- April 20, 2017
- Posted by: Surety Bond Experts
- Categories: Surety Bond, Surety Bond Producers, Surety Bond Rates, Surety Bonds
Arkansas, Colorado, California, Massachusetts. What is one thing that ties all these states together? If you guessed the legalization of medical marijuana, you are right. Last November, Arkansas voted to approve Issue 6, legalizing medical marijuana. In Arkansas, the government group overseeing the licensure is the Arkansas Medical Marijuana Commission (AMMC). They also regulate dispensaries and cultivation facilities. One of the issues up for debate, is if surety bonds will be part of the licensing procedure. Although the AMMC has not mandated surety bonds, they have approved various bond requirements. On January 3, they voted that cultivation facilities must show proof of assets during the application process. If they are unable to prove that they have assets of $1 million, they must then apply for a $1 million surety bond.
Seven days later, the AMMC met again. They voted that cultivation facilities must provide a $500,000 performance bond. This would then clear them for licensure. Further, they voted that a surety bond must be held until the first sales tax report is filed. Finally, applicants must prove that they have assets or provide a surety bond of $200,000. Cultivating dispensaries must obtain a $100,000 performance bond after they are successfully licensed. There are additional requirements for obtaining a license. For further information contact the AMMC.
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