Delaware Accelerates Cannabis Market Growth with New Law

17 July 2024

Delaware Governor John Carney signed House Bill 408 on July 17, 2024, to expedite the transition from medical-only cannabis to a dual-use market, under the Delaware Marijuana Control Act. Spearheaded by state representatives, the law enables existing medical marijuana providers to apply for conversion licenses starting August 1, 2024. Recreational cannabis sales are projected to begin by early 2025, with fees from the new licenses generating over $4 million to fund social equity programs and support cannabis entrepreneurs disproportionately impacted by prohibition.

The Delaware Office of the Marijuana Commissioner (OMC) will oversee the rollout of the adult-use cannabis market, ensuring dispensaries continue prioritizing medical patients while expanding services to recreational consumers. By utilizing the existing medical cannabis infrastructure, the state avoids delays common in launching entirely new systems. However, some critics warn that this strategy may favor established multi-state operators, potentially hindering smaller or newer businesses seeking to enter the industry.

This legislation marks a major step forward for Delaware’s cannabis industry, aligning with the state’s goal of fostering economic growth, job creation, and social equity. Additionally, the revenue generated will be used for grants to support underrepresented marijuana business owners. With plans to issue over 90 new licenses for cultivation, retail, and manufacturing by 2025, Delaware is building a regulated and inclusive cannabis market that is expected to generate significant tax revenue and create new opportunities for businesses.