Signed in 2011, the Delaware Medical Marijuana ACT (DMMA) allows qualifying patients to purchase and consume cannabis for medical treatment. Cannabis possession was decriminalized statewide in 2015. The Office of Medical Marijuana (OMM) oversees the Medical Marijuana Program and has instituted a registry for patients and caregivers, qualification requirements and regulations to ensure availability of medical cannabis and safety.
Delaware approved adult-use cannabis, or recreational marijuana as its called by the State’s Office of the Marijuana Commissioner. Delaware’s recreational marijuana regulations cover everything from licensing and the application process, to general compliance for areas including alarm systems and video surveillance, record keeping, packaging and labeling requirements, product testing standards, and more.
The application portal opened weeks ahead of schedule on August 16th and will close on September 30th. Importantly, you do not need to have a property solidified to apply, which allows greater flexibility for applicants. The application process will require the completion of approximately five narratives, allowing applicants to demonstrate their qualifications and business plans. Following the close of the application round, a lottery will be held in October to determine the 2024 qualifying applicants.
LICENSE TYPES AND CATEGORIES
Delaware is set to issue a total of 125 cannabis licenses across various license types, creating new opportunities for entrepreneurs and businesses looking to enter or expand within the state’s cannabis market. There are three business types available to apply for in DE’s first cannabis business licensing round for recreational marijuana, not to be confused with the actual license types (such as cultivation, dispensary, etc.).
Must own 51% of the business and be a Delaware resident. Applicants must meet specific criteria outlined in the state’s regulations, designed to promote equity in the cannabis industry.
- Microbusiness
Limited to no more than 10 employees. Must have resided in Delaware for 5 out of the last 10 years. Smaller than 2,500 square feet and limited to 1,000 plants per month.
- Open
Open to all applicants without specific residency or ownership restrictions.
Breakdown of Available Licenses
- Retail Licenses: A total of 30 licenses will be awarded, split evenly between open category (15) and social equity (15).
- Cultivation Licenses: Up to 60 licenses will be issued, divided among microbusinesses (20), social equity applicants (20), and the open category (20).
- Manufacturer Licenses: Up to 30 licenses will be available, again divided evenly across microbusinesses, social equity, and open categories (10 each).
- Testing Laboratory Licenses: Up to 5 licenses, with 3 available in the open category and 2 reserved for social equity applicants.
APPLICATION DETAILS
The Office of the Marijuana Commissioner in Delaware’s image of the application sequence.
Similar to parts of New Jersey’s licensing model, Delaware is proposing to allow applicants to apply for conditional licenses, with a timeline of 18 months from conditional license award to:
- Obtain legal control of a property
- Receive approval from local regulators
- Become operational
Applicants will be required to undergo financial and criminal background checks and fingerprinting – a standard requirement observed in nearly every state that has legalized cannabis operations and sales. The application process is expected to encompass various elements and narratives, including robust quality assurance programs, as outlined in the regulations.
While many of the proposed regulations are viewed as standard for the burgeoning cannabis industry, there are some regulations that will almost certainly generate pushback from industry stakeholders. Certain restrictions, such as limiting the THC content in edibles and beverages to 50 milligrams per package and stringent rules surrounding packaging, labeling, and marketing for cannabis products, are raising a slight concern among potential business operators and consumers alike
Cannabis Dispensary Business Plan in Delaware
Opening and operating a dispensary, manufacturing, or cultivation facility is a challenging task involving many stipulations, potential stumbling blocks, financial investment and regulatory risks. While there is great potential, it’s also a challenging situation. Canna Business Services elevates your potential. Complete focus, specialized knowledge and extensive resources are just a few of the benefits of our diversity of services.
KEY DATES AND TIMELINES SUMMARIZED
- JUNE 3, 2024: 30-day public comment period closed
- JULY 2024: Regulations finalized and adopted
- AUGUST 16, 2024: The OMC began accepting applications for all licenses
- NOVEMBER 1, 2024: The OMC begins issuing up to 60 Cultivation Licenses
- DECEMBER 1, 2024: The OMC begins issuing up to 30 Product Manufacturing Licenses
- MARCH 1, 2025: The OMC begins issuing up to 30 Retail Licenses and 5 Testing Facility Licenses
DON’T WAIT UNTIL IT’S TOO LATE, GET STARTED ON YOUR DE APPLICATION NOW!
This timeline means that potential applicants should start preparing now to ensure they meet all requirements and can submit a strong application. The move to open the portal earlier than anticipated signals Delaware’s commitment to moving forward with its cannabis program and opening the market to a diverse range of participants. Don’t miss out on this opportunity—prepare your application and be ready to submit before September 30th!
Contact Canna Business Services, Delaware’s top cannabis consultant, for support in preparing an application for a recreational marijuana business in Delaware today!
If you’ve set your sights on the cannabis industry, support your success with a call to Canna Business Services. Let’s hone in on your immediate goals, long-range aspirations and business plan. The details are many and can prove insurmountable without experienced assistance. Very few industries are submitted to such rigorous scrutiny. From submitting and preparing a properly crafted application to packaging compliance, branding, investing, marketing and more, Canna Business Services is your invaluable resource and champion. question
Canna Business Services is made up of a team of women who bring expertise from a variety of fields, including lawyers, state grant writers and auditors, former cannabis operators and compliance experts, procurers for the federal nuclear reactor program, educational providers, and nonprofit owners.
