Delaware's Cannabis Industry: Key Draft Rules Announced

16 February 2024

Delaware has unveiled its initial draft regulations for adult-use marijuana businesses, taking a major step toward establishing its legal cannabis market by 2025. The draft, revealed on February 14, 2024, by the Office of the Marijuana Commissioner (OMC), outlines licensing criteria, application requirements, and operational rules, with a strong focus on social equity and supporting local entrepreneurs.

Under the proposed framework, 50% of cultivation licenses will be reserved for microbusinesses and applicants from communities disproportionately impacted by past marijuana laws. Social equity licenses require 51% ownership by individuals who have lived in such areas or have prior cannabis-related convictions. Additionally, microbusiness licenses will target Delaware residents operating small enterprises with no more than ten employees.

The regulations also address market operations, banning synthetic cannabinoids, online sales, and off-premises deliveries while mandating labor peace agreements to encourage union collaboration. While retail sales were initially anticipated by late 2024, officials now expect the market to open in March 2025, with efforts underway to allow medical marijuana dispensaries to serve adult-use customers earlier.

These measures aim to foster a diverse and equitable marijuana industry while boosting the state’s economy. However, limitations on hemp-derived products and online sales could affect consumer access and innovation. Public feedback on the draft rules is being solicited to refine the regulations further.