Lansing Cannabis Bond

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Lansing Cannabis Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain an Ohio Medical Marijuana Dispensary bond

At a Glance:

  • Lowest Cost: $1,000 per year or $100 a month
  • Bond Amount: $50,000
  • Who Needs It: All cannabis operations in Lansing, Michigan
  • Purpose: To protect the public from financial harm if the cannabis operation fails to comply with licensing law
  • Who Regulates Cannabis Operations in Lansing: The Lansing City Clerk’s Office
Lansing Cannabis Bond Form
Lansing Cannabis Bond Form


Lansing Ordinance 1300.03 requires all cannabis operations in the city to obtain a license from the City Clerk’s Office. The Lansing City Council enacted the licensing requirement to ensure that cannabis operations do not engage in unethical business practices. To provide financial security for the enforcement of the licensing law, applicants must either purchase and maintain a $50,000 surety bond or establish an escrow account to be eligible for licensure.

Lansing Ordinance 1300.06 limits the number of cannabis operation licenses that may be issued. Below are the maximum number of cannabis operation licenses the City of Lansing may issue.

  • 28 medical marijuana provisioning centers and marijuana retailers
  • 1 marijuana microbusiness per ward
  • 1 designated consumption establishment per ward
  • 75 medical marijuana grows and marijuana grows or the number of locations based upon licenses awarded and applications pending with the city clerk, as outlined below

What is the Purpose of the Lansing Cannabis Bond?

Lansing requires cannabis operations to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the establishment fails to abide by the regulations outlined in Lansing Ordinance 1300.04. Specifically, the bond protects the public if the operation commits fraud or fails to pay all required taxes and fees. In short, the bond is a type of insurance that protects the public if the cannabis operation violates licensing law.

How Can an Insurance Agent Obtain a Lansing Cannabis Bond?

BondExchange makes obtaining a Lansing Cannabis bond easy. Simply log in to your account and use our keyword search to find the “cannabis” bond in our database. Don’t have a login? Gain access and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the Lansing Cannabis Operation Bond?

Surety companies will run a credit check on the owners of the cannabis operation to determine eligibility and pricing for the Lansing Cannabis bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.

How Much Does the Lansing Cannabis Bond Cost?

The Lansing Cannabis surety bond can cost anywhere between $1,000 to $5,000 per year or $100 to $500 per month. Insurance companies determine the rate based on a number of factors, including your customer’s credit score and experience. The chart below offers a quick reference for the approximate bond cost on a $50,000 bond requirement.

$50,000 Cannabis Bond Cost

Credit Score* Bond Cost (1 Year) Bond Cost (1 month)
800+ $1,000 $100
680 – 799 $1,875 $188
650 – 679 $2,500 $250
600 – 649 $3,750 $375
550 – 599 $5,000 $500

*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.

Who is Required to Purchase the Lansing Cannabis Bond?

Lansing requires cannabis operations to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Lansing Ordinance 1300.02, the term “cannabis operation” includes all marijuana:

  • Microbusinesses
  • Retailers
  • Growers
  • Processors
  • Secure transporters
  • Safety compliance facilities
  • Designated consumption establishments

Medical marijuana facilities are also considered to be cannabis operations.

Lansing Cannabis Bond

BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.

How Do Cannabis Operations Obtain a License in Lansing?

Cannabis operations in Lansing must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the city’s ordinances and the City Clerk’s licensing page for details on the process.

License Period – All Lansing Cannabis Operation Licenses are valid for one year and must be renewed before the expiration date

Step 1 – Wait for an Application Period

Lansing caps the number of cannabis operations that are allowed to operate within the city. Prospective applicants must wait for a slot to open up and an application period before applying for licensure.

Not all cannabis operation licenses are capped. However, even the following uncapped licenses must wait for an application period to submit an application:

    • Processors
    • Secure transport
    • Safety compliance
    • Additional grow licenses at existing grow locations

Updates on upcoming application windows can be found here.

Step 2 – Obtain a State Prequalification

All cannabis operations in Michigan must obtain a state. Applicants must obtain a prequalification for licensure before applying for a Lansing Cannabic Operation license and can do so by contacting the Michigan Cannabis Regulatory Agency.

Step 3 – Complete the Application

All Lansing Cannabis Operation License applications should be submitted online here. The application must be completed in its entirety and be accompanied by a $5,000 application fee. Applicants will have needed to obtain a criminal history background check prior to obtaining a state license and will need to submit these background checks with their applications.

Detailed instructions on how to complete the application can be found here.

Step 4 – Purchase a Surety Bond and Insurance

If the city grants the applicant conditional approval, then the applicant must purchase and maintain a surety bond with a limit of $50,000 and liability insurance coverage with the following minimum limits:

    • $1 million for property damage
    • $1 million for injury to one person
    • $2 million for injury to two or more persons during the same occurrence

Step 5 – Meet the Conditions of Approval

Applicants have 24 months from the date they received conditional approval to satisfy all criteria needed to obtain a full license. This includes, among other things, obtaining a state license, purchasing a surety bond and insurance, and obtaining a business location.

How do Cannabis Operations in Lansing Renew Their Licenses?

The City Clerk’s Office will provide the cannabis operation with instructions on how to renew their license before the expiration date. Licensees must pay a $5,000 fee when renewing their licenses. All Lansing Cannabis Operation Licenses are valid for one year and must be renewed before the expiration date.

What are the Insurance Requirements for the Lansing Cannabis Operation License?

Lansing requires cannabis operations to purchase a $50,000 surety bond and liability insurance with the following minimum limits:

  • $1 million for property damage
  • $1 million for injury to one person
  • $2 million for injury to two or more persons during the same occurrence

How do Lansing Cannabis Operations File Their Bonds?

Cannabis operations in Lansing should submit their completed bond forms, including the power of attorney, to the City Clerk’s Office. The surety bond requires signatures, including witness signatures, from the surety company and the licensee. The surety company should include the following information on the bond form:

  • Legal name of the entity/individual buying the bond
  • Surety company’s name, state of incorporation and address
  • Bond amount
  • Date the bond goes into effect
  • Date the bond is signed

What Can Lansing Cannabis Operations Do to Avoid Claims Against Their Bonds?

To avoid claims on their bonds, cannabis operations in Lansing must follow all license regulations in the city, including some of the most important issues below that tend to cause claims:

  • Do not commit fraud
  • Pay all required taxes and fees
  • Keep accurate records
  • Make all required reports on time

What Other Insurance Products Can Agents Offer Cannabis Operations in Lansing?

Cannabis operations must purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Cannabis Operations in Lansing?

Michigan conveniently provides a public database of active cannabis operations in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

Lansing Cannabis Bond