Delaware Governor Signs Bill Regulating Hemp THC Beverages

Delaware Becomes Latest State to Regulate Hemp THC Drinks

Delaware joins a growing list of states closing the hemp THC loophole with targeted beverage regulations. Governor Matt Meyer announced the signing of HB 373 on Tuesday, July 29, 2026, one week after signing the bill into law. The measure establishes age verification requirements, THC concentration caps, and a tax structure for hemp-derived intoxicating beverages.

It applies exclusively to beverages containing hemp-derived cannabinoids like delta-8 THC, delta-10 THC, and THCA. Delaware's existing adult-use cannabis program, which launched in April 2023, remains untouched.

Age Limit and Potency Caps Take Effect Immediately

HB 373 restricts sales of hemp THC beverages to individuals 21 and older. Retailers must verify age at point of sale using government-issued identification. First offense? That's $500. Violations within 24 months climb to $2,000.

Total THC content can't exceed 5 milligrams per serving and 50 milligrams per container. Manufacturers must clearly label the THC concentration and include a standardized warning statement on all packaging. Products exceeding the potency limits are subject to seizure and destruction by the Delaware Division of Alcohol and Tobacco Enforcement.

Tax Structure Mirrors Adult-Use Cannabis Excise Rate

Delaware will levy a 15% excise tax on hemp THC beverages at the wholesale level. The rate matches the state's existing cannabis excise tax, which generated $12.3 million in revenue during fiscal year 2025. But revenue from hemp beverage taxes will flow into the state's General Fund rather than the dedicated cannabis social equity account.

The tax applies to the wholesale transaction between manufacturers or distributors and retail licensees. Retailers may pass the cost to consumers but aren't required to itemize the excise tax separately on receipts.

Licensing Requirements for Manufacturers and Retailers

Businesses must obtain a hemp beverage license from the Division of Alcohol and Tobacco Enforcement to manufacture or sell products in Delaware. The application fee is $1,000 annually for manufacturers and $500 for retailers. License holders must maintain product liability insurance of at least $1 million per occurrence.

Final licensing rules are due within 90 days of the law's effective date. Existing retailers selling hemp THC beverages as of July 22, 2026 may continue sales during the 90-day transition period without a license, provided they comply with age and potency restrictions.

No Home Delivery or Online Sales Permitted

HB 373 prohibits delivery of hemp THC beverages to consumers. Period. All sales must occur at a licensed brick-and-mortar retail location with in-person age verification. Online ordering with in-store pickup is allowed if the retailer verifies age when the customer collects the product.

The delivery ban contrasts with Delaware's adult-use cannabis law, which permits licensed delivery operators to bring cannabis products directly to consumers' homes. Heffernan's office didn't provide a rationale for the stricter hemp beverage standard.

What This Means for Delaware's Hemp and Cannabis Markets

Delaware is threading a narrow regulatory needle. The state is preserving access to hemp THC beverages while imposing guardrails that address underage consumption and product safety concerns. The 15% tax rate ensures hemp drinks don't undercut licensed cannabis retailers on price alone.

For full background on this story, see the CannIntel topic hub on Hemp THC Beverages Regulation. Next signal to watch: whether the Division of Alcohol and Tobacco Enforcement issues emergency rules before the 90-day deadline or waits until the final hour.