A new legislative proposal in Delaware aims to change how local counties can regulate cannabis businesses. Senate Bill 75, which has progressed through the state Senate, now awaits a vote in the House. This bill addresses local zoning laws that have hindered the marijuana industry, particularly in Sussex County, where strict regulations have limited business operations.
In Sussex County, marijuana retailers can only operate in designated ‘Heavy Commercial’ zones and must be located at least three miles away from schools, churches, substance abuse centers, municipal boundaries, and other marijuana businesses. As a result, municipalities like Lewes and Rehoboth Beach have already enacted bans on retail marijuana sales, leveraging their authority under current state laws.
In contrast, Kent County has fewer restrictions on marijuana businesses, making it more accessible for cannabis operations. New Castle County, while also restrictive, does not impose limitations as severe as those in Sussex County.
Senator Trey Paradee, a Democrat from Kent County and the sponsor of Senate Bill 75, criticized Sussex County’s regulations as overly prohibitive. ‘These restrictions act as a brick wall for the cannabis industry. Our goal is to establish a legal market to eliminate the illegal market and create jobs in the cannabis sector,’ Paradee stated.
The proposed bill seeks to limit zoning restrictions on cannabis businesses. It would permit medical marijuana dispensaries, known as compassion centers, to convert to recreational businesses without relocating. Counties would be prohibited from imposing distances greater than half a mile between cannabis businesses and 500 feet from schools, places of worship, licensed childcare facilities, parks, and libraries.
Additionally, the bill mandates minimum business hours of operation, allowing cannabis businesses to operate from 9 a.m. to 9 p.m. on most days and from noon to 8 p.m. on Sundays. Paradee emphasized that without this legislation, the retail cannabis market in Delaware is unlikely to thrive. He reflected on his previous support for local control in cannabis legislation, expressing disappointment in how Sussex County has utilized that control to effectively ban the industry.
The Sussex County Council recently passed a resolution supporting local governance and control, citing concerns about state overreach. Similar resolutions have been adopted by councils in New Castle County and Kent County in recent weeks.
Currently, Delaware has allocated 36 licenses for marijuana businesses in Sussex County. However, the restrictive zoning laws present significant barriers to the establishment of these businesses, according to attorney Peter Murphy, who specializes in cannabis law. He stated that this legislative move represents the state’s effort to ensure that counties cannot use zoning to obstruct the legalization of cannabis.
As the House prepares to vote on Senate Bill 75, its outcome could determine the future of the cannabis industry in Delaware, impacting both economic development and the state’s ability to regulate the market effectively.
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