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A BILL 1
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25-581 3
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5
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To amend the Attorney General for the District of Columbia Clarification and Elected Term 10
Amendment Act of 2010 to clarify that the first $100,000 in fines issued to unlicensed 11
establishments is to be deposited in the Litigation Support Fund; to amend the Delinquent 12
Debt Recovery Act of 2012 to clarify the definition of delinquent debt; to amend the 13
Legalization of Marijuana for Medical Treatment Initiative of 1999 to make clarifications 14
and improvements to the District’s medical cannabis program, and to align and clarify 15
standing to protest and enforcement procedures for unlicensed establishments. 16
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 18
act may be cited as the “Medical Cannabis Clarification and Program Enforcement Amendment 19
Act of 2024”. 20
Sec. 2. Section 106b(b)(6) of the Attorney General for the District of Columbia 21
Clarification and Elected Term Amendment Act of 2010, effective October 22, 2015 (D.C. Law 22
21-36; D.C. Official Code § 1-301.86b(b)(6)), is amended by striking the phrase “pursuant to 23
D.C. Official Code § 47-2844(a-2)(1B)” and inserting the phrase “pursuant to section 9 of the 24
Legalization of Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 25
(D.C. Law 18-210; D.C. Official Code 7-1671.08)” in its place. 26 ENGROSSED ORIGINAL
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Sec. 3. Section 1042(2) of the Delinquent Debt Recovery Act of 2012, effective 27
September 20, 2012 (D.C. Law 19-168; D.C. Official Code § 1-350.01(2)), is amended to read as 28
follows: 29
“(2) “Delinquent debt” means: 30
“(A) Any financial obligation owed by a person to a District agency that 31
remains unpaid more than 90 days after it was due; provided, that the term shall not include tax 32
debts or child-support debts; or 33
“(B) A fine issued by the Alcoholic Beverage and Cannabis 34
Administration pursuant to section 9 of the Legalization of Marijuana for Medical Treatment 35
Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.08), 36
or section 8 of the Medical Cannabis Amendment Act of 2022, effective March 22, 2023 (D.C. 37
Law 24-332; D.C. Official Code § 7-1675.01), that remains unpaid more than 30 days after it 38
was due.”. 39
Sec. 4. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective 40
July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.01 et seq.), is amended as follows: 41
(a) Section 2 (D.C. Official Code § 7-1671.01) is amended as follows: 42
(1) Paragraph (1E) is redesignated as paragraph (1G). 43
(2) New paragraphs (1E) and (1F) are added to read as follows: 44 ENGROSSED ORIGINAL
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“(1E) “Affected ANC” means any Advisory Neighborhood Commission within 45
600 feet of where a medical cannabis cultivator, manufacturer, retailer, or internet retailer facility 46
is or will be located. 47
“(1F) “Another jurisdiction” means any state, commonwealth, or territory of the 48
United States.”. 49
(3) Paragraph (13B) is amended as follows: 50
(A) The lead-in language is amended by striking the phrase “resident 51
who” and inserting the phrase “resident who is a person who resides or is domiciled in another 52
state, territory, foreign country, or foreign territory and who” in its place. 53
(B) Subparagraph (B) is amended by striking the phrase “30-day 54
registration identification card” and inserting the phrase “registration identification card valid for 55
periods established by the ABC Board by rulemaking, which are between 3 days and no longer 56
than one year in length” in its place. 57
(4) Paragraph (19) is amended as follows: 58
(A) Strike the phrase “dental treatment, or” and insert the phrase “dental 59
treatment, a patient who is a non-resident cardholder, or” in its place. 60
(B) Strike the phrase “provided, that a patient” and insert the phrase 61
“provided, that a patient who is a non-resident cardholder or a patient” in its place. 62
(5) Paragraph (19A) is redesignated as paragraph (19B). 63
(6) A new paragraph (19A) is added to read as follows: 64 ENGROSSED ORIGINAL
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“(19A) “Recreation center” means a Department of Parks and Recreation public 65
facility. 66
(7) Paragraph (20C)(B) is amended by striking the phrase “or has a non-parent 67
legal guardian who is or has been incarcerated” and inserting the phrase “or has a non-parent 68
legal guardian, a grandparent, or a sibling who is or has been arrested, convicted, or 69
incarcerated” in its place. 70
(b) Section 6(b) (D.C. Official Code § 7-1671.05(b)) is amended as follows: 71
(1) Paragraph (4) is amended as follows: 72
(A) Subparagraph (A) is amended by striking the phrase “30 days” and 73
inserting the phrase “periods established by the ABC Board by rulemaking, which are between 3 74
days and no longer than one year in length” in its place. 75
(B) Subparagraph (B) is amended by striking the phrase “30-day 76
temporary non-resident ” and inserting the phrase “temporary non-resident” in its place. 77
(2) Paragraph (5)(C) is amended by striking the phrase “3 years.” and inserting 78
the phrase “3 years, except for temporary non-resident registration identification cards that are 79
valid for periods established by the ABC Board by rulemaking, which shall be between 3 days 80
and no longer than one year in length.” in its place. 81
(3) A new paragraph (11A) is added to read as follows: 82
“(11A) Allow testing laboratories to: 83 ENGROSSED ORIGINAL
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“(A) Receive and test samples of medical cannabis products from 84
qualifying patients; provided, that the qualifying patient must present proof that he or she is 85
