Florida Marijuana Bond
As the medicinal use of marijuana becomes more widely accepted, more states have chosen to legalize marijuana for medicinal purposes. Florida is one of those states to follow suit with its Department of Health implementing a $5,000,000 performance bond requirement for any entity that acquires, possesses, cultivates, processes, transfers, transports, sells, dispenses, distributes, or administers marijuana or products containing marijuana-related supplies.
Once a business has been awarded a license, the entity has 10 business days to apply and obtain the bond. As of March 2023, the state of Florida has approved 22 new licensees to conduct business.
Our underwriting expertise and knowledge of the cannabis industry has put Hudson at the helm of the commercial surety cannabis space.
The Medical Marijuana Surety Bond in Florida / Medical Marijuana Performance Bond. The performance bond must be posted within ten (10) business days upon notification that the MMTC has been approved to operate. According to Florida Statute 381.986, a MMTC will be required to maintain a $2 million performance bond upon the serving of 1,000 qualified patients. This decision, of course, would need to be made by the Florida Department of Health. The surety bonds are only required for Medical Marijuana Treatment Centers (MMTC), they are not required for each individual dispensing facility.
Florida Statute 381.986 – a. Upon approval, the applicant must post a $5 million 866 performance bond issued by an authorized surety insurance 867 company rated in one of the three highest rating categories by a 868 nationally recognized rating service. However, a medical 869 marijuana treatment center serving at least 1,000 qualified 870 patients is only required to maintain a $2 million performance ENROLLED 2017 Legislature SB 8-A, 3rd Engrossed 20178Aer Page 31 of 78 CODING: Words stricken are deletions; words underlined are additions. 871 bond. 872 b. In lieu of the performance bond required under sub873 subparagraph a., the applicant may provide an irrevocable letter 874 of credit payable to the department or provide cash to the 875 department. If provided with cash under this sub-subparagraph, 876 the department shall deposit the cash in the Grants and 877 Donations Trust Fund within the Department of Health, subject to 878 the same conditions as the bond regarding requirements for the 879 applicant to forfeit ownership of the funds. If the funds 880 deposited under this sub-subparagraph generate interest, the 881 amount of that interest shall be used by the department for the 882 administration of this section. 883 8. That all owners, officers, board members, and managers 884 have passed a background screening pursuant to subsection (9). 885 9. The employment of a medical director to supervise the 886 activities of the medical marijuana treatment center.
Medical use of marijuana requires that the performance bond is issued by an authorized surety insurance company rated in one of the three highest rating categories by a nationally recognized rating service. ProBond Insurance Corp is appointed with some of the largest, most reputable surety carriers in the country. Due to the risk still associated with the marijuana industry only a few of these companies are willing to issue marijuana related surety bonds. We have a fantastic relationship with all our companies.
Complete an online application today or download one of our applications to streamline the process
Office of Medical Marijuana Use
PO Box 31313
Tampa, FL 33631-3313