Two measures designed to speed up Delaware’s launch of its recreational cannabis market are currently under review in the state legislature. These legislative efforts come after delays have stalled the rollout of cannabis retail operations, despite business licenses being awarded last year.
Originally, the state had planned to open its recreational cannabis market this month. However, that timeline has been thrown off due to legal issues with the Marijuana Control Act—the law outlining the industry’s regulatory process. One of the main roadblocks is a delay in obtaining approval from the FBI to implement a fingerprint-based background check system, a requirement before the state can officially issue licenses.
Delaware’s regulators have already submitted two requests to the FBI, both of which were rejected. The problem lies in how the state’s law outlines applicant background checks—it needed to be adjusted to meet federal standards. Changes to address that were introduced earlier this month and passed the House. The goal is to get the legislation through both chambers quickly so the state can try again with the FBI.
The proposal is now before the Senate Executive Committee and will head to the full Senate for a vote. If approved and signed into law, the Marijuana Commissioner’s Office will be able to restart the process of conducting background checks and issuing conditional licenses to the 125 approved operators.
Even with licenses in hand, many businesses are struggling to find store locations. Strict zoning laws in the state’s three counties have created major obstacles. Around one-third of the state’s municipalities have completely banned cannabis retailers, and many others have made it very difficult to find compliant locations due to zoning buffers.
To address this, a second measure, SB 75, proposes loosening those zoning restrictions. The bill aims to standardize the minimum distance between cannabis stores and places like schools, treatment centers, and daycares to 500 feet. It also removes worship places from the list of protected areas.
Sussex County currently enforces a three-mile buffer, while New Castle sets a 1,000-foot limit between dispensaries and certain locations.
The measure also supports existing medical dispensaries—known as compassion centers—by allowing them to convert to recreational use and make necessary building changes. It also guarantees that indoor grow facilities can operate in industrial and agricultural zones and sets standard hours of operation for cannabis businesses.
While there was pushback from some GOP senators, especially over removing churches from the protected category and concerns about undermining local control, the bill passed the Senate with a 13-8 vote. It now moves to a House committee before heading to the floor for a final decision.
The broader marijuana industry, including entities like Green Thumb Industries Inc. (Cboe CA: GTII) (OTCQX: GTBIF) will be hoping that these pieces of legislation finally get the market launch back on track in Delaware.
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