Workers’ compensation: cannabis industry.

Assembly Member Michelle Rodriguez's workers' compensation legislation targets California's cannabis industry with new annual proof-of-coverage requirements for employers licensed under the Medicinal and Adult-Use Cannabis Regulation and Safety Act. The measure adds Section 3700.7 to the Labor Code, mandating that cannabis businesses submit Workers' Compensation Policy Declarations Pages or Certificates of Self-Insurance to the Administrative Director of the Division of Workers' Compensation.

The bill establishes a phased compliance schedule based on the number of licenses held by each business entity, with larger operations required to report first. Companies using temporary staffing agencies must obtain and submit proof of workers' compensation coverage for those workers as well. Employers who notify the Administrative Director about difficulties securing coverage can receive compliance assistance and deadline extensions up to 30 days. The legislation also exempts businesses from penalties for past non-compliance once they obtain proper coverage under the new requirements.

To facilitate implementation, the Administrative Director must contract with agents to assist employers through networks of approved service vendors, including insurance carriers, banks, and professional employer organizations. These financial services must comply with federal banking regulations regarding marijuana-related businesses. The bill takes effect immediately upon enactment as an urgency statute, with the first group of licensees required to begin reporting within 60 days after the Administrative Director establishes agent contracts.