The State Senate will temporarily hold off on confirming state marijuana commissioner nominee Joshua Sanderlin until he divests from two cannabis businesses.
Sanderlin — a Washington D.C.-based cannabis attorney — was announced as Gov. Matt Meyer’s pick for Delaware’s new marijuana commissioner three weeks ago and underwent the first round of his Senate confirmation Wednesday.
Sanderlin’s hearing in front of the Senate Executive Committee began with concerns from Sen. President Pro Tempore Dave Sokola (D-Newark) around Sanderlin’s involvement with two cannabis businesses in Washington D.C. and New Jersey.
“We've been advised that Delaware Code Title 4 Section 132 4A, which prohibits the marijuana commissioner from having financial interests in cannabis companies, does not limit that conflict to only Delaware businesses and clearly states that you would be statutorily prohibited from holding this position unless you divested your financial interest in these companies," Sen. Sokola said.
Sanderlin told the committee he fully intends to divest following his full Senate confirmation and prior to his swearing in, but his name was not on the Senate’s agenda Thursday.
“Mr. Sanderlin's nomination was unanimously signed out of Senate Executive Committee [Wednesday] and is prepared to move forward soon for a full Senate floor vote. Prior to that vote, we look forward to engaging with Mr. Sanderlin to confirm details of his plans for the statutorily required divestment of his business interests in the cannabis industry," Sen. Sokola said in a statement.
Spokeswoman for the governor Mila Myles says as of Friday, Sanderlin has begun the divestment process and expects him to be confirmed early next week.
Although State Sen. Kyra Hoffner (D-Leipsic) raised concerns around the optics of the situation regardless, worried his investments could be seen as a perceived conflict of interest.
But Sanderlin sees his business experience as an asset, noting he feels the next marijuana commissioner should know the ins and outs of working in the cannabis industry.
“I wouldn't be able to sit here and talk to you about things — I wouldn't know to call it cannabis and not marijuana and why that's distinctly different and why people make that decision if I hadn't had those businesses, if I hadn't been doing the policy, if I hadn't worked with other companies, and now I'm at the new chapter as I was saying earlier — if confirmed, that chapter is closing this chapter is opening," he said.
Sanderlin also confirmed he would not continue practicing as an attorney if he became the head of the Office of the Marijuana Commissioner.
Sen. Majority Leader Bryan Townsend (D-Newark) also voiced some disappointment around Sanderlin's lack of communication with senators prior to the hearing for a position of "this stature," particularly between Sen. Hoffner and State Sen. Trey Paradee (D-Dover) who are frequent sponsors of pro-cannabis legislation.
Sanderlin apologized for not reaching out ahead of time but said he will be available for any calls moving forward.
When asked about his thoughts on Delaware's efforts to roll out its recreational marijuana market, despite running into significant roadblocks, Sanderlin says he believes the First State has "actually done it better than most."
"As I look at Delaware, I really see a lot of opportunity. The 125 license awarded — I know they're still conditional and they're still moving through the process — but you've got a social equity component the really focuses on criminal justice if you've had any past convictions," Sanderlin said. "You have an industry by all accounts."
Sen. Hoffner also asked if Sanderlin had any concerns about being a Delaware outsider, to which he responded, "While I might be a newcomer, I have found that folks so far have been very friendly and very open. I think everybody is invested in the success of this industry."
"Whoever takes this position, whether they're from Delaware their entire lives or they're from Florida like I was born and raised, they're going to have a lot of issues, and the people are going to get mad at you, and it's going to happen, and people are going to be happy with you, it's going to happen. But at the end of the day, I think everybody is invested in this coming out the other end, and we're so close."
While Sen. Sokola made a lighthearted remark about putting Sanderlin "through the ringer," members of the Senate Executive Committee expressed admiration around Sanderlin's experience and voted him out of committee unanimously.
Sanderlin's full confirmation is expected as early as Tuesday or Wednesday of next week.
