Utah Cannabis Cultivation Performance Bond

Bond Penalty: $250,000

Pursuant to the newly enacted Utah Medical Cannabis Act, the Department of Health will require an Utah cannabis cultivation performance bond from all licensees. The DoH defines a cultivator as a "cannabis production establishment". Initially the state code (4-41a-201) obligated license candidates to demonstrate a minimum of five hundred thousand dollars in liquid assets. A new legislative bill modified that requirement to a two hundred fifty thousand dollar ($250,000) bond for producers and fifty thousand ($50,000) for processors.

The Utah cannabis performance bond must be issued by an insurance company authorized to transact surety business in Utah. To date, a state-approved bond form is not available however the statute and the administrative rules clearly describe the nature of the surety's obligation. The Utah marijuana bond must guarantee "performance" of all of the duties described in the code and rules including by not limited to:

  • Location and square footage requirements (R68-27-4)
  • Security requirements (R68-27-5)
  • Inventory control requirements (R68-74-6)
  • Facility agent (employee) requirements (R68-27-7)
  • Pesticide and fertilizer use restrictions (R68-27-8)
  • Transportation of product security and quality requirements (R68-27-9)
  • Cannabis product recall protocols (R68-27-10)
  • Cannabis product and storage handling requirements (R68-27-11)
  • Cannabis waste disposal requirements (R68-22-12)

Potential licensees must be thoroughly familiar with these obligations and will have to demonstrate compliance pre-licensing and by routine inspection by the Department. The Utah cannabis program contacts are:

Utah Department of Agriculture and Food
Plant Industry Division
350 N. Redwood Road
Salt Lake City, UT 84116-3034
Melissa Ure by phone at 801-538-4976, or by Ie-mail at mure@utah.gov
Robert Hougaard by phone at 801-538-7187, by fax 801-538-7189, or e-mail at rhougaard@utah.gov

Utah 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 Utah medical cannabis 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

  • Current Business Financial Statement
  • Copy of Complete State Application