1
February 5, 2024
Nyasha Smith, Secretary
Council of the District of Columbia
1350 Pennsylvania Avenue, NW
Washington, D.C. 20004
Dear Secretary Smith:
Today, along with Chairman Phil Mendelson and Councilmember Kenyan R. McDuffie, I am
introducing the “Medical Cannabis Program Enforcement Amendment Act of 2024”. Please find
enclosed a signed copy of the legislation.
On December 3, 2014, District voters passed the Legalization of Possession of Minimal Amounts
of Marijuana for Personal Use Initiative of 2014, effective February 26, 2015 (D.C. Law 20-153;
D.C. Official Code passim) (“I-71”), which, among other provisions, made it lawful to transfer one
ounce or less of cannabis to another person, so long as no remuneration is exchanged, and the
recipient of the cannabis is 21 years of age or older. The selling of any amount of cannabis to
another person remains illegal.
The passage of I-71 has resulted in the creation of an illegal cannabis market in the District that
describes itself as “I-71 compliant”, whereby consumers merely need to buy a small item and, in
return, receive an accompanying cannabis product as a “gift”. This illegal cannabis market is
estimated to take in more than $600 million in sales annually, and has been in direct competition
with, and accordingly, has profoundly harmed, the District’s Medical Cannabis Program.
Furthermore, these illegal businesses do not pay the taxes and fees that licensed facilities under
the Medical Cannabis Program must pay, and most are owned by non-District residents and sell
products that are untraced, untested, and mostly cultivated outside the District.
The presence of these illegal businesses also raises serious public health and safety concerns.
Some of these establishments are located in areas in which legal facilities are not allowed to
operate, such as within 300 feet of schools and recreation facilities. These businesses have also
been the target of criminal activity, such as robbery and theft, and some have been implicated in
criminal activity themselves, including illegal possession of firearms and illegal possession and
distribution of narcotics. 2
On December 20, 2022, the Council passed the Medical Cannabis Amendment Act of 2022,
effective March 22, 2023 (D.C. Law 24-332; 70 DCR 1582), which established an “on-ramp” for
these currently unlicensed businesses to receive a license from the Alcoholic Beverage and
Cannabis Administration (“ABCA”). This “on-ramp” is intended to provide greater public health
and safety oversight of the businesses, like how existing medical cannabis and alcohol licensees
are regulated. The open application period for these businesses to apply for a license to be a
cultivation center, retailer, or internet retailer in the District’s Medical Cannabis Program opened
on November 1, 2023, and closed on January 29, 2024.
Prior to the closure of the application period, I convened an implementation conversation with
all ANCs in Ward 6, the Department of Licensing and Consumer Protection, and ABCA. On January
9, 2024, the Council passed emergency legislation that I introduced, the Medical Cannabis
Program Enforcement Emergency Amendment Act of 2024, effective January 25, 2024 (D.C. Act
25-371; 71 DCR 1200), which allows:
• ABCA to extend the 45-calendar day public comment for ANC feedback on a license by
an additional 30-calendar days;
• ANCs within 600 feet of the establishment to protest the issuance of a license;
• ABCA to enforce against unlicensed establishments that do not apply to be a part of the
Medical Cannabis Program by issuing warnings, fines, and cease-and-desist orders to
those establishments as well as commercial property owners where these
establishments are located;
• ABCA to hold unlicensed establishments liable for holding themselves out as “I-71
compliant” or displaying signage or imagery that advertises or relates to cannabis,
cannabis products, or the prices of cannabis or cannabis products;
• OAG to bring a “nuisance” action in Superior Court against unlicensed establishments
that are not in the Medical Cannabis Program; and
• ABCA to examine books and records of an establishment and receive notifications from
other agencies about violations of these other agencies’ rules, specifically, the Fire and
Emergency Medical Services Department, Office of Tax and Revenue, Department of
Licensing and Consumer Protection, and the Metropolitan Police Department.
This legislation would make these changes on a permanent basis. Please feel free to reach out to
me or my Legislative Director, Antonio Nunes, with any questions or for additional information.
