A Delaware Senate committee has advanced a House-passed bill that would let existing medical marijuana businesses in the state begin selling cannabis to adults, a move designed to allow recreational sales to begin months earlier than planned. Critics, however, say the legislation would give an unfair market advantage to larger, more dominant businesses already operating in multiple states.
The legislation, which the Senate Judiciary Committee approved on Wednesday, would let current medical marijuana providers convert to dual-use licensees that could serve both registered patients and adults over 21. Fees from the license conversions—which are estimated to bring in more than $4 million—would be used for financial assistance to social equity-owned cannabis businesses.
HB 408, sponsored by Rep. Ed Osienski (D), would create a “conversion license” category, laying out requirements for medical cannabis businesses to apply and also stipulating that the applicants who are denied due to local bans can apply for general licenses for a new location, which must be approved as long as they meet the requirements.
Prospective conversion licensees would have to demonstrate that they can continue to meet demand among medical patients, show plans to support the state’s social equity program and enter into a labor peace