What is a Maine medical marijuana bond?
The state of Maine requires those applying to register as a retail marijuana establishment to obtain and post a surety bond. The bond ensures marijuana-related businesses pay applicable fees and taxes. It also guarantees that companies perform cultivation, manufacturing, testing, and dispensing according to state laws and regulations for marijuana retail practices and establishments.
Maine defines “retail marijuana” as marijuana or marijuana concentrate that’s cultivated, manufactured, distributed, or sold by a registered dispensary, retail marijuana establishment, or social club.
Who needs a retail marijuana bond in Maine?
You may need a marijuana bond if you plan to apply for any of the following types of retail marijuana licenses.
- Testing facility
- Social club
- Cultivation facility
- Products manufacturing facility
Your state licensing authority (the Maine Bureau of Alcoholic Beverages & Lotter Operations) will be the obligee.
Get Your Maine Marijuana Bond:
- Maine requires those applying to register as a retail marijuana establishment to obtain and post a surety bond.
- The state defines “retail marijuana” as marijuana or marijuana concentrate that’s cultivated, manufactured, distributed, or sold by a registered dispensary, licensed retail marijuana establishment, or licensed social club.
- Maine marijuana bonds can vary in cost depending on the type of license you need, your creditworthiness, business financials, and other factors.
Maine Medical Marijuana Surety Bond Conditions
According to Maine Legislature, SP0520 LD 1491, retail marijuana businesses must post a bond of a capacity and rating acceptable to the commissioner. It must be in a secured amount applicable to the license they’re applying for. If they don’t, their application may not be approved. A surety bond proves an applicant has the financial resources required to operate their business successfully.
The commissioner is the Director of the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services.
- At least 21 years of age
- A resident of Maine during the two years before applying for the license
- An applicant for a retail marijuana social club or establishment license may not also be the principal owner of an applicant for a retail marijuana testing facility license (or current owner of a testing facility)
- Must obtain a surety bond from a company licensed to conduct business in Maine
- The bond must be payable to the commissioner
- The surety guarantees payment up to the full bond amount for valid claims against the bond
- The marijuana establishment must repay the surety for any amount covered for a claim settlement
How much do Maine retail marijuana bonds cost?
Maine marijuana bonds can vary in cost depending on the type of license you need, your creditworthiness, business financials, and other factors. Expect to pay anywhere from 1-5% of the total bond requirement if you have good personal and business credentials.
Here are the surety bond requirements for each type of retail marijuana business in Maine:
- Retail marijuana store: $500,000
- Retail marijuana social club: $500,000
- Retail marijuana products manufacturing facility: $600,000
- Retail marijuana cultivation facility with 3,000 square feet or less of plant canopy: $600,000
- Retail marijuana cultivation facility with more than 3,000 square feet of plant canopy: $1,100,000
- Retail marijuana testing facility: $800,000
If your surety bond requirement is $800,000 and your rate is 1%, you’ll pay around $8,000 as your annual surety bond premium.
Apply for Your Maine Marijuana Bond
ZipBonds is certified to provide marijuana performance bonds to qualified businesses. We offer the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. If you have any questions along the way, call 888-435-4191 to speak with an agent directly. We’re more than happy to help!
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.