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Ohio — Medical Marijuana Testing Laboratory Bond

Ohio's current financial-responsibility rule lists $75,000 for a testing laboratory's surety-bond or escrow route before a certificate of operation is issued or renewed. Prepare the Division of Cannabis Control license record and any written approval changing the required security. A laboratory's certification and accreditation duties remain separate from buying its bond.

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

What this bond does

Provide financial responsibility payable to the Division for failure to comply with the covered chapter's mandates, using the actual testing-laboratory license and accepted security terms.

Who needs it
Ohio cannabis testing laboratories responding to the Division's issuance, renewal or security request for their designated business entity, owners and licensed premises.
Who it protects
Rule 1301:18-3-08 makes the security payable to the Division when the licensee fails to comply with the chapter's mandates. It requires the licensee as principal, its business name and license number, and an Ohio-licensed corporate surety. This is regulatory security, not a general promise of compensation to every laboratory customer or patient.

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 laboratory security and Division authorization

The current financial-responsibility rule requires commercial general liability insurance covering products liability and either the specified escrow or surety-bond security. Testing laboratories are listed at $75,000; dispensaries and processors have different figures. Keep those requirements and license classes separate. The catalog's medical-marijuana title does not replace the current Division license record.

A surety bond must include the licensee's business name and Division-issued license number. The rule precludes cancellation without the Division's prior written authorization. If security is released or cancelled, the licensee must submit evidence of financial responsibility on or before cancellation takes effect. Do not import a generic thirty-day cancellation notice from another state's bond.

The rule provides petitions for reductions after qualifying operational and compliance periods and a termination petition after three consecutive qualifying calendar years. These depend on Division determinations; elapsed time alone does not authorize a lower sum or release. Obtain the written determination and match the actual approved security rather than selecting a reduction yourself.

Rule 1301:18-7-01 requires the Division's certificate of operation before the laboratory conducts authorized activity and ties that certificate to the designated entity, owners and premises. An issued bond does not supply that certificate, transfer it to another site or satisfy the separate laboratory accreditation requirements.

Sources

Have these ready

  1. Provide the exact legal laboratory name, Division license number and premises.
  2. Identify the issuance, renewal or replacement-security request.
  3. Confirm the listed $75,000 amount or obtain the Division's actual written reduction/release determination.
  4. Use the accepted bond with prior-written-authorization cancellation terms.
  5. Coordinate required financial-responsibility evidence and the separate certificate/accreditation process.

Questions about this bond

May the surety cancel on a standard thirty-day notice?

The current Ohio financial-responsibility rule requires prior written Division authorization for cancellation. Use the accepted undertaking and that authorization process; a notice period printed on another jurisdiction's form is not the Ohio requirement.

Can I reduce security because the laboratory has operated for a year?

The rule requires a Division determination of the qualifying operational and compliance record. Petition through the Division and obtain the actual approved amount. The calendar alone does not amend the security.

What follows Purchase Now?

Propeller's Ohio medical-marijuana testing-laboratory application opens in a new tab. Match the current Division license, legal laboratory and premises, accepted undertaking, required or approved sum, dates and execution. File the required security evidence; provider payment does not grant a certificate of operation or laboratory accreditation.

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