currently registered, and that the medical cannabis product was purchased from a retailer or 86
internet retailer licensed with ABCA; and 87
“(B) Receive and test samples of medical cannabis products from licensed 88
cultivation centers or manufacturers for purposes of quality assurance or research and 89
development; provided, that samples collected for quality assurance or research and development 90
testing may be selected by the cultivation center or manufacturer non-randomly; provided 91
further, that any tests conducted for purposes of quality assurance or research and development 92
shall not satisfy the requirements of paragraphs (8) through (11) of this subsection;”. 93
(4) A new paragraph (14A) is added to read as follows: 94
“(14A) Conduct announced and unannounced inspections of unlicensed 95
establishments;”. 96
(5) Paragraph (15) is amended by striking the phrase “Establish sliding-scale 97
registration and annual renewal fees for all persons and entities required to register or obtain a 98
license pursuant to this act; provided” and inserting the phrase “Establish registration, sliding-99
scale registration, and annual renewal fees for all persons and entities required to register or 100
obtain a license pursuant to this act and permit the ABC Board, by rule, to make qualifying 101
patient and caregiver registrations available at no cost; provided” in its place. 102 ENGROSSED ORIGINAL
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(6) Paragraph (18) is repealed. 103
(c) Section 7 (D.C. Official Code § 7-1671.06) is amended as follows: 104
(1) A new subsection (b-1) is added to read as follows: 105
“(b-1) An applicant that filed a medical cannabis retailer or internet retailer 106
license application with ABCA on July 1, 2024 shall be eligible to have its application 107
considered by the ABC Board.”. 108
(2) A new subsection (c-1) is added to read as follows: 109
“(c-1) It shall be a violation of this act for any unlicensed or licensed cultivation 110
center, manufacturer, retailer, or internet retailer to represent that goods or services or the 111
business is compliant with the Legalization of Possession of Minimal Amounts of Marijuana for 112
Personal Use Initiative of 2014, effective February 26, 2015 (D.C. Law 20-153; 62 DCR 880); 113
except, that a licensed cultivation center, manufacturer, retailer, or internet retailer may have 114
signage indicating that there is medical cannabis on the property.”. 115
(3) Subsection (d) is amended as follows: 116
(A) Paragraph (2) is amended by striking the phrase “retailer or online 117
retailer license” and inserting the phrase “retailer license” in its place. 118
(B) A new paragraph (5) is added to read as follows: 119
“(5) Applications for additional licenses pursuant to paragraphs (1) through (3) of 120
this subsection shall be filed with ABCA by the existing cultivation center or dispensary by May 121
1, 2025.”. 122 ENGROSSED ORIGINAL
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(4) Subsection (e)(1) is amended as follows: 123
(A) Subparagraph (F) is amended by striking the phrase “retailer or 124
internet retailer license” and inserting the phrase “retailer license” in its place. 125
(B) A new subparagraph (G) is added to read as follows: 126
“(G) No licensee holding a cultivation center license shall hold an internet 127
retailer license.” 128
(5) Subsection (h) is amended by striking the phrase "cultivation centers who 129
receive a manufacturer’s license pursuant to subsection (d) of this section” and inserting the 130
phrase “cultivation centers and retailers, and applicants who scored 150 points or more during 131
the ABC Board open application period that occurred between November 29, 2021, and March 132
28, 2022, who receive a cultivation center, manufacturer, or retailer’s license pursuant to 133
subsections (d), (w), (x) and (y) of this section” in its place. 134
(6) Subsection (k) is amended as follows: 135
(A) Paragraph (1) is amended to read as follows: 136
“(1) The ABC Board shall be authorized to issue a two-year conditional license 137
for a cultivation center, retailer, internet retailer, manufacturer, courier, or testing laboratory that 138
does not currently have a proposed location.”. 139
(B) The lead-in language of paragraph (2) is amended to read as follows: 140
“(2) Under the conditional license, the applicant shall have 2 years from the date 141
of ABC Board approval to submit to ABCA:”. 142 ENGROSSED ORIGINAL
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(C) Paragraph (4) is amended to read as follows: 143
“(4) A conditional license that does not meet the terms of this subsection or is not 144
operating after a period of 2 years shall be canceled by the ABC Board.”. 145
(7) A new subsection (k-1) is added to read as follows: 146
“(k-1) A one-year conditional license that is in effect as of the effective date of 147
the Medical Cannabis Clarification and Program Enforcement Amendment Act of 2024, as 148
approved by the Committee of the Whole on September 17, 2024 (Committee print of Bill 25-149
581), shall automatically convert to a two-year conditional license, expiring one year after the 150
date the original conditional license was set to expire, at no additional cost and without 151
additional ABC Board approval.”. 152
(8) Subsection (n)(2) is amended to read as follows: 153
“(2)(A) The ABC Board shall, by rules issued pursuant to section 14, establish the 154
initial application and renewal fees for cultivation center, manufacturer, retailer, internet retailer, 155
and courier licenses. The ABC Board may revise these fees as considered necessary. 156
“(B) There shall be no initial application fee for a testing laboratory 157
license. Renewal fees for a testing laboratory license shall be established by rules issued pursuant 158
to subparagraph (A) of this paragraph.”. 159
(9) Subsection (q) is amended to read as follows: 160
