Alabama — Consumable Hemp Product Surety Bond
Alabama requires an initial consumable-hemp retailer applicant to purchase and maintain a $25,000 surety bond for each licensed location. The ABC Board must receive bond proof, and its rules require that documentation again at annual renewal. Match the applicant, physical location and actual retail license class before applying.
Continue to our secure checkout partner, Propeller (opens in a new tab).
- Recorded state
- Alabama
- Bond type
- Cannabis / Marijuana Bond
- Category
- Business operations & taxes
What this bond does
Secure timely collection and remittance of taxes under Alabama's consumable-hemp chapter and timely payment of outstanding penalties imposed by the ABC Board.
- Who needs it
- Applicants for Alabama ABC consumable-hemp specialty-retailer, pharmacy or retail-food-store licenses, and existing holders preparing required renewal proof. Match the actual license class and premises; these are separate from medical-cannabis integrated-facility approvals.
- Who it protects
- The ABC Board is the statutory payee and may claim against the bond for failure to timely collect/remit chapter taxes or pay outstanding Board penalties. The applicant executes as principal and a corporate surety qualified in Alabama executes as surety. This is not general product-quality or customer-refund protection.
Your bond option
This is the option on record for this bond.
- Bond optionPurchase Now (opens in a new tab)Continue to our secure checkout partner, Propeller (opens in a new tab).
The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- ABC current consumable-hemp licensing programme (opens in a new tab)Checked October 27, 2026
- Alabama section 28-12-40: Retailer Licenses (opens in a new tab)Checked October 27, 2026
- ABC Chapter 20-X-33 consumable-hemp license rules (opens in a new tab)Checked October 27, 2026
- Current selected consumable-hemp pre-application checklist (opens in a new tab)Checked October 27, 2026
Have these ready
- Match the exact legal applicant and physical licensed-location address.
- Identify specialty-retailer, pharmacy or retail-food-store license class.
- Provide the Board's request and the $25,000 per-location undertaking.
- Coordinate local approval, pre-application and required renewal proof.
- Confirm the accepted condition, effective dates, continuation and principal/surety execution.
Questions about this bond
Is $25,000 for the entire business?
Section 28-12-40(f) requires that sum for each licensed location. Match the actual applicant and premises and obtain the Board's accepted documents rather than assuming one location's bond covers other stores.
What can the ABC Board claim for?
The statute permits a claim when the licensee fails to timely collect and remit taxes under the consumable-hemp chapter or fails to timely pay an outstanding Board penalty. It does not describe a general refund or product-quality guarantee to consumers.
What follows Purchase Now?
Propeller's Alabama consumable-hemp product application opens in a new tab. Match the legal applicant, exact location, ABC retail class, Board-accepted $25,000 undertaking, dates and execution. Provide the required licensing or renewal proof; provider payment does not issue the license or approve the products sold.