Delaware’s adult-use cannabis sales are progressing after receiving a fingerprint service code from the FBI for background checks on license applicants. This development comes after the state faced delays due to a lack of alignment between state and federal regulatory requirements.
On May 5, the Office of the Marijuana Commissioner (OMC) announced that it had secured the necessary service code from the FBI, allowing it to conduct background checks for individuals seeking business licenses in the adult-use cannabis market. This follows a setback in March when the FBI rejected Delaware’s previous application, stating that the language in the Delaware Code was too vague regarding who required background checks.
To address this issue, Delaware lawmakers introduced House Bill 110 on April 3 to clarify the state code. Governor Matt Meyer signed the bill into law on April 24, enabling the OMC to revise its application with the FBI. The FBI has now partially approved the new language, providing a service code for specific applicants.
Paul Hyland, Acting Marijuana Commissioner, emphasized the importance of fingerprint-based background checks for public safety and the integrity of the cannabis program. The OMC plans to contact selected applicants soon to guide them through the next steps.
However, there is still an unresolved technical issue. The FBI rejected the term “agent” in the revised code, deeming it overly broad. Individuals required to complete background checks include: 1. Applicants for cannabis establishment licenses. 2. Employees, contractors, or volunteers of cannabis establishments. 3. Individuals seeking to become directors, officers, board members, or agents of licensed cannabis establishments. 4. Individuals holding a 10% or greater ownership interest in licensed cannabis establishments.
Delaware Representative Ed Osienski, who sponsored the adult-use legalization efforts and House Bill 110, expressed gratitude for the swift actions taken by lawmakers and the governor. He stated, “This means we’re one step closer to getting the legal adult-use cannabis industry up and running. Delawareans have waited long enough for a safe, legal adult-use market.”
The OMC’s earlier plan to launch adult-use cannabis sales by March 2025 was initially outlined by former Marijuana Commissioner Rob Coupe, who resigned in January 2023. The OMC had already conducted lotteries to award 125 conditional adult-use licenses for various cannabis businesses, including 60 cultivators, 30 manufacturers, 30 retailers, and five testing laboratories. However, the formal issuance of these licenses is contingent upon completing the required background checks.
Governor Meyer noted that Delaware’s recreational cannabis industry is expected to create jobs and generate significant revenue for essential state services, including education and healthcare. The state anticipates collecting tens of millions of dollars annually from a 15% excise tax on adult-use cannabis sales, with funds allocated to justice reinvestment initiatives.
Delaware’s progress marks a critical step toward establishing a regulated adult-use cannabis market, which many advocates believe will benefit local communities and the economy.
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