Sincerely,
Councilmember Charles Allen, Ward 6
Chairperson, Committee on Transportation & the Environment
Vice Chair, Metropolitan Washington Council of Governments
1
___________________________ ______________________________ 1
Chairman Phil Mendelson Councilmember Charles Allen 2
3
4
___________________________ 5
Councilmember Kenyan R. McDuffie 6
7
8
9
10
A BILL 11
12
______________ 13
14
15
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 16
17
_____________________ 18
19
20
To amend the Legalization of Marijuana for Medical Treatment Initiative of 1999 to provide the 21
Alcoholic Beverage and Cannabis Administration the ability to extend the 45-calendar day 22
public comment period for cultivation center, retailer, or internet retailer licenses to an 23
unlicensed establishment by an additional 30-calendar days, to clarify which persons have 24
standing to protest the issuance of a cultivation center, retailer, or internet retailer license 25
to an unlicensed establishment, to align the enforcement procedures with those provided in 26
Title 25 of the District of Columbia Official Code, and to clarify that the Alcoholic 27
Beverage and Cannabis Board has the authority to issue cease-and-desist orders mandating 28
compliance with the provisions of the Medical Cannabis Program; and to amend the 29
Medical Cannabis Amendment Act of 2022 to clarify that the Alcoholic Beverage and 30
Cannabis Board has authority to enforce against commercial property owners in whose 31
properties are used to operate illegal cannabis businesses. 32
33
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 34
act may be cited as the “Medical Cannabis Program Enforcement Amendment Act of 2024”. 35
Sec. 2. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective 36
February 25, 2010 (D.C. Law 13-315; D.C. Official Code § 7-1671.01 et seq.), is amended as 37
follows: 38
(a) Section 7 (D.C. Official Code § 7-1671.06) is amended by adding a new subsection (c-39
1) to read as follows: 40
2
“(c-1) It shall be a violation of this act for any unlicensed or licensed cultivation center, 41
manufacturer, retailer, or internet retailer to represent that goods or services or the business is 42
compliant with the Legalization of Possession of Minimal Amounts of Marijuana for Personal Use 43
Initiative of 2014, effective February 26, 2015 (D.C. Law 20-153; D.C. Official Code § passim); 44
provided, that a licensed cultivation center, manufacturer, retailer, or internet retailer may have 45
signage indicating that there is medical cannabis on the property.”. 46
(b) Section 7a(h) (D.C. Official Code § 7-1671.06a(h)) is amended to read as follows: 47
“(h)(1) The ABC Board shall provide notice of complete and eligible cultivation center, 48
retailer, and internet retailer license applications received from unlicensed establishments to the 49
Councilmember, and any Advisory Neighborhood Commission within 600 feet of where the 50
establishment is or will be located (“affected ANC”), for a 45-calendar day public comment period. 51
The ABC Board may extend the public comment period required by this paragraph in response to 52
a written request submitted by either an affected ANC or the applicant by an additional 30-calendar 53
days. 54
“(2) An affected ANC may protest the issuance of the license. 55
“(3) The ABC Board shall hold a contested case protest hearing within 120 days of 56
receiving a timely protest from an affected ANC pursuant to paragraph (2) of this subsection. 57
“(4) The provisions of this subsection shall apply to all applications submitted to 58
ABCA after the effective date of the Medical Cannabis Program Enforcement Emergency 59
Amendment Act of 2024, passed on emergency basis on January 9, 2024 (Enrolled version of Bill 60
25-XXX).”. 61
(c) Section 7b (D.C. Official Code § 7–1671.06b) is amended by adding a new subsection 62
(e) to read as follows: 63
3
“(e) An unlicensed establishment shall not display signage or imagery advertising relating 64
to: 65
“(1) The prices of cannabis or cannabis product in the window; 66
“(2) Cannabis or a cannabis product on the exterior of any window or on the exterior 67
or interior of any door; or 68
“(3) Cannabis or a cannabis product on the exterior or visible from the exterior of 69
the unlicensed establishment or elsewhere in the District.”. 70
(d) Section 9 (D.C. Official Code § 7–1671.08) is amended as follows: 71
(1) Subsection (d) is amended by striking the phrase “licensed cultivation” and 72
inserting the phrase “licensed or unlicensed cultivation” in its place. 73
(2) A new subsection (f) is added to read as follows: 74
“(f) Beginning January 31, 2024, the ABC Board may issue the following fines to an 75
unlicensed establishment that violates section 7(c-1) or 7b(e), or has not filed an accepted and 76
pending application with the ABC Board and knowingly engages or attempts to engage in the 77
purchase, sale, exchange, delivery, or any other form of commercial transaction involving cannabis 78
that is not purchased, sold, exchanged, or delivered in accordance with the provisions of this act 79
