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Connecticut bonds

Connecticut — Medical Marijuana Production Facility Operation Bond

Connecticut's preferred medical-producer operation form starts at $1.5 million and activates only after successful completion of the construction-bond obligation. Prepare the DCP direction and construction-completion record before applying. DCP's producer-license page currently says it is not accepting applications; a bond purchase does not open that process.

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Recorded state
Connecticut
Bond type
Cannabis / Marijuana Bond
Category
Business operations & taxes

What this bond does

Back the selected medical producer's obligation to operate its completed facility with a substantially uninterrupted supply of marijuana to its usual dispensary-facility customers during the license term.

Who needs it
Selected or licensed Connecticut medical-marijuana producers responding to a DCP operation-security request. Match the actual license category and facility; the operation form is separate from the construction undertaking.
Who it protects
The State of Connecticut is protected. After the specified administrative hearing, a DCP Commissioner finding that the producer failed to provide the required substantially uninterrupted supply triggers surety payment of the applicable penal sum. Amount reductions depend on the Commissioner's qualifying operational determinations, not the producer's calendar calculation alone.

Your bond option

This is the option on record for this bond.

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.

Details for operation-bond activation and milestones

DCP's producer-license page links separate preferred construction and operation bond forms. The operation form becomes effective when the construction bond becomes void because the facility was successfully completed, fully operational and able to commence production. If construction fails and its bond becomes payable to the State, the operation bond does not become effective. Keep those events and undertakings distinct.

The operation model starts at $1.5 million. A Commissioner determination of one year of operation without substantial interruption or an Act or regulation violation reduces the payable sum to $1 million. A further two consecutive qualifying years can reduce it to $500,000. Obtain the actual determination before applying a reduction; calendar dates alone do not establish a lower required sum.

The form's five-year anniversary provision requires the stated payment of any remaining obligation due before expiration, written confirmation of an acceptable replacement account or instrument, or Commissioner release from carrying a replacement. It also describes qualifying further compliant operation or properly notified voluntary license nonrenewal as routes to voiding the obligation. Do not assume the passage of five years alone discharges it.

DCP's current producer-license page says applications are not being accepted. Establish the actual existing selection, license or security direction before using this form, and follow the Department's accepted milestone, replacement and execution instructions. An issued operation bond does not itself award a producer license or satisfy the separate construction obligation.

Sources

Have these ready

  1. Provide the actual DCP selection, license and operation-security direction.
  2. Identify the legal producer and full production-facility address.
  3. Document successful construction completion and the operation bond's activation event.
  4. Provide Commissioner milestone determinations for any reduction from the $1.5 million starting sum.
  5. Match coverage, replacement or release conditions, signatures, witnesses and corporate-seal requirements.

Questions about this bond

Does the operation bond activate if construction fails?

No. The preferred model ties activation to successful completion that makes the construction bond void. If the construction bond instead becomes payable because the facility was not successfully completed, the operation bond does not become effective.

Can I lower the amount after one calendar year?

The model requires the Commissioner's qualifying operational determination. Its steps are $1.5 million initially, $1 million after the stated first year, and $500,000 after a further two consecutive qualifying years. Use the actual determination and accepted current sum.

What follows Purchase Now?

Propeller's Connecticut medical-production-facility operation application opens in a new tab. Confirm the actual DCP request despite the closed producer-application window, then match the producer, facility, activation event, applicable sum, dates and execution. Submit through DCP's instructions; provider payment does not award the license or discharge either undertaking.

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