Delaware’s cannabis commissioner has stated that marijuana license holders can now request to transfer their permits across Delaware’s three counties. This change opens the door for companies to relocate from areas with stricter rules, like Sussex County, to places where operating may be easier.
Speaking with Spotlight Delaware, Commissioner Joshua Sanderlin explained that the move overturns a rule put in place by the previous commissioner. The update comes after Sussex County and several municipalities introduced regulations in 2024 that left cannabis shops confined to very limited parts of the region.
Lawmakers tried to address the issue by passing Senate Bill 75 which aimed to reduce counties’ control over cannabis businesses. However, Governor Matt Meyer vetoed the measure, saying it stripped local governments of authority without offering them adequate support.
Sanderlin stressed that his office’s decision was not a direct response to the governor’s veto. Instead, it followed multiple requests from business owners who wanted flexibility in where they could operate. As someone who previously worked in the industry, he noted that his goal is to regulate fairly while also supporting license holders as partners rather than obstacles.
It’s still early to determine how the change will affect where businesses set up shop, but Sanderlin expects to see some movement toward New Castle and Kent Counties. At the same time, he believes the industry will eventually balance out across the state as businesses naturally gravitate toward financially sustainable locations.
Last year, Delaware issued 125 cannabis licenses but under the old rules, each one was tied to a specific county. That system, designed by Sanderlin’s predecessor Rob Coupe, was intended to guarantee fair distribution across the state. With the new rule, companies can apply to move their permits if they have trouble securing property in their assigned county.
One transfer has already been approved, allowing a manufacturer to relocate from New Castle to Sussex County after finding a workable site. He said more requests will be considered, as long as business owners present a solid relocation plan.
Sussex County has some of the toughest zoning rules, including a three-mile buffer between cannabis shops and schools or other sensitive locations. New Castle’s buffer is 1,000 feet, while Kent has none, though dispensaries there must be in commercial zones.
Business owners say the new flexibility gives them more options, particularly after SB 75 was vetoed. Sussex license holder Derro Smith, who runs a micro-cultivation business, said he would strongly consider moving his operation since his county has some of the toughest restrictions in the state.
Marijuana companies like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) operating in other legal markets will be watching how the changes made in Delaware enable adults who choose to consume cannabis get improved access to licensed outlets over the coming months and years.
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