Source: https://legis.delaware.gov/json/BillDetail/GenerateHtmlDocument?legislationId=25571&legislationTypeId=1&docTypeId=2&legislationName=HB110
Timestamp: 2020-03-29 03:59:56
Document Index: 264699480

Matched Legal Cases: ['§ 4915', '§ 4901', '§ 4902', '§ 4914', '§ 4701', '§ 4701', '§ 4903', '§ 4764', '§ 4904', '§ 4905', '§ 4906', '§ 4907', '§ 4908', '§ 4909', '§ 4910', '§ 4911', '§ 4912', '§ 4913', '§ 4914', '§ 4915', '§ 4917', '§ 4930', '§ 4931', '§ 4932', '§ 4933', '§ 4950', '§ 4950', '§ 4934', '§ 4935', '§ 4936', '§ 4935', '§ 4937', '§ 4938', '§ 4950', '§ 4950', '§ 1700', '§ 4951', '§ 4956', '§ 4953', '§ 4914', '§ 4914', '§ 4950', '§ 4956', '§ 4914', '§ 4914', '§ 4952', '§ 4953', '§ 4914', '§ 4950', '§ 4956', '§ 4954', '§ 4914', '§ 4955', '§ 4956', '§ 4957', '§ 4958', '§ 4959', '§ 4956', '§ 4960', '§ 4957', '§ 4961', '§ 4962', '§ 4908', '§ 4907', '§ 4959', '§ 4950', '§ 4956', '§ 4956', '§ 4963', '§ 4964', '§ 4965', '§ 4966', '§ 4967', '§ 4980', '§ 4981', '§ 4982', '§ 4983', '§ 4981', '§ 4984', '§ 4985', '§ 4986', '§ 1903', '§ 4950', '§ 4902']

Rep. Keeley & Rep. Baumbach & Rep. Kowalko & Sen. Henry & Sen. Townsend
Reps. Heffernan, Q. Johnson, Lynn, Osienski, Paradee, B. Short, Viola; Sens. Bonini, Sokola
Section 1. Amend Subchapter IV, Chapter 47, Title 16 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
The offenses and penalties provided for in this chapter do not apply to marijuana-related conduct allowed under the Delaware Medical Marijuana Act, Chapter 49A of this title, or the Delaware Marijuana Control Act, Chapter 49B of this title.
(15) "Registered safety compliance facility" means a nonprofit entity registered under § 4915A of this title by the Department to provide 1 or more of the following services: testing marijuana produced for medical use or under Chapter 49B of this title for potency and contaminants; and training cardholders and prospective compassion center agents cardholders, compassion center agents, and owners and employees of entities operating under Chapter 49B of this title . The training may include, but need not be limited to, information related to 1 or more of the following:
Section 4. Amend Title 16 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
Chapter 49B. The Delaware Marijuana Control Act.
§ 4901B. Purpose and findings.
(a) In the interest of promoting individual freedom, generating revenue for education and other public purposes, and allowing law enforcement to focus on violent crime and property crimes, the General Assembly finds and declares that the personal use of marijuana should be legal for persons 21 years of age or older and taxed in a manner similar to alcohol.
§ 4902B. Definitions.
(3) “Compassion center” means an entity registered as a compassion center under § 4914A of this title .
(6) “Division” means the Division of Marijuana Control and Enforcement .
(10) “Marijuana” means as defined in § 4701 of this title.
(17) “Possession limit” means the amount of marijuana that may be possessed at any one time by an individual over the age of 21 who is not a registered qualifying patient or a registered designated caregiver under Chapter 49A of this title.
(19) "Retail marijuana" means "marijuana", as defined in § 4701 of this title, that is cultivated, manufactured, distributed, or sold by a licensed retail marijuana establishment.
§ 4903B. Personal use of marijuana.
(1) Possessing , using, displaying, purchasing, or transporting marijuana accessories or 1 ounce or less of marijuana, of which no more than 5 grams may be concentrated marijuana .
(2) Transferring 1 ounce or less of marijuana without remuneration to an individual who is 21 years of age or older.
(3) Assisting another individual who is 21 years of age or older in any of the acts described in paragraphs (1) and (2) of this subsection.
(b) The following acts are unlawful and an offense under the law of this State:
(1) Consuming marijuana in public or in a moving vehicle, as defined and punished under § 4764(d) of this title.
(2) Growing, manufacturing, or cultivating marijuana without a license granted under this chapter or Chapter 49A of this title, as defined and punished under Chapter 47 of this title.
§ 4904B. Marijuana accessories authorized.
§ 4905B. Places of employment.
Nothing in this chapter is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growing of marijuana in the workplace, to affect the ability of employers to have policies restricting the use of marijuana by employees, or discipline employees who are under the influence of marijuana in the workplace.
