HB 408 — AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO MARIJUANA CONVERSION LICENSES.

Osienski HOUSE& OFSen. REPRESENTATIVES 152nd GENERAL ASSEMBLY HOUSE AMENDMENT NO.

1Paradee TO& HOUSESen. BILL NO.

408Hoffner AMENDRep. House Bill No.

408Chukwuocha byHOUSE insertingOF afterREPRESENTATIVES line152nd 6GENERAL theASSEMBLY following:HOUSE BILL NO.

Ҥ408 1335B.AN ACT TO AMEND TITLE 4 OF THE DELAWARE CODE RELATING TO MARIJUANA CONVERSION LICENSES.

ConversionBE licenseIT forENACTED retailBY marijuanaTHE stores.GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):

(a)Section If1. a conversion license to operate a retail marijuana store is granted to a compassion center under § 1335A of this title, the licensee and any successor licensee must, in addition to complying with any other requirements for the operation of a retail marijuana store under this title or regulations promulgated by the Commissioner, do the following:

(1)Amend ContinueChapter to13, operateTitle 4 of the formerDelaware compassionCode centerby making deletions as ashown medicalby dispensingstrike location.through and insertions as shown by underline and by redesignating accordingly as follows:

(2)§ Prioritize1302. the distribution of marijuana and marijuana products to qualifying patients, including suspending recreational marijuana and recreational marijuana product sales to consumers in the event of a shortage of marijuana or marijuana products.

(3)Definitions. Maintain or increase the diversity of medical marijuana products available.

(4)As Provideused toin thethis Commissionerchapter: a product list with the maximum prices to be offered for all marijuana or marijuana products, and provide an updated list within 7 days when a new product is offered or the maximum price for any marijuana or marijuana product offered by the licensee is increased.

(b)( The) licensee“Conversion mustlicense” agreemeans andan abideopen bylicense theissued agreement to continuea medicalcompassion marijuanacenter operations,for maintainparticipation anin adequatethe andadult diverseuse supply,recreational andmarket. maintain justifiable pricing with respect to medical marijuana and medical marijuana products.

(c) Failure to abide by subsections (a) or (b) of this section is a violation of this chapter for which the Commissioner may fine the licensee or take any other action against the license authorized under § 13611335A. of this title.

§Conversion 1335C.licenses.

(a) Conversion licenselicenses formay marijuanabe cultivationissued facilities.to a currently licensed compassion center when the applicant meets the following criteria:

(a)(1) IfThe aapplicant conversion license to operate a marijuana cultivation facility is grantedeligible tofor arenewal compassion center under § 1335A4916A of thisTitle title,16. the licensee and any successor licensee must, in addition to complying with any other requirements for the operation of a marijuana cultivation facility under this title or regulations promulgated by the Commissioner, provide monthly wholesale pricing information to the Commissioner.

HD(2) :The applicant has submitted documentation demonstrating how the applicant currently meets the demands of the medical market and a plan outlining how the applicant will continue to serve the medical market.

GOG(3) :The applicant has submitted a plan detailing how the applicant will support the social equity program.

DS(4) PageThe 1applicant ofhas 3submitted Released:a signed labor peace agreement with a bona fide labor organization.

06/13/2024(5) 03:06If PMseeking (b) Failure to abide by this section is a violationconversion oflicense this chapter for whicha thecultivation Commissionerfacility, may fine the licenseeapplicant orhas takesubmitted anyfacility otherdimensions. action against the license authorized under § 1361 of this title.

§(6) 1335D.The applicant has paid a conversion license fee.

Conversion license for marijuana product manufacturing facility.

(a) If a conversion license to operate a marijuana product manufacturing facility is granted to a compassion center under § 1335A of this title, the licensee and any successor licensee must, in addition to complying with any other requirements for the operation of a marijuana product manufacturing facility under this title or regulations promulgated by the Commissioner, provide monthly wholesale pricing information to the Commissioner.

(b) Failure to abide by this section is a violation of this chapter for which the Commissioner may fine the licensee or take any other action against the license authorized under § 1361 of this title.”.

FURTHER AMEND House Bill No.

408 by deleting line 19 in its entirety and inserting in lieu thereof the following:

“b.

If the conversion license sought is for a cultivation facility, the base conversion license fee is $200,000, which may be paid in quarterly installments over 12 months.”.

FURTHER AMEND House Bill No.

408 on line 48 by deleting “48 months” and inserting in lieu thereof “24 months”.

FURTHER AMEND House Bill No.

408 by deleting line 22 in its entirety and inserting in lieu thereof the following:

“(7) If the conversion license sought is for a retail facility, the applicant has submitted a signed attestation that the applicant will serve medical cardholders in accordance with Chapter 49A of Title 16, including a commitment to doing the following:

SellingExcept tax-freeas marijuanadescribed toin qualifyingparagraphs patients(6)b. directly or through designated caregivers.

and c.

of this subsection, the base conversion license fee is $100,000, which may be paid in quarterly installments over 12 months.

SellingIf upthe toconversion 3license ouncesfee ofis marijuanapaid in anyfull 14-dayin perioda tosingle qualifyingpayment, patients directly or through designated caregivers and up to a total5% ofdiscount 6is ouncesapplied. per month.

ProvidingThe homeconversion deliverylicense tofee qualifyingmay patients.be paid in quarterly installments over 18 months, in which case the base conversion license fee is increased by 10%.

(8)(7) The applicant meets all other requirements set forth in this title or by regulation for each requested license.”.license.

SYNOPSIS This Amendment to House Bill No.