“(q)(1) A retailer or internet retailer shall not locate within any residential district 161
or within 400 feet of a preschool, primary or secondary school, or recreation center; except, that 162 ENGROSSED ORIGINAL
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a license holder or an applicant who has applied prior to the effective date of the Medical 163
Cannabis Clarification and Program Enforcement Amendment Act of 2024, as approved by the 164
Committee of the Whole on September 17, 2024 (Committee print of Bill 25-581) may be 165
permitted to locate within 300 feet of a preschool, primary or secondary school, or recreation 166
center. 167
“(2) A retailer or internet retailer that received a license in compliance 168
with paragraph (1) of this subsection shall not have to relocate to renew its license at its existing 169
location if a preschool, primary or secondary school, or recreation center subsequently locates 170
within 400 feet of its facility.”. 171
(10) New subsections (q-1) and (q-2) are added to read as follows: 172
“(q-1)(1) No retailer license shall be issued for a facility that is located within 400 feet 173
from another facility operating under a retailer license. 174
“(2) In determining whether a retailer application is eligible to be approved, the 175
ABC Board shall ensure that the retailer application will not be located within 400 feet of a 176
previously submitted retailer application filed timely by another applicant. 177
“(3) ABCA shall proceed forward with the application filed by the facility that is 178
first in time. If the application is subsequently denied, ABCA shall proceed with the application 179
that is second in time, third in time, et cetera, until an application is approved. 180
“(q-2) In determining the appropriateness of the initial issuance of a license or a transfer 181
of a license to a new location for a medical cannabis retailer, the Board shall also consider: 182 ENGROSSED ORIGINAL
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“(1) The proximity of the medical cannabis retailer to a daycare center; 183
“(2) The effect of the medical cannabis retailer on the operation and clientele of a 184
daycare center; and 185
“(3) Whether school-aged children frequenting the daycare center or centers in 186
proximity to the medical cannabis retailer will be unduly attracted to the retailer while present at, 187
or going to or from, the daycare center.”. 188
(11) New subsections (w), (x), (y) and (z) are added to read as follows: 189
“(w)(1) The 2 cultivation center registration applicants that submitted a medical cannabis 190
facility registration application to the ABC Board between November 29, 2021, and March 28, 191
2022, that tied for second, and received the same total score shall be awarded a cultivation center 192
registration. 193
“(2) A cultivation center registration applicant not referenced in paragraph (1) of 194
this subsection that scored 150 points or more during the same open application period shall be 195
considered for a cultivation center registration after May 1, 2023; provided, that the applicant 196
files a corrected application, including an application to change the facility location, with the 197
ABC Board by May 1, 2025. An applicant that scored 150 points or higher shall be allowed to 198
change the location of the cultivation center facility on its application by May 1, 2025, without 199
negatively affecting the status of the application. 200 ENGROSSED ORIGINAL
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“(3) An applicant that filed more than one cultivation center registration 201
application during the open application period with one or more of the same owners shall be 202
considered for only one cultivation center registration under this subsection. 203
“(4) An initial application fee paid by a cultivation center registration applicant 204
that scored 150 points or higher shall be credited by ABCA toward the entire cost of the 205
applicant’s cultivation center application fee. 206
“(x)(1) A dispensary registration applicant that submitted a medical cannabis facility 207
registration to the ABC Board between November 29, 2021, and March 28, 2022, and received 208
150 points or more shall be considered for a retailer registration no earlier than 180 days after 209
March 22, 2023. An applicant shall be allowed to change the location of the retailer facility on 210
its application by May 1, 2025, without negatively affecting the status of the application. 211
“(2) An applicant that filed more than one dispensary registration application 212
during the open application period with one or more of the same owners shall be considered for 213
only one retailer registration under this subsection. 214
“(3) An initial application fee paid by a dispensary registration applicant that 215
scored 150 points or higher shall be credited by ABCA toward the entire cost of the applicant’s 216
retailer application fee. 217
“(y) The 5 cultivation center registration applicants that submitted medical cannabis 218
facility registration applications to the ABC Board between November 29, 2021, and March 28, 219
2022, that scored 150 points or more shall automatically receive a manufacturer license; 220 ENGROSSED ORIGINAL
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provided, that the annual fee is paid; provided further, that the applicant registers on a form 221
provided by ABCA with the ABC Board by May 1, 2024. 222
“(z)(1) An applicant who has submitted a complete license application for a cultivation 223
center, manufacturer, retailer, or internet retailer to transfer its license to a new location, or for a 224
retailer endorsement may obtain a stipulated license to begin operations authorized by the 225
applied-for license under the following conditions: 226
“(A) The applicant has submitted a stipulated license application on a 227
form provided by the ABC Board; 228