or section 401 of the District of Columbia Uniform Controlled Substances Act of 1981, effective 80
August 5, 1981 (D.C. Law 4-29; D.C. Official Code § 48-904.01): 81
“(1) For the first violation, the ABC Board may issue a written warning to the 82
unlicensed establishment; 83
“(2) For the second violation, the ABC Board may: 84
“(A) Issue a fine in the amount of $10,000; and 85
4
“(B) Require the unlicensed establishment to submit a remediation plan to 86
the ABC Board that contains the unlicensed establishment’s plan to prevent any future recurrence 87
of purchasing, selling, exchanging, delivering, or otherwise transacting any cannabis that is not 88
purchased, sold, exchanged, or delivered in accordance with the provisions of this act or section 89
401 of the District of Columbia Uniform Controlled Substances Act of 1981, effective August 5, 90
1981 (D.C. Law 4-29; D.C. Official Code § 48-904.01); and 91
“(3) For any subsequent violations or if the unlicensed establishment fails to submit 92
a remediation plan in accordance with paragraph (2) of this subsection, or if the ABC Board rejects 93
the unlicensed establishment’s remediation plan, the ABC Board may issue a fine in the amount 94
of $20,000.”. 95
(e) Section 13a (D.C. Official Code § 7–1671.12a) is amended as follows: 96
(1) Subsection (a) is amended by striking the phrase “Board or the Mayor” both 97
times it appears and inserting the word “Board” in its place. 98
(2) Subsection (d) is amended by striking the phrase “Board or the Mayor” and 99
inserting the word “Board” in its place. 100
(3) Subsection (f) is amended by striking the phrase “Board or the Mayor” and 101
inserting the word “Board” in its place. 102
(f) New sections 15, 16, 17, and 18 are added to read as follows: 103
“Sec. 15. Examination of premises, books, and records. 104
“(a) An applicant for a license, and each licensee, shall allow any ABCA investigator, agent 105
of the ABC Board, or any member of the Metropolitan Police Department full opportunity to 106
examine, at any time during business hours: 107
5
“(1) The premises where a cannabis product is manufactured, kept, sold, or 108
consumed for which an application for a license has been made or for which a license has been 109
issued; and 110
“(2) The books and records of the business for which an application for a license 111
has been made or for which a license has been issued. 112
“(b) ABCA investigators shall examine the premises and books and records of each 113
licensed establishment in the District at least once each year. The investigators shall make 114
reasonable efforts to ensure that the licensee shall know in advance the date of the inspection. 115
“Sec. 16. Search warrants for illegal cannabis products; disposition of seized products. 116
“If a search warrant is issued by any judge of the Superior Court of the District of Columbia 117
or by a United States Magistrate for the District of Columbia for premises where any cannabis 118
products are sold, exchanged as part of a commercial transaction, delivered, or permitted to be 119
consumed in violation of this title, the cannabis product and any other property designed for use 120
in connection with the unlawful manufacture for sale, keeping for sale, selling, or consumption 121
may be seized and shall be subject to such disposition as the court may make thereof. 122
“Sec. 17. Notifications from Department of Licensing and Consumer Protection, Office of 123
Tax and Revenue, Fire and Emergency Medical Services Department, and Metropolitan Police 124
Department. 125
“(a) The Department of Licensing and Consumer Protection, the Office of Tax and 126
Revenue, and the Fire and Emergency Medical Services Department shall notify the ABC Board 127
if a licensed establishment is the subject of a citation, revocation, or other enforcement action for 128
a violation of laws or regulations enforced by those agencies or offices within 30-calendar days 129
after the citation, revocation, or other enforcement action. 130
6
“(b) If a licensed establishment is the subject of an incident report by the Metropolitan 131
Police Department, the Metropolitan Police Department shall file a copy of the incident report with 132
the ABC Board within 30-calendar days after the incident. The ABC Board shall make the report 133
available for public inspection upon request. 134
“Sec. 18. Nuisance. 135
“(a) Any building, ground, or premises where cannabis is sold, exchanged as part of a 136
commercial transaction, delivered, or permitted to be consumed by an unlicensed establishment 137
shall be a nuisance, except any building, ground, or premises of an applicant that filed an accepted 138
and pending application with the Board during the 90-calendar day open application period. 139
“(b) An action to enjoin any nuisance defined in subsection (a) of this section may be 140
brought in the name of the District of Columbia by the Attorney General for the District of 141
