Massachusetts Marijuana / Cannabis License Bond
Massachusetts Marijuana Bond Information
A Marijuana Bond is required by The Commonwealth of Massachusetts as part of the licensing process. Per the regulations a surety bond must be evidenced in an amount equal to the licensure fee. The bond protects The Commonwealth's cost for destruction of goods in the event of violations.
Regulations section (16) Bond
(a) Prior to commencing operations, a Marijuana Establishment shall provide proof of having obtained a surety bond in an amount equal to its licensure fee payable to the Marijuana Regulation Fund to ensure payment of the cost incurred for: 1. The destruction of Cannabis goods necessitated by a violation of M.G.L. c. 94G or 935 CMR 500.000; 2. The costs and compensation of a Court Appointee; 3. The cessation of operation of the Marijuana Establishment; or 4. Such other uses that the Commission may authorize to ensure public health, safety and welfare.
(b) All bonds required under 935 CMR 500.000 shall be issued by a corporate surety licensed to transact surety business in the Commonwealth.
(c) If the Marijuana Establishment is unable to secure a surety bond, as required by 935 CMR 500.105(16)(a), it may place in escrow a sum of no less than $5,000 or such other amount approved by the Commission, to be expended for coverage of liabilities.
(d) The escrow account required pursuant to 935 CMR 500.105(16)(c) shall be replenished within ten business days of any expenditure required under 935 CMR 500.105, unless the Marijuana Establishment has ceased operations. Documentation of the replenishment shall be promptly sent to the Commission.