California 2023-2024 Regular Session

California Senate Bill SB1503

Introduced
2/16/24  
Introduced
2/16/24  
Refer
2/29/24  

Caption

Cannabis: workers and license requirements.

Impact

One of the key aspects of SB1503 is its focus on employee classification, guaranteeing that workers in the cannabis industry are presumed to be employees unless proven otherwise. This is significant for ensuring workers have access to benefits and protections generally reserved for employees, thereby reducing instances of wage theft and unfair labor practices. Furthermore, it requires that cannabis businesses that employ a certain number of individuals enter into a 'labor peace agreement' demonstrating commitment to fair labor practices. This retroactive application suggests a broader commitment to uphold worker rights within California’s legalized cannabis sector.

Summary

Senate Bill No. 1503, introduced by Senator Archuleta, aims to amend the Business and Professions Code related to cannabis regulation. The bill builds upon existing legislation such as the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) and the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Specifically, it mandates that cannabis employers must file a current Certificate of Workers Compensation Insurance and comply with labor laws protecting workers in the cannabis industry. It imposes these requirements both on applicants for new licenses and those seeking renewals based on employee thresholds.

Contention

Concerns may arise around the stringent requirements for cannabis businesses, particularly regarding the labor peace agreements and the imposition of workers' compensation insurance mandates. Some positions worry that these requirements could impose additional operational burdens on cannabis businesses, potentially stunting growth within a rapidly evolving market. Additionally, the presumption of employee status under the Dynamex ruling could lead to complications as businesses navigate worker classifications and related liabilities, igniting debate over labor regulations in the cannabis industry.

Companion Bills

No companion bills found.

Previously Filed As

CA AB128

Cannabis: background checks and cannabis event organizer license type.

CA SB128

Cannabis: background checks and cannabis event organizer license type.

CA AB106

Cannabis: licenses: criminal records.

CA SB398

Cannabis licenses: cannabis licensing agreements: labor peace agreement license requirement: medical marijuana identification cards.

CA AB1291

Adult-use cannabis and medicinal cannabis: license application: labor peace agreements.

CA AB1686

Adult-use cannabis and medicinal cannabis: licenses: application: labor peace agreement.

CA SB118

Cannabis: licenses: criminal records.

CA SB1064

Cannabis: operator and separate premises license types: excessive concentration of licenses.

CA AB2799

Adult-use cannabis and medicinal cannabis: license application: OSHA training.

CA AB1209

Workers’ compensation: cannabis industry.

Similar Bills

CA AB128

Cannabis: background checks and cannabis event organizer license type.

CA SB128

Cannabis: background checks and cannabis event organizer license type.

CA SB179

State government.

CA AB2980

Cannabis: premises: common space.

CA AB179

State government.

CA SB1064

Cannabis: operator and separate premises license types: excessive concentration of licenses.

CA AB2799

Adult-use cannabis and medicinal cannabis: license application: OSHA training.

CA AB471

Cannabis catering.