work in Massachusetts?
The purpose of these surety bonds is to cover any cost incurred by the CCC to satisfy any outstanding state and local sales tax obligations, cost incurred to secure any licensed marijuana facility, cost incurred to destroy the marijuana and marijuana products in its inventory, and to cover other costs incurred by the CCC or its designee in dismantling or winding down of the licensee’s facility in accordance with its policies and governing laws.
If the CCC 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).
How much are Massachusetts Medical Marijuana Surety Bonds written for?
The penalty amount for this type of bond is typically $5,000, but will vary depending on which type of business license you are applying for and the amount of licensing fees paid. The applicant is required to procure a bond in the amount of their licensing fees as set forth in 935 CMR 500.05 or 501.05, even if their fees have been waived.
Please contact the CCC for additional information on licensing fees and bond amounts.
How much does a Massachusetts Medical Marijuana Surety Bond cost?
Pricing for Massachusetts Medical Marijuana Surety Bonds will differ from applicant to applicant. 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
Individuals with good credit can expect to pay 1%-5% of the bond amount. This means qualified applicants could pay as little as $100 annually for a $10,000 Massachusetts Medical Marijuana Surety Bond. To find out how much your Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Massachusetts Medical Marijuana Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Massachusetts 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 Massachusetts 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.
Do Massachusetts Medical Marijuana Surety Bonds renew every year?
Yes, these license and permit surety bonds have an annual term and have to be renewed every year they are in force. The surety company will review the personal credit report of all owners of the medical marijuana business and provide renewal pricing 90 to 120 days in advance of the bonds expiration date. Please contact our knowledgeable underwriting staff for any questions you have regarding this type of bond.
How do I get licensed to distribute marijuana In Massachusetts?
The following is a partial list of items the CCC will require of applicants seeking to be licensed as a marijuana establishment:
- Business information, including name, proposed address and contact information for primary point of contact
- Names, addresses and identification for executives and managers
- Names of persons or entities contributing 10% or more of initial capital to operate
- Management plan
- Operations plan
- Employee staffing and training plans
- Surety Bond
- Notarized CORI Acknowledgment Form for all executives and managers
- Fingerprint authorization for all executives and managers
Please consult the CCC for a full list of requirements needed to obtain a license.