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Massachusetts bonds

Massachusetts — Cannabis Bond

Massachusetts' current adult-use and medical-cannabis rules require bond proof before operations begin. Both rules tie the bond amount to the applicable licensure fee and make it payable to the Marijuana Regulation Fund. Match the actual license and Commission request; the separate escrow minimum is not a universal bond amount.

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

What this bond does

Secure specified public costs of cannabis destruction, a court appointee, cessation of operations and other uses authorized by the Cannabis Control Commission to protect public health, safety and welfare.

Who needs it
Massachusetts adult-use marijuana establishments and medical marijuana establishments preparing required operating security. Identify the actual license class and whether adult-use, medical or colocated operations are involved before matching the undertaking.
Who it protects
Under 935 CMR 500.105(16) and 501.105(16), the bond is payable to the Marijuana Regulation Fund and backs the specified public costs. A corporate surety licensed for surety business in Massachusetts must issue it. The condition is not a blanket promise to pay every customer, landlord or business tax obligation.

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 the current bond and conditional escrow alternative

The Commission's posted adult-use and medical regulations, both effective September 11, 2026, require proof before commencing operations. Each section 105(16) states a bond sum equal to the applicable licensure fee. Confirm the actual license, required security and Commission direction; do not infer that a fee waiver automatically eliminates the security requirement.

The secured costs include destruction of cannabis goods necessitated by a violation of the applicable law or rules, a court appointee's costs and compensation, cessation of the establishment's operation and other Commission-authorized public-health, safety and welfare uses. Match this condition to the actual establishment rather than substituting a tax-remittance or private contract bond.

If the establishment cannot secure the required surety bond, each rule permits escrow of at least $5,000 or another Commission-approved amount. The rules require replenishment within ten business days after an expenditure unless operations have ceased, with prompt documentation to the Commission. Those are escrow provisions, not a fixed $5,000 surety-bond sum or a bond-claim deadline.

This provider option is a bond application. Arrange any permitted escrow separately with the Commission and keep its authorization and documentation requirements distinct. For colocated or multiple-license operations, have the actual covered licenses identified rather than assuming one issued document satisfies every establishment.

Sources

Have these ready

  1. Provide the exact legal establishment and actual adult-use or medical license class.
  2. Identify every license the requested undertaking must cover.
  3. Obtain the Commission's accepted condition, required sum and operating deadline.
  4. Use a corporate surety licensed for surety business in Massachusetts.
  5. Coordinate coverage and execution, and keep any authorized escrow process separate.

Questions about this bond

Is $5,000 the required bond amount?

The current adult-use and medical bond rules tie the surety sum to the applicable licensure fee. The $5,000 figure is the stated minimum for the conditional escrow alternative when the establishment cannot secure the required bond, subject to another amount approved by the Commission.

What does the operating security cover?

The rules identify violation-related cannabis destruction, a court appointee's costs and compensation, cessation of operations and other Commission-authorized public-health, safety and welfare uses. Match the actual required undertaking rather than assuming it secures all commercial debts.

What follows Purchase Now?

Propeller's Massachusetts cannabis application opens in a new tab. Match the exact establishment, actual licenses, Commission-accepted condition, required sum, dates and execution. Supply proof through the Commission's instructions before commencing operations; provider payment does not grant the license or approve an escrow alternative.

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