§ 4906B. Driving under the influence prohibited.
§ 4907B. Individuals under age 21; prohibitions.
Nothing in this chapter is intended to permit the transfer of marijuana, with or without remuneration, to an individual under the age of 21 or to allow an individual under the age of 21 to purchase, possess, use, transport, or consume marijuana.
§ 4908B. False identification, penalty.
(a) It is unlawful for an individual under the age of 21 years to knowingly make a false statement or present false evidence to any person engaged in the sale of marijuana for the purpose of obtaining the same and to the effect that the individual is 21 years of age or older. A first violation is an unclassified misdemeanor and is punishable by, in addition to costs, a fine of not less than $100 nor more than $500 and, on failure to pay such fine and costs, is punishable by 30 days incarceration. A subsequent violation is an unclassified misdemeanor punishable by a fine of not less than $500 nor more than $1,000 and, on failure to pay such fine and costs, is punishable by 60 days incarceration.
§ 4909B. Private property rights.
§ 4910B. Unlawful marijuana extraction, penalties.
§ 4911B. Lawful operation of marijuana-related facilities.
(a) It is lawful and may not be an offense under the laws of this State, or be the basis for seizure or forfeiture of assets under the laws of this State, for an individual 21 years of age or older to do any of the following:
§ 4912B. Enforcement.
Inspections and enforcement activities are to be conducted under Subchapter VI of Chapter 47 of this title.
§ 4913B. Contracts enforceable.
§ 4914B. Verifying the age of marijuana consumers.
(a) It is unlawful for a person licensed or operating under a license issued by this chapter to sell marijuana or marijuana products to any of the following:
(1) An individual who is under 21 years old.
(2) An individual , knowing that such marijuana or marijuana products are intended for an individual who is under 21 years old and are to be consumed by the individual who is under 21 years old.
(b) Violation of subsection (a) of this section is an unclassified misdemeanor and is punishable by the payment of costs and a fine not less than $250 nor more than $500. The failure to pay the fine and costs is punishable by 30 days incarceration.
(c) In any prosecution for an offense under this section, it is an affirmative defense that the individual who is under 21 years old presented identification, with a photograph of such individual affixed thereon, to the accused and the identification set forth information which would lead a reasonable person to believe such individual was 21 years old or older.
§ 4915B. Medical marijuana provision not affected.
Nothing in this chapter may be construed to limit any privileges or rights of a medical marijuana patient, primary caregiver, or medical marijuana dispensary under the Delaware Medical Marijuana Act, Chapter 49A of this title.
§ 4917B. Oversight Committee; annual report by the Commissioner.
b. The Director of the Division of Public Health, or designee appointed by the Director of the Division of Public Health.
c. The Director of the Division of Substance Abuse and Mental Health, or designee appointed by the Director of the Division of Substance Abuse and Mental Health.
d. The Director of the Delaware Medical Marijuana Program.
e. The chair of the Medical Marijuana Act Oversight Committee.
f. One member, appointed by the President Pro Tempore of the Senate.
g. One member, appointed by the Speaker of the House.
h. Two members appointed by the Governor.
(2) The name and address of each person licensed to cultivate, manufacture, or sell marijuana or marijuana products in the State.
(3) The amount of marijuana and marijuana products sold within the State.
Subchapter II. Division of Marijuana Control and Enforcement; Marijuana Commissioner; Appeals Commission.
§ 4930B. Division of Marijuana Control and Enforcement;
The Division of Marijuana Control and Enforcement of the Department of Safety and Homeland Security is established for the administrative, ministerial, budgetary, and clerical functions for the enforcement of the marijuana laws of this chapter.
§ 4931B. Duties and powers of the Division.
The Division shall do all of the following:
(1) Investigate, prevent, and arrest for violations of this title; seize marijuana, including marijuana products and accessories that are manufactured, sold, kept, or transported in contravention thereof; and confiscate such marijuana, including marijuana products and accessories, whenever required by any provision of this title;
(2) Arrange for the proper sampling, testing, and analyzing of marijuana, including marijuana products and accessories, that is offered for sale in this State upon receipt of a complaint regarding health by entering into an agreement with the Director of Forensic Science Laboratories of the Department of Health and Social Services to test marijuana and marijuana products when requested by the Division.
§ 4932B. Marijuana Commissioner; Appeals Commission; qualifications; appointment; term; compensation.
§ 4933B. Duties and powers of the Commissioner.
(1) Adopt rules and regulations consistent with § 4950B of this title and other provisions of this chapter or of any other law of this State, and all such rules and regulations have the force and effect of law. A rule or regulation may not extend, modify, or conflict with any law of this State or the reasonable implications thereof. A rule or regulation adopted under this paragraph (a)(1) of this section must focus primarily on public safety and the best interests of the consumer and may not unduly restrict competition within the marijuana industry.
