Those hoping to open a medical marijuana dispensary in the state of Pennsylvania may want to start making serious business plans. A medical marijuana legalization bill has a chance to pass the Pennsylvania House of Representatives. And, if this were to happen, PA Governor Tom Wolf says he will sign the bill into law. According to a June 17 article from Marijuana Business Daily, this would reportedly bring 65 cultivators, 65 processors, and 135 dispensaries to the state.

This could be a great opportunity for prospective dispensary owners, but there are some little-known business transactions that you will need to make first. To open a dispensary, the owner will have to buy a medical marijuana bond. These types of bonds are designed to guarantee that dispensary owners will pay their taxes appropriately.

Medical Marijuana Bond

A medical marijuana bond is a type of surety bond, which is an agreement between three parties saying that specific tasks will be fulfilled. In a medical marijuana dispensary business, the surety bond agreement represents the following entities:

• Obligee: This is the government agency that requires the dispensary owner to purchase the medical marijuana bond. They are protecting themselves from financial loss by making sure the owner pays their taxes.
• Principal: This is the dispensary owner that buys the bond. They are guaranteeing that they will pay their taxes in the future.
• Surety: The company that enforces the bond. Provides a line of credit to reimburse the obligee in case the principal fails to pay their taxes.

Purchasing a surety bond is required by the government, but it is a very valuable asset for a business, especially a new dispensary in the marijuana industry. By issuing a surety bond, the surety company is essentially endorsing the business as one of integrity. This is a huge advantage when it comes to attracting consumers. When a business can say it is legally bonded, consumers can be confident that they are working with an establishment that operates under ethical industry standards.

These things are so important to a marijuana dispensary. This is a brand new industry, involving a product that is still illegal in over half of the states. Marijuana is often associated with criminal and unethical activity, but with a surety bond, a dispensary can ease these concerns and promote themselves as a reputable business.

The legislative process is still ongoing for this bill. We will post updates as they occur to keep you informed.

SuretyBonds.com is unable to provide medical marijuana bonds at this time due to racketeering lawsuits filed in 2015. You can visit SuretyBonds.com to get more information and talk to a surety expert. You can also call 1-800-308-4358. Our experts would be happy to have a conversation with you. They already know about these legislative updates from Pennsylvania, and their main focus is surety bonds education.

Photo credit: Mark/Flickr (CC BY)