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Alabama consumable hemp bonds.
$500 flat.

Since January 1, 2026, Alabama licenses consumable hemp product retailers through the Alcoholic Beverage Control Board. Every initial license applicant must purchase and maintain a $25,000 surety bond, payable to the Board, for each licensed location under Ala. Code § 28-12-40(f). Ours is $500 flat.

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Required to get an ABC Board consumable hemp retailer license under Ala. Code § 28-12-40(f)
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Fixed price, fixed amount — $25,000 bond, $500 flat, no quote process
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One bond per licensed location — each retail site posts its own $25,000 bond
A-ratedA.M. Best carriersInstantissuance at checkout$500 flatsame price at checkout
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
Price

How much does an Alabama consumable hemp bond cost?

$500 at the $25,000 amount, the same for every applicant.

How it works

Three steps. One sitting.

Hemp retailer license bonds are among the simplest filings in surety. Here's the entire process:

NOW · ONLINE

Apply online

Business details, an effective date, and a term, plus a few yes/no eligibility questions. That is the application — any credit screen is a soft pull that never shows as a hard inquiry.

INSTANTLY

Pay & e-sign

This bond is checkout-priced at $500 flat, so it issues the moment you pay — your executed bond and power of attorney generate on the spot.

SAME DAY

File with the ABC Board

Your executed bond arrives by email, ready to file with your consumable hemp retailer license application at the Alabama ABC Board. Wet-ink original mailed on request.

About this bond

What it is and who needs it.

What the bond actually guarantees

Alabama's 2025 consumable hemp law (House Bill 445, codified as Chapter 12 of Title 28, Code of Alabama 1975) put hemp-derived consumables — gummies, beverages, and other THC-containing products — under the Alcoholic Beverage Control Board starting January 1, 2026. Retailers must be licensed, and § 28-12-40(f) requires every initial applicant to purchase and maintain a $25,000 surety bond payable to the Board for each licensed location, executed by the applicant as principal and a corporate surety qualified in Alabama.

It's a three-party arrangement: you (the principal), the surety carrier, and the ABC Board (the obligee). The statute is explicit about what the bond backs: the Board may file a claim against it if a licensee fails to timely collect and remit the excise taxes due under the chapter or fails to pay a penalty the Board imposes.

It is not insurance for you — if the surety pays a claim, you repay the surety. Retailer licenses run on a license year beginning October 1 and renew annually, so the bond has to stay continuously in force; we track the term and send renewal notices 60 and 30 days out.

Ala. Code § 28-12-40(f)Section 28-12-40 of the Code of Alabama 1975 (added by HB445, 2025) sets the ABC Board's consumable hemp retailer licensing requirements — and subsection (f) requires any person applying for an initial license to purchase and maintain a $25,000 surety bond, payable to the Board, for each licensed location. The Board may claim against the bond of any licensee that fails to timely collect and remit taxes under the chapter or to pay an outstanding penalty.

You need this bond if you're

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Applying for an ABC Board hemp retailer license — dispensaries, and qualifying pharmacies and grocery stores
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Opening an additional location — each licensed location posts its own $25,000 bond
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Renewing your license — licenses renew annually and the bond must stay in force
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Bringing an existing store into compliance with the framework in effect since January 1, 2026
After you buy

Claims, renewal, filing, and what sets the price.

If a claim is made

A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.

The surety investigates and pays a valid claim, up to the $25,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.

Renewal and term

The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.

Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.

How to file it

File with the ABC Board. Your executed bond arrives by email, ready to file with your consumable hemp retailer license application at the Alabama ABC Board. Wet-ink original mailed on request.

What sets the price

The premium is fixed at $500 at the $25,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.

One soft credit pull, never a hard inquiry, and it never affects your score.

Where a check runs, it decides approval; the rate is the same for everyone approved.

One application, issued instantly.

These are the actual issuing fields — business details, an effective date, and a term. That is the application.

Start the application →
FAQ

Common questions.

How much is the Alabama consumable hemp product bond?The premium is $500 flat — set by our carrier's rate book for this bond, the same for every retailer. The $25,000 bond amount is set by Ala. Code § 28-12-40(f), so there is no quote process, and the price you see is the checkout price.
Do I pay the $25,000?No. You pay $500. The $25,000 is the surety's maximum liability if a valid claim is made against the bond — not a deposit, and nobody holds your money.
Do I need a separate bond for each store?Yes. The statute requires the $25,000 bond "for each licensed location," so a retailer with multiple licensed sites posts one bond per location. Each is $500 flat, and you can apply for them back to back.
How fast will I have the bond?This bond is checkout-priced, so it issues the moment you pay — your e-signed bond and power of attorney arrive by email, ready to file with your ABC Board license application.
Who requires the bond, and is there a credit check?The Alabama Alcoholic Beverage Control Board, which licenses consumable hemp retailers under Chapter 12 of Title 28. One soft credit pull, never a hard inquiry, and it never affects your score. The price stays $500 flat either way.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
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Been told you need a different amount?

Price and requirements checked on the carrier’s application, . Page updated .

Finish your hemp retailer license today.

$500 flat, issued the moment you pay, soft pull only. Free until issued.

Your price$500
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