Evidence of Financial Responsibility - Terms

Section 1000.60  Evidence of Financial Responsibility − Terms a)         In addition to the other terms and conditions permitted by the Act and this Part, upon request by the cultivation center for consideration of the following, the Department shall, by written or electronic notification, permit the cultivation center's $2,000,000 escrow account or surety bond to be reduced by $500,000 upon the successful achievement of each of the following milestones, resulting in a potential elimination of the escrow account or surety bond: 1)         A determination by the Department that the cultivation center is fully operational and able to commence production of cannabis as provided for in the permit application of the cultivation center; 2)         A determination by the Department that the cultivation center remained operational without substantial interruption, was able to provide an uninterrupted supply of medical cannabis to licensed dispensaries, as required by Sections 1000.40(g) and 1000.240, and operated without any violation of the Act or this Part for a one year period; 3)         A determination by the Department that the cultivation center remained operational without substantial interruption, was able to provide an uninterrupted supply of medical cannabis to licensed dispensaries, as required by Sections 1000.40(g) and 1000.240, and operated without any violation of the Act or this Part for two consecutive years; and 4)         A determination by the Department that the cultivation center remained operational without substantial interruption, was able to provide an uninterrupted supply of medical cannabis to licensed dispensaries as required by Sections 1000.40(g) and 1000.240, and operated without any violation of the Act or this Part for three consecutive years. b)         If a cultivation center voluntarily chooses not to renew its permit, provides notice of this decision in accordance with Section 1000.600 of this Part and is not in violation of the Act or this Part, the Department shall terminate the obligations under the escrow account or surety bond at the end of the permit term. c)         Should the sunset provision of the Act, found in Section 220 of the Act, take effect and no successor medical cannabis program be in place allowing for the continuation of cultivation centers as provided for in this pilot program and this Part, provided the cultivation center is not in violation of the Act or this Part, any remaining amount left in escrow or under a surety bond shall be released to the cultivation center permit holder.