District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0581 Compare Versions

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8-AN ACT
9-
10-______________
11-
12-IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13-
14-__________________
15-
16- To amend the Attorney General for the District of Columbia Clarification and Elected Term
17-Amendment Act of 2010 to clarify that the first $100,000 in fines issued to unlicensed establishments is to be deposited in the Litigation Support Fund; to amend the Delinquent Debt Recovery Act of 2012 to clarify the definition of delinquent debt; to amend the
18-Legalization of Marijuana for Medical Treatment Initiative of 1999 to make clarifications and improvements to the District’s medical cannabis program, and to align and clarify
19-standing to protest and enforcement procedures for unlicensed establishments.
20-
21-BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
22-act may be cited as the “Medical Cannabis Clarification and Program Enforcement Amendment
23-Act of 2024”.
24- Sec. 2. Section 106b(b)(6) of the Attorney General for the District of Columbia Clarification and Elected Term Amendment Act of 2010, effective October 22, 2015 (D.C. Law 21-36; D.C. Official Code § 1-301.86b(b)(6)), is amended by striking the phrase “pursuant to D.C. Official Code § 47-2844(a-2)(1B)” and inserting the phrase “pursuant to section 9 of the 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 pla ce.
26- Sec. 3. Section 1042(2) of the Delinquent Debt Recovery Act of 2012, effective September 20, 2012 (D.C. Law 19-168; D.C. Official Code § 1-350.01(2)), is amended to read as follows:
27-“(2) “Delinquent debt” means:
28-“(A) Any financial obligation owed by a person to a District agency that
29-remains unpaid more than 90 days after it was due; provided, that the term shall not include tax debts or child-support debts; or
30-“(B) A fine issued by the Alcoholic Beverage and Cannabis
31-Administration pursuant to section 9 of the Legalization of Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.08), or section 8 of the Medical Cannabis Amendment Act of 2022, effective March 22, 2023 (D.C. ENROLLED ORIGINAL
8+A BILL 1
9+ 2
10+25-581 3
11+ 4
12+IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5
13+ 6
14+__________________ 7
15+ 8
16+ 9
17+To amend the Attorney General for the District of Columbia Clarification and Elected Term 10
18+Amendment Act of 2010 to clarify that the first $100,000 in fines issued to unlicensed 11
19+establishments is to be deposited in the Litigation Support Fund; to amend the Delinquent 12
20+Debt Recovery Act of 2012 to clarify the definition of delinquent debt; to amend the 13
21+Legalization of Marijuana for Medical Treatment Initiative of 1999 to make clarifications 14
22+and improvements to the District’s medical cannabis program, and to align and clarify 15
23+standing to protest and enforcement procedures for unlicensed establishments. 16
24+ 17
25+BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 18
26+act may be cited as the “Medical Cannabis Clarification and Program Enforcement Amendment 19
27+Act of 2024”. 20
28+ Sec. 2. Section 106b(b)(6) of the Attorney General for the District of Columbia 21
29+Clarification and Elected Term Amendment Act of 2010, effective October 22, 2015 (D.C. Law 22
30+21-36; D.C. Official Code § 1-301.86b(b)(6)), is amended by striking the phrase “pursuant to 23
31+D.C. Official Code § 47-2844(a-2)(1B)” and inserting the phrase “pursuant to section 9 of the 24
32+Legalization of Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 25
33+(D.C. Law 18-210; D.C. Official Code 7-1671.08)” in its place. 26 ENGROSSED ORIGINAL
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38-Law 24-332; D.C. Official Code § 7- 1675.01), that remains unpaid more than 30 days after it
39-was due.”.
40-
41- Sec. 4. T he Legalization of Marijuana for Medical Treatment Initiative of 1999, effective
42-July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7- 1671.01 et seq. ), is amended as follows:
43- (a) Section 2 (D.C. Official Code § 7- 1671.01) is amended as follows:
44- (1) Paragraph (1E) is redesignated as paragraph (1 G).
45- (2) New paragraphs (1E) and (1F) are added to read as follows:
46- “(1E) “Affected ANC” means any Advisory Neighborhood Commission within
47-600 feet of where a medical cannabis cultivator, manufacturer, retailer, or internet retailer facility
48-is or will be located.
49- “(1F) “Another jurisdiction” means any state, commonwealth, or territory of the
50-United States.”.
51-(3) Paragraph (5A) is redesignated as paragraph (5B).
52-(4) A new paragraph (5A) is added to read as follows:
53-“(5A) “Daycare center” means a child development center, as that term is defined
54-in section 2(2) of the Day Care Policy Act of 1979, effective September 19, 1979 (D.C. Law 3-
55-16; D.C. Official Code § 4- 401(2)), that is licensed by the Office of the State Superintendent of
56-Education.”.
57- (5) Paragraph (13B) is amended as follows:
58-(A) The lead-in language is amended by striking the phrase “resident
59-who” and inserting the phrase “resident who is a person who resides or is domiciled in another
60-state, territory, foreign country, or foreign territory and who” in its place.
61-(B) Subparagraph (B) is amended by striking the phrase “30-day
62-registration identification card” and inserting the phrase “ registration identification card valid for
63-periods established by the ABC Bo ard by rulemaking, which are between 3 days and no longer
64-than one year in length” in its place.
65- (6) Paragraph (19) is amended as follows:
66- (A) Strike the phrase “dental treatment, or” and insert the phrase “dental
67-treatment, a patient who is a non- resident cardholder, or” in its place.
68- (B) Strike the phrase “provided, that a patient” and insert the phrase
69-“provided, that a patient who is a non- resident cardholder or a patient” in its place.
70- (7) A new paragraph (19B) is added to read as follows:
71- “(19B) “Recreation center” means a Department of Parks and Recreation public
72-facility.”.
73- (8) Paragraph (20C)(B) is amended by striking the phrase “or has a non- parent
74-legal guardian who is or has been incarcerated” and inserti ng the phrase “or has a non- parent
75-legal guardian, a grandparent, or a sibling who is or has been arrested, convicted, or
76-incarcerated” in its place . ENROLLED ORIGINAL
40+ Sec. 3. Section 1042(2) of the Delinquent Debt Recovery Act of 2012, effective 27
41+September 20, 2012 (D.C. Law 19-168; D.C. Official Code § 1-350.01(2)), is amended to read as 28
42+follows: 29
43+“(2) “Delinquent debt” means: 30
44+“(A) Any financial obligation owed by a person to a District agency that 31
45+remains unpaid more than 90 days after it was due; provided, that the term shall not include tax 32
46+debts or child-support debts; or 33
47+“(B) A fine issued by the Alcoholic Beverage and Cannabis 34
48+Administration pursuant to section 9 of the Legalization of Marijuana for Medical Treatment 35
49+Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.08), 36
50+or section 8 of the Medical Cannabis Amendment Act of 2022, effective March 22, 2023 (D.C. 37
51+Law 24-332; D.C. Official Code § 7-1675.01), that remains unpaid more than 30 days after it 38
52+was due.”. 39
53+ Sec. 4. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective 40
54+July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.01 et seq.), is amended as follows: 41
55+ (a) Section 2 (D.C. Official Code § 7-1671.01) is amended as follows: 42
56+ (1) Paragraph (1E) is redesignated as paragraph (1G). 43
57+ (2) New paragraphs (1E) and (1F) are added to read as follows: 44 ENGROSSED ORIGINAL
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83- (b) Section 6(b) (D.C. Official Code § 7- 1671.05(b) ) is amended as follows:
84- (1) Paragraph (4) is amended as follows:
85- (A) Subparagraph (A) is amended by striking the phrase “30 days” and
86-inserting the phrase “periods established by the ABC Board by rulemaking, which are between 3
87-days and no longer than one year in length” in its place.
88- (B) Subparagraph (B) is amended by striking the phrase “ 30-day
89-temporary non- resident” and inserting the phrase “temporary non- resident” in its place.
90- (2) Paragraph (5)(C) is amended by striking the phrase “ 3 years” and inserting the
91-phrase “3 years , except for temporary non -resident registration identification cards that are valid
92-for periods established by the ABC Board by rulemaking, which shall be between 3 days and no
93-longer than one year in length” in its place.
94- (3) A new paragraph (11A) is added to read as follows:
95- “(11A) Allow testing laboratories to:
96- “(A) Receive and test samples of medical cannabis products from
97-qualifying patients; provided, that the qualifying patient must present proof that he or she is
98-currently registered, and that the medical cannabis product was purchased from a retailer or
99-internet retailer licensed with ABCA ; and
100- “(B) Receive and test samples of medical cannabis products from licensed
101-cultivation centers or manufacturers for purposes of quality assurance or research and
102-development; provided, that samples collected for quality assurance or research and development
103-testing may be selected by the cultivation center or manufacturer non-randomly; provided
104-further, that any tests conducted for purposes of quality assurance or research and development
105-shall not satisfy the requirements of paragraphs (8) through (11) of this subsection;”.
106- (4) A new paragraph (14A) is added to read as follows:
107- “(14A) Conduct announced and unannounced inspections of unlicensed
108-establishments;”.
109- (5) Paragraph ( 15) is amended by striking the phrase “Establish sliding-scale
110-registration and annual renewal fees for all persons and entities required to register or obtain a
111-license pursuant to this act; provided” and inserting the phrase “Establish registration, sliding-
112-scale registration, and annual renewal fees for all persons and entities required to register or
113-obtain a license pursuant to this act and permi t the ABC Board, by rule, to make qualifying
114-patient and caregiver registrations available at no cost ; provided” in its place.
115- (6) Paragraph (18) is repealed.
116- (c) Section 7 (D.C. Official Code § 7- 1671.06) is amended as follows:
117- (1) A new subsection (b- 1) is added to read as follows:
118- “(b-1) An applicant that filed a medical cannabis retailer or internet retailer
119-license application with ABCA on July 1, 2024, shall be eligible to have its application
120-considered by the ABC Board.”.
121-(2) Subsection (c) is amended to read as follows: ENROLLED ORIGINAL
64+ “(1E) “Affected ANC” means any Advisory Neighborhood Commission within 45
65+600 feet of where a medical cannabis cultivator, manufacturer, retailer, or internet retailer facility 46
66+is or will be located. 47
67+ “(1F) “Another jurisdiction” means any state, commonwealth, or territory of the 48
68+United States.”. 49
69+ (3) Paragraph (13B) is amended as follows: 50
70+(A) The lead-in language is amended by striking the phrase “resident 51
71+who” and inserting the phrase “resident who is a person who resides or is domiciled in another 52
72+state, territory, foreign country, or foreign territory and who” in its place. 53
73+(B) Subparagraph (B) is amended by striking the phrase “30-day 54
74+registration identification card” and inserting the phrase “registration identification card valid for 55
75+periods established by the ABC Board by rulemaking, which are between 3 days and no longer 56
76+than one year in length” in its place. 57
77+ (4) Paragraph (19) is amended as follows: 58
78+ (A) Strike the phrase “dental treatment, or” and insert the phrase “dental 59
79+treatment, a patient who is a non-resident cardholder, or” in its place. 60
80+ (B) Strike the phrase “provided, that a patient” and insert the phrase 61
81+“provided, that a patient who is a non-resident cardholder or a patient” in its place. 62
82+ (5) Paragraph (19A) is redesignated as paragraph (19B). 63
83+ (6) A new paragraph (19A) is added to read as follows: 64 ENGROSSED ORIGINAL
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128-“(c)(1) Medical cannabis products shall be packaged in child-resistant packaging in
129-accordance with 16 C.F.R. Part 1700 and shall not contain any statement, depiction, or
130-illustration that:
131-“(A) Promotes over consumption;
132-“(B) Depicts a person under the age of 21 consuming cannabis; or
133-“(C) Is especially appealing to persons under 21 years of age as defined in
134-paragraph (2) of this subsection.
