Details for MMTC security and Department claims

The 2026 statute requires an authorized surety insurer rated in one of the three highest categories by a nationally recognized rating service. Its $2 million provision applies to a center serving at least 1,000 qualified patients. The statute also permits cash or an irrevocable letter of credit to the Department in lieu of the performance bond; those alternatives are not additional checkout options on this listing.

OMMU describes MMTCs as vertically integrated businesses requiring cultivation, processing and dispensing authorizations before dispensing to qualified patients or caregivers. Match the actual licensed entity and Department request. Buying the security does not issue the license or provide those operational authorizations.

The Department's published DH8015-OMMU form is dated April 2018. It distinguishes a two-year license effective period from a claims coverage period ending 30 days after that period, or one year after revocation. Its cancellation clause applies before the Department initiates revocation action and requires 90 days' written notice to both the principal and Department. Confirm the currently accepted version and applicable sum rather than assuming the printed $5 million form settles every case.

That form requires the Department's certified-mail claim statement, itemized covered damages and supporting records within 30 days of the event. It separately limits court proceedings to one year after the coverage period expires. Patient and other treatment-center expenses require assignment to the Department. These are distinct standing and timing conditions, not a universal promise to reimburse any patient's expense.