Las Vegas Medical Marijuana Establishment Bond

In 2013 the Nevada General Assembly passed, and the Governor signed into law, Senate Bill 374, now codified in NRS 453A, which allows medical marijuana establishments within the state. The statute requires such establishments to comply with all local business licensing requirements and local land use and codes. Las Vegas has made rules specifically enacted to regulate cannabis businesses to protect the economic, social, physical and moral well-being of the residents.

A Las Vegas medical marijuana establishment must procure a surety bond among other application requirements. Per 6.95.090, (B) The City Council may issue licenses for the following types of medical marijuana establishments:

• Medical Marijuana Dispensary. A medical marijuana dispensary license allows the licensee to acquire, possess, supply and sell or dispense usable marijuana, edible marijuana products, marijuana infused products, and marijuana paraphernalia exclusively to State regulating authority-designated medical marijuana registry card holders.
• Cultivation Facility. A cultivation facility license allows the licensee to acquire, possess, cultivate, package, label, deliver, transfer, transport, supply and sell wholesale marijuana and related supplies to a medical marijuana dispensary, medical marijuana production facility, or to other cultivation facilities only.
• Independent Testing Laboratory. An independent testing laboratory license allows the licensee to independently test marijuana, edible marijuana products and marijuana-infused products that are to be sold at medical marijuana establishments operating in accordance with the requirements of NRS 453A.
• Medical Marijuana Production Facility. A medical marijuana production facility license allows the licensee to acquire, process, manufacture, deliver, transfer, transport, package, and label usable marijuana and marijuana-infused products for sale at wholesale to marijuana dispensaries only.

Pursuant to section (G) of City Code 6.95.090, "Prior to the issuance or renewal of a license, a medical marijuana cultivation facility, an independent testing laboratory or a medical marijuana production facility licensee shall provide a Las Vegas medical marijuana establishment surety bond, the bond must be at the licensee's own expense and remain in force throughout the term of the license and guarantee the licensee's obligation, for itself and its agents, employees, subcontractors, and the agents and employees of any subcontractors, to indemnify, defend, and hold harmless the City, and any of its elected or appointed officers, agents, or employees, from any and all claims, demands, actions, damages, decrees, judgments, attorney fees, costs, and expenses which the City, or such elected or appointed officers or employees, may suffer, or which may be recovered from, or obtainable against the City, or such elected or appointed officers or employees, as a result of, by reason of, or arising out of the use of the license, or the exercise by the licensee of any or all of the rights, privileges, permission, and authority conferred herein, or as a result of any alleged act or omission on the part of the licensee in performing or failing to perform any of its obligations. The Las Vegas medical marijuana establishment bond must be written in the penal sum of two hundred fifty thousand dollars ($250,000) unless the City approves a lower threshold.

In addition to the Las Vegas medical marijuana establishment bond, licensees must provide insurance coverage specific to the scope of operations. We offer these mandatory coverages, details here.

• Production/Cultivation Facilities: Liability coverage for products and completed operations (one million dollars per occurrence, two million dollars aggregate); commercial automobile coverage (one million dollars per occurrence); and excess liability coverage (one million dollars).
• Dispensaries: General liability (one million dollars per occurrence, with two million dollars aggregate, for bodily injury and property damage arising out of licensed activities); liability coverage for products and completed operations (one million dollars per occurrence, with two million dollars aggregate); professional liability coverage (one million dollars per occurrence); and excess liability coverage (one million dollars).
• Independent testing laboratories: Professional liability coverage (one million dollars per occurrence), and excess liability coverage (one million dollars).

All required general liability and excess liability policies shall name the City and its elected officials, officers, agents, employees and volunteers as additional insureds. All policies shall be primary over any other valid and collectible insurance.

Nevada surety bond leader, SuretyOne.com is the most agile underwriter of the surety bonds and insurance coverages needed by the commercial cannabis industry. We firmly believe in supporting the availability of marijuana-based products to patients that benefit from them and availability for social use of responsible adults. We will consider applications for dispensaries, testing labs, delivery services and grow operations in all states where current legislation favors legal marijuana businesses. For further information about the Las Vegas marijuana surety bond contact us at (800) 373-2804, email Underwriting@SuretyOne.com of chat with us live here.

NATIONWIDE COVERAGE: ARE YOU A CANNABIS OPERATOR IN MULTIPLE STATES? WE OFFER MARIJUANA BUSINESS BONDS IN ALL STATES WHERE THEY ARE REQUIRED.

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

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