Would you like to know how to apply for a Delaware cannabis product manufacturing facility license? If so, know that the open application period was accelerated to August 19, 2024! Despite the accelerated process, the portal for adult-use marijuana manufacturing license applications will remain open until September 30, 2024.
In other words, you still have time to apply!
Delaware Cannabis Product Manufacturing Facility License
Our licensing guide below provides an overview of how to win a marijuana manufacturing 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 Product Manufacturing Facility License in Delaware
Most importantly, 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 manufacturing licensees to
- purchase marijuana,
- manufacture,
- prepare, and
- package.
Also, cannabis product manufacturer licensees may sell marijuana and cannabis products to other licensed manufacturing facilities and to retail marijuana stores, but not directly to consumers.
Number of Delaware Cannabis Manufacturing Licenses Available
The Commissioner will issue up to:
- 10 open licenses
- 10 social equity licenses
- 10 microbusiness licenses
Open product manufacturing facility licenses have no eligibility restrictions for applying, but they cannot fall into the social equity or microbusiness category.
Keep in mind, a social equity manufacturing license requires prior 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 Product Manufacturing 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 manufacturing 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 manufacturing 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 Manufacturing 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 manufacturing facility license in Delaware. This minimum criteria includes the following plans:
- Comprehensive Business Plan
- Safety, Security, and Product Diversion Prevention Plan
- Operating Plan
- Staff and Employee Training Plan
- Environmental and Sustainability Plan
- Quality Assurance Plan
And finally, you need to submit the following documents and proofs:
- Delaware Business License
- Capitalization Table
- Government-issued ID
- Social Equity Verification Document (if applicable).
Pass/Fail Criteria
Ensure you have assembled the above required documents in advance because this will simplify your online submission. Applications will be evaluated on a pass/fail basis in order to be included in a lottery awarding conditional licenses, currently scheduled for late October.
For that reason, you must meet the following criteria for each plan:
- Use the provided template,
- Include all required elements listed, and
- Complete attestation to submit further details of operational plans within 30 days after receiving notification of conditional license.
The Commissioner begins issuing the cannabis product manufacturing licenses on December 1, 2024.
Post-Lottery Requirements for Marijuana Manufacturing 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 provided to meet the minimum criteria noted above. Lottery-selected applicants will also be required to clear the following:
- Criminal background check,
- Comprehensive financial background investigation,
- Certificate of Tax Clearance, and
- All other verifications required by the commissioner.
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 manufacturing 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 Product Manufacturing Facility
| License Type | Business Type | Application Fee | License Cost |
|---|---|---|---|
| Manufacturing | Open | $5,000 | $10,000 |
| Manufacturing | Social Equity | $1,000 | $4,000 |
| Manufacturing | Microbusiness | $3,000 | $4,000 |
Next, let’s take a look at how to apply.
How to Apply for a Delaware Cannabis Manufacturing Facility License
Above all, applying for a cannabis manufacturing 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 and manufacturing license type, you must prepare the following required plans:
- Comprehensive Business Plan
- Safety and Security Plan
- Operations Plan
- Staffing and Training Plan
- Social Equity Documentation (if applicable)
In addition to the requirements for other marijuana business licenses, both Delaware cannabis cultivation and marijuana product manufacturing 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 manufacturing facilities. If your plans fail to meet the requirements, you will not be entered into the lottery.
Notwithstanding, if you’d like to craft a successful license application, schedule a call with our Delaware cannabis consultants to learn how we can help you win a license. We make the process simple for you.
Step 3. Utilize OMC Templates
Most importantly, the Office of the Marijuana Commissioner (OMC) provides specific templates for various parts of the application. It is not only essential to use these templates to ensure your submission meets the required format and content standards, but also the Commissioner requires that you use the templates.
Above all, their use is essential criteria to pass and be entered into the lottery!
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 Manufacturing License: $5,000
- Social Equity Manufacturing License: $1,000
- Microbusiness Manufacturing 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 cannot 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 manufacturing 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 manufacturing facility application for success.
To conclude, engage our experienced cannabis consultants at Quantum 9 for more detailed guidance and assistance. Let us help you win a Delaware marijuana manufacturing facility license! We make it simple, and we’ll guide you all the way.
