A key committee in the Delaware Senate has given approval to legislation that would allow medical marijuana dispensaries to begin selling recreational marijuana this year, months ahead of schedule.
Yesterday, the Senate Judiciary Committee voted to pass House Bill 408. The vote comes a week after the measure was passed by the full House of Representstives, 29 to 11. Sponsored by State Representative Ed Osienski with a companion bill from Senator Trey Paradee, the measure would establish a temporary conversion license for medical marijuana dispensaries, enabling them to sell recreational marijuana while maintaining their medical operations.
“As we approach the launch of recreational marijuana sales in Delaware, it’s vital to implement policies that support both new and existing retailers”, says Rep. Osienski stated. “Our experienced centers can smoothly handle this transition, using the fees from conversion licenses to support social equity applicants.”
The conversion licenses would be available under certain conditions, including:
- Eligibility for renewal in the Delaware Medical Marijuana Program.
- Adequate documentation of the ability to meet medical demand and support social equity programs.
- A labor peace agreement with a recognized labor organization.
- Submission of facility dimensions for cultivation.
- A $100,000 license fee per license, supporting social equity applicants financially.
Sen. Paradee added, “The Marijuana Control Act aims to replace the illicit market with a regulated industry that creates jobs and supports communities affected by previous drug policies. HB 408 provides a practical route for existing businesses to enter the recreational market and support those communities.”
HB 408 sets the application period for conversion licenses from August to November 2024, allowing sells to begin by December. Licensed retail facilities must receive commissioner approval before starting recreational operations. Conversion licenses will expire after four years, with the possibility of renewal.
Delaware’s full Legislature recently passed legislation to protect banks and other financial institutions that provide services to state-legal marijuana businesses, sending it to Governor Carney.
