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Elimination of Escrow Requirement for Cessation of Operations

CCB Rule 1.4.5(b) and related guidance required that each cannabis establishment hold $5,000 in escrow to ensure the availability of funds should the establishment need cease operating. The Board amended the relevant rule, effective October 21, 2023, to eliminate this requirement.

Trustees holding cessation-of-operations funds are authorized to return those funds to depositors.

Note that this amendment does not affect the small number of establishments required to hold escrow in lieu of insurance. Escrow in lieu of insurance is still required of licensees without commercially reasonable coverage.