Delaware Now Allows Cannabis Businesses to Transfer Licenses Between Counties

22 September 2025

Delaware marijuana businesses will now be able to transfer their licenses between counties, following a policy change announced by Marijuana Commissioner Joshua Sanderlin. The shift is intended to help licensees navigate restrictive local zoning rules that have made it difficult to find sites for cannabis operations, especially in Sussex County.

Previously, regulations bound each of the 125 licenses issued in 2024 to one of Delaware’s three counties. This was designed to ensure equitable distribution of opportunities across the state. However, many operators faced hurdles in opening locations due to wide buffer zones and municipal bans. Sussex County, for example, requires a three-mile buffer between cannabis shops and sensitive locations such as schools, libraries, and treatment centers, leaving few viable sites.

The policy change comes shortly after Governor Matt Meyer vetoed Senate Bill 75, which would have capped local buffer zones at 500 feet and limited county-level control. Meyer argued that the bill undermined local land use authority. As an alternative, he proposed sharing a portion of state marijuana tax revenue with counties in exchange for loosening restrictions. Sussex officials have since debated changes to their zoning rules but have yet to finalize decisions.

Commissioner Sanderlin emphasized that the new transfer policy was not in response to the veto but rather to licensees’ requests. He said his office will review applications carefully to prevent market oversaturation and maintain fairness. One manufacturer has already transferred operations from New Castle County to Sussex County.

While regulatory barriers remain, businesses now have the option to relocate to more favorable markets, potentially increasing access for consumers and stabilizing the new industry.