Delaware proposal would license hemp product sales and tax purchases

The Office of the Marijuana Commissioner would issue licenses for stores to sell hemp-derived cannabinoid products for off-site use. The license would cover sales of finished hemp-derived cannabinoid products for off-site consumption; beverages containing hemp are excluded from this product definition. Applicants would pay a $15,000 fee and meet security, background-check, and other requirements. Gas stations, grocery stores, and convenience stores could not apply. An existing licensed marijuana store would count as licensed for these sales but must meet the other requirements. The commissioner would refuse a license if a similar licensed store is within the stated distance: one-half mile in a city or town, or three miles in an unincorporated or rural area, measured by accessible public roads. The act would take effect immediately and be implemented by one year after enactment or when final regulations are published, whichever comes first.

Manufacturers would test each product lot, and products would have to meet sales, labeling, and packaging rules. The rules would cover hemp-derived cannabinoid products intended for people to consume, except beverages containing hemp. Each serving could contain no more than 10 mg of THC, and each container could hold no more than 10 servings. Labels would list ingredients and serving information, carry adult-use and safety warnings, and link to test results. Products could not use child-appealing designs. Testing would cover THC levels, other major cannabinoids, and contaminants. These rules also apply to out-of-state manufacturers supplying products to Delaware. The act would take effect immediately and be implemented by one year after enactment or when final regulations are published, whichever comes first.

Retailers would collect a 9% tax from customers and send monthly sales and tax reports to state agencies. The tax would apply to retail sales of hemp-derived cannabinoid products in Delaware. Retailers would show the tax separately on receipts and keep purchase and sales records for at least three years. Tax receipts, application fees, and license fees would go into the Marijuana Regulation Fund to help cover state agencies’ costs related to this chapter. The act would sunset on the effective date of the specified federal law provision concerning hemp; the text does not give that date.