Cannabis Business in Delaware

According to the Delaware Office of the Marijuana Commissioner, the state's cannabis industry has been expanding steadily. For the 2023 Fiscal Year, Delaware had:

• 12 medical marijuana retail locations,
• $5.2 million in recreational cannabis sales in December 2023 alone.

The medical marijuana program in Delaware served almost:

• 14 thousand patients.

Each patient spent an average of:

• $3,300 annually on cannabis products.

This resulted in total sales of over:

• $53.8 million for the medical marijuana program in Fiscal Year 2023.

Delaware's cannabis industry encompasses medical and recreational marijuana, along with the production and sale of CBD and hemp-derived products.

Hemp Regulations in Delaware

Hemp is allowed in Delaware and is seen as a significant agricultural product. The state's hemp laws were enacted to align with federal legislation, such as the 2018 Farm Bill. As a result, residents can possess, buy, use, and transport hemp. The Delaware Department of Agriculture (DDA) oversees regulations for commercial hemp activities, requiring interested individuals to register with their Domestic Hemp Production Program.

Hemp Products in Delaware

Products derived from hemp with a THC concentration of 0.3% or less are legal in the state. The state permits the cultivation and processing of hemp for food and edible products, provided individuals have the necessary licenses from the Department of Agriculture. While smokable hemp flower is legal, smoking it in public is prohibited, and it is illegal to smoke it while driving. It's important to note that hemp-derived THC isomers, like Delta-8 and Delta-10, remain illegal in Delaware.

Local Hemp Restrictions

While municipalities cannot outright ban the cultivation or processing of hemp in Delaware, they are allowed to implement zoning ordinances to regulate where hemp-related activities can take place.

Hemp Licensing in Delaware

The DDA manages the licensing process for growing, processing, and handling hemp. A grower's license allows for the cultivation and distribution of hemp, while a processor's license is necessary to transform raw hemp into products for consumption. A handler's license is required for entities or individuals involved in the transportation or storage of hemp and hemp-derived products.

Hemp Cultivation in Delaware

Once a license is obtained from the DDA, individuals can begin growing hemp. They must use certified hemp seeds that meet the DDA's standards. The DDA also plays a role in the harvesting process, testing the THC concentration of hemp plants before farmers are permitted to harvest.

CBD in Delaware

CBD oil is legal in Delaware. Licensed processors are permitted to extract CBD oil from hemp, and these hemp-derived CBD oils can be purchased by residents. The 2018 Farm Bill allows for the interstate transportation of hemp-derived CBD oil as long as the THC content does not exceed 0.3%.

Medical CBD

Individuals with qualifying medical conditions can access CBD oil derived from marijuana with higher THC concentrations. The Delaware Medical Marijuana Act, established in 2011, created a framework for medical marijuana use, including CBD oil. Registered patients can obtain marijuana-derived CBD products from licensed dispensaries, also known as compassion centers.

Recreational Marijuana

Recent legislation, specifically House Bill 1 enacted in April 2023, legalized marijuana products for adults aged 21 and older. While the law allows for possession of up to one ounce of marijuana, there aren't currently any authorized dispensaries for sales. This legalization opens possibilities for cannabis businesses and potentially cannabis businesses for sale as the market develops.

Licensing for CBD Production

The DDA is responsible for issuing licenses to individuals and businesses interested in hemp production and processing for CBD in Delaware.

Office of the Marijuana Commissioner

The Office of the Marijuana Commissioner oversees the recreational marijuana industry in Delaware according to the Delaware Marijuana Control Act. This office is in charge of establishing regulations, issuing licenses, and handling complaints to ensure the proper regulation of marijuana cultivation, manufacturing, and sales within the state.

Marijuana Licensing Process

The OMC has a comprehensive licensing process that evaluates applicants on various criteria. Applicants will need a detailed business plan, demonstrate relevant experience, and provide plans for safety, security, and operations.

Marijuana Licensing Timeline

The OMC has established a timeline for the implementation of the Delaware Marijuana Control Act. This timeline outlines key dates for the adoption of regulations, the acceptance of license applications, and the issuance of various license types.

Social Equity in Delaware’s Marijuana Industry

Delaware's marijuana legalization includes social equity provisions aimed at creating opportunities for communities disproportionately impacted by past marijuana laws.

The table above shows the breakdown of marijuana licenses allocated for social equity and microbusinesses.

Support for Social Equity Applicants

To support social equity applicants, the state offers discounted application fees, technical assistance programs, and allocates a portion of tax revenue to a Justice Reinvestment Fund. This fund supports programs focused on restorative justice, workforce development, and other initiatives.