(2) Establish rules and regulations for the effective control of the business of cultivation, manufacture, and sale of marijuana and marijuana products within the State, including the time, place, and manner in which marijuana and marijuana products may be sold and dispensed, not inconsistent with § 4950B of this title and other provisions of this chapter or with any other law of this State.
(3) Grant, refuse, or cancel licenses required by this chapter for the cultivation, manufacture, or sale of marijuana and marijuana products, or other licenses required by this chapter in regard thereto, and to transfer any license granted.
(9) Coordinate with the Delaware Economic Development Office to connect potential marijuana establishments licensed under this chapter with programs that support business development, including programs that support small businesses owned by minorities, women, and veterans.
§ 4934B. Oath of Office of Commissioner and employees.
§ 4935B. Conflict of interest.
(a) The Commissioner, members of the Appeals Commission, and any hearing officer or such person's spouse, son, or daughter residing at such person's residence, may not have a financial interest in any entity that sells, manufactures, cultivates, or uses marijuana; provided, however, such persons may invest in mutual funds or similar financial instruments that hold no more than a 10% interest in any such entity.
§ 4936B. Commissioner's statement of interest in marijuana business.
When notified of appointment as Commissioner or to the Appeals Commission, the individual so notified shall furnish in duplicate and in writing to the Governor and to the President Pro Tempore of the Senate a statement of every interest, direct or indirect, and however small, held or owned by the individual as a member or as a stockholder in any partnership, corporation, or other association engaged in the sale or in the cultivation or manufacture of marijuana or marijuana products or in any undertaking, industry, or business in which marijuana or marijuana products are used or required. Prior to taking the oath of office, the Commissioner and members of the Appeals Commission must wholly and fully dispose of all interests, except those permitted by § 4935 of this chapter. One copy of the statement must be inserted in the permanent records of the office of the Commissioner open to public inspection.
§ 4937B. Employees of the Division; Commissioner.
§ 4938B. Property and profits of the office of the Commissioner.
§ 4950B. Regulations.
(a) The Commissioner shall adopt regulations necessary for implementation of this chapter consistent with § 4950B of this title and other provisions of this chapter. The regulations may not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. Regulations and fees for marijuana cultivation facilities may be varied based on the size of the facility to ensure that the operation of smaller facilities is not made unreasonably impracticable. The Commissioner shall include all of the following in the regulations:
(2) A competitive scoring process to determine which applicants may obtain licenses to operate each type of marijuana establishment if more qualified applicants apply than the Commissioner may license under this subchapter. The scoring system must take into account the applicant and managing officers’ applicable experience, training, and expertise; the applicant's plan for security and diversion prevention; any criminal, civil, or regulatory issues encountered by other entities the applicant and managing officers have controlled or managed; and the suitability of the proposed location. The competitive scoring process for retail marijuana stores may be varied to account for geographic distribution or population density, or both.
(3) A schedule of application fees which may not exceed $5,000, unless the Commissioner determines a greater fee is necessary to carry out its responsibilities under this chapter, including the need to adjust this upper limit annually for inflation.
(5) Security requirements for marijuana establishments, including lighting, physical security, video, and alarm requirements.
(6) Requirements for the transportation and storage of marijuana and marijuana products by marijuana establishments.
(7) Employment and training requirements for employees and agents of marijuana establishments, including requiring that each marijuana establishment create an identification badge for each employee or agent.
(8) Requirements to prevent the sale or diversion of marijuana and marijuana products to individuals under the age of 21. To protect individual privacy, the Commissioner may not require a consumer to provide a retail marijuana store with personal information other than government-issued identification to determine the consumer’s age and a retail marijuana store may not be required to acquire and record personal information about consumers.
(9) Standards for marijuana product manufacturers to use so that consumers can determine the amount of marijuana in each product and compare the amount of marijuana in different products based upon the standard measurements including a definition of the amount of delta-9 tetrahydrocannabinol that constitutes a single serving in a marijuana product.
(10) Requirements for marijuana and marijuana products sold or distributed by a marijuana establishments, including labeling requirements for marijuana products that include all of the following:
b. The amount of marijuana in the product using the standard established in this section.
c. Ingredients and possible allergens.
d. A nutritional fact panel.
e. The requirement that information on the packaging may not mislead consumers.
f. Opaque, child-resistant packaging, which must be designed or constructed to be significantly difficult for children under 5 years of age to open and not difficult for normal adults to use properly as defined by 16 C.F.R. § 1700.20.
g. A standard symbol indicating edible marijuana products contain marijuana so that marijuana products are clearly identifiable.
h. A warning label that explains evidence-based harms from consuming marijuana, including the impact on developing brains.
