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Ohio Medical Marijuana Bond

A prescription for medical marijuana that is legal.

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Ohio – Medical Marijuana Cultivator Bond
Ohio – Medical Marijuana Dispensary License ($50,000) Bond
Ohio – Medical Marijuana Testing Laboratory ($75,000) Bond

Introduction

The Ohio Medical Marijuana Control Program (OMMCP) was established following the passage of House Bill 523 in 2016, legalizing medical marijuana for patients with qualifying medical conditions. The program is administered by three primary state agencies. The goal of the program is to provide patients with access to safe, controlled, and legal medical cannabis while maintaining rigorous standards for public safety, business integrity, and product quality.

To operate legally in Ohio’s medical marijuana industry, businesses must obtain the appropriate license and, in many cases, secure a surety bond as financial assurance to comply with state regulations. These bonds help protect the state and public from financial harm due to non-compliance, abandonment, or unethical business practices.

A stethoscope and a medical marijuana leak are seen on a background of textured wood.

Explanation: Ohio Medical Marijuana Bond

In Ohio, the medical marijuana industry is regulated mainly by the Ohio Department of Commerce, State Board of Pharmacy, and State Medical Board. These agencies may ask surety bonds as part of the licensure process to ensure compliance with the state’s medical marijuana control program under Ohio Revised Code Chapter 3796 and Ohio Administrative Code Chapter 3796.

Here are the key types of medical marijuana bonds in Ohio:

Medical Marijuana Cultivator Bond

  • Who Needs It: Licensed cultivators (Level I and Level II).

  • Purpose: Ensures compliance with Ohio cultivation regulations, including facility construction, operations, recordkeeping, and reporting.

Medical Marijuana Processor Bond

  • Who Needs It: Licensed processors who extract or manufacture marijuana products.

  • Purpose: Ensures that processors operate in accordance with safety, sanitation, and labeling standards set by the Department of Commerce.

Medical Marijuana Dispensary Bond

  • Who Needs It: Licensed retail dispensaries.

  • Purpose: Guarantees compliance with security, inventory control, and patient verification procedures.

Medical Marijuana Testing Laboratory Bond

  • Who Needs It: Licensed testing laboratories analyzing marijuana products for safety and potency.

  • Purpose: Ensures accurate testing practices and compliance with chain-of-custody and reporting standards.

  • Typical Bond Amount: May vary; often set by administrative rule or determined case-by-case by the Department of Commerce.

Read a Monroe Township, Guernsey County, Ohio, Temporary Hauling Permit Bonds.

Step-by-Step Guide: Obtaining a Medical Marijuana Bond

Step 1: Identify the Type of License and Bond Required

  • Determine your license category:

    • Cultivator (Level I or II)

    • Processor

    • Testing Laboratory

    • Dispensary

  • Each license type has different bond requirements specified under Ohio Administrative Code Chapter 3796.

Step 2: Review State Regulations and Application Materials
Step 3: Select a Licensed Surety Bond Provider

  • Choose a surety bond company licensed in the State of Ohio.

  • Look for providers experienced with cannabis industry bonding.

  • Provide necessary documents:

    • Business formation details

    • Owner/partner information

    • Financial statements

    • Licensing application or pre-approval

Step 4: Obtain a Bond Quote

  • The surety will assess your financial background and credit history.

  • Based on risk, you’ll receive a premium quote.

Step 5: Purchase and Execute the Bond

  • Once you agree to the terms, the surety issues the bond.

  • Ensure the bond includes:

    • Correct Obligee (e.g., Ohio Department of Commerce)

    • Accurate licensee name

    • Effective and expiration dates

    • Surety seal and signatures

Step 6: Submit the Bond to the Appropriate Agency

  • Submit the original signed bond form as instructed:

    • Cultivators, Processors, Labs → Submit to the Ohio Department of Commerce

    • Dispensaries → Submit to the State Board of Pharmacy

  • Keep a copy for your records and upload any required documents to your license portal.

Step 7: Maintain and Renew the Bond Annually

  • Ensure the bond remains in force for the full license term (typically one or two years).

  • Renew the bond before expiration to avoid license suspension or revocation.

  • Report any changes (business name, ownership, or address) to both the agency and the surety provider.

Get a City of Seven Hills, OH – Contractor License Bond.

Conclusion

Ohio medical marijuana bonds play an important role in upholding the integrity and accountability of the state’s regulated cannabis industry. Required for many license types—including cultivators, processors, dispensaries, and testing labs—these bonds serve as a financial guarantee that licensed businesses will comply with all applicable laws under the Ohio Medical Marijuana Control Program (OMMCP).

Have a City of Strongsville, OH – Contractor Bond.

Buds and a grinder of homegrown marijuana are isolated on white in a mason jar.

Frequently Asked Questions (FAQs)

Below are common questions and answers regarding medical marijuana bonds in Ohio, based on the requirements set by the Ohio Medical Marijuana Control Program (OMMCP) under Ohio Revised Code Chapter 3796:

What happens if my bond is canceled or lapses?

The bond must remain active to maintain licensure. Cancellation or expiration without renewal may result in:

  • Suspension or revocation of your marijuana business license

  • Civil penalties

Can I transfer my marijuana bond to a new business location?

No. Bonds are specific to the business name, address, and license type. A change in any of these typically requires a new bond or bond rider.

Is a separate bond required for each license type?

Yes. If your business holds multiple licenses (e.g., cultivation and processing), you may need separate bonds for each, as required by the respective regulatory bodies.

Are there penalties for operating without a valid bond?

Yes. Operating without a required bond can result in:

  • Immediate suspension or revocation of your license

  • Civil fines

  • Disqualification from future license applications

What is a bond claim and how does it work?

A claim is filed when a licensee fails to comply with Ohio marijuana laws, causing financial loss or harm. If the claim is validated, the surety company pays damages up to the bond amount. The licensee must then reimburse the surety.

Who can file a claim against my bond?

Claims may be filed by:

  • The State of Ohio

  • Consumers or third parties (in some cases)

  • Other stakeholders affected by the licensee’s actions

What are common causes of bond claims?

  • Non-compliance with Ohio Revised Code Chapter 3796

  • Unpaid taxes or fees

  • Abandonment of operations

  • Environmental violations

  • Fraud or misrepresentation

See a Brecksville, OH-Contractor License Bond.