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Introduction
From our perspective, Oklahoma’s medical marijuana industry offers promising opportunities—but it also imposes serious responsibilities on licensees. If you’re applying for a commercial grower license in the state, one of the non-negotiable steps is securing a $50,000 surety bond.
This requirement is enforced by the Oklahoma Medical Marijuana Authority (OMMA) and serves as a financial guarantee to the state. It ensures that commercial growers operate lawfully, pay required taxes, and cover any public or environmental damages caused by noncompliance. Without it, OMMA will not issue or renew your license.
The surety bond is not a business expense in the traditional sense. It functions as a three-party agreement: the grower (principal), the surety company (guarantor), and the State of Oklahoma (obligee). If the grower violates state regulations, the state can claim compensation against the bond.
Understanding this bond—how it works, how it protects the state, and how to secure it—is essential to lawful and successful cultivation in Oklahoma.
Common Misunderstandings About Grower Bonds
We’ve noticed that many applicants misinterpret what the $50,000 Medical Marijuana Grower Bond actually involves. One major misconception is that this amount must be paid upfront. In reality, $50,000 represents the penal sum—the maximum the surety may be obligated to pay if the licensee violates their obligations. The grower only pays an annual premium, typically between $500 and $5,000, based on credit and business history.
Another misunderstanding is assuming the bond protects the grower’s business. It doesn’t. This bond protects the state of Oklahoma and its citizens. If you violate regulations, fail to pay taxes, or abandon operations without proper remediation, the bond can be used to cover those damages.
Confusion also arises when applicants mistakenly believe they can use other bond types interchangeably. For example, the Oklahoma – Boxing, Kickboxing, MMA and Wrestling Events ($10,000) Bond is governed by Title 3A and applies solely to sports promoters—not cannabis operations. It cannot be substituted for a grower bond under OMMA regulations.
Bonding Support and Accuracy from Swiftbonds
Based on our experience, Swiftbonds offers unmatched support to growers seeking licensure in Oklahoma. We work with licensed growers of all sizes—from small indoor cultivators to large-scale commercial farms. We understand the specific legal language required by OMMA and ensure that every bond we issue complies with state law.
Our team frequently assists with both the Oklahoma – Medical Marijuana Grower License ($50,000) Bond and the ERISA Bond Policy – Oklahoma, the latter of which applies to fiduciaries managing employee benefit plans. Each bond type has its own requirements, and mixing them up can jeopardize compliance.
We act quickly to deliver bonds with legal accuracy, helping applicants stay on schedule and avoid delays with OMMA.
Step-by-Step Process to Secure a Grower License Bond
What we’ve discovered is that a structured process helps licensees avoid delays and reduce errors:
- Understand the Bond Requirement
Every commercial grower in Oklahoma must post a $50,000 surety bond for each license, as outlined in Title 63, Oklahoma Statutes § 427.26. - Review OMMA Rules
Regulations are defined in Oklahoma Administrative Code (OAC) 310:681-5-3.1, which details application procedures, bond submission, and ongoing compliance. - Submit an Application With a Trusted Surety Provider
Swiftbonds evaluates your credit and business history to provide a tailored bond quote. - Receive and File Your Bond With OMMA
Submit your bond to OMMA as part of your license application or renewal. - Maintain Bond Coverage Annually
OMMA licenses are renewed yearly, and bonds must be kept active for the duration of each license period.
Why Early Bond Filing Matters
We’ve found that growers who begin the bonding process early in their license application have a smoother path to approval. If your bond lapses or is incorrectly issued, OMMA may reject or suspend your license. This can cause costly delays and may even lead to enforcement action.
Using the wrong type of bond is another issue. For example, the Oklahoma – Boxing, Kickboxing, MMA and Wrestling Events ($10,000) Bond may appear similar in format, but it fulfills a separate legal function under a different statute. Accurate bonding is critical, and we ensure our clients avoid such missteps.
Legal Risks of Noncompliance With Bond Requirements
In our observation, failure to comply with bonding regulations often leads to serious penalties. Under Oklahoma Statutes Title 63 § 427.14 and § 427.26, OMMA is empowered to revoke or suspend licenses for bond-related violations. If a bond is canceled or expires without renewal, the grower may face immediate license suspension under OAC 310:681-5-3.1.
Additionally, if the bond is used to pay claims due to noncompliance, the grower must reimburse the surety in full. These legal and financial liabilities can be avoided entirely by working with a provider that ensures bond accuracy and timely renewals.
Relevant Oklahoma Statutes and Regulations
As part of the licensing process, commercial marijuana growers in Oklahoma must comply with the following legal requirements:
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Title 63, Oklahoma Statutes § 427.14: Authorizes OMMA to regulate commercial licenses and implement rules for enforcement and compliance.
Source: https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=487065 -
Title 63, Oklahoma Statutes § 427.26: Requires a $50,000 surety bond for each commercial grower license to cover tax liabilities and other state costs.
Source: https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=491161 -
Oklahoma Administrative Code (OAC) 310:681-5-3.1: Details the bond submission process and outlines consequences for noncompliance or lapse in coverage.
Source: https://www.oar.state.ok.us
Growers are encouraged to review these sources directly or consult legal counsel to confirm obligations specific to their license type.
Conclusion
We’ve come to appreciate how commercial growers in Oklahoma are shaping a regulated, high-growth industry. The Oklahoma – Medical Marijuana Grower License ($50,000) Bond is a critical legal tool—not only to comply with OMMA regulations but to demonstrate responsible business conduct in a sensitive sector.
This bond is not optional. It is required by law under Title 63, Oklahoma Statutes §§ 427.14 and 427.26 and enforced through OAC 310:681-5-3.1. Failing to meet these legal requirements can halt operations, delay licenses, and expose your business to unnecessary risk.
At Swiftbonds, we help business owners meet these obligations efficiently, correctly, and affordably. Whether you’re applying for your first license or renewing for the fifth time, we’re here to make bonding a seamless, compliant part of your business success.
Frequently Asked Questions
What law requires medical marijuana growers in Oklahoma to post a bond?
We’ve often noticed confusion on this. The requirement comes from Oklahoma Statutes Title 63 § 427.26, which mandates a $50,000 surety bond for each commercial grower license. OMMA enforces it under OAC 310:681-5-3.1.
Is the $50,000 bond amount paid out of pocket by the grower?
We’ve seen this misunderstanding often. No, the $50,000 is the maximum the surety may pay on a valid claim. The grower pays only a small annual premium, typically between $500 and $5,000.
What happens if the bond lapses during the license term?
We’ve found that OMMA may suspend the license immediately under OAC 310:681-5-3.1. The grower would also be responsible for damages, and any claim paid out must be reimbursed to the surety company.
Can this bond be used for dispensary or processor licenses?
We’ve often noticed that applicants ask this. No, this bond is exclusive to commercial grower licenses. Other cannabis business types have separate compliance requirements.