(11) Health and safety regulations and standards for the manufacture of marijuana products and both the indoor and outdoor cultivation of marijuana by marijuana establishments consistent with other State requirements for food and crops including all of the following:
a. Restrictions on the use of pesticides that are injurious to human health.
d. Requirements for random sample testing to ensure quality control, including by ensuring that marijuana and marijuana-infused products are accurately labeled for potency. The testing analysis must include testing for residual solvents, poisons, or toxins; harmful chemicals; dangerous molds or mildew; filth; harmful microbials such as E. Coli or salmonella; and pesticides.
(12) Restrictions on the advertising, marketing, and signage of marijuana and marijuana products, including a prohibition on mass-market campaigns that have a high likelihood of reaching minors.
(13) Restrictions on the display of marijuana and marijuana products, including requirements that marijuana and marijuana products may not be displayed in a manner that is visible to the general public from a public right-of-way.
(14) Requirements governing visits to cultivation facilities and product manufacturers, including the requirement that these marijuana establishment log visitors.
(15) Requirements that educational materials be disseminated to consumers who purchase marijuana-infused products.
(16) Standards for the operation of testing laboratories, including requirements for equipment and qualifications for personnel, consistent with the requirements established under Chapter 49A of this title for a registered safety compliance facility.
(17) Civil penalties for the failure to comply with regulations made under this chapter.
(18) Procedures for collecting taxes levied on marijuana cultivation facilities.
§ 4951B. Retail marijuana store licenses.
(3) Proof of compliance with § 4956B of this title.
(c) A retail marijuana store may purchase retail marijuana from a licensed retail marijuana cultivation facility or may cultivate its own retail marijuana if it obtains a retail marijuana cultivation facility license under § 4953B of this title.
(d) A retail marijuana store may not accept any retail marijuana purchased from a retail marijuana cultivation facility unless the retail marijuana store is provided with evidence that any applicable excise tax due was paid.
(e) A retail marijuana store shall track all of its retail marijuana and retail marijuana products from the point that they are transferred from a retail marijuana cultivation facility or retail marijuana products manufacturer to the point of sale.
(f) (1) A retail marijuana store licensee may also sell retail marijuana products that are prepackaged and labeled as required by this chapter.
(g) (1) A retail marijuana store may not sell more than 1 ounce of retail marijuana or its equivalent in retail marijuana products, including retail marijuana concentrate, except for nonedible, nonpsychoactive retail marijuana products, including ointments, lotions, balms, and other nontransdermal topical products, during a single transaction to an individual.
(2) A retail marijuana store may not sell any retail marijuana or retail marijuana products that contain nicotine or alcohol, if the sale of the alcohol would require a license under Title 4.
(l) Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana store.
(m) A display case containing marijuana concentrate must include the potency of the marijuana concentrate next to the name of the product using the standard established under this chapter.
(n) Retail marijuana store licenses shall be issued as follows:
(1) Beginning 10 months after [the effective date of this Act] authorized representatives of properly registered compassion centers under § 4914A of this title may submit an application for a license to operate as a retail marijuana store, accompanied by an application fee. Beginning 11 months after [the effective date of this chapter] the Commissioner shall issue a retail marijuana store license to each applicant that is an authorized representative of a properly registered compassion center under § 4914A of this title if the proposed retail marijuana store is in compliance with regulations issued under to § 4950B of this title and any local requirements made under § 4956B of this title. No more than 1 license may be issued under this subsection for each compassion center. Any retail marijuana store license issued under this subsection is considered a business registration separate and distinct from the registration issued under § 4914A of this title.
(2) No later than 13 months after [the effective date of this Act], the Commissioner shall begin accepting applications for retail marijuana store licenses from applicants who are not authorized representatives of properly registered compassion centers. The Commissioner shall issue 40 retail marijuana store licenses 19 months after [the effective date of this Act], provided a sufficient number of qualified applicants exist.
(3) An authorized representative of a properly registered compassion center under § 4914A of this title that does not already hold a retail marijuana store license shall be given priority over other applicants in any competitive application process.
(4) If there are fewer than 40 licensed retail marijuana stores any time 2 years after [the effective date of this Act], the Commissioner shall accept applications and grant licenses for additional retail marijuana stores.
(5) The Commissioner may accept applications and grant licenses for more than 40 retail marijuana stores if, after 3 years from [the effective date of this Act], additional stores are needed to meet demand statewide or in a geographic area.
(6) Impossibility of performance because of opposition by localities or a lack of qualified applications is a defense to any lawsuit brought against the Commissioner to comply with the issuance of the required number of licenses.
§ 4952B. Marijuana testing facility licenses.
(d) A person who has an interest in a marijuana testing facility license from the Commissioner for testing purposes may not have any interest in a registered compassion center, a marijuana cultivation facility, a marijuana products manufacturing facility, or a retail marijuana store. A person that has an interest in a registered compassion center, a marijuana cultivation facility, a marijuana products manufacturing facility, or a retail marijuana store may not have an interest in a facility that has a marijuana testing facility license or is a registered safety compliance facility.
