The launch of Delaware’s adult-use marijuana market that was set for this year may be delayed amid a conflict with the FBI over a fingerprint background check application approval hiccup.
While state regulators have been planning to license the first recreational cannabis businesses in April—about two years after the legislature approved a pair of legalization bills—there appears to be a hitch in the process.
Specifically, it appears that the state Office of the Marijuana Commissioner (OMC), which is responsible for regulating the market, has yet to receive approval from FBI to establish a fingerprinting system for criminal background checks of those interested in participating in the cannabis industry, as required under state statute.
Marijuana remains illegal at the federal level, but FBI has previously granted a fingerprinting background system for Delaware’s medical cannabis program, so this does not seem to be a symptom of the overall state-federal marijuana policy conflict.
According to Spotlight Delaware, the federal agency said that the decision to reject regulators’ initial application was because it didn’t “qualify pursuant to federal law.” Although state officials had indicated that FBI was holding up the application, they later said its first application was denied for reasons that are currently unclear, and regulators have since resubmitted a revised version.
“It is important to note that a previous bill [for medical cannabis] with the same [fingerprint background check] criteria had been approved, and we sought clarification and reconsideration of the FBI’s determination,” Keila Montalvo, a spokesperson for OMC, said.
The state has sent a “reconsideration request and contacted the FBI to discuss the matter,” she said. “We remain committed to working with our partners at the FBI to ensure compliance with federal law and to move this process forward as efficiently as possible.”
“We cannot proceed until we receive that approval,” she said.
FBI, for its part, confirmed that it’s received the state’s revised application but that its review is “not yet completed.”
“Once finalized, we will respond to the Delaware State Bureau of Investigation,” the agency said.
Late last year, OMC held a series of licensing lotteries for cannabis business to start serving adult consumers.
A total of 125 licenses will ultimately be issued, including 30 retailers, 60 cultivators, 30 manufacturers and five testing labs. Last year, regulators also detailed what portion of each category is reserved for social equity applicants, microbusinesses and general open licenses.
Regulators have also been rolling out a series of proposed regulations to stand up the forthcoming adult-use cannabis industry.
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Meanwhile, former Gov. John Carney (D) raised eyebrows in January after making a questionable claim that “nobody” wants cannabis shops in their neighborhoods, even if there’s consensus that criminalization doesn’t work.
The then-governor last year signed several additional marijuana bills into law, including measures that would allow existing medical cannabis businesses in the state to begin recreational sales on an expedited basis, transfer regulatory authority for the medical program and make technical changes to marijuana statutes.
The dual licensing legislation is meant to allow recreational sales to begin months earlier than planned, though critics say the legislation would give an unfair market advantage to larger, more dominant businesses already operating in multiple states.
In October, Carney also gave final approval to legislation to enact state-level protections for banks that provide services to licensed marijuana businesses.
Delaware’s medical marijuana program is also being significantly expanded under a law that officially took effect last July.
The policy change removes limitations for patient eligibility based on a specific set of qualifying health conditions. Instead, doctors will be able to issue cannabis recommendations for any condition they see fit.
The new law also allows patients over the age of 65 to self-certify for medical cannabis access without the need for a doctor’s recommendation.
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