Delaware Governor John Carney has signed into law legislation to allow medical marijuana dispensaries to begin selling recreational marijuana this year, months ahead of schedule.
Governor Carney signed House Bill 408 into law yesterday, weeks after it passed the House of Representatives, 29 to 11, and the Senate, 16 to 5.
Sponsored by State Representative Ed Osienski, the measure establishes a temporary conversion license for medical marijuana dispensaries, enabling them to sell recreational marijuana while maintaining their medical operations.
House Bill 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.
The conversion licenses will 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.
“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. “Our experienced centers can smoothly handle this transition, using the fees from conversion licenses to support social equity applicants.”
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.”
Last month, Delaware’s full Legislature passed legislation to protect banks and other financial institutions that provide services to state-legal marijuana businesses, sending it to Governor Carney, who has not yet stated a position on the measure.
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