“(B) The applicant has submitted written correspondence from an officer 229
of the Advisory Neighborhood Commission where the applicant’s premises is located stating that 230
the Advisory Neighborhood Commission has voted with a quorum present to either support or 231
not object to the issuance of a stipulated license to the applicant pending completion of the 45-232
day protest period; and 233
“(C) The applicant submits to ABCA the stipulated license application fee. 234
“(2) A cultivation center, manufacturer, retailer, or internet retailer applicant shall 235
stop selling, delivering or serving medical cannabis under the stipulated license if a valid protest 236
is filed by an affected Advisory Neighborhood Commission during the 45-day protest period or 237
the 30-day extended public comment period, or the application is withdrawn or denied. 238
“(3) An applicant operating under a stipulated license shall operate in accordance 239 ENGROSSED ORIGINAL
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with the laws and regulations applicable to the requested cultivation center, manufacturer, 240
retailer, or internet retailer license.”. 241
(d) Section 7a (D.C. Official Code § 7-1671.06a) is amended as follows: 242
(1) A new subsection (c-1) is added to read as follows: 243
“(c-1)(1) An unlicensed establishment that applied for a retailer license under subsection 244
(a)(3) of this section may be allowed to change the location of the retailer facility on its 245
application within 180 days after the effective date of the Medical Cannabis Clarification and 246
Program Enforcement Amendment Act of 2024, as approved by the Committee of the Whole on 247
September 17, 2024 (Committee print of Bill 25-581), without negatively affecting the status of 248
the application, provided that: 249
“(A) The location of the establishment in the original application filed 250
with ABCA was within 300 feet of a preschool, primary or secondary school, or recreation 251
center; and 252
“(B) The main entrance to the preschool, primary or secondary school, or 253
recreation center or the nearest property line of the school or recreation center is actually on or 254
occupies ground zoned commercial or industrial according to the official atlases of the Zoning 255
Commission of the District of Columbia. 256
“(2) An unlicensed establishment that elects to change the location of its facility 257
pursuant to paragraph (1) shall not locate its new facility: 258
“(A) Within a residential district; 259 ENGROSSED ORIGINAL
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“(B) Within 400 feet of a preschool, primary or secondary school, or 260
recreation center; or 261
“(C) Within 400 feet of an existing retailer.”. 262
(2) Subsection (e)(1) is amended to read as follows: 263
“(1) Cultivation Center, Retailer, and Internet Retailer licenses issued under this 264
section shall count toward the 50% set aside requirement for social equity applicants set forth in 265
section 7(h).” 266
(3) Subsection (h)(1) is amended to read as follows: 267
“(1) The ABC Board shall provide notice of complete and eligible cultivation 268
center, retailer, and internet retailer license applications received from unlicensed establishments 269
to the Ward Councilmember, and any affected ANC, for a 45-day public comment period. The 270
ABC Board may, at the request of both an affected ANC and the applicant, extend the ANC’s 271
protest petition deadline by up to an additional 30 calendar days for the sole purpose of allowing 272
the ANC to vote on whether to support or protest the license application. The ABC Board may, 273
on a motion of any party or on its own motion, also continue a hearing to permit an affected 274
ANC to vote on a material issue in the hearing. 275
“(2) An affected ANC may protest the issuance of the license. 276
“(3) The ABC Board shall hold a contested case protest hearing within 120 days 277
of receiving a timely protest from an affected ANC pursuant to paragraph (2) of this 278
subsection.”. 279 ENGROSSED ORIGINAL
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(e) Section 7b (D.C. Official Code § 7-1671.06b) is amended as follows: 280
(1) Subsection (b) is amended as follows: 281
(A) Paragraph (1) is amended by striking the word “immediately” and 282
inserting the phrase “once its license is issued by ABCA” in its place. 283
(B) Paragraph (2) is redesignated as paragraph (3). 284
(C) A new paragraph (2) is added to read as follows: 285
“(2)(A) An unlicensed establishment that is approved for a cultivation center, 286
retailer, or internet retailer license shall obtain issuance of its license by the later date of either 287
September 30, 2024, or within 180 days of ABC Board approval, or have its ABC Board 288
approval rescinded. 289
“(B)(i) An unlicensed establishment that temporarily discontinues 290
operations after ABC Board approval that is not involved in unlicensed activity may request that 291
the ABC Board extend the deadline in subparagraph (A) of this paragraph by one additional 180-292
day period to allow the applicant to take deliberate steps to resume business operations at the 293
applicant’s proposed location. 294
“(ii) The ABC Board shall approve the applicant’s extension 295
request; provided, that the applicant can demonstrate to the ABC Board that the applicant is 296
making reasonable progress to resume business operations at the proposed location. 297
“(C) Notwithstanding subparagraph (A) of this paragraph: 298 ENGROSSED ORIGINAL
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“(i) An unlicensed establishment that applies for a retailer 299
or internet retailer license under this section shall be required to have its license issued and be in 300
operation no later than March 31, 2025 or have its Board approval rescinded or its application 301
denied by the Board; and 302
“(ii) A cultivation center, retailer, or internet retailer 303
