News & Legality Updates

If passed this year, the SAFE Banking Act would allow cannabis businesses to access mainstream banking services. Contractors could see more financed buildouts and larger bonded projects as a result. Staying prepared with higher bonding capacity and robust financial documentation can help secure these bigger opportunities. For full details, see the article: https://www.herringbank.com/business-banking/cannabis-banking/safe-banking-act/

As of August 1, 2025, contractors building indoor cannabis cultivation facilities in Nevada must maintain a $30,000 performance bond and carry $1 million in pollution liability insurance. These requirements are designed to protect local communities and the environment from risks associated with large-scale indoor growing. For full details, see the article: Https://ccb.nv.gov/wp-content/uploads/2025/02/CCB-Biennial-Report-2025-FINAL.pdf

Effective May 1, 2025, Washington will implement new workers’ compensation classifications for contractors working exclusively on cannabis facilities. The new categories reflect higher-risk specialized work, such as advanced HVAC, secure storage, and electrical systems. Contractors should prepare for adjusted premiums and classification codes. For full details, see the article: Https://lni.wa.gov/insurance/_docs/2025RatesBusTypeClassCode.pdf

Starting April 15, 2025, Oregon contractors working in the cannabis sector must carry at least $2 million in general liability coverage — double the previous minimum. This change aligns cannabis construction with higher-risk commercial standards. Contractors should check current coverage and make updates before taking new cannabis contracts. For full details, see the article: https://www.oregon.gov/ccb/pages/ccb%20license.aspx

Illinois has introduced a new $20,000 compliance bond requirement for contractors building or renovating cannabis dispensaries and retail sites, effective September 1, 2025. This bond ensures adherence to zoning laws, safety codes, and licensing rules. Contractors should plan for this additional cost when bidding new projects. For full details, see the article: https://suretyone.com/illinois-cannabis-dispensary-bond

Effective July 1, 2025, New York will require cannabis cultivators to carry a $50,000 environmental surety bond to guarantee site cleanup and restoration if operations shut down or cause environmental impact. Contractors working with growers should confirm that proper bonding is in place before breaking ground. For full details, see the article: https://zipbonds.com/types-of-surety-bonds/license-and-permit-bonds/marijuana-bonds/new-york-marijuana-bond/

Starting January 1, 2025, California will expand its bonding requirements for contractors working with licensed cannabis businesses. All general contractors and trade subcontractors must now secure a $25,000 performance bond when working on licensed cannabis facilities, ensuring compliance with strict building codes and safety standards. This move aims to protect licensed operators and maintain public trust…

The contractor industry is experiencing steady growth in 2025, driven by robust demand, technological advancements, and substantial government funding. Construction employment has increased by 2.4% over the past year, with nonresidential construction outpacing residential growth. Wages have also risen by 4.2%, averaging $36.44 per hour, enhancing the industry’s ability to attract skilled labor. Federal infrastructure…

The construction insurance landscape in 2025 is marked by evolving trends and rate adjustments across various coverage lines. General liability rates are anticipated to increase by 5% to 15%, while auto liability and physical damage may see hikes between 10% and 15%. Workers’ compensation rates remain relatively stable, with potential increases up to 5%. Builders…

The surety bond market is experiencing significant growth and transformation in 2025, driven by substantial infrastructure investments and technological advancements. Infrastructure Investments: Major federal initiatives, including the Infrastructure Investment and Jobs Act (IIJA), Inflation Reduction Act (IRA), CHIPS and Science Act, and the Broadband Equity, Access, and Deployment (BEAD) Program, are injecting trillions into sectors…

Effective March 31, 2025, New Jersey has implemented significant changes to its Contractors’ Business Registration Act (CBRA), introducing new surety bond requirements for Home Improvement Contractor Businesses (HICBs) and Home Elevation Contractor Businesses (HECBs). These updates aim to enhance consumer protection and ensure contractors are financially accountable for their obligations. Key Requirements: Surety Bonds: Contractors…

New York Senate Bill S4840 introduces new requirements for surety bonding on hybrid public-private construction projects. These projects—often a mix of public funding and private development—previously operated with fewer standardized payment protections for subcontractors and suppliers. Under the new bill, contractors and subcontractors must secure surety bonds to ensure payment security where no public funds…