Delaware Bill To Loosen Local Restrictions On Marijuana Business Zoning Heads To Governor, But Will He Sign It?

“This bill is critical to the success of the recreational marijuana industry due to the inability of licensees to find locations to operate.”

By Briana Hill, Spotlight Delaware

The battle over marijuana shop locations in Delaware may be ending, after state lawmakers approved a bill that opens the door for the businesses to operate in more places across the state.

The bill now awaits a signature from Gov. Matt Meyer (D) before it would become law, but it’s unclear how he will act.

Meyer’s office did not respond to requests Thursday for comment on whether he would sign or veto the bill. The former county executive had openly supported marijuana legalization efforts in recent years, but the legislative debate on Senate Bill 75 really centers on a question of whether state government should overrule local decision-making.

“This sets an ugly precedent for overriding county ordinances,” Rep. Valerie Jones Giltner (R-Georgetown) said during the floor vote of the House of Representatives.

But proponents, such as House Majority Whip Ed Osienski (D-Newark), say the marijuana industry will only succeed if businesses can find suitable places.

“This bill is critical to the success of the recreational marijuana industry due to the inability of licensees to find locations to operate,” Osienki said during Wednesday’s House floor vote.

Senate Bill 75, sponsored by Osienski and Sen. Trey Paradee (D-Dover), would override county-level zoning laws that dictate how far marijuana dispensaries must be from sensitive places like schools, libraries, and treatment centers—reducing the buffer to no more than 500 feet.

The bill also requires that existing medical marijuana businesses that were granted conversion licenses to become retail stores be allowed to continue operating in their current locations, even if local zoning laws change in the future.

Municipal bans have proliferated

In recent weeks as lawmakers debated the bill, state regulators prepared for the rollout of the recreational adult-use cannabis industry. During that time, marijuana licensees have noted that they have little space to set up their businesses.

State lawmakers legalized the recreational marijuana industry in 2023. As part of that law, municipalities are allowed to ban marijuana establishments, while counties can set restrictions on where they can operate.

Since 2023, at least 19 of Delaware’s 57 municipalities have passed bans on marijuana-related stores within their town limits, making it difficult for some operators to find a space to locate. The small town of Camden in Kent County joined them this month.

The 125 cannabis business owners who were awarded licenses late last year are only allowed to operate in one of Delaware’s three counties. New Castle has 59 licenses, while Sussex has 41 and Kent has only 25.

Sussex County, where more than half of the municipalities have outlawed such businesses, has also set the widest buffers between shops and sensitive areas at 3,000 feet.

New Castle County – which has a majority of the state’s residents – currently has its buffer set at 1,000 feet.

Issue among ‘home rule’ debates

In recent weeks, the bill has been part of a “home rule” debate in Delaware – along with other pieces of legislation that local officials say undermine counties’ rights to govern land use issues. As part of the debate, all three county governments have passed resolutions urging the General Assembly to “defer and respect the principle of local governance.”

Earlier this month, the Delaware League of Local Governance, an organization that represents counties, cities, and towns across the state, sent a letter to the General Assembly, urging lawmakers to protect and reaffirm the authority of municipalities in zoning and land-use decisions.

Among those who signed the letter were Sussex County Council President Doug Hudson, Kent County Levy Court Commissioner Jeff Hall, and Dover Mayor Robin Christiansen.

The issue was also raised by Jones Giltner during the House meeting, who argued that the local governments know how to make such decisions from a holistic view, keeping the needs of their residents in mind.

But Osienski emphasized that the state passed similar proposals in the past, highlighting the 1971 passage of the Coastal Zone Act and the Quality of Life Act, which passed in 1988.

The bill passed 25-8, with only one Democrat representative, Sherae’a Moore, voting against the measure.

Despite the bill’s passage through both chambers, Sussex County officials say they remain hopeful that Gov. Meyer will veto the legislation.

“The County Council, in joining the other two counties by adopting a resolution, has made clear its position on this and other ‘local control’ bills under consideration in this year’s General Assembly session. That viewpoint remains: that a heavy-handed, top-down approach to managing land use from Dover, rather than in our municipalities and counties, threatens to erode each community’s voice across the state,” County Council officials said in a statement to Spotlight Delaware.

Sussex County Councilman Steve McCarron said that as a result of the bill, marijuana businesses are likely to start appearing just outside municipal borders, and could end up being associated with those towns regardless.

While he opposes the bill, McCarron noted that municipalities might need to revisit their local laws to consider allowing dispensaries within town limits. By doing so, they could charge business license fees and generate revenue to support public safety and law enforcement.

If the bill becomes law, Osienksi says he hopes marijuana retailers will demonstrate they can be good neighbors, encouraging communities to be more open to allowing additional dispensaries in their area.

“Over time, people have realized this is a good thing,” he said.

This story was first published by Spotlight Delaware.

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Photo courtesy of Chris Wallis // Side Pocket Images.