applicant shall cease any unlicensed activity once its license is issued by ABCA.”. 304
(2) A new subsection (e) is added to read as follows: 305
“(e) An unlicensed establishment shall not display signage or images advertising: 306
“(1) The prices of cannabis or cannabis product in any window of the 307
establishment; 308
“(2) Cannabis or a cannabis product on the exterior of any window or on the 309
exterior or interior of any door; or 310
“(3) Cannabis or a cannabis product on the exterior or visible from the exterior 311
of the unlicensed establishment or elsewhere in the District.”. 312
(f) Section 7f (D.C. Official Code § 7-1671.06f) is amended by adding a new subsection 313
(b-1) to read as follows: 314
“(b-1) No holder of a retailer and safe use treatment facility endorsement located within 315
400 feet of a day care center may obtain a summer garden endorsement pursuant to this section.”. 316
(g) New sections 7g, 7h, 7i and 7j are added to read as follows: 317
“Sec. 7g. Standing to file protest against a retailer license. 318 ENGROSSED ORIGINAL
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“(a) Except as provided in Section 6a regarding protests against unlicensed 319
establishments that applied for licenses prior to January 30, 2024, the following persons may 320
protest the issuance of a license, the renewal of a license, or the transfer of a medical cannabis 321
retailer license to a new location: 322
“(1) A property owner or commercial tenant whose property abuts where the 323
establishment is or will be located; 324
“(2) A property owner or commercial tenant whose property is located directly 325
across the street from where the establishment is or will be located; or 326
“(3) Any affected ANC. 327
“(b) Any person objecting under subsection (a) of this section to the approval of an 328
application shall notify the ABC Board in writing of his or her intention to object and the 329
specific grounds for the objection within the protest period. 330
“Sec. 7h. Notice to ANCs and Councilmembers. 331
“(a) ABCA shall provide electronic notice to the Councilmember representing the ward 332
where the establishment is or will be located and any affected ANC at least 45 calendar days 333
prior to the approval of a location for a retailer. 334
“(b) The ABC Board may, at the request of both an affected ANC and the applicant, 335
extend the ANC’s protest petition deadline set forth in subsection (a) of this section by up to an 336
additional 30 calendar days for the sole purpose of allowing the ANC to vote on whether to 337
support or protest the license application. The ABC Board may, on a motion of any party or on 338 ENGROSSED ORIGINAL
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its own motion, also continue a hearing to permit an affected ANC to vote on a material issue in 339
the hearing. 340
“Sec. 7i. Grounds for protest. 341
“(a) A protest against a medical cannabis retailer license by persons with standing under 342
section 7g of this chapter shall be on the basis of: 343
“(1) A violation of this act by the applicant; 344
“(2) A violation of civil law by the applicant that is directly related to the 345
operation of the business or establishment for which the license is sought; or 346
“(3) Vehicular and pedestrian safety. 347
“(b) The ABC Board shall determine whether a violation of civil law is directly related to 348
the operation of the business or establishment for which the license is sought by considering the 349
totality of the following factors: 350
“(1) Whether specific elements of the violation are directly related to the 351
specific duties and responsibilities of the license; and 352
“(2) Any evidence produced by the applicant concerning the applicant’s fitness, 353
including the length of time that has elapsed since the violation and mitigating circumstances. 354
“(c) The ABC Board may issue a license, approve the renewal of a license, or approve the 355
transfer of a medical cannabis retailer license to a new location without a hearing on the protest 356
if the ABC Board finds that the basis of the protest lacks substance. 357
Sec. 7j. ANC comments. 358 ENGROSSED ORIGINAL
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“The ABC Board shall accord great weight to input provided by an affected ANC 359
regarding the proposed or existing location of a retailer when approving or rejecting an 360
application for a license.”. 361
(h) Section 9 (D.C. Official Code § 7–1671.08) is amended as follows: 362
(1) Subsection (d) is amended by striking the phrase “licensed cultivation” and 363
inserting the phrase “licensed or unlicensed cultivation” in its place. 364
(2) New subsections (f), (g), (h) and (i) are added to read as follows: 365
“(f) Beginning January 31, 2024, the ABC Board may issue the following fines to an 366
unlicensed establishment that violates section 7(c-1) or section 7b(e), or has not filed an accepted 367
and pending application with the ABC Board and knowingly engages or attempts to engage in 368
the purchase, sale, exchange, delivery, or any other form of commercial transaction involving 369
cannabis that is not purchased, sold, exchanged, or delivered in accordance with the provisions 370
of this act or section 401 of the District of Columbia Uniform Controlled Substances Act of 371
1981, effective August 5, 1981 (D.C. Law 4-29; D.C. Official Code § 48-904.01): 372
“(1) For the first violation, the ABC Board may: 373
“(A) Issue a fine in the amount of $10,000; and 374
“(B) Require the unlicensed establishment to submit a remediation plan to 375
the ABC Board that contains the unlicensed establishment’s plan to prevent any future 376
recurrence of purchasing, selling, exchanging, delivering, or otherwise transacting any cannabis 377
or cannabis products that are not purchased, sold, exchanged, or delivered in accordance with the 378 ENGROSSED ORIGINAL
