Enacted in to law in 2016, an Arkansas medical marijuana dispensary bond is required by the Medical Marijuana Commission under administrative rules. A dispensary is authorized under the law to undertake limited cultivation activities as explained in the Alcohol Beverage Control rules dealing with marijuana and the Commission's rules. Generally, a dispensary will NOT engage in volume cultivation however an operator may also apply for cultivation privileges.
The Arkansas medical marijuana bond obligation is a term bond and may be renewed annually by continuation certificate. The surety bond guarantees the payment of all costs and expenses incurred by the Commission attributable to retaining a replacement dispensary as a result of license revocation, all costs incurred by the the Commission or ABC in closing/decommissioning the dispensary site (including burning up the remaining marijuana), unpaid penalties assessed by the ABC against the Dispensary, taxes, penalties, and interest associated with any Arkansas Department of Finance and Administration tax account held by the Dispensary, and damages resulting from operator's failure to comply with all Arkansas laws related to licensing and operation of the dispensary. The Arkansas medical marijuana dispensary bond must be issued in the amount of $100,000. If the applicant also plans to obtain a cultivation privilege, the Arkansas medical marijuana cultivation facility bond must be issued in the amount of $500,000.
SuretyOne.com is the most agile underwriter of the surety bonds needed by the medical cannabis industry. We firmly believe in supporting the availability of cannabinoid products to patients that benefit from them. We will consider applications for dispensaries and grow operations in all states where current legislation favors legal marijuana businesses.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.