How to Open a Cannabis Dispensary in Delaware
The path to opening a cannabis dispensary or cannabis business in Delaware is now much clearer with the passing of House Bill 2. Delaware, “the First State” and home to President Joe Biden, became the 22nd state to legalize recreational cannabis after the state legislature approved House Bill 2/Delaware Marijuana Control Act. The Division of Alcohol and Tobacco Enforcement, Department of Safety and Homeland Security will oversee and enforce all regulations in the bill.
Delaware Cannabis License Types
There are three main classes of cannabis licenses in Delaware--- each with their own license types and application process: open licenses, microbusiness licenses, and social equity licenses. The license types for open licenses and social equity licenses include Cultivation Facility Licenses, Product Manufacturing Licenses, Retail Marijuana Store License, and Testing Facility License. Microbusinesses licenses include Cultivation Facility Licenses and Product Manufacturing Licenses.
Delaware Cannabis Microbusiness Licenses
To apply for a microbusiness cannabis license in Delaware, certain conditions must be met. The criteria for a microbusiness license are: 51% owned by 1 or more people who have resided in Delaware for at least 5 of the preceding 10 years; employ no more than 10 employees; not operate a facility with a canopy greater than 2500 square feet; and possess no more than 1,000 plants each month.
Delaware Social Equity Cannabis License
To qualify for a social equity cannabis license in Delaware, certain criteria must be met. The conditions include 51% ownership by 1 or more individuals who have resided in a disproportionately impacted area for at least 5 of the preceding 10 years and meets one of the following: convicted of a marijuana offense or is married to or the child of a person who was convicted of a marijuana offense.
Delaware Cannabis License Fees
$5,000 non-refundable fee for all establishments ($1,000 for social equity and $3,000 for microbusiness)
Retail License: $10,000 biennially
Cultivation License: $2,500-$10,000 biennially depending on canopy size
Testing License: $10,000 biennially
Product Manufacturing License: $10,000 biennially
Delaware Cannabis Application Process
In addition to the non-refundable application fee, cannabis business licenses in Delaware will be issued via a competitive scoring process. The criteria for judging applications must include, but not limited to:
Comprehensive business plan
Experience and expertise of managing officers
Safety and security plan
Operations, training, and staffing plans including (but not limited to) social responsibility and diversity plans
Delaware Cannabis Application Timeline
The number of licenses will be allocated as follows:
Cultivation Facility: 20 general applicants, 20 social equity, 20 microbusiness
Product Manufacturing: 10 general applicants, 10 social equity, and 10 microbusiness
Retail Store: 15 general applicants and 15 social equity
Testing Facility: 3 applicants and 2 social equity
Delaware Cannabis Consultants
Though Delaware will not award new cannabis licenses until 2024, it is recommended to begin gathering the materials needed to apply at least one year in advance. Global Go cannabis consultants have assisted in over 200+ successful cannabis license applications in the United States. To learn more about opening a cannabis business in Delaware, contact a Global Go cannabis consultant today.
