Retail marijuana: State seeks to supersede county rule to bring in business

A Senate bill seeks to establish state rules on the recreational marijuana market, taking away decision-making from the county level. 

But not all legislators are on board.

“Zoning decisions should be left up to the local jurisdictions. For the state to come in and say these facilities have to go in is a drastic overreach if this bill goes through,” said Senate Minority Whip Brian Pettyjohn, R-Georgetown.

SB 75, introduced March 20, is sponsored by Sen. Trey Paradee, D-Dover, with co-sponsors including Democratic leadership – Senate President Pro Tem Dave Sokola, D-Newark, and Senate Majority Leader Bryan Townsend, D-Newark.

If passed, the bill would limit restrictions a county may impose on retail marijuana establishments. This includes giving a medical marijuana compassion center a conversion license for retail sales under a nonconforming use, and setting hours of operation 9 a.m. to 9 p.m., Monday through Saturday, and noon to 8 p.m., Sundays.

Restrictions under the bill would prohibit retail marijuana stores from operating within a half-mile of each other, and within 500 feet of a place of worship, school, licensed child care, residential treatment facility, park or library.

Sussex County code restricts businesses within three miles of each other, any municipal boundary, church, school, college, or substance abuse treatment facility.

“The limits on county restrictions under this act preempt and supersede all existing and future county ordinances or regulations regarding the operation of marijuana establishments,” the bill reads.

Paradee said despite the legalization of adult-use recreational marijuana retail facilities, Sussex County and New Castle County governments have passed restrictive laws that effectively prohibit such facilities.

“Unfortunately, Sussex County Council passed an ordinance that made it impossible to operate a retail marijuana facility in Sussex County, and the ordinance passed by New Castle County Council is so restrictive that licensees have been unable to find suitable locations,” Paradee said in a press release. “SB 75 solves these problems while still protecting sensitive areas like schools, daycares and places of worship.” 

Sen. Russ Huxtable, D-Lewes, said he has no plans to co-sign the bill.

“It’s a slippery slope if we start taking over that responsibility; then we’re determining where the movie theater is and where the subdivision is, and I don’t think I really want to get into that,” he said.

Even though Huxtable said he does not believe local zoning codes should be used politically, he does not “think it’s necessary for the state to come in with a bill in the manner in which it’s doing.”

On the flip side, Rep. Claire Snyder-Hall, D-Rehoboth Beach, said she plans to sign on soon.

“I fully support the retail marijuana industry, which our democratically elected General Assembly finally legalized in 2023,” she said. “Like many of my fellow Delawareans, I am disappointed that the industry is not yet up and running. It is particularly frustrating to see local governments erect barriers to obstruct this important new industry.”

Snyder-Hall said the state is losing out on revenue opportunities when Delaware residents go to other states to purchase gummies and marijuana products, including tax revenue that the 15% sales tax on cannabis products would generate.

“We are facing federal funding cuts at a time when we already don’t have enough money to cover our needs for better schools, more healthcare providers, services for seniors, drug treatment programs, et cetera, et cetera. We need the retail marijuana industry to thrive,” she said.

Under the bill, local municipalities are allowed to prohibit marijuana operations or set their own rules. Pettyjohn said it’s an option that should be extended to the counties as well.

“Historically, the state has left zoning development up to local municipalities, but now they want to say what can happen and locals have no say. That’s not right,” Pettyjohn said. “The last thing someone in Sussex County wants is Dover or Wilmington making decisions for the county.”

The bill awaits action in the Senate Elections & Government Affairs Committee.