135-“(2) For purposes of this subsection, the term “especially appealing to persons
136-under 21 years of age” means a product or label including one that contains:
137-“(A) Images of cartoon characters, toys, or animals;
138-“(B) Bubble-type or other cartoon- like font;
139-“(C) A design, brand, or name that resembles a non- cannabis consumer
140-product;
141-“(D) Symbols or celebrities that are commonly used to market products to
142-persons under the age of 21; or
143-“(E) The word candy or candies.”.
144- (3) A new subsection (c-1) is added to read as follows:
145- “(c-1) It shall be a violation of this act for any unlicensed or licensed cultivation
146-center, manufacturer, retailer, or internet retailer to represent that goods or services or the
147-business is compliant with the Legalization of Possession of Minimal Amounts of Marijuana for
148-Personal Use Initiative of 2014, effective February 26, 2015 (D.C. Law 20- 153; 62 DCR 880);
149-except, that a licensed cultivation center, manufacturer, retailer, or internet retailer may have
150-signage indicating that there is medical cannabis on the property.”.
151- (4) Subsection (d) is amended as follows:
152- (A) Paragraph (2) is amended by striking the phrase “retailer or online
153-retailer license” and inserting the phrase “retailer license” in its place.
154- (B) A new paragraph (5) is added to read as follows:
155- “(5) Applications for additional licenses pursuant to paragraphs (1) through (3) of
156-this subsection shall be filed with ABCA by the existing cultivation center or dispensary by May
157-1, 2025.”.
158- (5) Subsection (e)(1) is amended as follows:
159- (A) Subparagraph (F) is amended by striking the phrase “retailer or
160-internet retailer license” and inserting the phrase “retailer license” in its place.
161- (B) A new subparagraph (G) is added to read as follows:
162- “(G) No licensee holding a cultivation center license shall hold an internet
163-retailer license.”
164- (6) Subsection (h) is amended by striking the phrase "cultivation centers who
165-receive a manufacturer’s license pursuant to subsection (d) of this section” and inserting the
166-phrase “ cultivation centers and retailers, and applicants who scored 150 points or more during ENROLLED ORIGINAL
90+ “(19A) “Recreation center” means a Department of Parks and Recreation public 65
91+facility. 66
92+ (7) Paragraph (20C)(B) is amended by striking the phrase “or has a non-parent 67
93+legal guardian who is or has been incarcerated” and inserting the phrase “or has a non-parent 68
94+legal guardian, a grandparent, or a sibling who is or has been arrested, convicted, or 69
95+incarcerated” in its place. 70
96+ (b) Section 6(b) (D.C. Official Code § 7-1671.05(b)) is amended as follows: 71
97+ (1) Paragraph (4) is amended as follows: 72
98+ (A) Subparagraph (A) is amended by striking the phrase “30 days” and 73
99+inserting the phrase “periods established by the ABC Board by rulemaking, which are between 3 74
100+days and no longer than one year in length” in its place. 75
101+ (B) Subparagraph (B) is amended by striking the phrase “30-day 76
102+temporary non-resident ” and inserting the phrase “temporary non-resident” in its place. 77
103+ (2) Paragraph (5)(C) is amended by striking the phrase “3 years.” and inserting 78
104+the phrase “3 years, except for temporary non-resident registration identification cards that are 79
105+valid for periods established by the ABC Board by rulemaking, which shall be between 3 days 80
106+and no longer than one year in length.” in its place. 81
107+ (3) A new paragraph (11A) is added to read as follows: 82
108+ “(11A) Allow testing laboratories to: 83 ENGROSSED ORIGINAL
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173-the ABC Board open application period that occurred between November 29, 2021, and March
174-28, 2022, who receive a cultivation center, manufacturer, or retailer’s license pursuant to
175-subsections (d), (w), (x) and (y) of this section” in its place.
176- (7) Subsection (k) is amended as follows:
177- (A) Paragraph (1) is amended to read as follows:
178- “(1) The ABC Board shall be authorized to issue a 2- year conditional license for a
179-cultivation center, retailer, internet retailer, manufacturer, courier, or testing laboratory that does
180-not currently have a proposed location.”.
181- (B) The lead-in language of paragraph (2) is amended to read as follows:
182-“(2) Under the conditional license, the applicant shall have 2 years from the date
183-of ABC Board approval to submit to ABCA:”.
184- (C) Paragraph (4) is amended to read as follows:
185-“(4) A conditional license that does not meet the terms of this subsection or is not
186-operating after a period of 2 years shall be canceled by the ABC Board .”.
187- (8) A new subsection (k- 1) is added to read as follows:
188- “(k-1) A one-year conditional license that is in effect as of the effective date of
189-the Medical Cannabis Clarification and Program Enforcement Amendment Act of 2024, passed
190-on 2nd reading on October 1 , 2024 ( Enrolled version of Bill 25 -581), shall automatically convert
191-to a 2- year conditional license, expiring one year after the date the original conditional license
192-was set to expire, at no additional cost and without additional ABC Board approval.”.
193- (9) Subsection (n)(2) is amended to read as follows:
194- “(2)(A) The ABC Board shall, by rules issued pursuant to sectio n 14, establish the
195-initial application and renewal fees for cultivation center, manufacturer, retailer, internet retailer,
196-and courier licenses. The ABC Board may revise these fees as considered necessary.
197- “(B) There shall be no initial application fee for a testing laboratory
198-license. Renewal fees for a testing laboratory license shall be established by rules issued pursuant
199-to subparagraph (A) of this paragraph.”.
200- (10) Subsection (q) is amended to read as follows:
201- “(q)(1) A retailer or internet retailer shall not locate within any residential district
202-or within 400 feet of a preschool, primary or secondary school, or recreation center; except, that
203-a license holder or an applicant who has applied prior to the effective date of the Medical
204-Cannabis Clarification and Program Enforcement Amendment Act of 2024, passed on 2nd
205-reading on October 1, 2024 ( Enrolled version of Bill 25 -581), may be permitted to locate within
206-300 feet of a preschool, primary or secondary school, or recreation center.
207- “(2) A retailer or internet retailer that received a license in compliance
208-with paragraph (1) of this subsection shall not have to relocate to renew its license at its existing
209-location if a preschool, primary or secondary school, or recreation center subsequently locates
210-within 400 feet of its facility.”.
211- (11) New subsections (q-1) and (q- 2) are added to read as follows: ENROLLED ORIGINAL
115+ “(A) Receive and test samples of medical cannabis products from 84
116+qualifying patients; provided, that the qualifying patient must present proof that he or she is 85
117+currently registered, and that the medical cannabis product was purchased from a retailer or 86
118+internet retailer licensed with ABCA; and 87
119+ “(B) Receive and test samples of medical cannabis products from licensed 88
120+cultivation centers or manufacturers for purposes of quality assurance or research and 89
121+development; provided, that samples collected for quality assurance or research and development 90
122+testing may be selected by the cultivation center or manufacturer non-randomly; provided 91
123+further, that any tests conducted for purposes of quality assurance or research and development 92
124+shall not satisfy the requirements of paragraphs (8) through (11) of this subsection;”. 93
125+ (4) A new paragraph (14A) is added to read as follows: 94
126+ “(14A) Conduct announced and unannounced inspections of unlicensed 95
127+establishments;”. 96
128+ (5) Paragraph (15) is amended by striking the phrase “Establish sliding-scale 97
129+registration and annual renewal fees for all persons and entities required to register or obtain a 98
130+license pursuant to this act; provided” and inserting the phrase “Establish registration, sliding-99
131+scale registration, and annual renewal fees for all persons and entities required to register or 100
132+obtain a license pursuant to this act and permit the ABC Board, by rule, to make qualifying 101
133+patient and caregiver registrations available at no cost; provided” in its place. 102 ENGROSSED ORIGINAL
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218- “(q-1)(1) No retailer license shall be issued for a facility that is located within 400 feet
219-from another facility operating under a retailer license.
220- “(2) In determining whether a retailer application is eligible to be approved, the
221-ABC Board shall ensure that the retailer application will not be located within 400 feet of a
222-previously submitted retailer application filed timely by another applicant.
223- “(3) ABCA shall proceed forward with the application filed by the facility that is
224-first in time. If the application is subsequently denied, ABCA shall proceed with the application
225-that is second in time, third in time, et cetera, until an application is approved.
226- “(q-2) In determining the appropriateness of the initial issuance of a license or a transfer
227-of a license to a new location for a medical cannabis retailer, the Board shall also consider:
228- “(1) The proximity of the medical cannabis retailer to a daycare center;
229- “(2) The effect of the medical cannabis retailer on the operation and clientele of a
230-daycare center; and
231- “(3) Whether school -aged children frequenting the daycare center or centers in
232-proximity to the medical cannabis retailer will be unduly attracted to the retailer while present at,
233-or going to or from, the daycare center.”.
234- (12) New subsections (w), (x), (y) and (z) are added to read as follows:
235- “(w)(1) The 2 cultivation center registration applicants that submitted a medical cannabis
236-facility registration application to the ABC Board between November 29, 2021, and March 28,
237-2022, that tied for second, and received the same total score shall be awarded a cultivation center
238-registration.
239- “(2) A cultivation center registration applicant not referenced in paragraph (1) of
240-this subsection that scored 150 points or more during the same open application period shall be
241-considered for a cultivation center registration after May 1, 2023; provided, that the applicant
242-files a corrected application, including an application to change the facility location, with the
243-ABC Board by May 1, 2025. An applicant that scored 150 points or higher shall be allowed to
244-change the location of the cultivation center facility on its application by May 1, 2025, without
245-negatively affecting the status of the application.
246- “(3) An applicant that filed more than one cultivation center registration
247-application during the open application period with one or more of the same owners shall be
248-considered for only one cultivation center registration under this subsection.
249- “(4) An initial application fee paid by a cultivation center registration applicant
250-that scored 150 points or higher shall be credited by ABCA toward the entire cost of the
251-applicant’s cultivation center application fee.
252- “(x)(1) A dispensary registration applicant that submitted a medical cannabis facility
253-registration to the ABC Board between November 29, 2021, and March 28, 2022, and received
254-150 points or more shall be considered for a retailer registration no earlier than 180 days after
255-March 22, 2023. An applicant shall be allowed to change the location of the retailer facility on
256-its application by May 1, 2025, without negatively affecting the status of the application. ENROLLED ORIGINAL
140+ (6) Paragraph (18) is repealed. 103
141+ (c) Section 7 (D.C. Official Code § 7-1671.06) is amended as follows: 104
142+ (1) A new subsection (b-1) is added to read as follows: 105
143+ “(b-1) An applicant that filed a medical cannabis retailer or internet retailer 106
144+license application with ABCA on July 1, 2024 shall be eligible to have its application 107
145+considered by the ABC Board.”. 108
146+ (2) A new subsection (c-1) is added to read as follows: 109
147+ “(c-1) It shall be a violation of this act for any unlicensed or licensed cultivation 110
148+center, manufacturer, retailer, or internet retailer to represent that goods or services or the 111
149+business is compliant with the Legalization of Possession of Minimal Amounts of Marijuana for 112
150+Personal Use Initiative of 2014, effective February 26, 2015 (D.C. Law 20-153; 62 DCR 880); 113
151+except, that a licensed cultivation center, manufacturer, retailer, or internet retailer may have 114
152+signage indicating that there is medical cannabis on the property.”. 115
153+ (3) Subsection (d) is amended as follows: 116
154+ (A) Paragraph (2) is amended by striking the phrase “retailer or online 117
155+retailer license” and inserting the phrase “retailer license” in its place. 118
156+ (B) A new paragraph (5) is added to read as follows: 119
157+ “(5) Applications for additional licenses pursuant to paragraphs (1) through (3) of 120
158+this subsection shall be filed with ABCA by the existing cultivation center or dispensary by May 121
159+1, 2025.”. 122 ENGROSSED ORIGINAL
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263- “(2) An applicant that filed more than one dispensary registration application
264-during the open application period with one or more of the same owners shall be considered for
265-only one retailer registration under this subsection.
