The Delaware Marijuana Commissioner announces dispensaries with a medical marijuana conversion license can open August 1, but the rest are not far behind.
Two years after the legalization of recreational marijuana in Delaware, Marijuana Commissioner Josh Sanderlin announces around a dozen existing medical dispensaries will be able to begin selling recreationally next month.
Sanderlin says while those with conversion licenses get the green light on Aug. 1, they are not required to open for recreational sales immediately.
And while medical dispensaries are within weeks of selling recreational adult-use cannabis, Sanderlin says the Office of the Marijuana Commissioner is committed to distributing all 125 conditional licenses by the end of the summer.
“I think we did almost 20 so far. I plan to do another 20 this week. We're hoping in the next two months to have all the conditional licenses that are available to be issued, issued," he told Delaware Public Media.
Sanderlin says once remaining dispensaries are granted conditional licenses, it will be up to the businesses to find a location and investors to bring the rest of the recreational market to fruition.
"My goal is to really work with companies, existing and potentially new, to make sure that my office, while regulating, ensuring public safety, is also a partner in the process of getting open and supporting an industry. Because while it's our job to keep it safe, it's also our job to keep it healthy and ensure that while we are overseeing everything that's coming out of them and going to consumers, that they are able to actually open a business and understand the interplay, have questions answered, as opposed to operating in a vacuum," he added.
Finding viable locations for marijuana businesses has been a major obstacle for some license holders who face strict countywide zoning regulations and outright bans in several municipalities.
The General Assembly passed legislation to help ease this burden, limiting the zoning restrictions all three counties can place on marijuana businesses, but Gov. Matt Meyer has not yet signed the bill into law.
Sanderlin says he has not received word about Gov. Meyer's intention to sign the bill, but he says its his understanding that the governor's office is reviewing the legislation.
While some advocates have raised concerns over allowing conversion licenses to open without other established adult-use retail dispensaries — arguing it could create an "unfair competitive advantage" — Sanderlin believes bringing conversion licenses online will allow them to lead by example.
"It's chicken and egg in some instances. As long as we maintain medical and we're not switching to adult-use, it's very difficult for social equity companies especially, microbusiness companies, to get investments, to get the ability to start getting capital to operate, besides the effect of our grant programs and the things we're doing at OMC," Sanderlin explained. "It's also important to show other stakeholders, especially local government officials, that the full adult-use industry does not come with a lot of the proclaimed harms to society."
The conversion licenses cost $200,000 for cultivation and $100,000 for manufacturing or retail, which resulted in $4 million in funding to support social equity applicant start-up grants.
Sanderlin says the office is close to launching its social equity program, which offers financial support to license holders who were disproportionately affected by marijuana prohibition.
He says it will be a benchmark-based program that will release funding to social equity license holders as they reach certain milestones, the first being submitting the necessary paperwork to receive their conditional licenses.
A full list of medical dispensaries converting to recreational sales can be found here.
Delaware Public Media's full interview with Marijuana Commissioner Josh Sanderlin will air on our weekly news podcast The Green Friday, June 11.