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provisions of this act or section 401 of the District of Columbia Uniform Controlled Substances 379
Act of 1981, effective August 5, 1981 (D.C. Law 4-29; D.C. Official Code § 48-904.01); 380
“(2) For any subsequent violations or if the unlicensed establishment fails to 381
submit a remediation plan in accordance with paragraph (1) of this subsection, or if the ABC 382
Board rejects the unlicensed establishment’s remediation plan, the ABC Board may issue 383
additional fines as follows: 384
“(A) For the second violation, a fine in the amount of $20,000; 385
“(B) For the third or subsequent violation, a fine in the amount of $30,000; 386
“(C) For failing to submit a remediation plan or having its remediation 387
plan rejected by the ABC Board, a fine of in the amount of $10,000. 388
“(3) Revenue collected from fines imposed pursuant to this subsection shall be 389
deposited as follows: 390
“(A) The first $100,000 shall be deposited into the Litigation Support 391
Fund established pursuant to section 106b(b)(6) of the Attorney General for the District of 392
Columbia Clarification and Elected Term Amendment Act of 2010, effective May 27, 2010 393
(D.C. Law 18-160; D.C. Official Code § 1-301.86b(b)(6)); and 394
“(B) Any revenue collected from fines after the first $100,000 shall be 395
deposited into the Medical Cannabis Social Equity Fund established pursuant to section 9b. 396 ENGROSSED ORIGINAL
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“(4) Nothing in this subsection shall preclude the ABC Board from issuing a 397
cease-and-desist order or the closure of an unlicensed establishment for a first or subsequent 398
violation of this subsection. 399
“(g)(1) Notwithstanding sections 7(b) and 9(f), ABCA shall have the authority to inspect 400
the entire premises, inventory, and business records of an unlicensed establishment to determine 401
whether the business is conducting activity in violation of this title. If, after an inspection, ABCA 402
determines that an unlicensed establishment presents an imminent danger to the health or safety 403
of the public, as described in paragraph (2) of this subsection, the ABC Board may summarily 404
close and order the padlocking, by ABCA or MPD without a prior hearing, of the unlicensed 405
establishment, and ABCA or MPD may seize all cannabis and cannabis products found at the 406
premises. 407
“(2) For the purpose of this subsection, the term “imminent danger to the health or 408
safety of the public” includes any of the following: 409
“(A) The unlicensed establishment distributes or attempts to distribute 410
cannabis or a cannabis product to one or more persons under the age of 21. 411
“(B) The unlicensed establishment manufactures, produces, or cultivates 412
cannabis or cannabis products at the building or premises. 413
“(C) Once a testing laboratory has been licensed under this act, the 414
unlicensed establishment distributes, attempts to distribute, or makes available for sale or 415
exchange cannabis or a cannabis product untested by a testing laboratory licensed under this act. 416 ENGROSSED ORIGINAL
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“(D) The unlicensed establishment distributes, attempts to distribute or 417
makes available for sale or exchange cannabis or a cannabis product that fails to contain a label 418
identifying the source of the cannabis or cannabis product, including where it was manufactured, 419
the contents of the package, and the cannabis or cannabis product’s ingredients, and 420
tetrahydrocannabinol (THC) content, or is otherwise not labeled in accordance with this act. 421
“(E) The unlicensed establishment fails to comply with a cease-and-desist 422
order. 423
“(F) The unlicensed establishment distributes, attempts to distribute, or 424
makes available for sale or exchange Schedule I substances, or products that contain Schedule I 425
substances, as enumerated in section 204 of the District of Columbia Uniform Controlled 426
Substances Act of 1981, effective August 5, 1981 (D.C. Law 4-29; D.C. Official Code § 48-427
902.04). 428
“(G) An employee, agent, or owner of the unlicensed establishment has 429
unlawful firearms or weapons on the premises. 430
“(H) A dangerous crime, as defined in D.C. Official Code § 23-1331(3), or 431
a crime of violence, as defined in D.C. Official Code § 23-1331(4), was committed on the 432
premises of the unlicensed establishment. 433
“(I) The unlicensed establishment engages in any activity or operation 434
established as an imminent danger to the health or safety of the public by the ABC Board by 435
rule. 436 ENGROSSED ORIGINAL
23
“(3) ABCA shall provide the unlicensed establishment’s owner and the property 437
owner with written notice of the summary closure and the right to request a hearing. 438
“(4) The owner of the unlicensed establishment shall have 5 business days after 439
service of the notice of summary closure to request a hearing with the ABC Board, which shall 440
hold a hearing within 5 business days of a timely request. 441
“(5) The ABC Board shall issue a written decision within 5 business days after the 442
hearing. 443
“(h)(1) ABCA or the Metropolitan Police Department may post signage at the site of the 444
unlicensed establishment indicating that unlicensed activity has been found to have occurred for 445
violations of this act. 446
“(2) If the ABC Board orders the closure of an unlicensed establishment, the ABC 447
Board shall post 2 notices in conspicuous places at or near the main street entrance on the outside 448
of the establishment. 449
“(3) The posted notice shall state that the closure is ordered because of a violation 450
of this act or of the regulations promulgated pursuant to this act. 451
“(4) Any person willfully removing, obliterating, or defacing the notice shall be 452
guilty of a violation of this act. 453
“(i)(1) An ABCA investigator may test cannabis and cannabis products to quantify their 454
