North Dakota Medical Marijuana Compassion Center Bond (Manufacture & Dispensary)

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Bond Penalty: ND DOH discretion up to $1MN

A North Dakota compassion center bond (dispensary surety bond) one of several requirements for for businesses that seek to engage in the commercial distribution of medical marijuana. Pursuant to ND Code (19-24.1-02), a medical marijuana program allows production and processing, sale and dispensing of usable marijuana for medical pursposes. A person (or entity) may not produce, process, sell, possess, transport or dispense cannabis under the program unless authorized by the Department of Health to do so as a compassion center.

Per state statute, the Department may currently license no more than two compassion centers with the sole purpose of operating as a manufacturer and eight compassion centers with the sole purpose of dispensing cannabis. "The Department may register additional compassion centers if the Department determines that additional marijuana compassion centers are necessary to increase access to usable marijuana by registered qualifying patients and registered designated caregivers." There appear to two classifications for registration. Per 1-13:

  • A manufacturing facility - limited to producing and processing activities, including acquiring, possessing, storing, transferring, and transporting marijuana the sole purpose of selling to a dispensary.
  • A dispensary - limited to purchasing usable marijuana from a manufacturing facility, including storing, delivering, transferring, and transporting usable marijuana for the purpose of dispensing to a registered qualifying patient.

Pursuant to 19-24.1-15 (requirements for registration) is the mandate for a North Dakota marijuana surety bond. The compassion center bond must ensure the protection of the public health and safety and the environment in the event of abandonment, default, or other inability or unwillingness to meet the requirements of the regulating statutes. The current law and adjacent DOH administrative rules are not clear on the surety bond penalty however indications are that the bond amount will not exceed one million dollars ($1,000,000). The Department of health offers further information on the application requirements on its website.

North Dakota surety bond leader, is the most responsive underwriter of marijuana business license bonds and the insurance coverages needed by the sector. 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 grow operations in all states where current legislation favors legal marijuana businesses. For further information about a North Dakota marijuana compassion center bond contact us at (800) 373-2804, email of chat with us live here. Interested in liability or other cannabis insurance coverages? Click here for more detail.


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