Feb 25, 2020

PIANJ-priority cannabis safe-harbor legislation passes Assembly

One of PIANJ’s top legislative priorities (A-377) successfully passed the Assembly on Monday, by a vote of 65-12-2.

The bill, sponsored by Assemblyman Joe Danielsen, D-17, would create a safe harbor for insurance producers and insurers that insure cannabis-related businesses.

Specifically, the bill would prevent any state or local government agency from:

• penalizing an insurer or insurance producer from engaging in the business of insurance in connection with a cannabis-related business;
• terminating, canceling, or otherwise limiting the policies of an insurer solely because the insurer or insurance producer has engaged in the business of insurance in connection with a cannabis-related business;
• encouraging an insurer or insurance producer to not engage in the business of insurance in connection with a policyholder, or downgrade or cancel the insurance and insurance services offered to a policyholder solely because the policyholder is or becomes the owner, operator, or employee of a cannabis-related  business; or
• taking any adverse or corrective supervisory action on an insurance policy against a cannabis-related business or a person that does business with or is employed by a cannabis-related business, solely because the business or person owns or operates or does business with or is employed by a cannabis-related business.

Earlier this month, PIANJ helped to craft language to help ensure insurance producers were not exposed to penalties for assisting legal cannabis businesses with their insurance needs. As originally drafted, the legislation only applied to insurers.

This legislation has been sent to the Senate, where it has been referred to the Senate Commerce Committee.

Latest news on the cannabis safe-harbor legislation

Feb. 18, 2020: PIANJ successfully adds insurance producers to cannabis safe-harbor legislation