{"id":1441,"date":"2014-09-11T23:34:51","date_gmt":"2014-09-11T23:34:51","guid":{"rendered":"http:\/\/suretyone.com\/blog\/?p=1441"},"modified":"2017-01-03T16:20:31","modified_gmt":"2017-01-03T16:20:31","slug":"illinois-medical-cannabis-cultivation-center-surety-bond","status":"publish","type":"post","link":"https:\/\/suretyone.com\/blog\/illinois-medical-cannabis-cultivation-center-surety-bond\/","title":{"rendered":"Illinois Medical Cannabis Cultivation Center Surety Bond"},"content":{"rendered":"

The Compassionate Use of Medical Cannabis Pilot Program Act was signed by the governor and went into effect on January 1, 2014. \u00a0Licensing of a marijuana cultivation operation will require TWO surety bonds. \u00a0The first requirement is the Illinois medical cannabis cultivation center CONSTRUCTION surety bond<\/a><\/strong>, which guarantees of completion of the facility. \u00a0The second requirement is an Illinois medical cannabis cultivation center PRODUCTION bond<\/a><\/strong>, which guarantees that the center will actually produce medical marijuana for no less than ninety days from the completion of the center build-out. \u00a0License application submissions are complex. \u00a0The Department of Agriculture has issued specific instructions about the preparation and submission of applications. \u00a0You may review the instructions here<\/a><\/span>. \u00a0The license requests are judged on a “point” system, and the applicant’s(s’) idenity(ies) remain anonymuous during the scoring period. \u00a0The medical cultivation center application, $25,000 filing fee, surety bonds and supporting materials are submitted as follows:<\/p>\n

September 8, 2014 \u2013 September 22, 2014
\nMonday \u2013 Friday
\n8:30 am \u2013 5:00 pm.
\n***NOTE: The application period will end at 3:00 pm on Monday, September 22, 2014***<\/p>\n

Illinois Department of Agriculture
\nMedical Cannabis Cultivation Center Surety Bonds<\/strong>
\nPO Box 19281
\nSpringfield, Illinois 62794<\/p>\n

or, . . .<\/p>\n

Emmerson Building
\nIllinois State Fair Grounds \u2013 Gate 11
\nCorner of Main Street and Central Avenue
\nSpringfield, Illinois 62707<\/p>\n

The\u00a0Illinois medical cannabis cultivation center CONSTRUCTION surety bond<\/a><\/strong>\u00a0is a guarantee that by accepting the permit, the Principal is obligated to construct a cultivation center that is fully operational and commence production of medical cannabis as provided for in the permit application of the Principal within six (6) months after the date of issuance of the permit. \u00a0The obligation is a “forfeiture bond”. \u00a0If after a hearing pursuant to Section 1000.700 of the rules of the Department (8 Ill. Adm. Code 1000.700), that the Principal has failed to timely and successfully construct a cultivation center that is fully operational and commence production of medical cannabis as provided for in the permit application then the Surety must make immediate payment of the $2 million penal sum to the State. \u00a0The obligation is not cancelable.<\/p>\n

The\u00a0Illinois medical cannabis cultivation center PRODUCTION surety bond<\/a><\/strong>\u00a0is a guarantee that following the timely and successful construction of a cultivation center and commencement of production of medical cannabis, the Principal is obligated to: (1) maintain uninterrupted production for not less than 90 consecutive days for any reason after it has completed construction of the facility: and, (2) continue to operate the cultivation center in a manner that provides an uninterrupted supply of medical cannabis to licensed dispensaries, sufficient enough to allow the licensed dispensaries to supply their registered qualifying patients with an adequate supply of medical cannabis. The provisions of this bond do not necessarily provide for forfeiture of the full penal sum of the bond. \u00a0First, the bond does not have any effect until the medical cannabis cultivation center surety bond<\/strong>\u00a0for CONSTRUCTION of the facility has been exonerated by compliance with its provisions. \u00a0Thereafter, if the Principal has failed to: (1) maintain production for any reason for more than ninety (90) consecutive days after it has completed construction of the facility; or (2) provide an uninterrupted supply of medical cannabis to licensed dispensaries during the term of the license, then the Surety shall immediately make payment of $1.5 million to the State, which sum shall be reduced by $500,000 upon the successful achievement of each of the following milestones by the Principal:<\/p>\n

