Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.
Delaware offers a medical marijuana program for qualifying patients. Delaware also passed legislation to create an adult-use cannabis program, which is expected to launch in 2024.ย
Delaware uses BioTrack as its statewide seed-to-sale system. All Inventory actions and patient sales must be reported to the BioTrack system. Delaware regulations refer to the state traceability system as the โDelaware Enterprise Consolidated Cannabis Control Systemโ or โDEC3Sโ
Qualifying patients are allowed to purchase up to 3 oz of cannabis per 14 day period. Pediatric patients are only permitted to purchase Pediatric Medical Marijuana Oil. CBD Rich patients are only permitted to purchase specific CBD rich products.
Delawareโs medical marijuana act does not define any specific rules relating to the taxation of cannabis sales.ย
Delivery to qualifying patients is permitted in the state of Delaware, however in order to receive deliveries, a patient must be registered with the compassion centerโs home delivery plan.
Each compassion centerโs home delivery plan is subject to approval by the state regulators, but SOPs may vary by location.ย
โDHSS Medical Marijuana Homepage ->
Office of the Marijuana Commissioner ->
The Department of Safety and Homeland Security is working with the Department of Health and Social Services to implement House Bill 1 and House Bill 2, providing a framework for the regulation of an adult use cannabis market in Delaware. Delaware projects that licensure applications for recreational licensees will begin by May 2024.
The Office of the Marijuana Commissioner recently released a tentative timeline outlining the launch of an adult use market. Updated regulations pertaining to the operation of Adult Use retailers are expected to be released in July of 2024. Licensing applications are anticipated to open in September 2024, and retail licensing is expected to conclude in the spring of 2025.
All applications (except for ROD and ROND licensees) must be accompanied by a non-refundable application fee of $1,000. Additional license fees are imposed prior to the issuance of a final license. If the applicant qualifies as a social and economic equity applicant, then a 50% reduction, waiver, or deferred fee will apply. Other reductions, waivers, or fee deferrals may be approved by the Board for those demonstrating sufficient need.ย
Application review for the AUCC, AUCP, and CAURD applications takes approximately 4 to 8 weeks, per the Office. After the Office reviews and processes your application, if it meets the requirements, it will then be presented to the Board for final approval. Applicants may only begin adult-use cannabis activities upon final license approval from the Board.ย
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For the non-conditional adult-use application round opening on October 4, OCM has indicated that it would begin reviewing those retail and microbusiness applications with site control as early as November 3, with no set timeline for ultimate license issuance.
The short answer is that there are no caps on total number of licenses in the Cannabis Law. Weโve seen hundreds of AUCP and AUCC licenses issued to date. For CAURD licenses, whereas the Board initially only planned to issue 150 total licenses, they then agreed to double that number to 300, and then exceeded that number thereafter.ย
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That being said, the Board and the Office may limit the total number of applications in a few different material ways. For instance, they may limit licenses by location or authorized regions (as they have done in the CAURD application round), size of operation or output, or other operating conditions, dependent on issues related to sustainability, public health and safety, and social and economic factors.ย
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For the application round opening on OCtober 3, OCM has indicated that it intends on issuing more than 1,000 total licenses, estimated to be broken down as follows:
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Given that New York has now held three (3) distinct adult-use application rounds (AUCC, AUCP, and CAURD), it should be noted that those three (3) applications were notably consistent. The applications are hosted on the New York Business Express website, which is largely user friendly, though subject to crashes on high volume days (such as the final date for submission of the CAURD applications).ย
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The proposed adult-use regulations identify similar areas of information for the forthcoming license opportunities, including:ย
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For the application period opening on October 3, the Office will initially review:
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As it relates to final licensure, the Office will assess, among other things:
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