Delaware cannabis businesses can now apply to transfer permits between the state’s three counties.
The policy change aims to kick-start sales in the new market, which opened last month, and give businesses the flexibility to relocate from heavily regulated areas to more favorable locations, according to Spotlight Delaware.
State Marijuana Commissioner Joshua Sanderlin’s recent decision overturns a regulation set by his predecessor and comes in response to strict local regulations imposed by Sussex County and its municipalities last year.
The limited-license market issued 125 permits late last year in addition to existing medical marijuana operators, distributed throughout the state’s three counties.
The licenses were originally tied to specific counties under regulations established by former commissioner Rob Boupe.
The intent was to ensure that applicants from all regions of Delaware had an opportunity to secure a license.
But in places like Sussex County, those rules restricted marijuana retailers to a few remote areas.
A former cannabis sector attorney and consultant, Sanderlin said he understands the challenges of starting a cannabis business.
“It’s kind of a point that I’m trying to make … ‘Yes, we’re your regulator, but we’re also here to serve as a partner,’” Sanderlin said.
In June, state lawmakers attempted to curb counties’ regulatory power over marijuana businesses by passing Senate Bill 75.
However, Democratic Gov. Matt Meyer vetoed the bill in August, arguing that it undermined “local land use authority without offering any corresponding partnership or support.”
Sanderlin said his decision to allow license transfers was not a reaction to Meyer’s veto.
Instead, it was driven by requests from license holders seeking to relocate their operations.
Adult-use cannabis sales in Delaware topped $7.3 million in August, the state’s first month of recreational sales.
It’s one of two markets to launch in 2025. Non-tribal adult-use marijuana sales began in Minnesota last week.
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