(1) Beginning 10 months after [the effective date of this Act], the Commissioner shall begin accepting applications for a license to operate as a marijuana testing facility in accordance with this chapter. A safety compliance facility holding a valid registration certificate pursuant to Chapter 49A of this title is eligible to apply for a license to operate as a marijuana testing facility. Beginning 11 months after [the effective date of this Act], the Commissioner may issue 2 licenses to operate as a marijuana testing facility, provided that the Commissioner has received 2 qualified applications by any deadline provided.
(2) No later than 13 months after [the effective date of this Act], the Commissioner shall begin accepting applications for additional marijuana testing facilities. The Commissioner shall issue 3 additional marijuana testing facility licenses no later than 20 months after [the effective date of this Act] for a total of 5 marijuana testing facilities in this State, provided a sufficient number of qualified applicants exist.
(3) If there are fewer than 5 licensed marijuana testing facilities at any time 2 years after [the effective date of this Act] or later, the Commissioner shall accept applications and grant licenses for marijuana testing facilities.
(4) The Commissioner may accept applications and grant licenses for more than 5 licensed marijuana testing facilities if needed if there are an insufficient number of marijuana testing facilities to meet demand statewide or in a geographic area.
(5) Impossibility of performance because of opposition by localities or a lack of qualified applications is a defense to any lawsuit brought against the Division to comply with the issuance of the required number of licenses.
§ 4953B. Marijuana cultivation facility licenses.
(b) A marijuana cultivation facility licensee shall pay the Commissioner $10,000 biennially for the marijuana cultivation facility license. A marijuana cultivation facility licensee must renew the license biennially by paying the fee required by this subsection.
(c) A marijuana cultivation facility shall remit any applicable excise tax due under this chapter.
(d) A marijuana cultivation facility shall track the marijuana it cultivates from seed or immature plant to wholesale purchase. Prior to delivery of any sold retail marijuana, the retail marijuana cultivation facility shall provide evidence that it paid any applicable excise tax on the retail marijuana due under this chapter.
(e) A marijuana cultivation facility must provide a sample of its products to a facility that has a marijuana testing facility license for testing and research purposes as required by regulations adopted under this chapter. A marijuana cultivation facility shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the testing results.
(f) Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana cultivation facility.
(g) Marijuana cultivation facility licenses shall be issued as follows:
(1) Beginning 10 months after [the effective date of this Act], the Commissioner shall begin accepting applications for marijuana cultivation facilities.
(2) Beginning 11 months after [the effective date of this Act], the Commissioner shall issue a marijuana cultivation facility license to each applicant that is an authorized representative of a properly registered compassion center under § 4914A of this title if the proposed marijuana cultivation facility is in compliance with regulations issued under § 4950B of this title and any local requirements under § 4956B of this title. No more than 1 license may be issued under this subsection for each compassion center.
(3) Beginning 12 months after [the effective date of this Act] the Commissioner shall issue additional marijuana cultivation facility licenses to a total of 75 marijuana cultivation facilities, provided that the Commissioner has received sufficient qualified applications by any deadline provided, as follows:
a. At least 30 registrations for cultivation on less than 1,000 square feet.
b. At least 15 registrations for cultivation on less than 1,001 to 2,500 square feet.
c. At least 10 registrations for cultivation on 2,501 to 7,500 square feet.
d. No more than 10 registrations for cultivation on 7,501 or more square feet.
(4) The Commissioner may accept applications and grant licenses any time 2 years after [the effective date of this Act] that there are fewer than 75 licensed marijuana cultivation facilities or 75 licensed marijuana cultivation facilities is insufficient to meet demand or outcompete the criminal market.
§ 4954B. Marijuana product manufacturing facility registration.
(c) A marijuana product manufacturing facility may not accept any retail marijuana purchased from a retail marijuana cultivation facility unless a marijuana products manufacturing facility is provided with evidence that any applicable excise tax due under this chapter was paid.
(1) Section 122(3)u of this title and related regulations, the State of Delaware Food Code, Section 4458 of Title 16 of the Delaware Administrative Code and the Cottage Food Regulations, Section 4458A of Title 16 of the Delaware Administrative Code.
(2) Chapter 35 of this title.
(3) Chapter 41 of this title.
(4) Chapter 43 of this title.
(g) All retail marijuana products that require refrigeration to prevent spoilage must be stored and transported in a refrigerated environment and in compliance with rules established under this chapter and all other food safety laws.
(1) Beginning 12 months after [the effective date of this Act], authorized representatives of properly registered compassion centers under § 4914A of this title may submit an application for a license to operate as a marijuana product manufacturing facility.