THC content. 455 ENGROSSED ORIGINAL
24
“(2) In any proceeding before the ABC Board, labeling or packaging in an 456
unlicensed establishment that states that the product contains cannabis or tetrahydrocannabinol, 457
whether in whole or in part, or a derivative thereof, shall create a presumption that the product 458
contains cannabis and contains the amounts of the chemicals indicated on the label or packaging 459
unless such presumption is overcome by a preponderance of evidence to the contrary.”. 460
(i) Section 13a (D.C. Official Code § 7–1671.12a) is amended as follows: 461
(1) Subsection (a) is amended as follows: 462
(A) Strike the phrase “Board or the Mayor” both times it appears and 463
insert the word “Board” in its place. 464
(B) Strike the phrase “to the licensee” and insert the phrase “to the 465
licensee or unlicensed establishment” in its place. 466
(2) Subsection (d) is amended by striking the phrase “Board or the Mayor” and 467
inserting the word “Board” in its place. 468
(3) Subsection (f) is amended by striking the phrase “Board or the Mayor” and 469
inserting the word “Board” in its place. 470
(j) New sections 13b, 13c, 13d, and 13e are added to read as follows: 471
“Sec. 13b. Examination of premises, books, and records. 472
“(a) An applicant for a license, and each licensee, shall allow any ABCA investigator or 473
agent of the ABC Board full opportunity to examine, at any time during business hours: 474 ENGROSSED ORIGINAL
25
“(1) The premises where a cannabis product is manufactured, kept, sold, or 475
consumed for which an application for a license has been made or for which a license has been 476
issued; and 477
“(2) The books and records of the business for which an application for a license 478
has been made or for which a license has been issued. 479
“(b) ABCA investigators shall examine the premises and books and records of each 480
licensed establishment in the District at least once each year. The investigators shall make 481
reasonable efforts to ensure that the licensee shall know in advance the date of the inspection. 482
“Sec. 13c. Search warrants for illegal cannabis products; disposition of seized products. 483
“If a search warrant is issued by any judge of the Superior Court of the District of 484
Columbia or by a United States Magistrate for the District of Columbia for premises where any 485
cannabis products are sold, exchanged as part of a commercial transaction, delivered, or 486
permitted to be consumed in violation of this title, the cannabis product and any other property 487
designed for use in connection with the unlawful manufacture for sale, keeping for sale, selling, 488
or consumption may be seized and shall be subject to such disposition as the court may make 489
thereof. 490
“Sec. 13d. Notifications from Department of Licensing and Consumer Protection, Office 491
of Tax and Revenue, Fire and Emergency Medical Services Department, and Metropolitan Police 492
Department. 493 ENGROSSED ORIGINAL
26
“(a) The Department of Licensing and Consumer Protection, the Office of Tax and 494
Revenue, and the Fire and Emergency Medical Services Department shall notify the ABC Board 495
if a licensed establishment is the subject of a citation, revocation, or other enforcement action for 496
a violation of laws or regulations enforced by those agencies or offices within 30 days after the 497
citation, revocation, or other enforcement action. 498
“(b) If a licensed establishment is the subject of an incident report by the Metropolitan 499
Police Department, the Metropolitan Police Department shall file a copy of the incident report 500
with the ABC Board within 30 days after the incident. The ABC Board shall make the report 501
available for public inspection upon request. 502
“Sec. 13e. Nuisance. 503
“(a) Any unlicensed establishment where cannabis is sold, exchanged as part of a 504
commercial transaction, delivered, or permitted to be consumed shall be a nuisance, except any 505
unlicensed establishment of an applicant that filed an accepted and pending application with the 506
ABC Board during the 90-day open application period. 507
“(b) An action to enjoin any nuisance defined in subsection (a) of this section may be 508
brought in the name of the District of Columbia by the Attorney General for the District of 509
Columbia in the Civil Branch of the Superior Court of the District of Columbia against the owner 510
or operator of the unlicensed establishment or any person conducting or maintaining such 511
nuisance or any person who knows or should have known that such nuisance is being conducted 512
or maintained. 513 ENGROSSED ORIGINAL
27
“(c)(1) Upon the filing of a complaint to abate the nuisance, the Court shall hold a 514
hearing on a motion for a preliminary injunction within 14 days of the filing of such action. 515
“(2) If it appears, by affidavit or otherwise, that there is a substantial likelihood 516
that the District of Columbia will be able to prove at trial that the building, ground, or premises 517
of the unlicensed establishment is a nuisance, the court may enter an order preliminarily: 518
“(A) Enjoining the nuisance; 519
“(B) Prohibiting the use of the unlicensed establishment for the purpose of 520
selling cannabis, exchanging cannabis as part of a commercial transaction, delivering cannabis, 521
or permitting cannabis to be consumed until such time as the establishment obtains a license; and 522
“(C) Granting such other relief as the court may deem appropriate. 523
“(3) The District of Columbia need not prove irreparable harm to obtain a 524
preliminary injunction. 525
“(4) Where appropriate, the Court may order a trial of the action on the merits to 526
be advanced and consolidated with the hearing on the motion for preliminary injunction. 527
“(5) This section shall not be construed to prohibit the application for or the 528
