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Legislation Document
SPONSOR:
Rep. Chukwuocha
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE AMENDMENT NO. 1
TO
HOUSE BILL NO. 395
AMEND House Bill No. 395 by inserting the following after line 29 and before line 30 and redesignating accordingly:
“
(15) “Hemp retailer” means an applicant for a retail marijuana store license that operated a retail store in this State and sold hemp products to consumers prior to June 15, 2026.
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FURTHER AMEND House Bill No. 395 by inserting after line 95 the following and by redesignating the remaining sections accordingly:
“Section 5. Amend § 1343, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1343. Licensing process.
(h) Beginning January 1, 2027, the Commissioner may begin accepting applications from hemp retailers for a retail marijuana store license for a period of 30 calendar days. The Commissioner shall determine whether a submitted application meets the minimum qualifications for the lottery by reviewing the applicant's materials required by this title and in regulations adopted by the Commissioner. The Commissioner shall issue 20 conditional marijuana retail store licenses to hemp retailers, provided a sufficient number of qualified applicants exist.
Section 6. Amend § 1332, Title 4 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 1332. Retail marijuana store licenses.
(n) A retail marijuana store license may only be issued to a hemp retailer under the terms and conditions of this chapter.
(1) In addition to meeting the minimum criteria established in this section and in regulations adopted by the Commissioner, a hemp retailer applying for a retail marijuana store license must submit the following:
a. The application materials required by the Commissioner, including the location where the retail marijuana store will operate.
b. The application fee required by § 1331(5) of this title. A discounted application fee, licensing fee, or renewal fee available to a social equity applicant or microbusiness applicant does not apply to an application or license under this subsection.
c. Materials required by § 1331 of this title and in regulations adopted by the Commissioner.
d. Documents sufficient to show the following:
1. The applicant operated a retail store in this State and sold hemp products to consumers prior to June 15, 2026. Documentation may include point-of-sale records, sales records, supplier invoices, inventory records, advertisements, or other documentation required by the Commissioner.
2. The applicant has a valid business license for its retail store from the Delaware Division of Revenue and satisfies any local or municipal business licensing requirements. The applicant must submit copies of any Delaware business licenses, and any lease, deed, tax records, or other documentation required by the Commissioner.
3. The applicant never sold or ceased selling, offering for sale, delivering, distributing, or otherwise transferring products in this State that contain total THC in excess of 0.4 milligrams per container after [the effective date of this Act]. Proof of this requirement may include documentation showing removal, return, destruction, or other disposition of inventory or products that contain total THC in excess of 0.4 milligram per container.
4. The applicant complied with any cease-and-desist order, written warning, notice of violation, or other written directive issued on or after July 1, 2024, by a law enforcement agency directing the applicant to stop selling products that contain total THC in excess of 0.4 milligram per container. Receipt by the applicant, any owner, managing officer, or the business location of more than 1 cease-and-desist order, written warning, notice of violation, or other written directive issued on or after July 1, 2024 is prima facie evidence that the applicant did not comply with this paragraph. Proof of this requirement may include copies of a cease-and-desist order, written warning, notice of violation, or other written directive from a law enforcement agency and documentation sufficient to demonstrate compliance with each such order, warning, notice, or directive.
(2) Any additional information or documentation required by the Commissioner to determine whether the applicant satisfies this subsection and is otherwise qualified for licensure under this chapter.
(3) A conditional license issued to a hemp retailer under this subsection is subject to § 1345 of this title.
(4) The Commissioner shall grant an active retail marijuana store license to a hemp retailer holding a conditional license in accordance with § 1346 of this title and all other requirements of this chapter and regulations promulgated under this chapter.
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FURTHER AMEND House Bill No. 395 after line 114 by inserting the following:
“Section 8: This Act takes effect on the effective date of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act of 2026 that applies to amendments to Section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639 (o)) by Section 781 of Public Law No. 119-37 (11/12/2025)).”.
SYNOPSIS
This amendment allows a hemp retailer that can demonstrate good faith compliance with law enforcement directives to cease sales of products containing total THC in excess of 0.4 milligram per container to pursue a retail marijuana store license and directs the Commissioner to open an application period and issue up to 20 licenses to qualified applicants. It also changes the effective date to when the hemp definition under 7 U.S.C. § 1639(o) is to be changed under the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act of 2026, P.L. 119-37, which at this time is November 12, 2026.