Governor Signs Vital FBI Background Check Fix, Reinvigorating Delaware’s Adult-Use Cannabis Sales
Delaware’s long-awaited adult-use cannabis market is set to move forward after Governor Matt Meyer signed House Bill 110, a pivotal measure aligning state law with FBI requirements for fingerprint-based background checks. This legislative fix resolves a major federal hurdle that had stalled the launch of recreational cannabis sales, promising new jobs, critical state revenue, and a robust regulatory framework. Discover how Delaware navigated bureaucratic hurdles, the path to legalization, and what the future holds for entrepreneurs and communities as the market prepares to launch.
Delaware’s Journey to Legalizing Adult-Use Cannabis: a Path to Progress
Delaware’s journey toward a legal adult-use cannabis market has been marked by both legislative progress and regulatory setbacks. With the passage of HB 1 and HB 2, Delaware not only legalized recreational marijuana but also set up a clear pathway for regulation and taxation, ensuring that the market operates smoothly while maintaining oversight and compliance. This paved the way for the state to implement necessary procedures for safe, controlled access to cannabis for adults 21 and older. The Office of the Marijuana Commissioner (OMC) was created to oversee licensing, compliance, and market development, with a strong focus on social equity and fair access for new entrants.
Throughout 2024, Delaware made significant strides, including the completion of a statewide lottery that awarded 124 conditional licenses to cultivators, manufacturers, retailers, and testing labs. The application process was highly competitive, drawing over 1,200 submissions and generating millions in application fees that would help fund social equity grants and market infrastructure. Regulations were finalized after public input, and a pathway was established for existing medical marijuana businesses to transition into the adult-use market, further strengthening the sector’s foundation.
The FBI Roadblock: Why Sales Were Delayed
Even with extensive preparation, Delaware’s adult-use cannabis market experienced a major delay in early 2025, caused by a state law that required fingerprint-based background checks for every cannabis business owner, employee, and significant stakeholder. However, the FBI rejected Delaware’s application for the necessary service code, citing vague language in the state statute about who would be subject to these checks. Lacking FBI approval, the OMC could not issue final licenses or authorize businesses to open, causing a significant delay in the scheduled March 2025 sales launch.
This setback came two years after former Governor John Carney allowed legalization bills to become law without his signature, reflecting the complex political landscape around cannabis reform in Delaware. The delay threatened to stall the creation of hundreds of new jobs and the collection of anticipated tax revenue at a time when the state was facing federal funding shortfalls8.
Legislative Fix: House Bill 110
In response, State Rep. Ed Osienski introduced House Bill 110 on April 3, 2025, to clarify and strengthen Delaware’s background check requirements in line with FBI standards. The bill quickly moved through the legislature, reflecting bipartisan urgency to resolve the issue and get the market operational. On April 24, Governor Matt Meyer signed HB 110 into law, amending the state code to specifically identify all individuals who must undergo fingerprint-based checks, including:
Applicants for a cannabis establishment license
- Anyone working at or for a cannabis business, including contractors, employees, and volunteers (compensated or not)
- Directors, officers, board members, or agents of licensed establishments or applicants
- People holding a 10% or greater ownership interest in a licensed business or applicant entity
This legislative fix brings Delaware into compliance with federal requirements, allowing the OMC to reapply for the FBI service code and resume the licensing process. Governor Meyer emphasized that the new law will “strengthen our background check requirements, align our practices with federal standards, and safeguard public trust,” while also creating “good-paying jobs and providing critical revenue for the state to help pay for schools, housing, and healthcare”.
What’s Next: Launching Sales and Building the Market?
Following the enactment of HB 110, Delaware is set to proceed with the launch of its adult-use cannabis market. The OMC will work with the FBI to secure the service code, enabling the completion of background checks and the issuance of final licenses to the 124 conditional awardees. These include 60 cultivation, 30 manufacturing, 30 retail, and five testing lab licenses-each vital to building a robust, regulated market.
The state’s regulatory framework includes a 15% excise tax on adult-use cannabis sales, with a portion earmarked for a Justice Reinvestment Fund to support community grants and initiatives addressing the harms of past drug enforcement policies8. Social equity remains a central focus, with grant applications for qualifying entrepreneurs set to open in March 2025.
Governor Meyer and legislative leaders have pledged to continue advocating for federal cooperation, criticizing the FBI’s initial rejection as an example of “federal bureaucracy stifling state-led innovation”. Meyer has appointed Joshua Sanderlin, an experienced attorney with a background in government regulations, as Delaware’s new marijuana commissioner to lead the final steps of market implementation.
Broader Implications: Jobs, Revenue, and Social Equity
The launch of Delaware’s adult-use cannabis market is expected to generate tens of millions of dollars in annual tax revenue, support hundreds of new jobs, and provide funding for essential public services. Lawmakers and advocates see the industry as a critical tool for addressing budget gaps and historic inequities created by the War on Drugs.
While the state overcame a significant regulatory obstacle, officials acknowledge that continued vigilance and adaptation will be necessary to ensure a fair, transparent, and successful market. The swift passage of HB 110 demonstrates Delaware’s commitment to both public safety and economic opportunity, setting a model for other states navigating the complex intersection of state and federal cannabis law.
Delaware’s adult-use cannabis sales are finally back on track, with the regulatory fix in place and the market’s official launch expected soon. Delaware’s experience highlights the intricate process of building a legal cannabis industry, emphasizing the need for adaptable, bipartisan approaches to overcome unexpected challenges.