Colorado’s Department of Revenue has moved up the submission due date for the Colorado medical marijuana bond. Applicants hoping to run a medical marijuana dispensary must now submit proof of their purchased surety bonds to the state by May 1 rather than July 1, which was the original due date. This means that new medical marijuana dispensaries have two less months to find a surety provider to execute what’s considered to be a somewhat taboo bond.
The change neither affects the bond’s effective date nor the due date for the medical marijuana business license application, which will both remain July 1, 2011. Basically, the state wants proof that an applicant has purchased the necessary surety bond two months prior to when he or she submits the business license application. Applicants who have already purchased their bond will not need a rider for their bond to remain valid. All they need to do is make sure that the state has a copy of the bond by May 1 as opposed to July 1.
Those planning to submit an application to be licensed as a dispensary for 2011 to 2012 should begin looking for a surety provider as soon as possible. Purchasing a medical marijuana license bond can be a bit more challenging than purchasing other bonds. Some underwriters are unwilling to issue medical marijuana bonds, even though at $5,000 the penal sum and potential risk are both relatively small. SuretyBonds.com works with a number of underwriters, some of which are willing to work with the medical marijuana bond.
Update: Denver dropped the marijuana license requirement, thus impacting the issuing of marijuana license bonds.