Delaware’s governor has vetoed a bill that would have overruled local zoning authority on marijuana and made it easier for cannabis businesses to set up shop—and the sponsor of the legislation says the governor “lied” to him about a deal to get it enacted into law.
Gov. Gov.
“I am in favor of a well-regulated adult-use marijuana market operating statewide. In a statement about Meyer’s decision to reject the bill, Meyer stated that he would work as a partner with counties to create regulated adult-use cannabis markets.
He stated that SB75 would effectively override the local decision-making process on cannabis businesses’ location, operation and management. “Let’s move forward together—respecting local zoning and exploring revenue-sharing to offset local costs—so this market succeeds and earns public trust in all three counties.”
The governor also sent to lawmakers a draft of proposed legislation which would distribute a part of the marijuana tax revenue collected by cannabis shops located in their respective jurisdictions. Each county and municipality will receive 4.5 percent.
Meyer’s veto letter stated that “while I support the goal of creating a safe and equitable adult-use marijuana market in Delaware,” displacing land use authorities without providing any support or partnership is not a way to build enduring, effective policies or trust.
He said that if the aim is to make sure that cannabis retail establishments in Delaware are successful and accessible, we need to work with local governments. It is important to explore revenue-sharing in order to reduce local costs for zoning permits, enforcement and infrastructure. It is impossible to move forward without preemption.
Delaware’s adult-use cannabis market launched at the beginning of this month, with the governor touting the state’s first “successful” weekend of adult-use cannabis sales, with total purchases for medical and recreational marijuana totaling nearly $1 million—and compliance checks demonstrating that the regulated market is operating as intended under the law.
Sen. Trey Paradee, the D. sponsor of the now vetoed Cannabis Zoning Bill called the Governor untrustworthy and claimed that he “lied,” about an agreement they were supposed to have made in order to pass the legislation.
The senator said, “I promised that I would be in favor of the county sharing the revenue generated by retail marijuana sales. In return, he promised that he’d take the bill and allow it to become law without his signature after 10 days.” In my book, I believe he was lying to me. Not only did he deceive me, he also deceived the public.
This is going to be a set [dispensaries] This is just wrong. Beyond that, it’s a massive handout given to cartels. It’s not just the illegal market that benefits, it is also the operators from multiple states who operate in Delaware. They were able convert their medical dispensaries to recreational and now they have an oligopoly. Delaware’s consumers will pay more because of it, but this is just frustrating. “I come from an area where your word means what you say, but the Governor is clearly not someone like that. It’s unfortunate to have him as our current governor.”
Paradee believes the Senate can “easily”, override Governor’s veto, however the House “might be more difficult.”
He said, “We’ll have to wait and see what happens next January.”
Meyer talked about his conversation with Colorado’s governor in an earlier interview. Jared Polis (D) about regulating the marijuana industry—drawing a contrast between their respective responsibilities given the fact that Colorado is much larger with more local jurisdictions to interact with compared to Delaware, which has just three counties.
The launch of Delaware’s legal market comes about two years after marijuana legalization was enacted into law under former Gov. John Carney (D).
Ahead of the sales roll-out, the governor last month toured one of the state’s cannabis cultivation facilities, praising the quality of marijuana that’s being produced, which he said will be the “French wine of weed.”
The launch of the legal market comes amid some controversy, however, with critics alleging that allowing medical operators to start adult-use sales ahead of other license applicants is unfair. Dozens of other would-be retailers that have either already received licenses or are still awaiting issuance will need to wait for further regulatory approvals until they can open their doors—a situation that’s frustrated some advocates.
In the meantime, two legislators who have led the effort to legalize cannabis are seeking feedback from businesses and consumers about the upcoming market launch. Paradee, the sponsor of SB 75, and House Majority Whip Rep. Ed Osienski (D)—the primary sponsor of the state’s 2023 legalization bills—put out a new online form this month for residents to share thoughts and feedback about the cannabis program anonymously.
This is to help identify any issues that may arise when lawmakers return to the legislature next year.
OCM had originally predicted that recreational sales could begin by March. But complications with obtaining a FBI fingerprint background-check service code have delayed implementation. Lawmakers passed a bill in April to resolve the issue, and the FBI subsequently issued the code that the stat’s marijuana law requires.
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Late last year, OMC held a series of licensing lotteries for cannabis business to start serving adult consumers.
A total 125 licenses are expected to be granted, which includes 30 retail outlets, 60 cultivators and 30 manufacturers, as well as five testing laboratories. In the past, regulators have also specified how much of each license category will be reserved for applicants who are socially responsible, small businesses, and those with general open licensing.
Regulators have also been rolling out a series of proposed regulations to stand up the forthcoming adult-use cannabis industry.
Meanwhile, Carney raised eyebrows in January after making a questionable claim that “nobody” wants cannabis shops in their neighborhoods, even if there’s consensus that criminalization doesn’t work.
The then-governor last year signed several additional marijuana bills into law, including measures that would allow existing medical cannabis businesses in the state to begin recreational sales on an expedited basis, transfer regulatory authority for the medical program and make technical changes to marijuana statutes.
The dual licensing legislation is meant to allow recreational sales to begin months earlier than planned, though critics say the legislation would give an unfair market advantage to larger, more dominant businesses already operating in multiple states.
In October, Carney also gave final approval to legislation to enact state-level protections for banks that provide services to licensed marijuana businesses.
Delaware’s medical marijuana program is also being significantly expanded under a law that officially took effect last July.
This policy shift removes restrictions on patient eligibility that are based upon a set of health conditions. In its place, doctors can recommend cannabis to treat any health condition.
A patient over the age 65 may also be able to self-certify medical cannabis without needing a recommendation from a doctor.
Carlos Gracia. Photo courtesy Carlos Gracia.
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