SB 1057 Summary

• Requires marijuana licensees and applicants to file proof of financial responsibility of at least $100,000 for liability related to adulterated marijuana products, with an attestation of compliance form approved by the marijuana regulatory agency.

• Specifies four acceptable forms of financial responsibility: cash submitted to the agency, unencumbered securities valued at $100,000 or more with pledge agreement, liability insurance from a state-licensed carrier with signed attestation, or a constant value bond from a state-authorized surety company.

• Defines "securities" to include SEC-registered stocks and bonds, U.S. government obligations, Michigan state general obligations, political subdivision bonds, irrevocable trusts with $100,000 minimum principal, and irrevocable letters of credit or certificates of deposit from state-licensed financial institutions.

• Prohibits financial responsibility policies from including conditions or endorsements that relieve the insurer of liability for bodily injuries caused by adulterated marijuana, though coverage is not required for injuries caused by intentional conduct meant to harm.

• Requires the marijuana regulatory agency to immediately suspend any licensee's license that fails to maintain required proof of financial responsibility and establishes a 30-day notice requirement before canceling insurance.