Remember the War on Drugs? In the 1970s, President Richard Nixon enacted punitive drug laws and harsh prison sentences that had a devastating impact on marginalized communities, especially the poor, black and Latino.
Marijuana played a central role in the mass criminalization of these groups, and now Delaware residents with past marijuana convictions, as well as those living in areas most affected by repeal of marijuana laws, are being invited to join the state’s emerging marijuana industry.
Beginning in September 2024, the Marijuana Commissioner’s Office will begin accepting applications for “adult-use” marijuana business licenses. To promote equitable access, the office is hosting a series of “social equity” workshops. The sessions are designed to provide information to potential applicants about the process of obtaining a social equity license in Delaware.
The first workshop took place on June 5 at Delaware Tech Community College’s Staunton campus. Among the attendees was Santowan Williams, a Wilmington resident with a passion for plants and nature, especially growing marijuana.
Williams also said he’s been arrested for marijuana possession before: “I served 90 days in jail in Smyrna for marijuana possession,” Williams said, “and now it’s legal.”
Williams, 35, said his conviction has made it hard for him to get work, so he attended the workshop to learn more about new marijuana laws and how they might affect his chances of working in the legal cannabis industry in the future.
Workshops will cover legal and financial considerations
While marijuana is legal in Delaware, it remains illegal under federal law. The workshop provided insight into the significant financial investment and legal ramifications of entering the marijuana industry. Topics included social equity qualifications as well as banking, tax, legal and real estate considerations.
Attendees had the opportunity to network with state officials, guest experts and professionals from the Delaware Cannabis Industry Association prior to the workshop presentations and panel discussions.
Commissioner Rob Coupe began his presentation with an overview of the licensing process and timeline for the legal industry. Key takeaways included:
- Although legislation is under consideration, there is no government funding to assist applicants.
- A social equity application fee is offered at a discounted rate of $1,000.
- Two-year social equity and small business licenses issued by the Marijuana Commissioner’s Office will be offered at a discounted fee of $4,000.
- Most banks won’t provide loans to marijuana businesses, and most insurance companies won’t provide insurance.
- Local governments have the power to reject proposals for marijuana businesses to locate within their jurisdiction.
Eligibility to obtain a Social Equity License
Of the 125 licenses issued, only 47 are social equity licenses. To apply for a social equity license, parties must meet the following criteria:
- Social equity applicants must have 51% ownership and control of the business.
- For at least five of the past 15 years, they have lived in a disproportionately affected area as defined by Delaware law regulating alcohol and marijuana, as depicted in a map that is currently being developed and is expected to be published in the summer of 2024, before the application period opens.
- Have been convicted of or found delinquent for a marijuana-related offense under Delaware law on or before April 23, 2023, except in the case of delivery to a minor or an offense involving a Tier 3 quantity of marijuana as defined under Delaware law.
- Have a parent, legal guardian, child, spouse, or dependent who was convicted of or became delinquent in a criminal offense related to marijuana under Delaware law before April 23, 2023, except for delivery to a minor or an offense related to Tier 3 quantities of marijuana as defined under Delaware law.
Social Equity Workshop Dates and Locations
Three more workshops are scheduled for June. To sign up for the social equity workshop, visit the Marijuana Commissioner’s Office website. All workshops will run from 3:00 PM to 5:30 PM. Presentations will begin at 4:00 PM. See below for dates and locations.
Sussex County
June 12 – Owens Campus Delaware Technical Community College – 21179 College Drive, Georgetown.
Wilmington
June 18 – Delaware Technical Community College, Wilmington Campus, 333 N. Shipley St., Wilmington.
Kent County
June 25 – DNREC, Richardson & Robbins Building, 89 Kings Highway SW, Dover.
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Applicants for all license types must meet minimum standards, including:
- A business plan including an annual budget and pro forma financial statements.
- The experience, training and expertise of the applicant and the managing officer.
- programs for operations, training, and staffing;
- Plans for safety, security and diversion prevention.
Sales of “adult-use” recreational marijuana are scheduled to begin in spring 2025.
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