1 ______________________________1 Councilmember Kenyan R. McDuffie 2 3 A BILL 4 5 _________ 6 7 8 IN THE DISTRICT OF COLUMBIA 9 10 __________________ 11 12 13 To amend, on an emergency basis, the Legalization of Marijuana for Medical Treatment 14 Initiative of 1999 to clarify that ABCA investigators have the authority to conduct 15 announced and unannounced inspections of unlicensed establishments, to make a 16 conditional license for a manufacturer or cultivation center valid for 2 years, to extend 17 existing public-comment period provisions to all unlicensed establishment registration 18 applications, and to clarify the criteria to be considered when summarily closing an 19 unlicensed establishment. 20 21 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 22 act may be cited as the “Medical Cannabis Conditional License and Unlicensed Establishment 23 Closure Clarification Emergency Amendment Act of 2024”. 24 Sec. 2. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective 25 February 25, 2010 (D.C. Law 13-315; D.C. Official Code § 7-1671.01 et seq.), is amended as 26 follows: 27 (a) Section 6(b) (D.C. Official Code § 7-1671.05(b)) is amended by adding a new 28 paragraph (14A) to read as follows: 29 “(14A) Conduct announced and unannounced inspections of unlicensed 30 establishments.”. 31 (b) Section 7 (D.C. Official Code § 7-1671.06) is amended as follows: 32 (1) Subsection (k) is amended as follows: 33 2 (A) Paragraph (1) is amended by striking the phrase “proposed location” 34 and inserting the phrase “proposed location; except, that the ABC Board shall be authorized to 35 convert a one-year conditional license to 2 years for a cultivation center or manufacturer that 36 does not currently have a proposed location” in its place. 37 (B) Paragraph (2) is amended by striking the phrase “one year” and 38 inserting the phrase “one year or 2 years for a cultivation center or manufacturer applicant” in its 39 place. 40 (C) Paragraph (4) is amended by striking the phrase “ABC Board.” and 41 inserting the phrase “ABC Board; except that a 2-year conditional license for a cultivation center 42 or manufacturer shall be canceled by the ABC Board after two years.” 43 (2) A new subsection (k-1) is added to read as follows: 44 “(k-1) A conditional license for a cultivation center or manufacturer that is in effect as of 45 the effective date of the Medical Cannabis Conditional License and Unlicensed Establishment 46 Closure Clarification Emergency Amendment Act of 2024, passed on an emergency basis on 47 June 25, 2024 (Enrolled version of Bill 25-___), as of that date, shall be automatically converted 48 to a 2-year conditional license, expiring one year after the date the original conditional license 49 was set to expire, at no additional cost and without additional ABC Board approval.”. 50 (3) Subsection (l) is amended by striking the phrase “one-year”. 51 (c) Section 7a(h)(4) (D.C. Official Code § 7-1671.06a(h)(4)) is repealed. 52 (d) Section 9 (D.C. Official Code § 7-1671.08) is amended by adding a new subsection 53 (g) to read as follows: 54 “(g)(1) Notwithstanding sections 7(b) and 9(f), ABCA shall have the authority to inspect 55 an unlicensed establishment. If, after an inspection, ABCA determines that an unlicensed 56 3 establishment presents an imminent danger to the health or safety of the public, as described in 57 paragraph (2) of this subsection, the ABC Board may summarily close and order the padlocking, 58 by ABCA or MPD without a prior hearing, of the unlicensed establishment, and ABCA may 59 seize all cannabis or cannabis products found at the premises. 60 “(2) For the purpose of this subsection, the term “imminent danger to the health or 61 safety of the public” includes any of the following: 62 “(A) The unlicensed establishment distributes or attempts to distribute 63 cannabis or a cannabis product to one or more persons under the age of 21. 64 “(B) Once a testing laboratory has been licensed under this act, the 65 unlicensed establishment distributes or attempts to distribute cannabis or a cannabis product 66 untested by a testing laboratory licensed under this act. 67 “(C) The unlicensed establishment fails to comply with a cease and desist 68 order. 69 “(D) The unlicensed establishment engages in any activity or operation 70 established as an imminent danger to the health or safety of the public by the Board by rule. 71 “(3) ABCA shall provide the unlicensed establishment’s owner and the property 72 owner with written notice of the summary closure and the right to request a hearing. 73 “(4) The owner of the unlicensed establishment shall have 5 business days after 74 service of the notice of summary closure to request a hearing with the Board, which shall hold a 75 hearing within 5 business days of a timely request.” 76 “(5) The Board shall issue a written decision within 5 business days after the 77 hearing.”. 78 4 (e) Section 13a (D.C. Official Code § 7-1671.12a (a)) is amended by striking the phrase 79 “to the licensee.” and inserting the phrase “to the licensee or unlicensed establishment.” in its 80 place. 81 Sec. 3. Section 2(c) of the Medical Cannabis Patient Card Extension and 4/20 Medical 82 Cannabis Sales Tax Holiday Week Temporary Amendment Act of 2024, enacted on May 29, 83 2024 (D.C. Act 25-481; 71 DCR 6749), is repealed. 84 Sec. 4. Fiscal impact statement. 85 The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 86 statement required by section 4a of the General Legislative Procedures Act of 1975, approved 87 October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 88 Sec. 5. Effective date. 89 This act shall take effect following approval by the Mayor (or in the event of veto by the 90 Mayor, action by the Council to override the veto), and shall remain in effect for no longer than 91 90 days, as provided for emergency acts of the Council of the District of Columbia in section 92 412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788; 93 D.C. Official Code § 1-204.12(a)). 94