266- “(3) An initial application fee paid by a dispensary registration applicant that
267-scored 150 points or higher shall be credited by ABCA toward the entire cost of the applicant’s
268-retailer application fee.
269- “(y) The 5 cultivation center registration applicants that submitted medical cannabis
270-facility registration applications to the ABC Board between November 29, 2021, and March 28,
271-2022, that scored 150 points or more shall automatically receive a manufacturer license;
272-provided, that the annual fee is paid; provided further, that the applicant registers on a form
273-provided by ABCA with the ABC Board by May 1, 2024.
274- “(z)(1) An applicant who has submitted a complete license application for a cultivation
275-center, manufacturer, retailer, or internet retailer to transfer its license to a new location, or for a
276-retailer endorsement may obtain a stipulated license to begin operations authorized by the
277-applied-for license under the following conditions:
278- “(A) The applicant has submitted a stipulated license application on a
279-form provided by the ABC Board;
280- “(B) The applicant has submitted written correspondence from an officer
281-of the A dvisory N eighborhood C ommission where the applicant’s premises is located stating that
282-the Advisory N eighborhood C ommission has voted with a quorum present to either support or
283-not object to the issuance of a stipulated license to the applicant pending completion of the 45-
284-day protest period; and
285- “(C) The applicant submits to ABCA the stipulated license application fee.
286-“(2) A cultivation center, manufacturer, retailer, or internet retailer applicant shall
287-stop selling, delivering or serving medical cannabis under the stipulated license if a valid protest
288-is filed by an affected Advisory Neighborhood Commission during the 45- day protest period or
289-the 30- day extended public comment period, or the application is withdrawn or denied.
290-“(3) An applicant operating under a stipulated license shall operate in accordance
291-with the laws and regulations applicable to the requested cultivation center, manufacturer,
292-retailer, or internet retailer license.”.
293- (d) Section 7a (D.C. Official Code § 7 -1671.06a) is amended as follows:
294-(1) A new subsection (c-1) is added to read as follows:
295- “(c-1)(1) An unlicensed establishment that applied for a retailer license under subsection
296-(a)(3) of this section may be allowed to change the location of the retailer facility on its
297-application within 180 days after the effective date of the Medical Cannabis Clarification and
298-Program Enforcement Amendment Act of 2024, passed on 2nd reading on October 1 , 2024
299-(Enrolled version of Bill 25 -581), without negatively affecting the status of the application;
300-provided, that: ENROLLED ORIGINAL
166+ (4) Subsection (e)(1) is amended as follows: 123
167+ (A) Subparagraph (F) is amended by striking the phrase “retailer or 124
168+internet retailer license” and inserting the phrase “retailer license” in its place. 125
169+ (B) A new subparagraph (G) is added to read as follows: 126
170+ “(G) No licensee holding a cultivation center license shall hold an internet 127
171+retailer license.” 128
172+ (5) Subsection (h) is amended by striking the phrase "cultivation centers who 129
173+receive a manufacturer’s license pursuant to subsection (d) of this section” and inserting the 130
174+phrase “cultivation centers and retailers, and applicants who scored 150 points or more during 131
175+the ABC Board open application period that occurred between November 29, 2021, and March 132
176+28, 2022, who receive a cultivation center, manufacturer, or retailer’s license pursuant to 133
177+subsections (d), (w), (x) and (y) of this section” in its place. 134
178+ (6) Subsection (k) is amended as follows: 135
179+ (A) Paragraph (1) is amended to read as follows: 136
180+ “(1) The ABC Board shall be authorized to issue a two-year conditional license 137
181+for a cultivation center, retailer, internet retailer, manufacturer, courier, or testing laboratory that 138
182+does not currently have a proposed location.”. 139
183+ (B) The lead-in language of paragraph (2) is amended to read as follows: 140
184+“(2) Under the conditional license, the applicant shall have 2 years from the date 141
185+of ABC Board approval to submit to ABCA:”. 142 ENGROSSED ORIGINAL
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307- “(A) The location of the establishment in the original application filed
308-with ABCA was within 300 feet of a preschool, primary or secondary school, or recreation
309-center; and
310- “(B) The main entrance to the preschool, primary or secondary school, or
311-recreation center or the nearest property line of the school or recreation center is actually on or
312-occupies ground zoned commercial or industrial according to the official atlases of the Zoning
313-Commission of the District of Columbia.
314- “(2) An unlicensed establishment that elects to change the location of its facility
315-pursuant to paragraph (1) shall not locate its new facility:
316- “(A) Within a residential district;
317- “(B) Within 400 feet of a preschool, primary or secondary school, or
318-recreation center; or
319- “(C) Within 400 feet of an existing retailer. ”.
320-(2) Subsection (e)(1) is amended to read as follows:
321- “(1) Cultivation Center, Retailer, and Internet Retailer licenses issued under this
322-section shall count toward the 50% set aside requirement for social equity applicants set forth in
323-section 7(h).”.
324- (3) Subsection (h) is amended to read as follows:
325- “(1) The ABC Board shall provide notice of complete and eligible cultivation
326-center, retailer, and internet retailer license applications received from unlicensed establishments
327-to the Ward Councilmember, and any affected ANC, for a 45-day public comment period. The
328-ABC Board ma y, at the request of both an affected ANC and the applicant, extend the ANC’s
329-protest petition deadline by up to an additional 30 calendar days for the sole purpose of allowing
330-the ANC to vote on whether to support or protest the license application. The ABC Board may ,
331-on a motion of any party or on its own motion, also continue a hearing to permit an affected
332-ANC to vote on a material issue in the hearing.
333- “(2) An affected ANC may protest the issuance of the license.
334- “(3) The ABC Board shall hold a contested case protest hearing within 120 days
335-of receiving a timely protest from an affected ANC pursuant to paragraph (2) of this
336-subsection.”.
337- (e) Section 7b (D.C. Official Code § 7- 1671.06b) is amended as follows:
338- (1) Subsection (b) is amended as follows:
339-(A) Paragraph (1) is amended by striking the word “immediately” and
340-inserting the phrase “once its license is issued by ABCA” in its place.
341-(B) Paragraph ( 2) is redesignated as paragraph (3).
342-(C) A new paragraph (2) is added to read as follows:
343- “(2)(A) An unlicensed establishment that is approved for a cultivation center,
344-retailer, or internet retailer license shall obtain issuance of its license by the later date of either ENROLLED ORIGINAL
192+ (C) Paragraph (4) is amended to read as follows: 143
193+“(4) A conditional license that does not meet the terms of this subsection or is not 144
194+operating after a period of 2 years shall be canceled by the ABC Board.”. 145
195+ (7) A new subsection (k-1) is added to read as follows: 146
196+ “(k-1) A one-year conditional license that is in effect as of the effective date of 147
197+the Medical Cannabis Clarification and Program Enforcement Amendment Act of 2024, as 148
198+approved by the Committee of the Whole on September 17, 2024 (Committee print of Bill 25-149
199+581), shall automatically convert to a two-year conditional license, expiring one year after the 150
200+date the original conditional license was set to expire, at no additional cost and without 151
201+additional ABC Board approval.”. 152
202+ (8) Subsection (n)(2) is amended to read as follows: 153
203+ “(2)(A) The ABC Board shall, by rules issued pursuant to section 14, establish the 154
204+initial application and renewal fees for cultivation center, manufacturer, retailer, internet retailer, 155
205+and courier licenses. The ABC Board may revise these fees as considered necessary. 156
206+ “(B) There shall be no initial application fee for a testing laboratory 157
207+license. Renewal fees for a testing laboratory license shall be established by rules issued pursuant 158
208+to subparagraph (A) of this paragraph.”. 159
209+ (9) Subsection (q) is amended to read as follows: 160
210+ “(q)(1) A retailer or internet retailer shall not locate within any residential district 161
211+or within 400 feet of a preschool, primary or secondary school, or recreation center; except, that 162 ENGROSSED ORIGINAL
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351-September 30, 2024, or within 180 days of ABC Board approva l, or have its ABC Board
352-approval rescinded.
353-“(B)(i) An unlicensed establishment that temporarily discontinues
354-operations after ABC Board approval that is not involved in unlicensed activity may request that
355-the ABC Board extend the deadline in subpara graph (A) of this paragraph by one additional 180-
356-day period to allow the applicant to take deliberate steps to resume business operations at the
357-applicant’s proposed location.
358-“(ii) The ABC Board shall approve the applicant’s extension
359-request; provided, that the applicant can demonstrate to the ABC Board that the applicant is
360-making reasonable progress to resume business operations at the proposed location.
361-“(C) Notwithstanding subparagraph ( A) of this paragraph:
362-“(i) An unlicensed establishment that applies for a retailer or
363-internet retailer license under this section shall be required to have its license issued and be in
364-operation no later than March 31, 2025, or have its Board approval rescinded or its application
365-denied by the Board; and
366-“(ii) A cultivation center, retailer, or internet retailer applicant shall
367-cease any unlicensed activity once its license is issued by ABCA.”.
368-(2) A new subsection (e) is added to read as follows:
369- “(e) An unlicensed establishment shall not display signage or images advertising:
370- “(1) The prices of cannabis or cannabis product in any window of the
371-establishment;
372- “(2) Cannabis or a cannabis product on the exterior of any window or on the
373-exterior or interior of any door; or
374- “(3) Cannabis or a cannabis product on the exterior or visible from the exterior
375-of the unlicensed establishment or elsewhere in the District.”.
376-(f) Section 7c (D.C. Official Code § 7- 1671.06c) is amended as follows:
377-(1) Subsection (a)(1) is amended as follows:
378-(A) Subparagraph (B) is amended by striking the phrase “the retailer or
379-internet retailer” and inserting the phrase “the retailer” in its place.
380-(B) Subparagraph (D) is amended by striking the phrase “safe-use
381-treatment facility” and inserting the phrase “designated consumption area” in its place.
382-(2) Subsection (b)(3) is amended by striking the phrase “safe-use treatment
383-facility area” and inserting the phrase “designated consumption area” in its place.
384-(3) Subsection (c) is amended as follows:
385-(A) Paragraph (2) is amended to read as follows:
386-“(2) A smoke-free area for employees to monitor the designated consumption
387-area, if combustible medical cannabis products are available to qualifying patients to consume in
388-the designated consumption area; and”.
