Delaware’s Governor has signed a law to correct a problem with its marijuana legalization laws that caused the Federal Bureau of Investigation (FBI) to refuse the request of the agency to set up a background check fingerprint system for cannabis industry employees.
The Governor approved the final measure a week after Rep. Ed Osienski’s (D) bill was adopted by the legislature. Matt Meyer, a Democrat from the state of Michigan, approved it in its final form on Thursday.
The governor stated in a release that “Delaware’s recreational cannabis sector will create high-paying positions and bring vital revenue into the state, which can be used to pay for housing, schools and health care.” House Bill 110 is expected to strengthen background checks and align practices with federal regulations, as well as safeguard the public’s trust.
He said that as he implements these measures, he will continue to press the federal government for the elimination of bureaucracy which is preventing the industry from being launched with speed and integrity.
In his State of the State Address earlier this month, Meyer criticised the FBI for its decision regarding the background-check issue. This situation has the potential to delay the start of Delaware’s Adult Use Market.
The FBI insisting that Delaware’s first recreational marijuana law was insufficient, he stated at the time, is another example of federal bureaucracy suppressing state-led innovations.
Osienski said that he was “grateful to” the Governor and to his colleagues from the House and Senate, for “getting the legislation through to completion as quickly as we could.”
He said: “With HB110 now law, it is my hope that the Office of the Marijuana Commissioner can secure the approvals necessary to set up the background-check system required to advance Delaware’s industry for adult use cannabis forward.”
Meyer has nominated Joshua Sanderlin as his next cannabis regulator. He is an expert in the area of government regulations and is a lawyer.
State officials were planning on licensing the first cannabis recreational businesses in April. But the newly enacted law mandates that the background check be done first.
Office of the Marijuana Commissioner, which regulates the marijuana market, recently said that they had been working with the State Bureau of Identification (SBI) and the Delaware Department of Justice in order to get the FBI service code required before getting a rejection late last month.
Under Osienski’s bill, HB 110, the state’s current marijuana law will be amended to identify categories of people who will need to complete fingerprint-based background checks within the cannabis industry. This bill is intended to make the statute compliant, and then another FBI request would be sent for a code of service.
Federally, marijuana remains illegal. However, the FBI previously approved a background fingerprinting system to be used by Delaware’s medical cannabis programs.
Late last year, OMC held a series of licensing lotteries for cannabis business to start serving adult consumers.
A total 125 licenses are expected to be issued. This includes 30 retail stores, 60 cultivators and 30 manufacturers. In the past, regulators have also specified how much of each license category will be reserved for applicants who are socially responsible, small businesses, and those with general open licensing.
Regulators have also been rolling out a series of proposed regulations to stand up the forthcoming adult-use cannabis industry.
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In the meantime, ex-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.
This policy shift removes restrictions on patient eligibility that are based upon a set of health conditions. In its place, doctors can recommend cannabis to treat any health condition.
New law allows those over 65 years old to self-certify medical marijuana access, without needing a prescription from a doctor.
Federal Judge rules that insurance companies are not required to cover medical marijuana.
Side Pocket Images. Image courtesy Chris Wallis.