ASSEMBLY, No. 377
STATE OF NEW JERSEY
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Assemblyman JOE DANIELSEN
District 17 (Middlesex and Somerset)
Assemblyman JOHN F. MCKEON
District 27 (Essex and Morris)
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
Assemblyman Houghtaling and Assemblywoman Quijano
Creates certain protections for insurers and insurance producers engaging in business of insurance in connection with cannabis-related businesses.
CURRENT VERSION OF TEXT
As reported by the Assembly Financial Institutions and Insurance Committee on February 13, 2020, with amendments.
An Act concerning insurance and cannabis-related businesses and supplementing P.L.2009, c.307 (C.24:6I-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
“Cannabis-related business” means any person that participates in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing or facilitating the purchase of cannabis or cannabis products, and engages in that activity pursuant to a law established by the State of New Jersey.
“Insurer” means an insurance company authorized to issue insurance under the laws of this State.
1“Insurance producer” means the same as that term is defined in section 3 of P.L.2001, c.210 (C.17:22A-28).1
2. Notwithstanding any law to the contrary, a State or local government agency shall not:
a. prohibit, penalize, or otherwise discourage an insurer 1or insurance producer1 from engaging in the business of insurance in connection with a cannabis-related business;
b. terminate, cancel, or otherwise limit the policies of an insurer solely because the insurer 1or insurance producer1 has engaged in the business of insurance in connection with a cannabis-related business;
c. recommend, incentivize, or encourage an insurer 1or insurance producer1 not to 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
d. take any adverse or corrective supervisory action on an insurance policy against:
(1) a cannabis-related business, solely because the owner or operator owns or operates a cannabis-related business;
(2) an employee, owner, or operator of a cannabis-related business, solely because the employee, owner, or operator is employed by, owns, or operates a cannabis-related business, as applicable; or
(3) an owner or operator of real estate or equipment that is leased to a cannabis-related business, solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis-related business, as applicable.
3. An insurer 1or insurance producer1 that engages in the business of insurance with a cannabis-related business or who otherwise engages with a person in a transaction permissible under State law related to cannabis, and the officers, directors, and employees of that insurer 1or insurance producer1 shall not be held liable pursuant to any State law or regulation:
a. solely for engaging in the business of insurance; or
b. for further investing any income derived from that business of insurance.
4. Nothing in this act shall:
a. require an insurer 1or insurance producer1 to engage in the business of insurance in connection with a cannabis-related business; or
b. interfere with the regulation of the business of insurance pursuant to current law, except as expressly provided in this act.
5. This act shall take effect on the 90th day next following enactment.