The Clarifying Law Around Insurance of Marijuana (CLAIM) Act of 2021 has been reintroduced by U.S. Senator Bob Menendez of New Jersey, a senior member of the Senate Banking Committee and chairman of the subcommittee that oversees the insurance industry. The CLAIM Act seeks to help legal marijuana and related businesses access comprehensive and affordable insurance coverages including workers\u2019 comp, property, casualty and title insurance. The bill is cosponsored by Sens. Rand Paul (R-Ky.) and Jeff Merkley (D-Ore.).
All but six states have marijuana legalization or decriminalization laws on the books for recreational or medicinal purposes. In the 2020 election, voters in New Jersey, Arizona, Montana, Mississippi and South Dakota approved of creating or expanding the legal use of marijuana.
The Bill was first introduced by Senator Menendez in July 2019 and referred to the Committee on Banking, Housing, and Urban Affairs.<\/p>\n\n\n\n
\u201cCurrent federal law prevents \u2026 small business owners from getting insurance coverage, and without it, they can\u2019t protect their property, employees or customers,\u201d said Senator Menendez in a statement. \u201cOur legislation simply levels the playing field for legal cannabis businesses, allowing them to fully operate just as any other legal small business would by permitting insurance companies to provide coverage to these enterprises without risk of federal prosecution or other unintended consequences.\u201d
\u201cThe principles behind the CLAIM Act are simple: respect the voices of the states and their people and stop shutting out legitimate businesses from obtaining basic protections,\u201d said Sen. Paul. \u201cThe states are making their own decisions on these issues, and it\u2019s time for the federal government to accept that.\u201d
\u201cState legal cannabis businesses should not be shut out from the kind of tools and financial services all businesses need to thrive \u2014 including insurance to protect stores, customers, and workers from an unexpected emergency,\u201d said Sen. Merkley. \u201cIt\u2019s time to pass the CLAIM Act, so we can deliver on that principle, and continue working together to support our local businesses.\u201d
The CLAIM Act ensures businesses operating under state laws that have legalized recreational or medical marijuana have access to insurance products such as worker\u2019s compensation, property, casualty and title insurance.
Because they could be prosecuted or face penalties under federal law, these state-authorized cannabis businesses are often denied access to the insurance market, leaving them vulnerable and risking the safety of employees, customers, and the community. Businesses can also be denied bank financing if they do not have the proper insurance.<\/p>\n\n\n\n
The CLAIM Act would:<\/strong><\/p>\n\n\n\n Sens. Menendez and Paul also cosponsored the Secure and Fair Enforcement (SAFE) Banking Act of 2019, which was introduced by Sen. Merkley in the last Congress, to ensure that legal marijuana businesses can access banking services, such as lines of credit, savings and checking accounts, processing customers\u2019 credit cards and employee payrolls. Morgan Fox, media relations director for the National Cannabis Industry Association, says that although conservative members of Congress have traditionally rejected comprehensive cannabis reform, many have been open to more incremental changes in the past. Plus, according to Fox, \u201ca growing number of polls [in red states show] increasing support for legalization among conservative voters, particularly in younger demographics. \u2026 It is tough to tell at this point how much momentum this bill will have in the coming weeks and months, but we are cautiously optimistic that it will be approved as a stand-alone.\u201d<\/p>\n\n\n\n
Congresswoman Nydia M. Velazquez (D-N.Y.) plans to introduce companion legislation in the House of Representatives.<\/p>\n\n\n\nCautiously Optimistic<\/h3>\n\n\n\n