Florida Medical Marijuana Performance Bond

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Bond Penalty: $5,000,000

A Florida medical marijuana performance bond is a large, onerous obligation. Because of the restricted number of operators, few have been undertaken. Things have changed! In August of 2018, a Florida court struck down as unconstitutional what he deemed an arbitrary restriction on the number of medical marijuana business licenses. When Florida first legalized medical marijuana, it created a cultivator application system by which companies could apply for one of only five vertically integrated licenses to cover the entire state. This is of course at odds with a 2017 statute which called for ten new licenses, and four additional licenses for every 100,000 patients. As the number of active medical marijuana patients has almost tripled, from 56,537 in December, 2017, to 159,107 at the end of 2018.

Applicants that successfully negotiate the complicated procedures for obtaining a state license have ten days to file a "performance bond", as defined under F.S. 381.986(8)(b)7. The statute is clear. The Department of Health must receive a Florida medical marijuana performance bond in the amount of $5 million. The surety bond must name the Department as the beneficiary for recovery in the event the medical marijuana treatment center's registration is revoked, b written by an authorized surety company rated in one of the three (3) highest rating categories by a nationally recognized rating service (AM Best), and be manuscripted to correspond exactly to the individual or entity name on the candidate's application. The law states that a surety company can use any form it prefers for the performance bond as long as it complies with this wording of the working Rules or may use Form "DH8015-OMMU-04/2018 Florida Medical Marijuana Performance Bond." The cannabis bond may be canceled by the surety however a replacement must be filed with the Department immediately.

Currently, Florida medical marijuana operators are vertically integrated. As the licensee is responsible for all stages of the operation, the Florida medical marijuana performance bond guarantees the following pursuant to the approved bond form:

  • All costs and expenses incurred by the Department attributable to retaining the replacement medical marijuana treatment center necessitated by the revocation of operator's license.
  • All costs and expenses incurred by patients that are attributable to locating and securing a new source of medical marijuana necessitated by the revocation of operator's license including transportation costs, delivery costs, and increased cost of product, so long as the claims for such costs and expenses are assigned to the Department.
  • All costs and expenses incurred by other medical marijuana treatment center attributable to adjusting cultivation, processing or dispensing operations to ensure patient access to medical marijuana necessitated by the revocation of PRINCIPAL'S license, so long as the claims for such costs and expenses are assigned to the Department.

License application forms, the laws and rules for Florida medical marijuana operations may be found on the OMMU website. Inquiries may be directed to (800) 808-9580 or MedicalMarijuanaUse@flhealth.gov.

Florida surety bond leader, Surety One, Inc., is a national underwriter of marijuana business surety bonds. We firmly believe in supporting the availability of cannabis 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. For further information about the Florida medical marijuana performance bond contact us at (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat with an underwriter.


Surety bond application review and quoting are free of charge. There is no obligation to purchase.

What We Need From You

Additional Attachments

  • Business financial statement
  • Copy of complete state application