Would you like to know how to apply for a Delaware cannabis cultivation facility license? The open application period was accelerated to August 19, 2024. The portal for adult-use marijuana cultivation license applications closes on September 30, 2024.
However, you still have time to apply!
Cannabis Cultivation Facility License in Delaware
Our licensing guide below provides an overview of how to win a marijuana cultivation facility license in Delaware. Firstly, we detail the number of licenses available, and then the relevant regulations, application requirements, fees, and the application process.
Approved Activities for Marijuana Cultivation Facility Licenses in Delaware
The Office of the Marijuana Commissioner (OMC) establishes the licensing process for approved activities and is also responsible for regulating the recreational cannabis industry in Delaware.
For that reason, the OMC authorizes Delaware marijuana cultivation licensees to:
- plant,
- cultivate,
- harvest,
- dry,
- cure, and
- store cannabis plants in their licensed facility.
Also, they may sell and distribute marijuana to other Delaware marijuana cultivation licensees, as well as to licensed manufacturing facilities and dispensaries.
Number of Delaware Cannabis Cultivation Licenses Available
The Commissioner will issue up to 20 open licenses and 10 social equity licenses for facilities with over 2,500 square feet or an outdoor facility over 1 acre.
For facilities with canopy area less than or equal to 2,500 square feet or an outdoor facility less than or equal to 1 acre, the Commissioner will issue 10 social equity licenses and 20 microbusiness licenses.
Open cultivation licenses have no eligibility restrictions for applying, but they cannot fall into the social equity or microbusiness categories.
However, a social equity cultivation license requires eligibility validation. If an applicant fails to provide proof of social equity eligibility status, their application may be rejected at any point in the application process.
Find out if your facility location falls within a designated “Disproportionately Impacted Area” (DIA). If so, you may qualify to apply under Criteria 1 of the Social Equity Program.
Next, let’s take a brief look at the current regulations.
Relevant Regulations for Delaware Marijuana Cultivation Facility Licenses
The OMC regulates Delaware’s adult-use cannabis industry. Firstly, familiarize yourself with Title 4. Chapter 13 of The Delaware Marijuana Control Act. Secondly, examine the rules regarding marijuana cultivation facility licenses in Delaware.
Thirdly, read the excellent license application guidance provided by the OMC. It is the agency that will be reviewing and allowing applicants to be selected for the lottery which will conditionally award Delaware cannabis cultivation facility licenses.
Now, let’s review the application requirements. It requires careful document planning, but your submission can be online using the templates provided by the OMC.
Application Requirements for Delaware Cannabis Cultivation Facility License
Basically, you must provide a comprehensive business plan, including an annual budget, capitalization table, and pro forma financial statements.
Within your business plan, detail the experience, training, and expertise of the applicant and managing officers.
Additionally, the OMC requires that you meet the minimum criteria for a marijuana cultivation facility license in Delaware. This minimum criteria includes the following plans:
- Safety, security, and the prevention of diversion plan
- Operations plan
- Staffing and employee training plan.
- Environmental and Sustainability Plan
- Quality Assurance Plan
And finally, you need to submit the following documents:
- Delaware Business License
- Government-issued ID
- Social Equity Verification Document (if applicable).
Ensure you have assembled these required documents in advance, because this will simplify your online submission. Applications will be evaluated on a pass/fail basis.
For that reason, you must meet the minimum requirements to be included in a late October lottery for conditional licenses. The Commissioner begins issuing Delaware cannabis cultivation licenses as early as November 1, 2024.
Post-Lottery Requirements for Marijuana Cultivation Facility Licenses in Delaware
If awarded a conditional license in the lottery, the Commissioner requires selected applicants to complete a supplemental license application within 30 business days from the selection notification date.
The supplemental application requires final versions of your plans initially provided to meet the minimum criteria noted above. Selected applicants will also be required to clear the following:
- Criminal background check
- Comprehensive financial background investigation
- Certificate of Tax Clearance.
Also, applicants need to provide all other documents and verifications required by the Commissioner. Engage our Delaware cannabis consultants for assistance during this brief application opportunity. We can help you get this done more easily!
With this purpose in mind, remember that the initial application portal process to qualify for the lottery closes on September 30, 2024.
