How does a medical marijuana bond in Georgia work?
The GA Access to Medical Cannabis Commission requires financial security in the form of a surety bond for businesses that wish to cultivate cannabis. Georgia plans to offer three types of medical marijuana licenses for businesses.
Types of Medical Marijuana Licenses
- Class 1 Production License: For indoor facilities to produce low-THC oil. The cultivation space is restricted to 100,000 square feet. The required bond amount is $1.5 million.
- Class 2 Production License: For growing cannabis indoors to be used for producing low-THC oil. Cultivation space is limited to 50,000 square feet, and the total bond amount required is $625,000.
- Dispensing License: This license is not yet available.
Class 1 and Class 2 producers may also operate as manufacturers of low-THC oil, but an additional license and surety bond is required. Class 1 producers are limited to two licenses, and Class 2 producers are limited to four licenses.
Get Your Georgia Marijuana Bond:
- The GA Access to Medical Cannabis Commission requires financial security in the form of a surety bond for businesses that wish to cultivate cannabis.
- In 2019, the state passed HB 324 (Georgia’s Hope Act), allowing cultivators to grow marijuana in Georgia for medical purposes and produce and sell low-THC oil.
- Georgia has only accepted a limited number of applicants so far to become licensed.
- The state only allows registered patients to purchase marijuana.
Medical Marijuana Laws in Georgia
Medical marijuana use was legalized in Georgia back in 2015 (for low-THC cannabis oil for approved patients). However, in-state businesses still couldn’t produce, transport, or sell the oil in the state. Patients were forced to buy from out-of-state companies.
In 2019, the state passed bill HB 324 (Georgia’s Hope Act), allowing cultivators to grow marijuana in Georgia for medical purposes and produce and sell low-THC oil. The GA Access to Medical Cannabis Commission was also authorized to oversee licensing for in-state cultivation, production, manufacturing, and sale of low-THC oil, along with dispensing it to registered patients.
Today, certain businesses may legally grow marijuana to produce low-THC cannabis oil. However, Georgia has only accepted a limited number of applicants for business licenses (which are currently stalled – as of November 2021). The state also allows only registered medical marijuana patients to purchase marijuana. These patients include those who have lived in the state for at least a year and have a qualifying condition (e.g., epilepsy, Crohn’s disease, PTSD, autism, etc.).
How much does a medical marijuana bond cost in Georgia?
You will pay a small percentage of the total bond amount required to obtain a medical marijuana bond in Georgia. If you have a good credit score and strong financial credentials, you may pay as little as 1% of the total bond amount.
Here’s an overview of what you’re required to provide to apply for a medical marijuana business license in Georgia.
- A letter of support from local government(s)
- Proof that at least one minority business enterprise will have substantial involvement in the business
- A surety bond payable to Georgia (or an irrevocable line of credit)
- Ability and agreement to be operational within one year of licensure
- A non-refundable application fee of $25,000 and a $200,000 licensing fee (or $100,000 annual renewal fee) if you’re a Class 1 applicant
- A non-refundable application fee of $5,000, a $100,000 licensing fee (or $50,000 annual renewal fee) if you’re a Class 2 applicant
Licensees are selected through a competitive application process.
Get a Marijuana Bond in Georgia
We can help you find the right marijuana bond for your business. ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward, and many of our bonds are issued instantly. Begin your application online, or call us at 888-435-4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.