ENGROSSED ORIGINAL 1 A BILL 1 2 25-873 3 4 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5 6 __________________ 7 8 9 To amend, on a temporary basis, the Legalization of Marijuana for Medical Treatment Initiative 10 of 1999 to clarify that ABCA investigators have the authority to conduct announced and 11 unannounced inspections of unlicensed establishments, to make a conditional license for 12 a manufacturer or cultivation center valid for 2 years, to extend existing public-comment 13 period provisions to all unlicensed establishment registration applications, and to clarify 14 the criteria to be considered when summarily closing an unlicensed establishment. 15 16 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 17 act may be cited as the “Medical Cannabis Conditional License and Unlicensed Establishment 18 Closure Clarification Temporary Amendment Act of 2024”. 19 Sec. 2. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective 20 February 25, 2010 (D.C. Law 13-315; D.C. Official Code § 7-1671.01 et seq.), is amended as 21 follows: 22 (a) Section 6(b) (D.C. Official Code § 7-1671.05(b)) is amended by adding a new 23 paragraph (14A) to read as follows: 24 “(14A) Conduct announced and unannounced inspections of unlicensed 25 establishments.”. 26 (b) Section 7 (D.C. Official Code § 7-1671.06) is amended as follows: 27 ENGROSSED ORIGINAL 2 (1) Subsection (k) is amended as follows: 28 (A) Paragraph (1) is amended by striking the phrase “proposed location” 29 and inserting the phrase “proposed location; except, that the ABC Board shall be authorized to 30 convert a one-year conditional license to 2 years for a cultivation center or manufacturer that 31 does not currently have a proposed location” in its place. 32 (B) Paragraph (2) is amended by striking the phrase “one year” and 33 inserting the phrase “one year or 2 years for a cultivation center or manufacturer applicant” in its 34 place. 35 (C) Paragraph (4) is amended by striking the phrase “ABC Board.” and 36 inserting the phrase “ABC Board; except that a 2-year conditional license for a cultivation center 37 or manufacturer shall be canceled by the ABC Board after two years.” 38 (2) A new subsection (k-1) is added to read as follows: 39 “(k-1) A conditional license for a cultivation center or manufacturer that is in effect as of 40 the effective date of the Medical Cannabis Conditional License and Unlicensed Establishment 41 Closure Clarification Emergency Amendment Act of 2024, passed on an emergency basis on 42 June 25, 2024 (Enrolled version of Bill 25-___), as of that date, shall be automatically converted 43 to a 2-year conditional license, expiring one year after the date the original conditional license 44 was set to expire, at no additional cost and without additional ABC Board approval.”. 45 (4) Subsection (l) is amended by striking the phrase “one-year”. 46 (c) Section 7a(h)(4) (D.C. Official Code § 7-1671.06a(h)(4)) is repealed. 47 ENGROSSED ORIGINAL 3 (d) Section 9 (D.C. Official Code § 7-1671.08) is amended by adding a new subsection 48 (g) to read as follows: 49 “(g)(1) Notwithstanding sections 7(b) and 9(f), ABCA shall have the authority to inspect 50 an unlicensed establishment. If, after an inspection, ABCA determines that an unlicensed 51 establishment presents an imminent danger to the health or safety of the public, as described in 52 paragraph (2) of this subsection, the ABC Board may summarily close and order the padlocking, 53 by ABCA or MPD without a prior hearing, of the unlicensed establishment, and ABCA may 54 seize all cannabis or cannabis products found at the premises. 55 “(2) For the purpose of this subsection, the term “imminent danger to the health or 56 safety of the public” includes any of the following: 57 “(A) The unlicensed establishment distributes or attempts to distribute 58 cannabis or a cannabis product to one or more persons under the age of 21. 59 “(B) Once a testing laboratory has been licensed under this act, the 60 unlicensed establishment distributes or attempts to distribute cannabis or a cannabis product 61 untested by a testing laboratory licensed under this act. 62 “(C) The unlicensed establishment fails to comply with a cease and desist 63 order. 64 “(D) The unlicensed establishment engages in any activity or operation 65 established as an imminent danger to the health or safety of the public by the Board by rule. 66 “(E) The unlicensed establishment distributes or attempts to distribute 67 ENGROSSED ORIGINAL 4 Schedule I substances, or products that contain Schedule I substances, as enumerated in § 48-68 902.04. 69 “(F) An employee, agent, or owner of the unlicensed establishment has 70 unlawful firearms or weapons on the premises. 71 “(G) A dangerous crime, as defined in D.C.23-1331(3), or a crime of 72 violence, as defined in D.C. Official Code § 23-1331(4), was committed on the premises of the 73 unlicensed establishment. 74 “(3) ABCA shall provide the unlicensed establishment’s owner and the property 75 owner with written notice of the summary closure and the right to request a hearing. 76 “(4) The owner of the unlicensed establishment shall have 5 business days after 77 service of the notice of summary closure to request a hearing with the Board, which shall hold a 78 hearing within 5 business days of a timely request.” 79 “(5) The Board shall issue a written decision within 5 business days after the 80 hearing.”. 81 (e) Section 13a (D.C. Official Code § 7-1671.12a (a)) is amended by striking the phrase 82 “to the licensee.” and inserting the phrase “to the licensee or unlicensed establishment.” in its 83 place. 84 Sec. 3. Section 2(c) of the Medical Cannabis Patient Card Extension and 4/20 Medical 85 Cannabis Sales Tax Holiday Week Temporary Amendment Act of 2024, enacted on May 29, 86 2024 (D.C. Act 25-481; 71 DCR 6749), is repealed. 87 ENGROSSED ORIGINAL 5 Sec. 4. Fiscal impact statement. 88 The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 89 statement required by section 4a of the General Legislative Procedures Act of 1975, approved 90 October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 91 Sec. 5. Effective date. 92 (a) This act shall take effect following approval by the Mayor (or in the event of veto by 93 the Mayor, action by the Council to override the veto), a 30-day period of congressional review 94 as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 95 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1), and publication in the District of 96 Columbia register. 97 (b) This act shall expire after 225 days of its having taken effect. 98