Fees and License Costs
Delaware cannabis cultivation facility application fees are due upon application submission to the OMC. Licenses are valid for two years and licensees in good standing may renew biennially.
Delaware Marijuana Cultivation Facility
| License Type | Business Type | Application Fee | License Cost |
|---|---|---|---|
| Cultivation | Open | $5,000 | See Cultivation Size Tiers |
| Cultivation | Social Equity | $1,000 | 40% of open license |
| Cultivation | Microbusiness | $3,000 | 40% of open license |
Cultivation Size Tiers
| License Type | Indoor Facility | Outdoor Facility | License Cost |
|---|---|---|---|
| Cultivation Size Tier 1 | ≤ 2,500 square feet | ≤ 1 Acre | $2,500 |
| Cultivation Size Tier 2 | 2,501 to 7,500 square feet | 1.1 to 2.5 Acres | $5,000 |
| Cultivation Size Tier 3 | 7,501 to 10,000 square feet | 2.6 to 5 Acres | $7,500 |
| Cultivation Size Tier 4 | 10,001 to 12,500 square feet | 5.1 to 7.5 Acres | $10,000 |
Next, let’s take a look at how to apply.
How to Apply for a Delaware Cannabis Cultivation Facility License
Above all, applying for a cannabis cultivation license in Delaware involves a structured and detailed process. Below is a step-by-step guide to help you navigate the application process effectively.
Step 1. Understand Eligibility Requirements
Before starting the application, ensure you understand the eligibility requirements for the type of license you are applying for, whether it’s an Open License or a Social Equity License.
Make sure your business structure, ownership, and location align with Delaware regulations.
Step 2. Prepare Required Documentation
Once you’ve determined your eligibility, you must prepare the following required documents:
- Business Plan
- Safety and Security Plan
- Operations Plan
- Staffing and Training Plan
- Social Equity Documentation (if applicable)
Importantly, marijuana cultivation facility license applicants must also submit the following plans:
- Environment and Sustainability Plan
- Quality Assurance Plan
By all means, create plans that comply with all the laws and regulations for Delaware marijuana cultivation facilities. If your plans fail to meet the requirements, you will not be entered into the lottery.
If you’d like help with crafting a successful license applicaiton, schedule a call with our Delaware marijuana consultants to learn how we can help you win a license.
Step 3. Utilize OMC Templates
The Office of the Marijuana Commissioner (OMC) provides specific templates for various parts of the application. It’s essential to use these templates to ensure your submission meets the required format and content standards.
Step 4. Online Submission
Furthermore, the application process is entirely online through the OMC’s portal. Create an account and log in to submit your application. Ensure all required fields are completed, and all documents are uploaded in the specified format.
Step 5. Pay Application Fees
Additionally, you’ll be required to pay the non-refundable application fee at the time of submission:
- Open Cultivation License: $5,000
- Social Equity Cultivation License: $1,000
- Microbusiness Cultivation License: $3,000
Lastly, payment must be made online through the portal during the submission process.
Step 6. Review and Submit
Before submitting your application, carefully review all your documents to ensure accuracy and completeness. Once submitted, you can not edit or withdraw your application.
Step 7. Pass/Fail Review
Consequently, the OMC will review your application on a pass/fail basis to determine if it meets the minimum requirements. Only applications that pass this initial review will be entered into the lottery for license allocation.
Step 8. Lottery Selection
Undoubtedly, if your application passes the review, the OMC will enter it into the lottery system. The lottery will randomly select applicants who will be conditionally awarded licenses.
Step 9. Supplemental Application (If Selected)
Without reservation, if selected in the lottery, you must complete a supplemental application within 30 business days. This application will require:
- Final versions of your business, safety, operations, and staffing plans
- Criminal background checks
- Comprehensive financial background investigation
- Certificate of Tax Clearance
Step 10. Await Final Approval
To be sure, the OMC will conduct final evaluations. If you have met all criteria, the OMC will officially award your cultivation facility license, allowing you to commence operations.
Closing Remarks
After following the steps outlined above, and ensuring compliance with all OMC requirements, you’ll have set up your recreational cannabis cultivation facility application for success.
For more detailed guidance and assistance, engage our experienced cannabis consultants at Quantum 9. Let us help you streamline your plans to win a Delaware marijuana cultivation facility license! We’ll guide you all the way and make it simpler to reach your goals.
