Perfect Your Delaware Cannabis Business License Application With a Security Consultant

Delaware is having a lottery for people who qualify for social equity, giving them a chance to open up recreational cannabis businesses across the state. The eligibility period has already passed, but the license application period has yet to open. As the Delaware cannabis market expands with adult-use, businesses will need a solid safety and security plan included in the license application to succeed.

Famously the first state in our lovely nation, Delaware is surrounded by other states which have adopted adult-use cannabis standards. Delaware first implemented medical cannabis back in 2011. Now it has initiated a social equity program of its own to distribute new licenses and broaden the cannabis market. Despite the conversion to an adult-use market, previous Compassion Centers are expected to maintain available products for a medical market before they can convert to adult-use sales.

What are the required documents for the Delaware cannabis business license application?

As applicants wait for more details around creating their submissions, certain prompts have been expected based on The Delaware Marijuana Control Act and the drafted regulations released. Minimum qualifications for all license types must include a submission of the following information:

  • The applicant’s comprehensive business plan, including an annual budget and pro forma financial statements.
  • The applicant’s plans for safety, security, and the prevention of diversion.
  • The applicant’s plans for operations, training, and staffing, including all of the following:
    • A social responsibility plan outlining diversity goals, including plans to recruit and hire people of color, women, and veterans and to support their ownership and promotion within the organization, as well as the percentage of employees it plans to hire from within the respective city or region of the State.
    • A plan to provide a safe, healthy, and economically beneficial working environment with fair scheduling practices, family-supporting wages, and benefits for its employees.
    • Any criminal, civil, or regulatory history encountered by other entities the applicant and managing officers have previously controlled or managed.
    • Any other criteria deemed appropriate by the Commissioner.

Keep up with Delaware’s cannabis business regulations!

Interesting draft regulations set forth by the Office of the Marijuana Commissioner (OMC) pertaining to security include:

  • Emphasis on locks;
  • Waiting Area must be separated from the Retail Area;
  • The alarm system must prevent tampering with computers;
  • Cameras must see 10 feet off the perimeter;
  • There is a time limit on storing “important” footage. Usually, the regulators request that important footage is kept as long as needed;
  • Carbon monoxide detectors are required;
  • Emphasis on training to recognize valid photo ID;
  • Detailed operating manual focused on security topics;
  • Batch sizes are capped at 10 pounds;
  • Required to have specific procedures for responding to an emergency, including accident, robbery, active shooter, or violent incident;
  • And many more…

Delaware license applications open up September 1, 2024 August 19, 2024*, with awarded licenses being issued gradually. It is common for cultivation licenses to get a few months head start on retail licenses. This is an attempt to give the cultivators time to begin growing and retailers less opportunity to open with empty shelves.

* Updated August 9, 2024

Copy that! What’s next?

It is not obvious what impact local licensing may have on licensing opportunities. Sometimes, winning a state license is merely the beginning of negotiations with cities and townships. Municipalities may prohibit cannabis or may govern the “time, place, and manner” of businesses. We saw this language in New York, which has been gradually rolling out its non-CAURD program recently. Normally, the intent is to limit local politicking within the state and give the state regulators, the OMC, determination of who is awarded a license. Part of the application includes where you intend to open your business, but it does not appear to be binding.

Sapphire Risk has written security plans throughout the USA and internationally for all business types. Reach out to our experts about perfecting your Delaware license application!

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical marijuana and recreational cannabis businesses in 37 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!