389-(B) Paragraph (3) is amended to read as follows: ENROLLED ORIGINAL
218+a license holder or an applicant who has applied prior to the effective date of the Medical 163
219+Cannabis Clarification and Program Enforcement Amendment Act of 2024, as approved by the 164
220+Committee of the Whole on September 17, 2024 (Committee print of Bill 25-581) may be 165
221+permitted to locate within 300 feet of a preschool, primary or secondary school, or recreation 166
222+center. 167
223+ “(2) A retailer or internet retailer that received a license in compliance 168
224+with paragraph (1) of this subsection shall not have to relocate to renew its license at its existing 169
225+location if a preschool, primary or secondary school, or recreation center subsequently locates 170
226+within 400 feet of its facility.”. 171
227+ (10) New subsections (q-1) and (q-2) are added to read as follows: 172
228+ “(q-1)(1) No retailer license shall be issued for a facility that is located within 400 feet 173
229+from another facility operating under a retailer license. 174
230+ “(2) In determining whether a retailer application is eligible to be approved, the 175
231+ABC Board shall ensure that the retailer application will not be located within 400 feet of a 176
232+previously submitted retailer application filed timely by another applicant. 177
233+ “(3) ABCA shall proceed forward with the application filed by the facility that is 178
234+first in time. If the application is subsequently denied, ABCA shall proceed with the application 179
235+that is second in time, third in time, et cetera, until an application is approved. 180
236+ “(q-2) In determining the appropriateness of the initial issuance of a license or a transfer 181
237+of a license to a new location for a medical cannabis retailer, the Board shall also consider: 182 ENGROSSED ORIGINAL
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396-“(3) If combustible medical cannabis products are available to qualifying patients
397-to consume in the designated consumption area, a ventilation system that directs air from the
398-designated consumption area to the outside of the building through a pollution control unit or
399-odor control unit that, at a minimum, eliminates all detectable odor, smoke, and by-products of
400-combustion so as to prevent any and all public nuisances.”.
401-(4) The lead-in language of subsection (e)(2) is amended by striking the phrase
402-“Include with the application” and inserting the phrase “If combustible medical cannabis
403-products will be available to qualifying patients to consume in the designated consumption area,
404-include with the application” in its place.
405-(g) Section 7f (D.C. Official Code § 7- 1671.06f) is amended by adding a new subsection
406-(b-1) to read as follows:
407-“(b-1) No holder of a retailer and safe use treatment facility endorsement located within
408-400 feet of a day care center may obtain a summer garden endorsement pursuant to this section.”.
409-(h) New sections 7g, 7h, 7i and 7j are added to read as follows:
410-“Sec. 7g. Standing to file protest against a retailer license.
411-“(a) Except as provided in Section 6a regarding protests against unlicensed
412-establishments that applied for licenses prior to January 30, 2024, t he following persons may
413-protest the issuance of a license, the renewal of a license, or the transfer of a medical cannabis
414-retailer license to a new location:
415-“(1) A property owner or commercial tenant whose property abuts where the
416-establishment is or will be located;
417-“(2) A property owner or commercial tenant whose property is located directly
418-across the street from where the establishment is or will be located ; or
419-“(3) A daycare center located within 400 feet of where the establishment is or will
420-be located, or
421-“(4) Any affected ANC.
422-“(b) Any person objecting under subsection (a) of this section to the approval of an
423-application shall notify the ABC Board in writing of his or her intention to object and the
424-specific grounds for the objection within the protest period.
425-“Sec. 7h. Notice to ANCs and Councilmembers.
426-“(a) ABCA shall provide electronic notice to the Councilmember representing the ward
427-where the establishment is or will be located and any affected ANC at least 45 calendar days
428-prior to the approval of a location for a retailer.
429-“(b) The ABC Board may, at the request of both an affected ANC and the applicant,
430-extend the ANC’s protest petition deadline set forth in subsection (a) of this section by up to an
431-additional 30 calendar days for the sole purpose of allowing the ANC to vote on whether to
432-support or protest the license application. The ABC Board may , on a motion of any party or on
433-its own motion, also continue a hearing to permit an affected ANC to vote on a material issue in
434-the hearing. ENROLLED ORIGINAL
244+ “(1) The proximity of the medical cannabis retailer to a daycare center; 183
245+ “(2) The effect of the medical cannabis retailer on the operation and clientele of a 184
246+daycare center; and 185
247+ “(3) Whether school-aged children frequenting the daycare center or centers in 186
248+proximity to the medical cannabis retailer will be unduly attracted to the retailer while present at, 187
249+or going to or from, the daycare center.”. 188
250+ (11) New subsections (w), (x), (y) and (z) are added to read as follows: 189
251+ “(w)(1) The 2 cultivation center registration applicants that submitted a medical cannabis 190
252+facility registration application to the ABC Board between November 29, 2021, and March 28, 191
253+2022, that tied for second, and received the same total score shall be awarded a cultivation center 192
254+registration. 193
255+ “(2) A cultivation center registration applicant not referenced in paragraph (1) of 194
256+this subsection that scored 150 points or more during the same open application period shall be 195
257+considered for a cultivation center registration after May 1, 2023; provided, that the applicant 196
258+files a corrected application, including an application to change the facility location, with the 197
259+ABC Board by May 1, 2025. An applicant that scored 150 points or higher shall be allowed to 198
260+change the location of the cultivation center facility on its application by May 1, 2025, without 199
261+negatively affecting the status of the application. 200 ENGROSSED ORIGINAL
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441-“Sec. 7i. Grounds for protest.
442-“(a) A protest against a medical cannabis retailer license by persons with standing under
443-section 7g of this chapter shall be on the basis of:
444- “(1) A violation of this act by the applicant;
445- “(2) A violation of civil law by the applicant that is directly related to the
446-operation of the business or establishment for which the license is sought; or
447- “(3) Vehicular and pedestrian safety.
448-“(b) The ABC Board shall determine whether a violation of civil law is directly related to
449-the operation of the business or establishment for which the license is sought by considering the
450-totality of the following factors:
451- “(1) Whether specific elements of the violation are directly related to the
452-specific duties and responsibilities of the license; and
453- “(2) Any evidence produced by the applicant concerning the applicant’s fitness,
454-including the length of time that has elapsed since the violation and mitigating circumstances .
455-“(c) The ABC Board may issue a license, approve the renewal of a license, or approve the
456-transfer of a medical cannabis retailer license to a new location without a hearing on the protest
457-if the ABC Board finds that the basis of the protest lacks substance.
458-Sec. 7j. ANC comments.
459-“The ABC Board shall accord great weight to input provided by an affected ANC
460-regarding the proposed or existing location of a retailer when approving or rejecting an
461-application for a license.”.
462- (i) Section 9 (D.C. Official Code § 7–1671.08) is amended as follows:
463- (1) Subsection (d) is amended by striking the phrase “licensed cultivation” and
464-inserting the phrase “licensed or unlicensed cultivation” in its place.
465- (2) New subsections (f), (g), (h), and (i) are added to read as follows:
466- “(f) Beginning January 31, 2024, the ABC Board may issue the following fines to an
467-unlicensed establishment that violates section 7(c-1) or section 7b(e), or has not filed an accepted
468-and pending application with the ABC Board and knowingly engages or attempts to engage in
469-the purchase, sale, exchange, delivery, or any other form of commercial transaction involving
470-cannabis that is not purchased, sold, exchanged, or delivered in accordance with the provisions
471-of this act or section 401 of the District of Columbia Uniform Controlled Substances Act of
472-1981, effective August 5, 1981 (D.C. Law 4- 29; D.C. Official Code § 48- 904.01):
473- “(1) For the first violation, the ABC Board may:
474- “(A) Issue a fine in the amount of $10,000; and
475- “(B) Require the unlicensed establishment to submit a remediation plan to
476-the ABC Board that contains the unlicensed establishment’s plan to prevent any future
477-recurrence of purchasing, selling, exchanging, delivering, or otherwise transacting any cannabis
478-or cannabis products that are not purchased, sold, exchanged, or delivered in accordance with the ENROLLED ORIGINAL
268+ “(3) An applicant that filed more than one cultivation center registration 201
269+application during the open application period with one or more of the same owners shall be 202
270+considered for only one cultivation center registration under this subsection. 203
271+ “(4) An initial application fee paid by a cultivation center registration applicant 204
272+that scored 150 points or higher shall be credited by ABCA toward the entire cost of the 205
273+applicant’s cultivation center application fee. 206
274+ “(x)(1) A dispensary registration applicant that submitted a medical cannabis facility 207
275+registration to the ABC Board between November 29, 2021, and March 28, 2022, and received 208
276+150 points or more shall be considered for a retailer registration no earlier than 180 days after 209
277+March 22, 2023. An applicant shall be allowed to change the location of the retailer facility on 210
278+its application by May 1, 2025, without negatively affecting the status of the application. 211
279+ “(2) An applicant that filed more than one dispensary registration application 212
280+during the open application period with one or more of the same owners shall be considered for 213
281+only one retailer registration under this subsection. 214
282+ “(3) An initial application fee paid by a dispensary registration applicant that 215
283+scored 150 points or higher shall be credited by ABCA toward the entire cost of the applicant’s 216
284+retailer application fee. 217
285+ “(y) The 5 cultivation center registration applicants that submitted medical cannabis 218
286+facility registration applications to the ABC Board between November 29, 2021, and March 28, 219
287+2022, that scored 150 points or more shall automatically receive a manufacturer license; 220 ENGROSSED ORIGINAL
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485-provisions of this act or section 401 of the District of Columbia Uniform Controlled Substances
486-Act of 1981, effective August 5, 1981 (D.C. Law 4- 29; D.C. Official Code § 48- 904.01);
487- “(2) For any subsequent violations or if the unlicensed establishment fails to
488-submit a remediation plan in accordance with paragraph (1) of this subsection, or if the ABC
489-Board rejects the unlicensed establishment’s remediation plan, the ABC Board may issue
490-additional fines as follows:
491-“(A) For the second violation, a fine in the amount of $20,000;
492-“(B) For the third or subsequent violation, a fine in the amount of $30,000;
493-“(C) F or failing to submit a remediation plan or having its remediation
494-plan rejected by the ABC Board, a fine of in the amount of $10,000.
495- “(3) Revenue collected from fines imposed pursuant to this subsection shall be
496-deposited as follows:
497- “(A) The first $100,000 shall be deposited into the Litigation Support
498-Fund established pursuant to section 106b(b)(6) of the Attorney General for the District of
499-Columbia Clarification and Elected Term Amendment Act of 2010, effective May 27, 2010
500-(D.C. Law 18-160; D.C. Official Code § 1- 301.86b(b)(6)); and
501- “(B) Any revenue collected from fines after the first $100,000 shall be
502-deposited into the Medical Cannabis Social Equity Fund established pursuant to section 9b.
503- “(4) Nothing in this subsection shall preclude the ABC Board from issuing a
504-cease-and-desist order or the closure of an unlicensed establishment for a first or subsequent
505-violation of this subsection.
506- “(g)(1) Notwithstanding sections 7(b) and 9(f), ABCA shall have the authority to inspect
507-the entire premises, inventory, and business records of an unlicensed establishment to determine
508-whether the business is conducting activity in violation of this title . If, after an inspection, ABCA
509-determines that an unlicensed establishment presents an imminent danger to the health or safety
510-of the public, as described in paragraph (2) of this subsection, the ABC Board may summarily
511-close and order the padlocking, by ABCA or MPD without a prior hearing, of the unlicensed
512-establishment, and ABCA or MPD may seize all cannabis and cannabis products found at the
513-premises.
