Workers’ compensation: cannabis industry.

Assembly Member Michelle Rodriguez's cannabis industry workers' compensation measure would establish new verification requirements for employers licensed under California's Medicinal and Adult-Use Cannabis Regulation and Safety Act. The bill authorizes the Division of Workers' Compensation to require cannabis businesses to submit proof of workers' compensation coverage through policy declarations or self-insurance certificates, including documentation for any temporary or contract workers.

Under the proposed framework, the administrative director would develop compliance schedules specifying when different licensees must meet the verification requirements. The bill creates a support system for employers unable to obtain coverage, allowing the director to provide assistance and 30-day deadline extensions. Employers who secure compliant coverage would be exempt from penalties for prior lapses in workers' compensation.

To facilitate implementation, the administrative director may contract with agents to assist employers through an approved vendor network of insurance carriers, financial institutions, and professional employer organizations. These contracted services must align with federal banking regulations, including the Bank Secrecy Act and Treasury Department guidance on marijuana-related businesses.