1. A determination by the Department that the cultivation center remained operational
\nwithout substantial interruption, was able to provide an uninterrupted supply of medical
\ncannabis to licensed dispensaries, as required by Sections 1000.40(g) and 1000.240, and
\noperated without any violation of the Act or the rules for a one year period;<\/p>\n

2. A determination by the Department that the cultivation center remained operational
\nwithout substantial interruption, was able to provide an uninterrupted supply of medical
\ncannabis to licensed dispensaries, as required by Sections 1000.40(g) and 1000.240, and
\noperated without any violation of the Act or the rules for two consecutive years; and<\/p>\n

3. A determination by the Department that the cultivation center remained operational
\nwithout substantial interruption, was able to provide an uninterrupted supply of medical
\ncannabis to licensed dispensaries as required by Sections 1000.40(g) and 1000.240,<\/p>\n

Exoneration (release) of surety from the medical cannabis cultivation center surety bond\u00a0<\/strong>for PRODUCTION will expire on the five (5) year anniversary of the effective date upon the following conditions: (i) automatic and immediate payment of any remaining obligation due on the bond is made to the State the day prior to the instrument expiring; (ii) written notice is received from the Department that either a replacement account or instrument, acceptable to the Department, is in place; or (iii) the Principal is released by the Department of the obligation to carry a replacement account or instrument.<\/p>\n

The final three provisions of the bond form also address exoneration of the surety’s liability. \u00a0The bond will be null and void if, . . .<\/p>\n

1. The Department determines that the cultivation center remained operational without
\nsubstantial interruption, was able to provide an uninterrupted supply of medical cannabis
\nto licensed dispensaries as required by Sections 1000.40(g) and 1000.240, and operated
\nwithout any violation of the Act or this Part for three consecutive years; or<\/p>\n

2. The Principal voluntarily chooses not to renew the permit and provides notice of this
\ndecision to the Department in accordance with Section 1000.600 of the rules of the
\nDepartment (8 Ill. Adm. Code 1000.600); or<\/p>\n

3. Should the sunset provision of the Act, found in Section 220 of the Act (410 ILCS
\n130\/220), take effect and no successor medical cannabis program be in place allowing
\nfor the continuation of cultivation centers as provided for in the Act and the rules,
\nprovided the cultivation center is not in violation of the Act or the rules.<\/p>\n

Illinois surety leader<\/strong>, Surety One, Inc. is a specialist in the bonding needs agricultural operators and medical professionals. \u00a0We offer both surety and fidelity bonds needed by these business classes in ALL fifty states, Puerto Rico and the U.S. Virgin Islands. Visit us at SuretyOne.com, call (787) 333-0222<\/span> or (800) 373-2804<\/span>, or email us at Underwriting@SuretyOne.com<\/span> for an Illinois Cannabis Cultivation Center Surety Bond<\/a><\/strong> application or information on ANY bonding need. Tambi\u00e9n nuestra asesor\u00eda est\u00e1 disponible en SU idioma.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Compassionate Use of Medical Cannabis Pilot Program Act was signed by the governor and went into effect on January 1, 2014. \u00a0Licensing of a marijuana cultivation operation will require TWO surety bonds. \u00a0The first requirement is the Illinois medical… Continue Reading →<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[1815,1818,1814,1812,1813,1817,1816],"yoast_head":"\nIllinois Medical Cannabis Cultivation Center Surety Bond • Surety One, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/suretyone.com\/blog\/illinois-medical-cannabis-cultivation-center-surety-bond\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Illinois Medical Cannabis Cultivation Center Surety Bond • Surety One, Inc.\" \/>\n<meta property=\"og:description\" content=\"The Compassionate Use of Medical Cannabis Pilot Program Act was signed by the governor and went into effect on January 1, 2014. \u00a0Licensing of a marijuana cultivation operation will require TWO surety bonds. \u00a0The first requirement is the Illinois medical... 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