Fla. Admin. Code R. 64ER22-1 – MMTC Financial Assurance

(1) For purposes of this rule, the term “final approval for licensure” means final agency action issuing an MMTC license.
(2) Within ten business days after final approval for licensure as an MMTC, the MMTC must post a bond, provide an irrevocable letter of credit payable to the department, or provide cash to the department, in the amount of $5 million (collectively “Financial Assurance”) as set forth in this rule.
(3) Bonds.
1. (a) If a bond is provided, the MMTC must submit the original bond using Form DH8038-OMMU-12/2021 “Florida Medical Marijuana Treatment Center Bond,” incorporated by reference herein and available at https://knowthefactsmmj.com/rules-and-regulations/. The bond must be received by the department’s Agency Clerk in the timeframe required by subsection (2). The bond must be delivered to the department’s Agency Clerk at 2585 Merchants Row Blvd., Suite 110, Tallahassee, Florida 32399.
2. (b) The bond must be written by a surety:
  1. Authorized to issue bonds in Florida; and
  2. Rated in one of the three highest rating categories by a nationally recognized statistical rating organization registered with the U.S. Securities and Exchange Commission.
3. (c) The name of the principal on the bond must correspond exactly with the name of the licensed MMTC.
(4) Letters of Credit.
1. (a) If a letter of credit is provided, the letter of credit must be received by the department’s Agency Clerk in the timeframe required by subsection (2). The letter of credit must be delivered to the department’s Agency Clerk at 2585 Merchants Row Blvd., Suite 110, Tallahassee, Florida 32399.
2. (b) The letter of credit must:
  1. Be irrevocable for a period of two years;
  2. Name the department as the sole beneficiary;
  3. Be written so that the name of the applicant on the letter of credit corresponds exactly with the name of the licensed MMTC;
  4. Be issued by a Financial Institution as defined in s. 655.005(1)(i), F.S.;
  5. Comply with the requirements of Chapter 675, F.S.;
  6. Contain a clause providing that the letter of credit will be governed by and construed in accordance with the laws of the State of Florida, without regard to conflicts of law;
  7. Contain a clause providing that any action to interpret or enforce the terms of the letter of credit or for breach of the letter of credit will be litigated exclusively in the state court of appropriate jurisdiction in and for Leon County, Florida; and
  8. Be written so that the terms and conditions of the letter of credit correspond exactly with the damages and liabilities set forth in the “Florida Medical Marijuana Treatment Center Bond,” paragraphs A. and B.
(5) Cash.
1. (a) In lieu of a bond or letter of credit, the MMTC may provide $5 million cash to the department via a wire transfer in the timeframe required by subsection (2).
2. (b) An MMTC that intends to provide cash in lieu of a bond or letter of credit must contact the department via email at OMMUFinancialAssurance@flhealth.gov and request instructions to effectuate a wire transfer of the cash to the Grants and Donations Trust Fund.
3. (c) Cash provided in lieu of a bond or letter of credit is subject to forfeiture on the same conditions and for the same damages and liabilities set forth in the “Florida Medical Marijuana Treatment Center Bond,” paragraphs A. and B.
(6) Financial Assurance Reduction.
1. (a) An MMTC that has posted an initial Financial Assurance in the amount of $5 million may reduce the Financial Assurance to $2 million if the MMTC is serving at least 1,000 qualified patients, subject to the following requirements:
  1. Prior to reducing a $5 million Financial Assurance, an MMTC must submit to the department completed Form DH8039-OMMU-12/2021, “Medical Marijuana Treatment Center Financial Assurance Reduction Request,” incorporated by reference herein and available at https://knowthefactsmmj.com/rules-and-regulations/.
  2. After receiving written notice from the department approving the request for Financial Assurance reduction, the MMTC may submit a bond or letter of credit in the amount of $2 million to the Agency Clerk at 2585 Merchants Row Blvd., Suite 110, Tallahassee, Florida 32399.
  3. The reduced Financial Assurance must comply with the provisions of this rule.
(7) An MMTC must maintain the Financial Assurance at all times during licensure.
(8) The department will revoke an MMTC’s license if the MMTC fails to post Financial Assurance as required by this rule within the timeframe provided in subsection (2).
(9) The department will revoke an MMTC’s license if the MMTC’s Financial Assurance is canceled, revoked, or withdrawn in any manner and the MMTC fails to provide new Financial Assurance to the department as required by this rule and in the required amount on or before the effective date of cancellation, revocation, or withdrawal.
(10) MMTCs licensed before the effective date of this rule must come into compliance with this rule no later than the MMTC’s next biennial license renewal. Until then, MMTCs may maintain compliance with s. 381.986(8)(b)7., F.S., through the bond currently on file with the department.

Rulemaking Authority Art. X, Sec. 29, Fla. Const., 381.986(8)(k) FS. Law Implemented, Art. X, Sec. 29, Fla. Const., 381.986(8)(b) FS. History–New 2-17-22.