(2) No later than 14 months after [the effective date of this Act], the Commissioner shall issue at least 5 marijuana product manufacturing facility licenses, provided a sufficient number of qualified applicants exist.
(3) No later than 16 months after [the effective date of this Act], the Commissioner shall issue at least 20 additional marijuana product manufacturing facility licenses, provided a sufficient number of qualified applicants exist.
(4) The Commissioner may accept applications and grant licenses for additional marijuana product manufacturing facilities any time 2 years after [the effective date of this Act].
§ 4955B. [Reserved]
§ 4956B. Local control.
(a) A locality may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance or through an initiated or referred measure, provided that any initiated or referred measure to prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores must appear on a general election ballot.
(c) A locality may designate a local regulatory authority that is responsible for processing applications submitted for a registration to operate a marijuana establishment within the boundaries of the locality.
(d) A locality may establish procedures for the issuance, suspension, and revocation of a registration issued by the locality in accordance with this section. These pr ocedures are to be subject to all requirements of Part X of Title 29.
(e) A locality may establish a schedule of annual operating and registration fees for marijuana establishments.
§ 4957B. Procedural requirements governing Commissioner's action; hearing; appeal.
(4) The Commissioner shall send notice of the time and location of the hearing to the applicant and to each of the persons who signed the protest and provided a legible name and address; provided, however, that it is sufficient for the Commissioner to send notice to an attorney representing a person.
§ 4958B. Decision upon application for renewal of license; time of making.
§ 4959B. Grounds for refusal of license; transfer or extension of premises.
(a) The Commissioner may not grant a license under this chapter in any county or subdivision thereof, if granting a license is contrary to any law in such county or subdivision thereof adopted under § 4956B of this title.
(4) The applicant has been convicted and imprisoned for a crime, not including the following:
a. A violation of a state or federal controlled substance law that was classified as a felony in the jurisdiction where the person was convicted for which the sentence, including any term of probation, incarceration, or supervised release, was completed 10 or more years earlier.
b. A violation of a state or federal controlled substance law that was classified as a felony in the jurisdiction where the person was convicted for which this chapter or Chapter 49A of this title would likely have prevented a conviction, but the conduct either occurred prior to [the effective date of this Act] or was prosecuted by an authority other than the State of Delaware.
(5) The applicant, including any of the applicant's directors or officers, or any of the applicant's shareholders who hold more than 10% of the outstanding issued shares has been convicted of violating any of the prohibited acts defined in Chapter 47 of this title, the Uniform Controlled Substances Act, or its functional equivalent under the laws of the United States, any state or territory of the United States, or any other country, including, the illegal manufacture, delivery, trafficking, possession, or consumption of any controlled or noncontrolled substance; the delivery or possession of illegal drug paraphernalia or illegal hypodermic syringes or needles; or the conspiracy, solicitation, or other attempt to engage in such illegal activities but not including the following:
a. Any objection, or group of objections, presented to the Commissioner either individually or as a group, by persons who reside within the election district where the licensee is to operate and all contiguous election districts, sufficient to give the Commissioner reason to believe that a majority of the residents of the community within which the licensee is to operate oppose the issuance of the license.
(c) The Commissioner may refuse to grant a license to sell marijuana, marijuana products, or marijuana accessories to any new establishment to be located in the vicinity of a church, school, or college. The Commissioner may issue a license to any establishment located in the vicinity of a church, school, or college when such establishment has been located in a place prior to the time any church, school, or college may thereafter be located in the vicinity of such establishment.
(e) Any holder of an existing license who desires to move the location of the existing license due to the destruction of the building, loss of lease, diversion of highway traffic pattern, or similar reason beyond the control of the licensee, shall have preference in the issuance of a new license provided that the application satisfies this section and all other requirements under this chapter.
§ 4960B. Finality of Commissioner's decision refusing license.
If an application is not timely protested, but the Commissioner determines that the application should nevertheless be denied, the Commissioner shall render the decision promptly in writing. The Commissioner's decision shall be final and conclusive unless, within 30 days after notice thereof has been mailed by the Commissioner's office, the applicant files an appeal in the office of the Commissioner. The appeal shall follow the procedure outlined in § 4957B of this title.
§ 4961B. Improvements to premises.
§ 4962B. Grounds for cancellation, suspension, or fines.
(2) Cancel the licensee’s license if the Commissioner determines the violations to be repeated and continuous.
(c ) It is a violation for a licensee to do any of the following:
(1) Violate any provision of this chapter or any regulation of the Commissioner under this chapter.
(6) Sell marijuana or marijuana products to minors in contravention of § 4908B of this title.
