Delaware Marijuana License Overview

Delaware Adult-Use Marijuana Program Overview

Delaware legalized adult-use marijuana in April 2023 through the passing of  HB 1 and HB2, which legalized recreational marijuana for individuals 21 years or older, and allows for access through licensed businesses. Delaware Population: 1 million.

 

Delaware Adult-Use Marijuana License Information

Delaware Marijuana License Types

There are four types of marijuana businesses: Cultivation, Manufacturing, Retail and Testing, with 3 types of licenses within each business type, as further described below:

LICENSE TYPE:

• Open license is a regular/standard license.
• Social equity license is a special license based on ownership qualifications. A social equity applicant is a Delaware resident that meets one of the following criteria:
  • At least 51% ownership and control by 1 or more individuals who have resided for at least 5 of the preceding 10 years in a disproportionately impacted area.
  • At least 51% ownership and control by 1 or more individuals who meets one of the following criteria:
    • Was convicted of or adjudicated delinquent for any marijuana-related offense except any of the following:
      • Delivery to a minor.
      • Any marijuana offense with a Tier 3 quantity of marijuana as defined in § 4751(c) of Title 16.
      • The functional equivalent of the offenses described above
    • Is married to or the child of a person who was convicted of or adjudicated delinquent for any marijuana related offense.
  • Microbusiness license is a special license based on ownership qualifications and limitations to business operations. A microbusiness applicant is an applicant for a license who meets ALL the following criteria:
    • 51% ownership and control by 1 or more individuals who have resided in Delaware for at least 5 of the preceding 10 years.
    • Intends to employ no more than 10 employees.
    • Will not operate a facility with a cannabis plant grow canopy area greater than 2500 square feet
    • Will not possess more than 1,000 marijuana plants each month.

DELAWARE MARIJUANA LICENSE TYPES & NUMBER OF LICENSES TO BE ISSUED

• Marijuana Cultivation Facility – an entity licensed to cultivate, prepare, and package marijuana and sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. A marijuana cultivation facility may not produce marijuana concentrates, tinctures, extracts, or other marijuana products. The state plans to issue 60 Cultivators as outlined below:
  • Small Cultivator:
    • Indoor facility with a cannabis plant grow canopy area less than or equal to 2500 square feet; or
    • Outdoor facility with a cannabis plant grow canopy area less than or equal to 1 acre
    • Between both indoor and outdoor, the state shall issue:
      • 20 Microbusiness Cultivator Licenses; and
      • 10 Social Equity Cultivator Licenses.

NOTE: No “Open/Standard” licenses for small cultivators, meaning you will have to fit the qualifications of microbusiness or social equity to obtain a small cultivator license

• Standard (Big) Cultivator:
  • Indoor facility with a cannabis plant grow canopy area greater than 2500 square feet; or
  • Outdoor facility with a cannabis plant grow canopy area greater than 1 acre
  • Between both indoor and outdoor, the state shall issue:
    • 20 Open (Standard) Cultivator Licenses
    • 10 Social Equity Cultivator Licenses

NOTE: No marijuana cultivation facility license may be issued for an indoor facility with a cannabis plant grow canopy area exceeding 12,500 square feet or for an outdoor facility with a cannabis plant grow canopy area exceeding 7.5 acres

• To Recap, the state will only be issuing:
  • 20 Big Standard/Open Cultivation Licenses
  • 10 Big “Social Equity” Cultivation Licenses
  • 20 Smaller Microbusiness Cultivation Licenses
  • 10 Smaller Social Equity Cultivation Licenses

• Marijuana Manufacturing Facility – means an entity licensed to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and retail marijuana stores, but not to consumers. The state plans to issue 30 Manufacturers as outlined below:
  • 10 Open/Standard Manufacturing Licenses.
  • 10 Social Equity Manufacturing Licenses
  • 10 Microbusiness Manufacturing Licenses

• Retail Marijuana Store – means an entity licensed to purchase marijuana from marijuana cultivation facilities; to purchase marijuana and marijuana products from marijuana product manufacturing facilities; and to sell marijuana and marijuana products to consumers. The state plans to issue 30 Retailers as outlined below:
  • 15 Open/Standard Retail licenses.
  • 15 Social Equity Retail licenses.

• Marijuana Testing Facility – means an entity licensed to test marijuana for potency and contaminants. The state plans to issue 5 Testing Facilities as outlined below:
  • 3 Open/Standard Testing Facility licenses.
  • 2 social equity Testing Facility licenses.

 

APPLICATION & LICENSING FEES

*Licenses are renewed every 2 years

Business Type	App Fee	Licensing Fee*
Indoor Grow (<2500sqft)	$5,000	$2,500
Outdoor Grow (< 1 acre)	$5,000	$2,500
Indoor Grow (2,501 – 7,500 sqft)	$5,000	$5,000
Outdoor Grow (1.1 – 2.5 acres)	$5,000	$5,000
Indoor Grow (7,501 – 10,000 sqft)	$5,000	$7,500
Outdoor Grow (2.6 – 5 acres)	$5,000	$7,500
Indoor Grow (> 10,001 sqft)	$5,000	$10,000
Outdoor Grow (> 5.1 acres)	$5,000	$10,000
Manufacturing Facility	$5,000	$10,000
Retail Store	$5,000	$10,000

 

NOTE: Social Equity Applicants will only pay a nonrefundable application fee of $1,000 for all business types and 40% off the applicable license fee. Microbusiness Applicants will only pay a nonrefundable application fee of $3,000 for all business types and 40% off the applicable license fee.

 

APPLICATION DETAILS

Competitive Scored Application that will require, at the minimum, the submission of the following information/materials:

• Comprehensive Business Plan & Financial Proforma
• The experience, training, and expertise of the applicant and managing officers.
• Safety, security, and the prevention of diversion Plan
• Social Responsibility & Diversity Plan
• Employee Manual
• An environment and sustainability plan
• Any criminal, civil, or regulatory history encountered by other entities the applicant and managing officers have previously controlled or managed.
• Suitability of Proposed Location
• Attestation signed by a bona fide labor organization stating that the Applicant has entered into a labor peace agreement

 

Delaware Medical Marijuana Program Overview

 

The state of Delaware legalized medical cannabis in 2011, through a Legislative Bill, Senate Bill 17, which provided a legal way for qualifying patients in the state to access and utilize medical cannabis as a form of treatment for their ailment.

Delaware Compassion Care Centers– is a vertically integrated license allowing a licensee to grow medical cannabis plants; extract, process and produce medical cannabis products; and dispense/sell to registered patients. There are currently 11 existing Compassion Care Centers within the state.

 

Delaware Marijuana Program Timeline:

• 2012 – Delaware legalized medical cannabis
• 2014 – Delaware licensing period for cannabis businesses (Phase 1)
• Dec 2015 to March 2016 – Delaware licensing period for cannabis businesses (Phase 2)
• 2017 – First Delaware cannabis business opened
• April 2023 – Delaware legalized adult-use marijuana
• By Q3 of 2023 – Anticipated Date for Publication of Regulations
• May 2024 – Application opens for ALL types of business and licenses
• June 2024 – State shall begin issuing licenses
• July 2024 – State shall issue cultivation licenses
• August 2024 – States shall issue manufacturing licenses
• November 2024 – State shall issue retail and testing licenses

 

Interested in a Delaware Marijuana License? Contact us at 602.290.9424 or email info@thecannabisbusinessadvisors.com

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