Delaware Bill Advances for Early Recreational Cannabis Sales

The Delaware Senate has given its approval to a House-passed bill that paves the way for existing medical marijuana businesses in the state to begin selling cannabis to adults, ahead of schedule. The legislation, if signed by Gov. John Carney (D), would enable current medical marijuana providers to obtain dual-use licenses, serving both registered patients and adults over 21 years old. Here’s a breakdown of the key developments:

Swift Legislative Progress

Just two days after advancing through the Senate Judiciary Committee, the bill sponsored by Rep. Ed Osienski (D) and Sen. Trey Paradee (D) passed the full Senate in a 16-5 vote on Thursday.

Conversion License and Social Equity Focus

The legislation introduces a new “conversion license” category, facilitating the transition of medical cannabis businesses into dual-use operations. These license conversions are projected to generate over $4 million in fees, earmarked for financial assistance to social equity-owned cannabis businesses. Prospective licensees must meet rigorous criteria, including demonstrating continued support for medical patients and engaging in labor peace agreements with recognized unions.

House Approval and Implementation Timeline

Earlier this month, the House of Representatives endorsed the bill with a 29-11 vote. Under the proposed law, the Delaware Office of the Marijuana Commissioner (OMC) is mandated to open applications for conversion licenses by August 1, with a deadline of November 1 for submissions. Approved licensees can commence cannabis sales upon receipt of their licenses, paving the way for broader access to recreational cannabis by 2025.

Support and Amendments

Lawmakers supporting the bill emphasize its potential to bolster social equity in the emerging cannabis market, providing financial support to historically marginalized communities affected by cannabis prohibition. Amendments to the bill, including doubling the conversion licensing fee and shortening the license duration, aim to refine and strengthen regulatory oversight while ensuring continued support for medical marijuana patients.

Future Steps and Regulatory Landscape

With regulatory frameworks still evolving, Delaware anticipates the launch of its adult-use cannabis market in March 2025. Recent legislative efforts, including expanded medical cannabis access and enhanced banking protections for cannabis businesses, underscore the state’s commitment to progressive cannabis reform.

The bill now awaits Gov. Carney’s signature to become law, marking a significant step forward in Delaware’s journey toward comprehensive cannabis legalization and regulatory clarity.