(e) The Commissioner may not cancel or suspend any license for the sale of marijuana products or impose any fine for an alleged violation of § 4907B of this title where the licensee or its employee has made a reasonable effort to determine the age of a purchaser of the marijuana products. For purposes of this subsection, a licensee or its employee is deemed to have made a reasonable effort to determine the age of a purchaser if, prior to any sale of marijuana products, the licensee or its employee requires the purchaser to display identification, with a photograph of the purchaser thereon affixed, which sets forth information that would lead a reasonable person to believe the purchaser to be 21 years of age or older.
(f) The Commissioner may also suspend a license for any of the grounds for refusal of a license under § 4959B of this title.
(g) The Commissioner may cancel any retail license if it has reasonable grounds to believe that the license was granted in violation of this chapter, or any rule enacted pursuant to § 4950B of this title.
(h) If the Commissioner receives notice from the appropriate locality that any permit, license, registration, or other written document issued to satisfy an applicant's duty under § 4956B of this title has been suspended, then the Commissioner shall suspend any license or extension of an existing license granted in reliance on such permit, license, registration, or other written document until such time as the Commissioner receives notice from the appropriate locality that such permit, license, registration, or other written document has been reinstated. If the Commissioner receives notice from the appropriate locality that any permit, license, registration, or other written document issued to satisfy an applicant's duty under § 4956B of this title has been canceled, then the Commissioner shall cancel any license or extension of an existing license granted in reliance on such permit, license, registration, or other written document .
§ 4963B. Public hearing and right of appeal.
§ 4964B. Effect of cancellation or surrender of license; notice.
§ 4965B. Payments to former licensee.
§ 4966B. Transfer of license.
(b) In instances where the Commissioner has approved the transfer of a license, all matters concerning marijuana inventories must be handled directly between the transferor and the transferee and all payments musy be made directly and not through the Commissioner.
§ 4967B. Death of licensee; payments to licensee's estate.
§ 4980B. Marijuana Regulation Fund.
§ 4981B. Excise tax on marijuana.
(a) All persons required to be licensed under this chapter shall, upon the purchase or receipt of marijuana, marijuana products, or marijuana accessories, pay a tax thereon at the rates set forth in subsection (b) of this section.
(b) An excise tax is imposed on the sale or transfer of marijuana from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility at the following rates:
(1) $50 per ounce on all marijuana flowers.
(2) $15 per ounce on all part of marijuana other than marijuana flowers and immature marijuana plants.
(3) $25 per immature marijuana plant.
(c) The rates of tax imposed by this section apply proportionately to quantities of less than 1 ounce.
(d) The Commissioner shall make and publish such rules and regulations with respect to the collection and payment of the taxes imposed by this chapter as it deems proper, and all such rules and regulations that are not inconsistent with the provisions of this chapter have the force and effect of law.
§ 4982B. Administration of taxes.
Except to the extent inconsistent with specific provisions of this chapter, the provisions of Chapter 5 of Title 30 shall govern the assessment, collection, review, and appeal of deficiencies of tax imposed by this chapter, and any interest and penalties thereon, and claims for refund of overpayment of taxes imposed by this chapter.
§ 4983B. Apportionment of revenue.
Revenues generated by the marijuana excise tax under § 4981B of this title must be accounted for to the State Treasurer and all proceeds must be placed into a special account known as the Marijuana Regulation Fund. The funds in the Marijuana Regulation Fund in each fiscal year must be appropriated by the General Assembly as follows:
(1) First, to the administrative costs and expenses of the Commissioner and the Division, including administrative expenses including payroll and other employment costs.
(2) After the payment under paragraph (1) of this section as follows:
a. Twenty percent to the Department of Education to distribute to public schools .
b. Ten percent to the Department of Health and Social Services (DHSS) for distribution to qualified community-based nonprofit organizations to support job placement, mental health treatment, substance use disorder treatment, system navigation services, and legal service to address barriers to reentry for communities that have been disproportionally affected by past federal and state marijuana prohibition policies. DHSS shall solicit input from community-based job skills, job placement, and legal service providers with relevant expertise as to the administration of the grants program. DHSS shall periodically evaluate the programs it funds to determine the effectiveness of the programs; may not spend more than 4% of the funds received under this paragraph for administrative costs related to implementation, evaluation, and oversight of the programs; and shall award grants annually, beginning no later than January 1, 2019.
c. Ten percent to the DHSS for use in evidence-based, voluntary programs for the prevention or treatment of alcohol, tobacco, and marijuana abuse.
d. Ten percent to the DHSS for a scientifically and medically accurate public education campaign educating youth and adults about the health and safety risks of alcohol, tobacco, and marijuana.
e. Any remainder as the General Assembly determines.
§ 4984B. Deposit of receipts with Division of Revenue.
All moneys received by the Commissioner must be paid to the Division of Revenue of the Department of Finance. A monthly report of all receipts of the Commissioner must be made to the State Treasurer.
§ 4985B. Financial statements of the Commissioner.