514- “(2) For the purpose of this subsection, the term “imminent danger to the health or
515-safety of the public” includes any of the following:
516-“(A) The unlicensed establishment distributes or attempts to distribute
517-cannabis or a cannabis product to one or more persons under the age of 21.
518-“(B) The unlicensed establishment manufactures, produces, or cultivates
519-cannabis or cannabis products at the building or premises.
520-“(C) Once a testing laboratory has been licensed under this act, the
521-unlicensed establishment distributes, attempts to distribute, or makes available for sale or
522-exchange cannabis or a cannabis product untested by a testing laboratory licensed under this act. ENROLLED ORIGINAL
294+provided, that the annual fee is paid; provided further, that the applicant registers on a form 221
295+provided by ABCA with the ABC Board by May 1, 2024. 222
296+ “(z)(1) An applicant who has submitted a complete license application for a cultivation 223
297+center, manufacturer, retailer, or internet retailer to transfer its license to a new location, or for a 224
298+retailer endorsement may obtain a stipulated license to begin operations authorized by the 225
299+applied-for license under the following conditions: 226
300+ “(A) The applicant has submitted a stipulated license application on a 227
301+form provided by the ABC Board; 228
302+ “(B) The applicant has submitted written correspondence from an officer 229
303+of the Advisory Neighborhood Commission where the applicant’s premises is located stating that 230
304+the Advisory Neighborhood Commission has voted with a quorum present to either support or 231
305+not object to the issuance of a stipulated license to the applicant pending completion of the 45-232
306+day protest period; and 233
307+ “(C) The applicant submits to ABCA the stipulated license application fee. 234
308+“(2) A cultivation center, manufacturer, retailer, or internet retailer applicant shall 235
309+stop selling, delivering or serving medical cannabis under the stipulated license if a valid protest 236
310+is filed by an affected Advisory Neighborhood Commission during the 45-day protest period or 237
311+the 30-day extended public comment period, or the application is withdrawn or denied. 238
312+“(3) An applicant operating under a stipulated license shall operate in accordance 239 ENGROSSED ORIGINAL
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529-“(D) The unlicensed establishment distributes, attempts to distribute or
530-makes available for sale or exchange cannabis or a cannabis product that fails to contain a label
531-identifying the source of the cannabis or cannabis product, including where it was manufactured,
532-the contents of the package, and the cannabis or cannabis product’s ingredients, and
533-tetrahydrocannabinol (THC) content, or is otherwise not labeled in accordance with this act.
534-“(E) The unlicensed establishment fails to comply with a cease-and-desist
535-order.
536-“(F) The unlicensed establishment distributes , attempts to distribute, or
537-makes available for sale or exchange Schedule I substances, or products that contain Schedule I
538-substances, as enumerated in section 204 of the District of Columbia Uniform Controlled
539-Substances Act of 1981, effective August 5, 1981 (D.C. Law 4- 29; D.C. Official Code § 48-
540-902.04).
541-“(G) An employee, agent, or owner of the unlicensed establishment has
542-unlawful firearms or weapons on the premises.
543-“(H) A dangerous crime, as defined in D.C. Official Code § 23- 1331(3), or
544-a crime of violence, as defined in D.C. Official Code § 23- 1331(4), was committed on the
545-premises of the unlicensed establishment.
546-“(I) The unlicensed establishment engages in any activity or operation
547-established as an imminent danger to the health or safety of the public by the ABC Board by
548-rule.
549- “(3) ABCA shall provide the unlicensed establishment’s owner and the property
550-owner with written notice of the summary closure and the right to request a hearing.
551- “(4) The owner of the unlicensed establishment shall have 5 business days after
552-service of the notice of summary closure to request a hearing with the ABC Board, which shall
553-hold a hearing within 5 business days of a timely request.
554- “(5) The ABC Board shall issue a written decision within 5 business days after the
555-hearing.
556- “(h)(1) ABCA or the Metropolitan Police Department may post signage at the site of the
557-unlicensed establishment indicating that unlicensed activity has been found to have occurred for
558-violations of this act .
559- “(2) If the ABC Board orders the closure of an unlicensed establishment, the ABC
560-Board shall post 2 notices in conspicuous places at or near the main street entrance on the outside
561-of the establishment.
562- “(3) The posted notice shall state that the closure is ordered because of a violation
563-of this act or of the regulations promulgated pursuant to this act .
564- “(4) Any person willfully removing, obliterating, or defacing the notice shall be
565-guilty of a violation of this act .
566-“(i)(1) An ABCA investigator may test cannabis and cannabis products to quantify their
567-THC content. ENROLLED ORIGINAL
319+with the laws and regulations applicable to the requested cultivation center, manufacturer, 240
320+retailer, or internet retailer license.”. 241
321+ (d) Section 7a (D.C. Official Code § 7-1671.06a) is amended as follows: 242
322+(1) A new subsection (c-1) is added to read as follows: 243
323+ “(c-1)(1) An unlicensed establishment that applied for a retailer license under subsection 244
324+(a)(3) of this section may be allowed to change the location of the retailer facility on its 245
325+application within 180 days after the effective date of the Medical Cannabis Clarification and 246
326+Program Enforcement Amendment Act of 2024, as approved by the Committee of the Whole on 247
327+September 17, 2024 (Committee print of Bill 25-581), without negatively affecting the status of 248
328+the application, provided that: 249
329+ “(A) The location of the establishment in the original application filed 250
330+with ABCA was within 300 feet of a preschool, primary or secondary school, or recreation 251
331+center; and 252
332+ “(B) The main entrance to the preschool, primary or secondary school, or 253
333+recreation center or the nearest property line of the school or recreation center is actually on or 254
334+occupies ground zoned commercial or industrial according to the official atlases of the Zoning 255
335+Commission of the District of Columbia. 256
336+ “(2) An unlicensed establishment that elects to change the location of its facility 257
337+pursuant to paragraph (1) shall not locate its new facility: 258
338+ “(A) Within a residential district; 259 ENGROSSED ORIGINAL
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574- “(2) In any proceeding before the ABC Board, labeling or packaging in an
575-unlicensed establishment that states that the product contains cannabis or tetrahydrocannabinol,
576-whether in whole or in part, or a derivative thereof, shall create a presumption that the product
577-contains cannabis and contains the amounts of the chemicals indicated on the label or packaging
578-unless such presumption is overcome by a preponderance of evidence to the contrary.”.
579- (j) Section 13a (D.C. Official Code § 7–1671.12a) is amended as follows:
580- (1) Subsection (a) is amended as follows:
581- (A) Strike the phrase “Board or the Mayor” both times it appears and
582-insert the word “Board” in its place.
583- (B) Strike the phrase “to the licensee” and insert the phrase “to the
584-licensee or unlicensed establishment” in its place.
585- (2) Subsection (d) is amended by striking the phrase “Board or the Mayor” and
586-inserting the word “Board” in its place.
587- (3) Subsection (f) is amended by striking the phrase “Board or the Mayor” and
588-inserting the word “Board” in its place.
589- (k) New sections 13b, 13c, 13d, and 13e are added to read as follows:
590- “Sec. 13b. Examination of premises, books, and records.
591- “(a) An applicant for a license, and each licensee, shall allow any ABCA investigator or
592-agent of the ABC Board full opportunity to examine, at any time during business hours:
593- “(1) The premises where a cannabis product is manufactured, kept, sold, or
594-consumed for which an application for a license has been made or for which a license has been
595-issued; and
596- “(2) The books and records of the business for which an application for a license
597-has been made or for which a license has been issued.
598- “(b) ABCA investigators shall examine the premises and books and records of each
599-licensed establishment in the District at least once each year. The investigators shall make
600-reasonable efforts to ensure that the licensee shall know in advance the date of the inspection.
601- “Sec. 13c. Search warrants for illegal cannabis products; disposition of seized products.
602- “If a search warrant is issued by any judge of the Superior Court of the District of
603-Columbia or by a United States Magistrate for the District of Columbia for premises where any
604-cannabis products are sold, exchanged as part of a commercial transaction, delivered, or
605-permitted to be consumed in violation of this title, the cannabis product and any other property
606-designed for use in connection with the unlawful manufacture for sale, keeping for sale, selling,
607-or consumption may be seized and shall be subject to such disposition as the court may make
608-thereof.
609- “Sec. 13d. Notifications from Department of Licensing and Consumer Protection, Office
610-of Tax and Revenue, Fire and Emergency Medical Services Department, and Metropolitan Police
611-Department. ENROLLED ORIGINAL
345+ “(B) Within 400 feet of a preschool, primary or secondary school, or 260
346+recreation center; or 261
347+ “(C) Within 400 feet of an existing retailer.”. 262
348+(2) Subsection (e)(1) is amended to read as follows: 263
349+ “(1) Cultivation Center, Retailer, and Internet Retailer licenses issued under this 264
350+section shall count toward the 50% set aside requirement for social equity applicants set forth in 265
351+section 7(h).” 266
352+ (3) Subsection (h)(1) is amended to read as follows: 267
353+ “(1) The ABC Board shall provide notice of complete and eligible cultivation 268
354+center, retailer, and internet retailer license applications received from unlicensed establishments 269
355+to the Ward Councilmember, and any affected ANC, for a 45-day public comment period. The 270
356+ABC Board may, at the request of both an affected ANC and the applicant, extend the ANC’s 271
357+protest petition deadline by up to an additional 30 calendar days for the sole purpose of allowing 272
358+the ANC to vote on whether to support or protest the license application. The ABC Board may, 273
359+on a motion of any party or on its own motion, also continue a hearing to permit an affected 274
360+ANC to vote on a material issue in the hearing. 275
361+ “(2) An affected ANC may protest the issuance of the license. 276
362+ “(3) The ABC Board shall hold a contested case protest hearing within 120 days 277
363+of receiving a timely protest from an affected ANC pursuant to paragraph (2) of this 278
364+subsection.”. 279 ENGROSSED ORIGINAL
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618- “(a) The Department of Licensing and Consumer Protection, the Office of Tax and
619-Revenue, and the Fire and Emergency Medical Services Department shall notify the ABC Board
620-if a licensed establishment is the subject of a citation, revocation, or other enforcement action for
621-a violation of laws or regulations enforced by those agencies or offices within 30 days after the
622-citation, revocation, or other enforcement action.
623- “(b) If a licensed establishment is the subject of an incident report by the Metropolitan
624-Police Department, the Metropolitan Police Department shall file a copy of the incident report
625-with the ABC Board within 30 days after the incident. The ABC Board shall make the report
626-available for public inspection upon request.
627- “Sec. 13e. Nuisance.
628- “(a) Any unlicensed establishment where cannabis is sold, exchanged as part of a
629-commercial transaction, delivered, or permitted to be consumed shall be a nuisance, except any
630-unlicensed establishment of an applicant that filed an accepted and pending application with the
631-ABC Board during the 90- day open application period.
632- “(b) An action to enjoin any nuisance defined in subsection (a) of this section may be
633-brought in the name of the District of Columbia by the Attorney General for the District of
634-Columbia in the Civil Branch of the Superior Court of the District of Columbia against th e owner
635-or operator of the unlicensed establishment or any person conducting or maintaining such
636-nuisance or any person who knows or should have known that such nuisance is being conducted
637-or maintained.
