In Delaware, a new bill is being proposed to allow medical cannabis businesses to also sell adult-use cannabis once the state’s adult-use sales begin.
House Bill 408 was recently introduced on May 16 by sponsors Rep. Ed Osienski and Sen. Trey Paradee. Delaware’s Marijuana Control Act was enacted on April 27, 2023 without the signature of Gov. John Carney, and went into effect starting on August 1, 2023. It created four different license types but none of which currently permit medical cannabis compassion centers to take part in the upcoming launch of adult-use sales. If passed, HB-408 would create a temporary conversion license that medical cannabis businesses can apply for in order to sell adult-use cannabis, and if the application is approved, the license would expire after four years have passed, and can then be renewed again.
“As Delaware moves closer to the launch of recreational marijuana sales, it’s important that we continue exploring and implementing policies that will bolster the program’s success and support both new and existing retailers,” Osienski said in a press release. “Our experienced compassion centers are well-equipped to navigate this transition, and the funds generated from their conversion license fees will serve as a vital funding source for social equity applicants, empowering them to kickstart their ventures.”
According to HB-408, the medical cannabis business must currently be eligible for renewal within the medical program, must be able to show that it can meet market demands (in addition to verify its plans for continued service in medical cannabis and show support for the social equity program), and have a signed labor peace agreement with a labor organization. Applicants must also pay the fee for a conversion license, which is currently set at $100,000 per license. The proceeds from the fee will be used to give financial assistance to conditional …
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Author: Nicole Potter / High Times