granting of a temporary restraining order, or other equitable relief otherwise provided by law. 529
“(d)(1) Within 14 days of the issuance of any preliminary injunction, the Court shall hold 530
a full hearing on the merits of the nuisance action. 531
“(2) If the Court does not issue a preliminary injunction, the Court shall 532
expeditiously schedule a full hearing. If it is determined by a preponderance of the evidence that 533 ENGROSSED ORIGINAL
28
the unlicensed establishment is a nuisance, the Court shall issue a final order that mandates 534
closure and sealing of the establishment within 72 hours and continued closure until such time as 535
the establishment obtains a license. 536
“(3) The Court may order other appropriate relief, including issuing an order 537
enjoining the nuisance and prohibiting the use of the unlicensed establishment for the purpose of: 538
“(A) Selling cannabis; 539
“(B) Exchanging cannabis as part of a commercial transaction; 540
“(C) Delivering cannabis; or 541
“(D) Permitting cannabis to be consumed until such time as the 542
establishment obtains a license. 543
“(4)(A) Execution by the Metropolitan Police Department of any final order to 544
close and seal the establishment shall occur within 7 days of the issuance of the final order. 545
“(B) Notwithstanding subparagraph (A) of this paragraph, if the 546
Metropolitan Police Department has not executed the final order within 5 days of issuance of the 547
final order, the final order shall continue to be executable and valid.”. 548
Sec. 5. Section 8 of the Medical Cannabis Amendment Act of 2022, effective March 22, 549
2023 (D.C. Law 24-332; D.C. Official Code § 7-1675.01), is amended as follows: 550
(a) Subsection (a) is amended as follows: 551
(1) Paragraph (1) is amended as follows: 552 ENGROSSED ORIGINAL
29
(A) The lead-in language is amended by striking the phrase “Alcoholic 553
Beverage and Cannabis Administration makes final determinations for the licensure of 554
unlicensed establishments pursuant to §§ 7-1671.06a and 7-1671.06b, for the first violation 555
of D.C. Official Code § 47-2844(a-2)(1B), the Mayor” and inserting the phrase “After the 556
Alcoholic Beverage and Cannabis Board (“ABC Board”) makes final determinations for the 557
licensure of unlicensed establishments pursuant to sections 7a and 7b of the Legalization of 558
Marijuana for Medical Treatment Initiative of 1999, effective March 22, 2023 (D.C. Law 24-559
332; D.C. Official Code §§ 7-1671.06a and 7-1671.06b), for the first violation of section 9(f) of 560
the Legalization of Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 561
(D.C. Law 18-210; D.C. Official Code § 7-1671.08(f)), the ABC Board ” in its place. 562
(B) Subparagraph (C) is amended by striking the phrase Ҥ 47-2844(a-563
2)(1B)” and inserting the phrase “section 9(f) of the Legalization of Marijuana for Medical 564
Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-565
1671.08(f)),” in its place. 566
(2) Paragraph (2) is amended by striking the phrase “provided to the Alcoholic 567
Beverage and Cannabis Administration,” and inserting the phrase “provided to” in its place. 568
(b) Subsection (b) is amended as follows: 569
(1) The lead-in language is amended by striking the phrase “§ 47-2844(a-2)(1B)” 570
and inserting the phrase “section 9(f) of the Legalization of Marijuana for Medical Treatment 571 ENGROSSED ORIGINAL
30
Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-572
1671.08(f))” in its place. 573
(2) Paragraph (1) is amended by striking the phrase “The Mayor” and inserting 574
the phrase “The ABC Board” in its place. 575
(3) Paragraph (2) is amended as follows: 576
(A) Subparagraph (A) is amended to read as follows: 577
“(A) The ABC Board shall require the commercial property owner to 578
submit a remediation plan within 14 days after the notice of a fine under paragraph (1) of this 579
subsection to the ABC Board that contains the commercial property owner's plan to prevent any 580
future violations of section 9(f) of the Legalization of Marijuana for Medical Treatment Initiative 581
of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.08(f)).”. 582
(B) Subparagraph (B) is amended by striking the phrase “the Mayor, in 583
consultation with the Director of the Department of Licensing and Consumer Protection, rejects 584
the commercial property owner's remediation plan, the Mayor may issue additional fines or 585
revoke the commercial property owners’ licenses” and inserting the phrase “the ABC Board 586
rejects the commercial property owner’s remediation plan, the ABC Board may issue additional 587
fines” in its place. 588
(c) Subsection (c) is amended as follows: 589
(1) Paragraph (1) is amended by striking the phrase “Office of Administrative 590
Hearings” and inserting the phrase “ABC Board” in its place. 591 ENGROSSED ORIGINAL
31
(2) Paragraph (2) is amended to read as follows: 592
“(2) If a commercial property owner timely requests a hearing pursuant to this 593
subsection, the ABC Board shall hold a hearing within 3 business days after receiving the 594
request.”. 595
(3) Paragraph (3) is amended by striking the phrase “administrative law judge” 596
and inserting the phrase “ABC Board” in its place. 597
(d) Subsection (e)(1) is amended by striking the phrase “Office of Administrative 598
Hearings” and inserting the phrase “ABC Board” in its place. 599
Sec. 6. Fiscal impact statement. 600
The Council adopts the fiscal impact statement in the committee report as the fiscal 601
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 602
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 603
Sec. 7. Effective date. 604
This act shall take effect following approval by the Mayor (or in the event of veto by the 605
Mayor, action by the Council to override the veto) and a 30-day period of congressional review 606
as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 607
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)). 608