Are you interested in starting a cannabis business in Delaware? The cannabis consultants at New Leaf can help you navigate the process!
This summary of Delaware requirements and license application process outlines what it takes to win a marijuana business license. Get started today to meet the demands of consumers! Schedule a free consultation with one of our knowledgeable cannabis consultants in Delaware.
Delaware Cannabis Consulting & License Application Writing Experts
New Leaf Cannabis Consulting is the #1 Top Rated Cannabis Application Writing, Consulting, and Capital Fundraising one-stop-shop in the U.S. We offer a complete range of services from business model formation and planning, to state licensure, to raising capital and finding investors for the business.
New Leaf has worked with over 180 clients in over 16 different states since we opened our doors in 2015. Our success rate is well over 95% across the board. We offer more services than any of our competition.
If you need cash for your cannabis startup, and/or state and municipal license approval for a completely reasonable price, look no further than New Leaf Cannabis Consulting.
Cannabis Market Condition Overview
Business Climate and Timeline
Cannabis License Application Planning Starts Now!
With strong support from residents, Delaware becomes the 22nd state with recreational cannabis approval. In March 2023, the Delaware General Assembly passed two bills, House Bill 1 and House Bill 2. HB 1 regulates the legal personal use of marijuana by adults and HB 2 establishes and regulates the Delaware marijuana industry. The bills passed the Senate with 16-4 and 15-5 votes and recent polls show that 61% of Delaware residents support legalization of adult-use. The bills were enacted on April 23, 2023, without the signature of Gov. John Carney.
Delaware’s competitive, scored licensing process will roll out in three phases.
May 2024: Applications will be accepted for adult-use cultivation licenses
- 20 open licenses and 10 social equity licenses for small or microbusiness cultivations (2500 sq ft or less)
- 20 open licenses and 10 social equity licenses for larger cultivations of over 2500 sq ft.
August 2024: Applications will be accepted for adult-use processors/manufacturers
- 10 open licenses
- 10 social equity licenses
- 10 microprocessors
November 2024: Applications will be accepted for retailers/dispensaries and testing facilities
- 15 open retailer licenses
- 15 social equity retailers
- 3 open testing licenses
- 2 social equity testing licenses
Delaware’s Marijuana Industry
In September of 2024, new regulations will authorize the operation of 30 marijuana retail outlets in Delaware. 60 cultivator licenses, 30 manufacturing licenses, and 5 testing licenses will also be available. The newly established Marijuana Commissioner is tasked with issuing licenses following a competitive, scored process. The Marijuana Commissioner will also be responsible for the inspection and regulation of cannabis facilities.
Similar to alcohol sales, cannabis sales will include taxes (15% on all retail sales), permitted hours, as well as fines for the sale to underage individuals.
Regulation of marijuana sales will be enforced by the Delaware Division of Alcohol and Tobacco Enforcement. Operating a vehicle under the influence of marijuana will have the same penalties as drunk driving.
How to Apply for a Cannabis License in Delaware
The Delaware Division of Alcohol and Tobacco Enforcement through a newly formed Office of Marijuana Control Commissioner will be tasked with Cannabis Licensing and regulation. Regulators can approve and issue up to 30 new retail cannabis licenses for the first 16 months of implementing Delaware’s adult-use program.
HB2 includes a $5,000 application fee for adult-use licenses and includes scoring criteria.
Priority License Application Scoring — Applicants who show that they would provide the following employee benefits and considerations would be prioritized in the license scoring process:
- A living wage
- Health insurance coverage
- Sick and paid leave
- Focus on diversity in hiring
Real Estate & Zoning
In most states, you will need to lock down the location for business operations in the form of either a lease, lease with option to purchase, or a purchase agreement.
Most importantly, during the real estate acquisition process, your company MUST make sure that the actual location COMPLETELY adheres to state and municipal regulations regarding distance restrictions from other businesses such as a daycare or school. An example of this would be Dispensary/Retail. Most times you will not be able to locate your dispensary in a section of the city which is not zoned specifically for retail. Your dispensary location cannot be located anywhere else. Check with the Marijuana Commissioner for locality resolutions and ordinances.
Usually the next step is Municipal/City/Township Approval. Nine times out of ten, these steps will need to take place before the full license application can be completed and submitted.