§ 4986B. Annual audit.
Section 5. Amend § 1903, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
(e) In computing net income for businesses operating in compliance with Chapter 49A or Chapter 49B of Title 16, there is allowed as a deduction from state taxes all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including reasonable allowance for salaries or other compensation for personal services actually rendered.
Section 6. The regulations required by § 4950B of Title 16 must be adopted not later than 9 months after the effective date of this Act.
Section 4: This Act creates the Delaware Marijuana Control Act. Subchapter I contains definitions and general provisions. Where definitions or analogous provisions exist in the Delaware Code, the definitions are referenced and the language from existing statutes is used. This section of the Act permits individuals over age 21 to possess, use, purchase, or transport 1 ounce (28 grams) or less of marijuana, no more than 5 grams of which may be concentrated, by individuals 21 years of age or older if the individuals are in compliance with this chapter. It permits the operation of marijuana businesses if they operate under licenses granted under this chapter but imposes the same limits on hours and holiday sales as apply to sales of alcohol. It prohibits the use of marijuana in public, by drivers or passengers in vehicles, and prohibits the smoking of marijuana anywhere that smoking tobacco or ecigarettes is not permitted. Marijuana may not be sold in an establishment licensed to sell alcohol. Employers and some owners of residential housing can prohibit the use of marijuana. There are specific provisions imposing the same penalties as with alcohol sales, for individuals under the age of 21 using false identification to purchase marijuana, and for businesses that fail to verify the age of marijuana consumers.
Subchapter II creates the Division of Marijuana Control and Enforcement in the Department of Safety and Homeland Security. The powers and duties granted to this Division are substantially the same as those in Title 4 creating the Division of Alcohol and Tobacco Enforcement but revised to conform to the standards of the Delaware Legislative Drafting Manual. This includes the identical power to conduct hearings if neighbors protest the license application of establishments that sell marijuana and subpoena power. It requires the Commissioner to coordinate with the Delaware Economic Development Office so that potential businesses licensed under this Act have access to programs, particularly those that support small businesses owned by minorities, women, and veterans.
Subchapter III provides the Marijuana Commissioner the authority to adopt regulations to implement this Act and includes specific requirements that marijuana establishments must meet to obtain licenses. Regulations must require that products containing marijuana use of a symbol and a standard measurement to be used on all marijuana products so they are easily identified as containing marijuana and consumers can identify the amount of marijuana in different products; be in opaque, child-resistant packaging; and contain a warning label explaining evidence-based harms from consuming marijuana, including the impact on developing brains. The regulations must also contain security requirements, testing requirements, advertising restrictions, and require that food products comply with State food safety laws.
There are separate licensing requirements for retail marijuana stores, marijuana testing facilities, marijuana cultivation facilities, and marijuana product manufacturing facilities. The application fee for licenses is up to $5000, which is the same as the application fee for facilities under the Delaware Medical Marijuana program. There is a $10,000 biennial fee for each license issued under this Act, which is lower than the fee for compassion center under the Delaware Medical Marijuana program. Within 10 months of the effective date of this Act, applications will be accepted from compassion centers and safety compliance facilities registered under Chapter 49A of Title 16 to operate as retail marijuana stores, marijuana cultivation facilities, marijuana product manufacturing facilities, and marijuana testing facilities. Localities have the ability to license and set rules for marijuana establishments. The procedure for appeals and grounds to deny a license are the same as for applications to sell alcohol under Title 4, except that instead of prohibiting someone with any substance abuse felony from obtaining a license, the language from § 4902A(7)(b) of Title 16, is used, permitting an exception if the conviction and sentence served was 10 years or more in the past or the conviction was for something that would be legal under this Act.
Subchapter IV creates the Marijuana Regulation Fund. This fund will consist of fees collected, penalties imposed, and taxes collected under this Act. It creates an excise tax on marijuana and apportions the revenue as follows: first to the administrative costs and expenses of the Division of Marijuana Control and Enforcement and then, of the amount that remains, 20% to the Department of Education, 10% to the Department of Health and Social Services for distribution to nonprofit organizations to address barriers to reentry for communities that have been disproportionally affected by past federal and state marijuana prohibition policies, 10% to the Department of Health and Social Services for use in evidence-based, voluntary programs for the prevention or treatment of alcohol, tobacco, and marijuana abuse, and 10% to the Department of Health and Social Services for a public education campaign educating youth and adults about the health and safety risks of alcohol, tobacco, and marijuana.
Section 5: Creates a State tax deduction for all ordinary and necessary expenses paid or incurred by a marijuana establishment to reflect the inability of a business licensed under this Act to deduct these expenses from federal taxes and thus state taxes. This creates a more level playing field with other businesses.
Section 6: Provides that the initial regulations required under this Act be adopted not later than 9 months after the effective date of this Act.