Columbia in the Civil Branch of the Superior Court of the District of Columbia against any person 142
conducting or maintaining such nuisance or knowingly permitting such nuisance to be conducted 143
or maintained.”. 144
Sec. 3. The Medical Cannabis Amendment Act of 2022, effective March 22, 2023 (D.C. 145
Law 24-332; 70 DCR 1582), is amended as follows: 146
(a) Section 8 (D.C. Official Code § 7-1675.01) is amended as follows: 147
(1) Subsection (a) is amended as follows: 148
(A) Paragraph (1) is amended as follows: 149
(i) The lead-in language is amended by striking the phrase 150
“Alcoholic Beverage and Cannabis Administration makes final determinations for the licensure of 151
unlicensed establishments pursuant to §§ 7-1671.06a and 7-1671.06b, for the first violation 152
of D.C. Official Code § 47-2844(a-2)(1B), the Mayor” and inserting the phrase “Alcoholic 153
7
Beverage and Cannabis Board (“ABC Board”) makes final determinations for the licensure of 154
unlicensed establishments pursuant to sections 7a and 7b of the Legalization of Marijuana for 155
Medical Treatment Initiative of 1999, effective March 22, 2023 (D.C. Law 24-332; D.C. Official 156
Code §§ 7-1671.06a and 7-1671.06b), for the first violation of section 9(f) of the Legalization of 157
Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; 158
D.C. Official Code § 7-1671.08(f)), the ABC Board ” in its place. 159
(ii) Subparagraph (C) is amended by striking the phrase “D.C. 160
Official Code § 47-2844(a-2)(1B)” and inserting the phrase “section 9(f) of the Legalization of 161
Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; 162
D.C. Official Code § 7-1671.08(f))” in its place. 163
(B) Paragraph (2) is amended by striking the phrase “provided to the 164
Alcoholic Beverage and Cannabis Administration,” and inserting the phrase “provided to” in its 165
place. 166
(2) Subsection (b) is amended as follows: 167
(A) The lead-in language is amended by striking the phrase “D.C. Official 168
Code § 47-2844(a-2)(1B)” and inserting the phrase “section 9(f) of the Legalization of Marijuana 169
for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C. Official 170
Code § 7-1671.08(f))” in its place. 171
(B) Paragraph (1) is amended by striking the phrase “The Mayor shall issue 172
a fine in the amount of up to $10,000” and inserting the phrase “The ABC Board shall issue a fine 173
in the amount of $10,000” in its place. 174
(C) Paragraph (2) is amended as follows: 175
(i) Subparagraph (A) is amended to read as follows: 176
8
“(2)(A) The ABC Board shall require the commercial property owner to submit a 177
remediation plan within 14 days after the notice of a fine under paragraph (1) of this subsection to 178
the ABC Board that contains the commercial property owner's plan to prevent any future violations 179
of section 9(f) of the Legalization of Marijuana for Medical Treatment Initiative of 1999, effective 180
July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.08(f)).”. 181
(ii) Subparagraph (B) is amended by striking the phrase “the Mayor, 182
in consultation with the Director of the Department of Licensing and Consumer Protection, rejects 183
the commercial property owner's remediation plan, the Mayor may issue additional fines or revoke 184
the commercial property owners’ licenses” and inserting the phrase “the ABC Board rejects the 185
commercial property owner’s remediation plan, the ABC Board may issue additional fines” in its 186
place. 187
(3) Subsection (c) is amended as follows: 188
(A) Paragraph (1) is amended by striking the phrase “Office of 189
Administrative Hearings” and inserting the phrase “Alcoholic Beverage and Cannabis Board 190
(“ABC Board”)” in its place. 191
(B) Paragraph (2) is amended by striking the phrase “Office of 192
Administrative Hearings” and inserting the phrase “ABC Board” in its place. 193
(C) Paragraph (3) is amended by striking the phrase “administrative law 194
judge” and inserting the phrase “ABC Board” in its place. 195
(4) Subsection (e)(1) is amended by striking the phrase “Office of Administrative 196
Hearings” and inserting the phrase “ABC Board” in its place. 197
(b) Section 9 is amended as follows: 198
9
(1) Subsection (a) is amended by striking the phrase “7, and 8” and inserting the 199
phrase “and 7” in its place. 200
(2) Subsection (c)(2) is amended by striking the phrase “this act” and inserting the 201
phrase “the provisions identified in subsection (a) of this section” in its place. 202
Sec. 4. Fiscal impact statement. 203
The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 204
statement required by section 4a of the General Legislative Procedures Act of 1975, approved 205
October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 206
Sec. 5. Effective date. 207
This act shall take effect following approval by the Mayor (or in the event of veto by the 208
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 209
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 210
1973 (87 Stat. 788; D.C. Official Code §1-206.02(c)(1)), and publication in the District of 211
Columbia Register. 212