Delaware’s Medical Cannabis Businesses May Soon Sell Adult-Use Cannabis
In a bold move, Delaware is considering allowing medical cannabis businesses to also sell adult-use cannabis once the state’s adult-use sales begin. House Bill 408, introduced on May 16 by Rep. Ed Osienski and Sen. Trey Paradee, aims to create a temporary conversion license that would allow medical cannabis businesses to participate in the upcoming launch of adult-use sales.
Delaware’s Marijuana Control Act and the Need for Medical Cannabis Businesses to Join the Adult-Use Market
Delaware’s Marijuana Control Act, which went into effect on August 1, 2023, created four different license types but none currently permit medical cannabis compassion centers to participate in the adult-use market. This has prompted the introduction of HB-408, which would allow medical cannabis businesses to apply for a temporary conversion license and join the adult-use market for a period of four years.
Supporting Social Equity and Boosting the Success of Delaware’s Adult-Use Cannabis Program
Rep. Osienski believes that allowing medical cannabis businesses to participate in the adult-use market will not only bolster the program’s success but also support both new and existing retailers. He also highlights the importance of using the funds generated from conversion license fees to provide financial assistance to social equity applicants, empowering them to start their own ventures.
Requirements for Medical Cannabis Businesses to Participate in the Adult-Use Market
According to HB-408, medical cannabis businesses must meet certain criteria in order to be eligible for a conversion license. This includes being eligible for renewal within the medical program, demonstrating the ability to meet market demands, and having a signed labor peace agreement with a labor organization. Additionally, applicants must pay a fee of $100,000 per license, which will be used to support social equity applicants.
Protecting Jobs and Communities Harmed by the War on Drugs
Sen. Paradee emphasizes the need to protect the jobs created by compassion centers and provide an avenue for them to participate in the adult-use market. He believes that this will not only create thousands of good-paying jobs but also aid communities that have been harmed by the War on Drugs.
Next Steps for HB-408
If HB-408 becomes law, the Delaware Office of the Marijuana Commissioner will open up applications for conversion licenses between August 1 and November 1, 2024. For now, the bill heads to the House Economic Development/Banking/Insurance and Commerce Committee for further consideration.
Expanding the Delaware Medical Cannabis Program
In addition to HB-408, Rep. Osienski has also introduced House Bill 285, which aims to expand the Delaware medical cannabis program. This bill will provide more opportunities for patients to access medical cannabis and further improve the state’s cannabis industry.