638- “(c)(1) Upon the filing of a complaint to abate the nuisance, the Court shall hold a
639-hearing on a motion for a preliminary injunction within 14 days of the filing of such action.
640- “(2) If it appears, by affidavit or otherwise, that there is a substantial likelihood
641-that the District of Columbia will be able to prove at trial that the building, ground, or premises
642-of the unlicensed establishment is a nuisance, the court may enter an order preliminarily:
643- “(A) Enjoining the nuisance;
644- “(B) Prohibiting the use of the unlicensed establishment for the purpose of
645-selling cannabis, exchanging cannabis as part of a commercial transaction, delivering cannabis,
646-or permitting cannabis to be consumed until such time as the establishment obtains a license; and
647- “(C) Granting such other relief as the court may deem appropriate.
648- “(3) The District of Columbia need not prove irreparable harm to obtain a
649-preliminary injunction.
650- “(4) Where appropriate, the Court may order a trial of the action on the merits to
651-be advanced and consolidated with the hearing on the motion for preliminary injunction.
652- “(5) This section shall not be construed to prohibit the application for or the
653-granting of a temporary restraining order, or other equitable relief otherwise provided by law.
654- “(d)(1) Within 14 days of the issuance of any preliminary injunction, the Court shall hold
655-a full hearing on the merits of the nuisance action. ENROLLED ORIGINAL
371+ (e) Section 7b (D.C. Official Code § 7-1671.06b) is amended as follows: 280
372+ (1) Subsection (b) is amended as follows: 281
373+(A) Paragraph (1) is amended by striking the word “immediately” and 282
374+inserting the phrase “once its license is issued by ABCA” in its place. 283
375+(B) Paragraph (2) is redesignated as paragraph (3). 284
376+(C) A new paragraph (2) is added to read as follows: 285
377+ “(2)(A) An unlicensed establishment that is approved for a cultivation center, 286
378+retailer, or internet retailer license shall obtain issuance of its license by the later date of either 287
379+September 30, 2024, or within 180 days of ABC Board approval, or have its ABC Board 288
380+approval rescinded. 289
381+“(B)(i) An unlicensed establishment that temporarily discontinues 290
382+operations after ABC Board approval that is not involved in unlicensed activity may request that 291
383+the ABC Board extend the deadline in subparagraph (A) of this paragraph by one additional 180-292
384+day period to allow the applicant to take deliberate steps to resume business operations at the 293
385+applicant’s proposed location. 294
386+“(ii) The ABC Board shall approve the applicant’s extension 295
387+request; provided, that the applicant can demonstrate to the ABC Board that the applicant is 296
388+making reasonable progress to resume business operations at the proposed location. 297
389+“(C) Notwithstanding subparagraph (A) of this paragraph: 298 ENGROSSED ORIGINAL
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662- “(2) If the Court does not issue a preliminary injunction, the Court shall
663-expeditiously schedule a full hearing. If it is determined by a preponderance of the evidence that
664-the unlicensed establishment is a nuisance, the Court shall issue a final order that mandates
665-closure and sealing of the establishment within 72 hours and continued closure until such time as
666-the establishment obtains a license.
667- “(3) The Court may order other appropriate relief, including issuing an order
668-enjoining the nuisance and prohibiting the use of the unlicensed establishment for the purpose of:
669- “(A) Selling cannabis ;
670- “(B) Exchanging cannabis as part of a commercial transaction;
671- “(C) Delivering cannabis ; or
672- “(D) Permitting cannabis to be consumed until such time as the
673-establishment obtains a license.
674- “(4)(A) Execution by the Metropolitan Police Department of any final order to
675-close and seal the establishment shall occur within 7 days of the issuance of the final order.
676- “(B) Notwithstanding subparagraph (A) of this paragraph, if the
677-Metropolitan Police Department has not executed the final order within 5 days of issuance of the
678-final order, the final order shall continue to be executable and valid.”.
679-
680-Sec. 5. Section 8 of the Medical Cannabis Amendment Act of 2022, effective March 22,
681-2023 ( D.C. Law 24- 332; D.C. Official Code § 7- 1675.01), is amended as follows:
682- (a) Subsection (a) is amended as follows:
683- (1) Paragraph (1) is amended as follows:
684- (A) The lead-in language is amended by striking the phrase “Alcoholic
685-Beverage and Cannabis Administration makes final determinations for the licensure of
686-unlicensed establishments pursuant to §§ 7- 1671.06a and 7-1671.06b, for the first violation
687-of D.C. Official Code § 47-2844(a-2)(1B), the Mayor” and inserting the phrase “Alcoholic
688-Beverage and Cannabis Board (“ABC Board”) makes final determinations for the licensure of
689-unlicensed establishments pursuant to sections 7a and 7b of the Legalization of Marijuana for
690-Medical Treatment Initiative of 1999, effective March 22, 2023 (D.C. Law 24- 332; D.C. Official
691-Code §§ 7- 1671.06a and 7-1671.06b), for the first violation of section 9(f) of the Legalization of
692-Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18- 210;
693-D.C. Official Code § 7- 1671.08(f)), the ABC Board ” in its place.
694- (B) Subparagraph (C) is amended by striking the phrase “D.C. Official
695-Code § 47- 2844(a-2)(1B)” and inserting the phrase “section 9(f) of the Legalization of Marijuana
696-for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18- 210; D.C.
697-Official Code § 7-1671.08(f)),” in its place.
698- (2) Paragraph (2) is amended by striking the phrase “provided to the Alcoholic
699-Beverage and Cannabis Administration,” and inserting the phrase “provided to” in its place.
700- (b) Subsection (b) is amended as follows: ENROLLED ORIGINAL
396+“(i) An unlicensed establishment that applies for a retailer 299
397+or internet retailer license under this section shall be required to have its license issued and be in 300
398+operation no later than March 31, 2025 or have its Board approval rescinded or its application 301
399+denied by the Board; and 302
400+“(ii) A cultivation center, retailer, or internet retailer 303
401+applicant shall cease any unlicensed activity once its license is issued by ABCA.”. 304
402+(2) A new subsection (e) is added to read as follows: 305
403+ “(e) An unlicensed establishment shall not display signage or images advertising: 306
404+ “(1) The prices of cannabis or cannabis product in any window of the 307
405+establishment; 308
406+ “(2) Cannabis or a cannabis product on the exterior of any window or on the 309
407+exterior or interior of any door; or 310
408+ “(3) Cannabis or a cannabis product on the exterior or visible from the exterior 311
409+of the unlicensed establishment or elsewhere in the District.”. 312
410+(f) Section 7f (D.C. Official Code § 7-1671.06f) is amended by adding a new subsection 313
411+(b-1) to read as follows: 314
412+“(b-1) No holder of a retailer and safe use treatment facility endorsement located within 315
413+400 feet of a day care center may obtain a summer garden endorsement pursuant to this section.”. 316
414+(g) New sections 7g, 7h, 7i and 7j are added to read as follows: 317
415+“Sec. 7g. Standing to file protest against a retailer license. 318 ENGROSSED ORIGINAL
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707- (1) The lead-in language is amended by striking the phrase “D.C. Official Code §
708-47-2844(a-2)(1B)” and inserting the phrase “section 9(f) of the Legalization of Marijuana for
709-Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18- 210; D.C. Official
710-Code § 7- 1671.08(f))” in its place.
711- (2) Paragraph (1) is amended by striking the phrase “The Mayor” and inserting
712-the phrase “The ABC Board” in its place.
713- (3) Paragraph (2) is amended as follows:
714- (A) Subparagraph (A) is amended to read as follows:
715-“(A) The ABC Board shall require the commercial property owner to
716-submit a remediation plan within 14 days after the notice of a fine under paragraph (1) of this
717-subsection to the ABC Board that contains the commercial property owner's plan to prevent any
718-future violations of section 9(f) of the Legalization of Marijuana for Medical Treatment Initiative
719-of 1999, effective July 27, 2010 (D.C. Law 18- 210; D.C. Official Code § 7-1671.08(f)).”.
720- (B) Subparagraph (B) is amended by striking the phrase “the Mayor, in
721-consultation with the Director of the Department of Licensing and Consumer Protection, rejects
722-the commercial property owner's remediation plan, the Mayor may issue additional fines or
723-revoke the commercial property owners’ licenses” and inserting the phrase “the ABC Board
724-rejects the commercial property owner’s remediation plan, the ABC Board may issue additional
725-fines” in its place.
726- (c) Subsection (c) is amended as follows:
727- (1) Paragraph (1) is amended by striking the phrase “Office of Administrative
728-Hearings” and inserting the phrase “ABC Board” in its place.
729- (2) Paragraph (2) is amended to read as follows:
730-“(2) If a commercial property owner timely requests a hearing pursuant to this
731-subsection, the ABC Board shall hold a hearing within 3 business days after receiving the
732-request.”.
733- (3) Paragraph (3) is amended by striking the phrase “administrative law judge”
734-and inserting the phrase “ABC Board” in its place.
735- (d) Subsection (e)(1) is amended by striking the phrase “Office of Administrative
736-Hearings” and inserting the phrase “ABC Board” in its place.
737-
738-Sec. 6. Repealers.
739-(a) Sections 2 and 3(a) of the Medical Cannabis Program Enforcement Temporary
740-Amendment Act of 2024, effective April 10, 2024 (D.C. Law 25- 153; 71 DCR 2082), are
741-repealed.
742-(b) Section 2 of the Medical Cannabis License Clarification Temporary Amendment Act
743-of 2024, effective May 21, 2024 (D.C. Law 25- 165; 71 DCR 3500), is repealed. ENROLLED ORIGINAL
422+“(a) Except as provided in Section 6a regarding protests against unlicensed 319
423+establishments that applied for licenses prior to January 30, 2024, the following persons may 320
424+protest the issuance of a license, the renewal of a license, or the transfer of a medical cannabis 321
425+retailer license to a new location: 322
426+ “(1) A property owner or commercial tenant whose property abuts where the 323
427+establishment is or will be located; 324
428+ “(2) A property owner or commercial tenant whose property is located directly 325
429+across the street from where the establishment is or will be located; or 326
430+ “(3) Any affected ANC. 327
431+“(b) Any person objecting under subsection (a) of this section to the approval of an 328
432+application shall notify the ABC Board in writing of his or her intention to object and the 329
433+specific grounds for the objection within the protest period. 330
434+“Sec. 7h. Notice to ANCs and Councilmembers. 331
435+“(a) ABCA shall provide electronic notice to the Councilmember representing the ward 332
436+where the establishment is or will be located and any affected ANC at least 45 calendar days 333
437+prior to the approval of a location for a retailer. 334
438+“(b) The ABC Board may, at the request of both an affected ANC and the applicant, 335
439+extend the ANC’s protest petition deadline set forth in subsection (a) of this section by up to an 336
440+additional 30 calendar days for the sole purpose of allowing the ANC to vote on whether to 337
441+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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750-(c) Section 2(b) of the Medical Cannabis Patient Card Extension and 4/20 Medical
751-Cannabis Sales Tax Holiday Week Temporary Amendment Act of 2024, effective July 19, 2024
752-(D.C. Law 25- 193; 71 DCR 6749), is repealed.
753-(d) Section 2 of the Medical Cannabis Conditional License and Unlicensed Establishment
754-Closure Clarification Emergency Amendment Act of 2024, effective July 15, 2024 (D.C. Act 25-
755-505; 71 DCR 8403), is repealed.
