DE HB408

Establishes "conversion licenses" allowing currently licensed compassion centers to participate in Delaware's adult use recreational marijuana market while maintaining medical operations.

Conversion license applicants must demonstrate current medical market capacity, submit a social equity support plan, provide a signed labor peace agreement, and pay a base fee of $100,000 ($200,000 for cultivation facilities), payable in quarterly installments over 12 or 18 months.

Licensees must continue operating medical dispensing locations, prioritize patient access over recreational sales during shortages, maintain diverse medical product offerings, and provide pricing information to the Commissioner.

Retail conversion licenses require written commitment to serve medical cardholders tax-free, dispense up to 3 ounces per 14 days (6 ounces monthly), and provide home delivery services.

Conversion license applications accepted beginning August 1, 2024, with a November 1, 2024 deadline; licenses expire 24 months after issuance and can be renewed as standard open licenses for a $10,000 renewal fee; all conversion license fees fund financial assistance for social equity applicants.