Do You Need a Marijuana Surety Bond in New York?
What is a New York marijuana bond?
A New York marijuana bond is a contract between three parties: a marijuana registered organization, a surety, and the New York State Department of Health (DOH). A marijuana “registered organization” in New York is responsible for manufacturing and dispensing medical cannabis in the state (Office of Cannabis Management).
This surety bond ensures that the bonded party follows applicable state laws and performs all duties the DOH requires of them. A New York marijuana bond may also go by other names, such as a “marijuana registered organization bond.”
How does a New York marijuana surety bond work?
The bond holds marijuana registered organizations (the principals) accountable to the obligations outlined in Section 3365 of New York law. If a registered organization breaks its surety contract, an injured party may file a claim against the bond for compensation.
The surety promises to pay the injured party what they’re owed – up to the total bond amount – if the principal can’t or won’t pay. The principal at fault must then repay the surety in full.
Get Your New York Marijuana Bond:
- A New York marijuana bond is a contract between three parties: a marijuana registered organization, a surety, and the New York State Department of Health.
- A marijuana “registered organization” in New York is responsible for manufacturing and dispensing medical cannabis in the state.
- If a registered organization breaks its surety contract, an injured party may file a claim against the bond for compensation.
- You may choose to post a marijuana surety bond instead of providing copies of deeds, rental agreements, and leases or options contracts related to real property interests.
- If you need a marijuana bond, you must pay a small percentage of the full bond requirement.
New York Marijuana License Requirements
Suppose you wish to apply to become a registered organization and operate a marijuana dispensary in the state of New York. In that case, you may choose to post a surety bond instead of providing copies of deeds, rental agreements, and leases or options contracts related to real property interests. A $2,000,000 marijuana bond may fulfill this medical marijuana program application requirement.
In addition to the bond application, you may also need to pay a $10,000 application fee, allow the New York DOH access to your facilities for inspection, and more. Visit the Office of Cannabis Management website to learn about all current licensing requirements, laws impacting the marijuana industry, and the latest news.
How much do marijuana surety bonds cost in New York?
You will pay a small percentage of your surety bond penalty requirement, which may be $2,000,000 or more. If you have excellent credit and financial credentials, you may pay as low as 1%, or $20,000, annually.
Get a Marijuana Bond in New York
ZipBonds is certified to provide marijuana bonds to qualified businesses. You can start the application process today by selecting your state below. We offer the fastest and most secure option for getting bonded. If you have any questions along the way, feel free to call 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.