Medical Marijuana Dispensary ($100,000) Bond - Statewide in Arkansas

Brief Summary

Arkansas gives a selected dispensary applicant seven days to deliver both the $15,000 license fee and this $100,000 performance bond to the Medical Marijuana Commission. Have the bond lined up before the selection letter arrives and that deadline is a formality instead of a scramble.

Arkansas Medical Marijuana Commission rules, Section V.10.c, require a selected dispensary applicant to submit a $100,000 performance bond to the commission within seven days of receiving written notice of selection. The bond is written on the commission's Performance Bond Medical Marijuana Dispensary form with the Arkansas Medical Marijuana Commission as obligee, and the rule says it must be maintained until the dispensary files its first application for renewal of the license.

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How to Apply for a Medical Marijuana Dispensary ($100,000) Bond:

• At application, provide proof of assets or a $200,000 surety bond plus proof of at least $100,000 in liquid assets under Rule V.4.c.
• Pay the $7,500 dispensary application fee.
• After written notice of selection, obtain the $100,000 performance bond on the MMC Performance Bond Medical Marijuana Dispensary form.
• Submit the bond and the $15,000 license fee to the commission within seven days of the selection notice.
• Keep the bond in force at least until the first renewal application is filed.
• File each renewal application at least sixty days before the June 30 expiration with the $22,500 renewal fee.

Detailed Information About the Arkansas Medical Marijuana Dispensary ($100,000) Bond:

Two different bonds, two different stages

The most common mix up is treating the $100,000 performance bond as the only bond. Section V.4.c of the commission rules separately requires every dispensary applicant to provide proof of assets or a surety bond of $200,000, plus proof of at least $100,000 in liquid assets. That application stage bond stays in place until the applicant withdraws, is denied, or is selected and pays the license fee and the performance bond. The $100,000 performance bond on this page comes after selection.

Amount and deadline

The dispensary performance bond is a flat $100,000. There are no tiers for dispensaries. For comparison, a cultivation facility posts a $500,000 performance bond under Section IV.10.c. Within seven days of written notice of selection, a dispensary applicant submits both the $15,000 license fee under Section V.10.a and the performance bond under Section V.10.c.

What the bond covers

The commission's form names the Arkansas Medical Marijuana Commission (MMC) as obligee and runs for an effective period of one year. If the dispensary's license is revoked during that period, the principal and surety remain liable for the commission's costs of retaining a replacement dispensary, the costs of shutting down the site, including removal and destruction of remaining product and cleaning the facility, unpaid penalties assessed by the Alcoholic Beverage Control Division, and outstanding taxes, penalties and interest on any Department of Finance and Administration tax account held by the dispensary. The surety may cancel on ninety days written notice to the principal and the MMC, but only before ABC begins action to revoke the license.

Fees, term and renewal

Amendment 98, Section 8, created the program and set the June 30 license expiration. The rules set a $7,500 application fee, with $3,750 refunded to unsuccessful applicants, the $15,000 license fee, and a $22,500 annual renewal fee. A renewal application is due at least sixty days before the license expires. Rule V.10.c says the performance bond must be maintained until the dispensary files its first renewal application, so confirm with the commission what it expects at renewal before you let the bond lapse.

Eligibility and Requirements for a Arkansas Medical Marijuana Dispensary ($100,000) Bond:

• Arkansas Medical Marijuana Commission named as obligee.
• Bond amount of exactly $100,000 for a dispensary.
• The commission's own Performance Bond Medical Marijuana Dispensary form.
• Principal name matching the selected applicant exactly.
• Surety underwriting of the owners and the business, which sets the premium.

Arkansas Medical Marijuana Dispensary ($100,000) Bond FAQs:

Official and Additional Resources for the Arkansas Medical Marijuana Dispensary ($100,000) Bond: