Bipartisan Senators Led By Menendez Reintroduce Marijuana Insurance Bill: 'Respect The Voices Of The States'

U.S. Senator Bob Menendez (D-NJ), a senior member of the Senate Banking Committee and Chairman of the Subcommittee that oversees the insurance industry reintroduced the bipartisan Clarifying Law Around Insurance of Marijuana (CLAIM) Act on Tuesday. The legislation aims to enable cannabis companies to have legal access to insurance coverage.

The bill has bipartisan support in the Senate from Sens. Rand Paul (R-Ky.), Jon Tester (D-Mont.), Steve Daines (R-Mont.) and Jeff Merkley (D-Ore.).

“In 2020, the people of New Jersey made it clear they overwhelmingly approved of recreational marijuana use, the governor and state legislature have acted, and now it’s time for the federal government to eliminate barriers that currently keep state-authorized cannabis businesses from accessing affordable and comprehensive insurance coverage,” stated Sen. Menendez. “Current federal law bars small business owners from accessing the tools available to them to thrive and protect their property, employees, and customers. Our legislation is simple and would finally level the playing field for legal cannabis businesses by allowing them to fully operate just as any other legal small business would: by permitting insurance companies to provide coverage to these enterprises without risking federal prosecution.”

CLAIM Act

The CLAIM Act was first introduced in 2019 in the U.S. House of Representatives by Reps. Nydia Velázquez (D-NY) and Steve Stivers (R-OH).

This April, the bill was reintroduced by Velázquez and Rep. Warren Davidson (R-OH) in the House, one day after bipartisan lawmakers reintroduced SAFE Banking Act. Sens. Menendez, Paul and Tester expressed support for the marijuana banking measure as well.

The CLAIM Act seeks an end to federal criminal prosecution of insurers and civil liability for brokers and agents that provide services to marijuana-related businesses. Under current federal law, state-legal cannabis businesses are often denied access to the insurance market, which increases safety risks for their employees, customers as well as surrounding communities. The cannabis industry's financial security is at a higher risk than others.

“The 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,” stated Sen. Paul. “The states are making their own decisions on these issues, and it’s time for the federal government to accept that.”

Photo: Benzinga edit with images by Wikimedia Commons and by 2H Media on Unsplash