A Connecticut medical marijuana producer bond package is required of all applicants that propose to operate a marijuana production facility in the state. Licensing and regulation is the responsibility of the Connecticut Department of Consumer Protection (DCP). The application process is extensive and a very small number of producers will ultimately be approved. The DCP provides a detailed reference sheet for candidates which you may review here.
The surety bond requirements are twofold. An applicant must submit a Connecticut medical marijuana facility performance bond to guarantee completion of the proposed facility. The bond must be written in the amount of two million dollars ($2,000,000). The obligation guarantees that the principal will in a timely manner complete the construction of the production facility or immediately make payment of the full penal sum of the bond to the state. The second requirement is a medical marijuana facility operation bond. The surety bond must be in the amount of one million five hundred thousand dollars ($1,500,000), and guarantees that the principal will provide a "substantially uninterrupted supply of marijuana to its usual dispensary facility customers" during the term of the license. Failure to do so results in immediate payment of the bond to the state. This secondary obligation may not necessarily require a forfeiture of the full penal sum of the bond. The form specifically provides allowances (relief) form a full forfeiture. The claim must be reduced to $1,000,000 if the production facility remains operational without substantial interruption and without any violation of law for a period of one year, and reduced to $500,000 if operational without interruption or violation for three years. The medical marijuana facility production performance bond carries a five year tail unless released by the DCP or replaced by another surety.
Per the DCP, applications and supporting material must be hand-delivered in accordance with instructions with a $25,000 application fee. Subsequent fees are $75,000 for final registration and $75,000 per renewal. Hand-delivery must be made to:
Department of Consumer Protection
Drug Control Division
Connecticut Medical Marijuana Program
165 Capitol Ave, Room 145
Hartford, CT 06106
Connecticut surety bond leader, SuretyOne.com is the most responsive underwriter of marijuana business license bonds and the insurance coverages needed by the industry. We firmly believe in supporting the availability of cannabis products to patients that enjoy a better quality of life from them. We will consider applications for dispensaries and production operations in all states where current legislation favors legal cannabis businesses. For further information about a Connecticut medical marijuana facility bond contact us at (800) 373-2804, email Underwriting@SuretyOne.com or chat with us live here. Interested in liability or other cannabis insurance coverages? Click here for more detail.
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