756-(e) Section 2 of the Medical Cannabis Conditional License and Unlicensed Establishment
757-Closure Clarification Temporary Amendment Act of 2024, effective September 18, 2024 (D.C.
758-Law 25-216; 71 DCR 9575), is repealed.
759-(f) Section 2(b) of the Medical Cannabis Patient Card Extension and 4/20 Medical
760-Cannabis Sales Tax Holiday Week Congressional Review Emergency Amendment Act of 2024,
761-effective July 23, 2024 (D.C. Act 25- 526; 71 DCR 9590), is repealed.
762-(g) Section 2 of the Medical Cannabis Clarification and Non- Resident Patient Access
763-Emergency Amendment Act of 2024, effective July 23, 2024 (D.C. Act 25- 527; 71 DCR 9593),
764-is repealed.
765-(h) Section 2 of the Medical Cannabis Clarification and Non- Resident Patient Access
766-Temporary Amendment Act of 2024, enacted on October 7, 2024 (D.C. Act 25- 564; 71 DCR
767-12344), is repealed.
768-(i) Section 2 of the Medical Cannabis Patient Access Clarification Emergency
769-Amendment Act of 2024, effective July 23, 2024 (D.C. Act 25- 528; 71 DCR 9597), is repealed.
770-(j) Section 2 of the Medical Cannabis Patient Access Clarification Temporary
771-Amendment Act of 2024, enacted on October 7, 2024 (D.C. Act 25- 565; 71 DCR 12348), is
772-repealed.
773-
774-Sec. 7. Fiscal impact statement.
775-The Council adopts the fiscal impact statement in the committee report as the fiscal
776-impact statement required by section 4a of the General Legislative Procedures Act of 1975,
777-approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a).
778-
779-Sec. 8. Effective date.
780-This act shall take effect following approval by the Mayor (or in the event of veto by the
781-Mayor, action by the Council to override the veto) and a 30-day period of congressional review
782-
783-
784-
785-
786-
787-
788- ENROLLED ORIGINAL
448+its own motion, also continue a hearing to permit an affected ANC to vote on a material issue in 339
449+the hearing. 340
450+“Sec. 7i. Grounds for protest. 341
451+“(a) A protest against a medical cannabis retailer license by persons with standing under 342
452+section 7g of this chapter shall be on the basis of: 343
453+ “(1) A violation of this act by the applicant; 344
454+ “(2) A violation of civil law by the applicant that is directly related to the 345
455+operation of the business or establishment for which the license is sought; or 346
456+ “(3) Vehicular and pedestrian safety. 347
457+“(b) The ABC Board shall determine whether a violation of civil law is directly related to 348
458+the operation of the business or establishment for which the license is sought by considering the 349
459+totality of the following factors: 350
460+ “(1) Whether specific elements of the violation are directly related to the 351
461+specific duties and responsibilities of the license; and 352
462+ “(2) Any evidence produced by the applicant concerning the applicant’s fitness, 353
463+including the length of time that has elapsed since the violation and mitigating circumstances. 354
464+“(c) The ABC Board may issue a license, approve the renewal of a license, or approve the 355
465+transfer of a medical cannabis retailer license to a new location without a hearing on the protest 356
466+if the ABC Board finds that the basis of the protest lacks substance. 357
467+Sec. 7j. ANC comments. 358 ENGROSSED ORIGINAL
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795-
796-
797-as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
798-24, 1973 (87 Stat. 813; D.C. Official Code § 1- 206.02(c)(1)).
799-
800-
801-
802-______________________________
803-Chairman
804-Council of the District of Columbia
474+“The ABC Board shall accord great weight to input provided by an affected ANC 359
475+regarding the proposed or existing location of a retailer when approving or rejecting an 360
476+application for a license.”. 361
477+ (h) Section 9 (D.C. Official Code § 7–1671.08) is amended as follows: 362
478+ (1) Subsection (d) is amended by striking the phrase “licensed cultivation” and 363
479+inserting the phrase “licensed or unlicensed cultivation” in its place. 364
480+ (2) New subsections (f), (g), (h) and (i) are added to read as follows: 365
481+ “(f) Beginning January 31, 2024, the ABC Board may issue the following fines to an 366
482+unlicensed establishment that violates section 7(c-1) or section 7b(e), or has not filed an accepted 367
483+and pending application with the ABC Board and knowingly engages or attempts to engage in 368
484+the purchase, sale, exchange, delivery, or any other form of commercial transaction involving 369
485+cannabis that is not purchased, sold, exchanged, or delivered in accordance with the provisions 370
486+of this act or section 401 of the District of Columbia Uniform Controlled Substances Act of 371
487+1981, effective August 5, 1981 (D.C. Law 4-29; D.C. Official Code § 48-904.01): 372
488+ “(1) For the first violation, the ABC Board may: 373
489+ “(A) Issue a fine in the amount of $10,000; and 374
490+ “(B) Require the unlicensed establishment to submit a remediation plan to 375
491+the ABC Board that contains the unlicensed establishment’s plan to prevent any future 376
492+recurrence of purchasing, selling, exchanging, delivering, or otherwise transacting any cannabis 377
493+or cannabis products that are not purchased, sold, exchanged, or delivered in accordance with the 378 ENGROSSED ORIGINAL
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810-_________________________________
811-Mayor
812-District of Columbia
500+provisions of this act or section 401 of the District of Columbia Uniform Controlled Substances 379
501+Act of 1981, effective August 5, 1981 (D.C. Law 4-29; D.C. Official Code § 48-904.01); 380
502+ “(2) For any subsequent violations or if the unlicensed establishment fails to 381
503+submit a remediation plan in accordance with paragraph (1) of this subsection, or if the ABC 382
504+Board rejects the unlicensed establishment’s remediation plan, the ABC Board may issue 383
505+additional fines as follows: 384
506+“(A) For the second violation, a fine in the amount of $20,000; 385
507+“(B) For the third or subsequent violation, a fine in the amount of $30,000; 386
508+“(C) For failing to submit a remediation plan or having its remediation 387
509+plan rejected by the ABC Board, a fine of in the amount of $10,000. 388
510+ “(3) Revenue collected from fines imposed pursuant to this subsection shall be 389
511+deposited as follows: 390
512+ “(A) The first $100,000 shall be deposited into the Litigation Support 391
513+Fund established pursuant to section 106b(b)(6) of the Attorney General for the District of 392
514+Columbia Clarification and Elected Term Amendment Act of 2010, effective May 27, 2010 393
515+(D.C. Law 18-160; D.C. Official Code § 1-301.86b(b)(6)); and 394
516+ “(B) Any revenue collected from fines after the first $100,000 shall be 395
517+deposited into the Medical Cannabis Social Equity Fund established pursuant to section 9b. 396 ENGROSSED ORIGINAL
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520+
521+
522+21
523+
524+ “(4) Nothing in this subsection shall preclude the ABC Board from issuing a 397
525+cease-and-desist order or the closure of an unlicensed establishment for a first or subsequent 398
526+violation of this subsection. 399
527+ “(g)(1) Notwithstanding sections 7(b) and 9(f), ABCA shall have the authority to inspect 400
528+the entire premises, inventory, and business records of an unlicensed establishment to determine 401
529+whether the business is conducting activity in violation of this title. If, after an inspection, ABCA 402
530+determines that an unlicensed establishment presents an imminent danger to the health or safety 403
531+of the public, as described in paragraph (2) of this subsection, the ABC Board may summarily 404
532+close and order the padlocking, by ABCA or MPD without a prior hearing, of the unlicensed 405
533+establishment, and ABCA or MPD may seize all cannabis and cannabis products found at the 406
534+premises. 407
535+ “(2) For the purpose of this subsection, the term “imminent danger to the health or 408
536+safety of the public” includes any of the following: 409
537+“(A) The unlicensed establishment distributes or attempts to distribute 410
538+cannabis or a cannabis product to one or more persons under the age of 21. 411
539+“(B) The unlicensed establishment manufactures, produces, or cultivates 412
540+cannabis or cannabis products at the building or premises. 413
541+“(C) Once a testing laboratory has been licensed under this act, the 414
542+unlicensed establishment distributes, attempts to distribute, or makes available for sale or 415
543+exchange cannabis or a cannabis product untested by a testing laboratory licensed under this act. 416 ENGROSSED ORIGINAL
544+
545+
546+
547+
548+22
549+
550+“(D) The unlicensed establishment distributes, attempts to distribute or 417
551+makes available for sale or exchange cannabis or a cannabis product that fails to contain a label 418
552+identifying the source of the cannabis or cannabis product, including where it was manufactured, 419
553+the contents of the package, and the cannabis or cannabis product’s ingredients, and 420
554+tetrahydrocannabinol (THC) content, or is otherwise not labeled in accordance with this act. 421
555+“(E) The unlicensed establishment fails to comply with a cease-and-desist 422
556+order. 423
557+“(F) The unlicensed establishment distributes, attempts to distribute, or 424
558+makes available for sale or exchange Schedule I substances, or products that contain Schedule I 425
559+substances, as enumerated in section 204 of the District of Columbia Uniform Controlled 426
560+Substances Act of 1981, effective August 5, 1981 (D.C. Law 4-29; D.C. Official Code § 48-427
561+902.04). 428
562+“(G) An employee, agent, or owner of the unlicensed establishment has 429
563+unlawful firearms or weapons on the premises. 430
564+“(H) A dangerous crime, as defined in D.C. Official Code § 23-1331(3), or 431
565+a crime of violence, as defined in D.C. Official Code § 23-1331(4), was committed on the 432
566+premises of the unlicensed establishment. 433
567+“(I) The unlicensed establishment engages in any activity or operation 434
568+established as an imminent danger to the health or safety of the public by the ABC Board by 435
569+rule. 436 ENGROSSED ORIGINAL
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575+
576+ “(3) ABCA shall provide the unlicensed establishment’s owner and the property 437
577+owner with written notice of the summary closure and the right to request a hearing. 438
578+ “(4) The owner of the unlicensed establishment shall have 5 business days after 439
579+service of the notice of summary closure to request a hearing with the ABC Board, which shall 440
580+hold a hearing within 5 business days of a timely request. 441
581+ “(5) The ABC Board shall issue a written decision within 5 business days after the 442
582+hearing. 443
583+ “(h)(1) ABCA or the Metropolitan Police Department may post signage at the site of the 444
584+unlicensed establishment indicating that unlicensed activity has been found to have occurred for 445
585+violations of this act. 446
586+ “(2) If the ABC Board orders the closure of an unlicensed establishment, the ABC 447
587+Board shall post 2 notices in conspicuous places at or near the main street entrance on the outside 448
588+of the establishment. 449
589+ “(3) The posted notice shall state that the closure is ordered because of a violation 450
590+of this act or of the regulations promulgated pursuant to this act. 451
591+ “(4) Any person willfully removing, obliterating, or defacing the notice shall be 452
592+guilty of a violation of this act. 453
593+“(i)(1) An ABCA investigator may test cannabis and cannabis products to quantify their 454
594+THC content. 455 ENGROSSED ORIGINAL
595+
596+
597+
598+
599+24
600+
601+ “(2) In any proceeding before the ABC Board, labeling or packaging in an 456
602+unlicensed establishment that states that the product contains cannabis or tetrahydrocannabinol, 457
603+whether in whole or in part, or a derivative thereof, shall create a presumption that the product 458
604+contains cannabis and contains the amounts of the chemicals indicated on the label or packaging 459
