Calif. DOI clears hurdles for potential licensees with cannabis convictions

Certain individuals with past cannabis convictions can now pursue insurance-related licenses under Commissioner Lara's directive.

“When voters approved Proposition 64, they wanted to clear obstacles for those with prior convictions, and that is what my Department is doing,” said Commissioner Lara in a release. “My Department is committed to creating opportunity for Californians while protecting consumers from fraud and abuse by agents and brokers.” (Photo: Shutterstock)

California Insurance Commissioner Ricardo Lara recently announced that the Department of Insurance will use its discretion in deciding whether to issue licenses to individuals that have cannabis-related convictions.

In support of Proposition 64, the Adult Use of Marijuana Act, which was approved by California voters in 2016, the announcement will clear obstacles for individuals, whose past convictions are eligible to be dismissed or reduced under current California law, to pursue insurance agent, broker, or similar licenses.

When reviewing an application for an agent or broker license, the department staff has been directed to use existing authority to carefully consider whether an applicant’s prior convictions fall under the provisions of Proposition 64.

“Using our discretion in evaluating applicants will not affect our oversight of agents or brokers; we will continue to protect the public from insurance fraud and financial crimes but believe in honoring the spirit of Proposition 64 and allowing people to pursue a career in insurance,” Commissioner Lara said in a news release. 

Prior to the passage of Proposition 64, individuals with a cannabis-related conviction may have been denied agent or broker licensure. Under Commissioner Lara’s directive, even if those individuals have not yet been granted formal reduction or dismissal of the conviction by the court, they will still be considered for licensure under the proposition.

“Eliminating barriers and creating economic opportunity for people with cannabis convictions is critical to repairing the harm caused by the War on Drugs,” Marc Philpart, principal coordinator of the Alliance for Boys and Men of Color and managing director at PolicyLink, said in a statement.

“Commissioner Lara’s actions will ensure that communities of color, which were disproportionately impacted by cannabis arrest and prosecution, can fully participate in one of California’s largest industries — advancing racial equity and providing a career path for thousands of Californians,” Philpart added.

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