Bond Requirement
UPDATE (March 18, 2024): OMMA is working with the Oklahoma Insurance Department (OID) to address bonds issued by Talisman Insurance Company and Talisman Surety & Fidelity Protected Cell, Inc. (Talisman). The OID has conditionally approved bonds issued by Talisman on or before Feb. 26, 2024. The bonds will retain authorization until the expiration of each bond's individual term. Licensees whose application has been rejected by OMMA due to this issue should resubmit their application with the original Talisman bond.
Please note that because Talisman is currently prohibited from issuing new bonds, this conditional approval only applies to bonds issued on or before Feb. 26, 2024. The OID is addressing the regulatory shortcomings Talisman exhibited throughout the process of issuing the bonds. Licensees with questions about the bond should contact their Talisman agent.
Senate Bill 913 (2023) took effect April 20, 2023, and requires commercial medical marijuana grower license applicants and licensees to submit proof of one of the following to OMMA:
- A surety bond covering the area of land within the permit area upon which the business licensee will initiate and conduct commercial growing operations, or;
- An attestation and accompanying documentation showing that the permit area on which the licensee will initiate or conduct growing operations has been owned by the licensee for at least 5 years before submitting the application.
The bond shall be in an amount no less than $50,000 for each license and shall be issued by a surety company qualified to do business in the State of Oklahoma as a surety. OMMA may require a higher amount depending on the reclamation requirements.
Who does this affect?
This requirement is in effect for existing licensed growers and grower license applicants as of April 20, 2023. New or renewal grower license applications initially submitted after April 20, 2023, must submit this documentation as part of their application. OMMA will verify the bond or attestation of land ownership during the review process of a new or renewal license application.
What do I do to prove land ownership?
Licensees can submit an attestation and accompanying documentation showing that the permit area on which the licensee will initiate or conduct commercial growing operations has been owned by the licensee for at least 5 years before submitting an application. Accompanying documents may include, but are not limited to, a recorded property deed, a court order, conveyance, or other document(s) proving land ownership.
How is this information submitted?
The Surety Bond Form or Attestation of Land Ownership Form and accompanying documentation may be uploaded under the location information section of a grower license application, or it can also be emailed to OMMABonds@omma.ok.gov.
Bonds that expire shall be renewed prior to 30 days before the expiration date of the bond. Upon expiration of a bond, commercial grower licensees shall provide proof to OMMA on forms and in a manner prescribed by OMMA of a new alternate bond or attestation and accompanying documentation meeting the requirements of OAC 442:10-5-3.3 before the date of expiration of the previous bond.
You may find rule citations on this page helpful. For a more comprehensive understanding, review all OMMA Rules at omma.ok.gov/rules. If you have questions about the rules, OMMA encourages you to seek legal counsel.
