CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 741

Introduced by Assembly Member Jones-Sawyer

February 13, 2023

An act to add Section 10096.5 to the Insurance Code, relating to insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 741, as introduced, Jones-Sawyer. The California FAIR Plan Association: cannabis.
Under existing law, the California FAIR Plan Association is a joint reinsurance association in which all insurers licensed to write basic property insurance participate in administering a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels.
Existing law authorizes an individual 21 years of age or older to possess not more than 28.5 grams of cannabis, not more than 8 grams of concentrated cannabis, and not more than 6 living cannabis plants plus the cannabis produced by those plants. Existing law provides for the licensure of commercial cannabis activity by the Department of Cannabis Control.
This bill would prohibit the California FAIR Plan Association from refusing to issue, canceling, or refusing to renew coverage because the applicant or policyholder possesses or has previously possessed a legal amount of cannabis, concentrated cannabis, or living cannabis plants, or the applicant or policyholder is or has been a commercial cannabis licensee.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 10096.5 is added to the Insurance Code, to read:

10096.5.
 The association shall not refuse to issue, cancel, or refuse to renew coverage based on either of the following reasons:
(a) The applicant or policyholder possesses or has previously possessed cannabis, concentrated cannabis, or living cannabis plants pursuant to Section 11362.1 of the Health and Safety Code.
(b) The applicant or policyholder is or has been a licensee under Division 10 (commencing with Section 26000) of the Business and Professions Code.