605+unless such presumption is overcome by a preponderance of evidence to the contrary.”. 460
606+ (i) Section 13a (D.C. Official Code § 7–1671.12a) is amended as follows: 461
607+ (1) Subsection (a) is amended as follows: 462
608+ (A) Strike the phrase “Board or the Mayor” both times it appears and 463
609+insert the word “Board” in its place. 464
610+ (B) Strike the phrase “to the licensee” and insert the phrase “to the 465
611+licensee or unlicensed establishment” in its place. 466
612+ (2) Subsection (d) is amended by striking the phrase “Board or the Mayor” and 467
613+inserting the word “Board” in its place. 468
614+ (3) Subsection (f) is amended by striking the phrase “Board or the Mayor” and 469
615+inserting the word “Board” in its place. 470
616+ (j) New sections 13b, 13c, 13d, and 13e are added to read as follows: 471
617+ “Sec. 13b. Examination of premises, books, and records. 472
618+ “(a) An applicant for a license, and each licensee, shall allow any ABCA investigator or 473
619+agent of the ABC Board full opportunity to examine, at any time during business hours: 474 ENGROSSED ORIGINAL
620+
621+
622+
623+
624+25
625+
626+ “(1) The premises where a cannabis product is manufactured, kept, sold, or 475
627+consumed for which an application for a license has been made or for which a license has been 476
628+issued; and 477
629+ “(2) The books and records of the business for which an application for a license 478
630+has been made or for which a license has been issued. 479
631+ “(b) ABCA investigators shall examine the premises and books and records of each 480
632+licensed establishment in the District at least once each year. The investigators shall make 481
633+reasonable efforts to ensure that the licensee shall know in advance the date of the inspection. 482
634+ “Sec. 13c. Search warrants for illegal cannabis products; disposition of seized products. 483
635+ “If a search warrant is issued by any judge of the Superior Court of the District of 484
636+Columbia or by a United States Magistrate for the District of Columbia for premises where any 485
637+cannabis products are sold, exchanged as part of a commercial transaction, delivered, or 486
638+permitted to be consumed in violation of this title, the cannabis product and any other property 487
639+designed for use in connection with the unlawful manufacture for sale, keeping for sale, selling, 488
640+or consumption may be seized and shall be subject to such disposition as the court may make 489
641+thereof. 490
642+ “Sec. 13d. Notifications from Department of Licensing and Consumer Protection, Office 491
643+of Tax and Revenue, Fire and Emergency Medical Services Department, and Metropolitan Police 492
644+Department. 493 ENGROSSED ORIGINAL
645+
646+
647+
648+
649+26
650+
651+ “(a) The Department of Licensing and Consumer Protection, the Office of Tax and 494
652+Revenue, and the Fire and Emergency Medical Services Department shall notify the ABC Board 495
653+if a licensed establishment is the subject of a citation, revocation, or other enforcement action for 496
654+a violation of laws or regulations enforced by those agencies or offices within 30 days after the 497
655+citation, revocation, or other enforcement action. 498
656+ “(b) If a licensed establishment is the subject of an incident report by the Metropolitan 499
657+Police Department, the Metropolitan Police Department shall file a copy of the incident report 500
658+with the ABC Board within 30 days after the incident. The ABC Board shall make the report 501
659+available for public inspection upon request. 502
660+ “Sec. 13e. Nuisance. 503
661+ “(a) Any unlicensed establishment where cannabis is sold, exchanged as part of a 504
662+commercial transaction, delivered, or permitted to be consumed shall be a nuisance, except any 505
663+unlicensed establishment of an applicant that filed an accepted and pending application with the 506
664+ABC Board during the 90-day open application period. 507
665+ “(b) An action to enjoin any nuisance defined in subsection (a) of this section may be 508
666+brought in the name of the District of Columbia by the Attorney General for the District of 509
667+Columbia in the Civil Branch of the Superior Court of the District of Columbia against the owner 510
668+or operator of the unlicensed establishment or any person conducting or maintaining such 511
669+nuisance or any person who knows or should have known that such nuisance is being conducted 512
670+or maintained. 513 ENGROSSED ORIGINAL
671+
672+
673+
674+
675+27
676+
677+ “(c)(1) Upon the filing of a complaint to abate the nuisance, the Court shall hold a 514
678+hearing on a motion for a preliminary injunction within 14 days of the filing of such action. 515
679+ “(2) If it appears, by affidavit or otherwise, that there is a substantial likelihood 516
680+that the District of Columbia will be able to prove at trial that the building, ground, or premises 517
681+of the unlicensed establishment is a nuisance, the court may enter an order preliminarily: 518
682+ “(A) Enjoining the nuisance; 519
683+ “(B) Prohibiting the use of the unlicensed establishment for the purpose of 520
684+selling cannabis, exchanging cannabis as part of a commercial transaction, delivering cannabis, 521
685+or permitting cannabis to be consumed until such time as the establishment obtains a license; and 522
686+ “(C) Granting such other relief as the court may deem appropriate. 523
687+ “(3) The District of Columbia need not prove irreparable harm to obtain a 524
688+preliminary injunction. 525
689+ “(4) Where appropriate, the Court may order a trial of the action on the merits to 526
690+be advanced and consolidated with the hearing on the motion for preliminary injunction. 527
691+ “(5) This section shall not be construed to prohibit the application for or the 528
692+granting of a temporary restraining order, or other equitable relief otherwise provided by law. 529
693+ “(d)(1) Within 14 days of the issuance of any preliminary injunction, the Court shall hold 530
694+a full hearing on the merits of the nuisance action. 531
695+ “(2) If the Court does not issue a preliminary injunction, the Court shall 532
696+expeditiously schedule a full hearing. If it is determined by a preponderance of the evidence that 533 ENGROSSED ORIGINAL
697+
698+
699+
700+
701+28
702+
703+the unlicensed establishment is a nuisance, the Court shall issue a final order that mandates 534
704+closure and sealing of the establishment within 72 hours and continued closure until such time as 535
705+the establishment obtains a license. 536
706+ “(3) The Court may order other appropriate relief, including issuing an order 537
707+enjoining the nuisance and prohibiting the use of the unlicensed establishment for the purpose of: 538
708+ “(A) Selling cannabis; 539
709+ “(B) Exchanging cannabis as part of a commercial transaction; 540
710+ “(C) Delivering cannabis; or 541
711+ “(D) Permitting cannabis to be consumed until such time as the 542
712+establishment obtains a license. 543
713+ “(4)(A) Execution by the Metropolitan Police Department of any final order to 544
714+close and seal the establishment shall occur within 7 days of the issuance of the final order. 545
715+ “(B) Notwithstanding subparagraph (A) of this paragraph, if the 546
716+Metropolitan Police Department has not executed the final order within 5 days of issuance of the 547
717+final order, the final order shall continue to be executable and valid.”. 548
718+Sec. 5. Section 8 of the Medical Cannabis Amendment Act of 2022, effective March 22, 549
719+2023 (D.C. Law 24-332; D.C. Official Code § 7-1675.01), is amended as follows: 550
720+ (a) Subsection (a) is amended as follows: 551
721+ (1) Paragraph (1) is amended as follows: 552 ENGROSSED ORIGINAL
722+
723+
724+
725+
726+29
727+
728+ (A) The lead-in language is amended by striking the phrase “Alcoholic 553
729+Beverage and Cannabis Administration makes final determinations for the licensure of 554
730+unlicensed establishments pursuant to §§ 7-1671.06a and 7-1671.06b, for the first violation 555
731+of D.C. Official Code § 47-2844(a-2)(1B), the Mayor” and inserting the phrase “After the 556
732+Alcoholic Beverage and Cannabis Board (“ABC Board”) makes final determinations for the 557
733+licensure of unlicensed establishments pursuant to sections 7a and 7b of the Legalization of 558
734+Marijuana for Medical Treatment Initiative of 1999, effective March 22, 2023 (D.C. Law 24-559
735+332; D.C. Official Code §§ 7-1671.06a and 7-1671.06b), for the first violation of section 9(f) of 560
736+the Legalization of Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 561
737+(D.C. Law 18-210; D.C. Official Code § 7-1671.08(f)), the ABC Board ” in its place. 562
738+ (B) Subparagraph (C) is amended by striking the phrase “§ 47-2844(a-563
739+2)(1B)” and inserting the phrase “section 9(f) of the Legalization of Marijuana for Medical 564
740+Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-565
741+1671.08(f)),” in its place. 566
742+ (2) Paragraph (2) is amended by striking the phrase “provided to the Alcoholic 567
743+Beverage and Cannabis Administration,” and inserting the phrase “provided to” in its place. 568
744+ (b) Subsection (b) is amended as follows: 569
745+ (1) The lead-in language is amended by striking the phrase “§ 47-2844(a-2)(1B)” 570
746+and inserting the phrase “section 9(f) of the Legalization of Marijuana for Medical Treatment 571 ENGROSSED ORIGINAL
747+
748+
749+
750+
751+30
752+
753+Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-572
754+1671.08(f))” in its place. 573
755+ (2) Paragraph (1) is amended by striking the phrase “The Mayor” and inserting 574
756+the phrase “The ABC Board” in its place. 575
757+ (3) Paragraph (2) is amended as follows: 576
758+ (A) Subparagraph (A) is amended to read as follows: 577
759+“(A) The ABC Board shall require the commercial property owner to 578
760+submit a remediation plan within 14 days after the notice of a fine under paragraph (1) of this 579
761+subsection to the ABC Board that contains the commercial property owner's plan to prevent any 580
762+future violations of section 9(f) of the Legalization of Marijuana for Medical Treatment Initiative 581
763+of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.08(f)).”. 582
764+ (B) Subparagraph (B) is amended by striking the phrase “the Mayor, in 583
765+consultation with the Director of the Department of Licensing and Consumer Protection, rejects 584
766+the commercial property owner's remediation plan, the Mayor may issue additional fines or 585
767+revoke the commercial property owners’ licenses” and inserting the phrase “the ABC Board 586
768+rejects the commercial property owner’s remediation plan, the ABC Board may issue additional 587
769+fines” in its place. 588
770+ (c) Subsection (c) is amended as follows: 589
771+ (1) Paragraph (1) is amended by striking the phrase “Office of Administrative 590
772+Hearings” and inserting the phrase “ABC Board” in its place. 591 ENGROSSED ORIGINAL
773+
774+
775+
776+
777+31
778+
779+ (2) Paragraph (2) is amended to read as follows: 592
780+“(2) If a commercial property owner timely requests a hearing pursuant to this 593
781+subsection, the ABC Board shall hold a hearing within 3 business days after receiving the 594
782+request.”. 595
783+ (3) Paragraph (3) is amended by striking the phrase “administrative law judge” 596
784+and inserting the phrase “ABC Board” in its place. 597
785+ (d) Subsection (e)(1) is amended by striking the phrase “Office of Administrative 598
786+Hearings” and inserting the phrase “ABC Board” in its place. 599
787+ Sec. 6. Fiscal impact statement. 600
788+The Council adopts the fiscal impact statement in the committee report as the fiscal 601
789+impact statement required by section 4a of the General Legislative Procedures Act of 1975, 602
790+approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 603
791+Sec. 7. Effective date. 604
792+This act shall take effect following approval by the Mayor (or in the event of veto by the 605
793+Mayor, action by the Council to override the veto) and a 30-day period of congressional review 606
794+as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 607
795+24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)). 608