DOVER– Following notification from the Federal Bureau of Investigation (FBI) that Delaware’s application for conducting criminal background checks for the adult-use recreational marijuana market did not meet federal regulations, lawmakers have introduced legislation to resolve the issue.
Sponsored by Rep. Ed Osienski and Sen. Trey Paradee, House Bill 110 would update Delaware’s statute language to align with the FBI’s requirements, allowing the state to obtain an FBI service code.
This service code is needed for conducting fingerprint-based background checks, which are required by law as part of the application process for those seeking a recreational marijuana business license.
“I know this is a disappointing setback, especially for the entrepreneurs who have invested so much and the consumers who have been anxiously waiting for legal access. But I’m optimistic that this bill will provide the necessary fix to get Delaware’s adult-use cannabis market back on track,” said Rep. Osienski.
“I’m committed to getting this bill through the legislative process as quickly as possible so we can finally get this industry up and running.”
On Friday, the FBI notified the Delaware Office of the Marijuana Commissioner that its request for a service code had been denied, citing the need for explicit statutory language identifying the individuals required to obtain background checks.
HB 110 directly addresses this requirement by identifying the categories of individuals that would be required to undergo a fingerprint-based background check in connection with an adult-use marijuana business license. These include individuals working at a licensed marijuana establishment, those holding a marijuana establishment license, and those owning or serving on the board of directors of a business entity that holds or applies for a marijuana establishment license.
This legislation would bring Delaware into compliance with the requirements of Public Law 92-544, which governs access to FBI criminal history record information.
As the FBI requires state regulations to be submitted as a condition for receiving a service code, the Office of the Marijuana Commissioner would need to reapply for a service code after HB 110 becomes law.
This service code allows the State Bureau of Identification to generate criminal history reports and conduct background investigations. Without the code, applicants can’t move forward in the licensing process.
“I share the frustration of many Delawareans as recreational marijuana dispensaries remain inoperative nearly two years after legalization,” said Sen. Trey Paradee.
“While the establishment of this industry continues to face setbacks, the state is actively losing out on revenue at a time when critical federal funding has been cut by the White House. I am committed to finding long-term solutions that will finally establish the marijuana market so many have fought for over the last several years.”
Acting Marijuana Commissioner Paul Hyland expressed his gratitude, stating, “I want to thank Representative Osienski and Senator Paradee for swiftly bringing this critically important legislation together. The OMC remains committed to implementing a well-regulated, compliant, and equitable adult-use marijuana market in Delaware.”
HB 110 has been assigned to the House Economic Development/Banking/Insurance & Commerce Committee.
###
