MURIEL BOWSER MAYOR November 19, 2024 The Honorable Phil Mendelson Chair Council of the District of Columbia 1350 Pennsylvania Avenue, N.W., Suite 506 Washington, D.C. 20004 Dear Chairman Mendelson: Today, I am transmitting to the Council of the District of Columbia (Council) for its consideration and enactment the “Streatery Program and Protest Process Emergency Amendment Act of 2024,” “Streatery Program and Protest Process Temporary Amendment Act of 2024,” “Streatery Program and Protest Process Amendment Act of 2024,” and the accompanying emergency declaration resolution. Please find enclosed a copy of the permanent, emergency and temporary versions of the bill, as well as the accompanying emergency declaration resolution. During the pandemic, streateries become a vital part of the District’s hospitality industry. In order to maximize the benefit of this new privilege and to balance the interests of businesses and residents, the attached amendments will (1) allow a location under the jurisdiction of the Washington Convention and Sports Authority with commercial street frontage to register for a streatery; (2) mandate that alcohol businesses obtain a streatery endorsement valid for 3 years from the Alcoholic Beverage and Cannabis Board to operate a streatery beginning in 2025; and (3) require streatery endorsement applications to undergo a 45-day public comment period. Based on the current utilization of streateries by the District’s hospitality industry and the interest in applying for new streateries, I am submitting the permanent, emergency, and temporary bills to the Council for prompt and favorable action. Sincerely, Muriel Bowser Mayor Enclosure 1 2 3 4 5 6 7 8 9 10 11 12 ~~ Chairman Phil Mendelson at the request of the Mayor A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 13 To amend, on an emergency basis, Title 25 of the District of Columbia Official Code to 14 allow a location under the jurisdiction of the Washington Convention and Sports 15 Authority with commercial street frontage to register for a streatery; to require 16 that alcohol businesses obtain a streatery endorsement valid for 3 years from the 17 Alcoholic Beverage and Cannabis Board to operate a streatery beginning in 2025; 18 and to require streatery endorsement applications to undergo a 45-day public 19 comment period. 20 21 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, 22 That this act may be cited as the "Streatery Program and Protest Process Emergency 23 Amendment Act of 2024". 24 25 Sec. 2. Title 25 of the District of Columbia Official Code is amended as follows: 26 27 (a) Chapter 1 is amended as follows: 28 29 (1) Section 25-101 is amended as follows: 30 (A) A new paragraph (50A) is added to read as follows: 31 "( 50A) "Streatery" means any authorized occupation of the parking lane 32 of a roadway or use of designated parts of an alley network or travel lane, not including a 33 sidewalk, used specifically for outdoor dining or seating by a licensed on-premises 34 retailer or manufacturer or a Washington Convention and Sports Authority food and 35 alcohol business that is licensed or registered with the Board.". 36 (B) A new paragraph (55A) is added to read as follows: 1 2 “(55A) “Washington Convention and Sports Authority food and alcohol 1 business” means a retailer with commercial street frontage at a location under the 2 jurisdiction of the Washington Convention and Sports Authority that sells food and is 3 approved by the Washington Convention and Sports Authority to sell alcoholic beverages 4 for on-premises consumption.”. 5 (2) Section 25- 113 is amended as follows: 6 (A) Subsection (a)(6) is amended as follows: 7 (i) Subparagraph (B) is amended by striking the phrase 8 “Convention Center food” and inserting the phrase “ Washington Convention and Sports 9 Authority food” in its place. 10 (ii) New subparagraphs (F), (G), (H), (I), (J), and (K) are 11 added to read as follows: 12 “(F) A licensed on-premises retailer, manufacturer with an on-site 13 sales and consumption permit, or a Washington Convention and Sports Authority food 14 and alcohol business that seeks a streatery endorsement that will take effect starting on 15 January 1, 2025 shall notify the Board in writing of its endorsement request , on an 16 application provided by the Board, by December 30, 2024. 17 “(G) A licensed on- premises retailer or manufacturer with an on-18 site sales and consumption permit that is operating a streatery on outdoor private space in 19 which alcohol will be sold, served or consumed shall submit a summer garden 20 endorsement application to the Board by December 30, 2024 to continue operating the 21 streatery as a summer garden after December 31, 2024. 22 3 “(H) A licensed on premises retailer, manufacturer with an on-site 1 sales and consumption permit, or a Washington Convention and Sports Authority food 2 and alcohol business that is operating a streatery, on an outdoor sidewalk café, in which 3 alcohol is sold, served or consumed shall submit a sidewalk café endorsement application 4 to the Board by December 30, 2024 to continue operating the sidewalk café after 5 December 31, 2024. 6 “(I) A streatery endorsement application from an on- premises 7 retailer, or a streatery license application from a Washington Convention and Sports 8 Authority food and alcohol business, shall be subject to a 45- day public comment period, 9 with notice given to the public and an opportunity to object to the granting of the 10 application, pursuant to the procedures in § 25-421. A streatery endorsement application 11 from a manufacturer requesting hours of operation or alcohol sales after 1 a.m. shall also 12 be subject to a 45- day public comment period, with notice given to the public and an 13 opportunity to object to the granting of the application, pursuant to the procedures in § 14 25-421. 15 “(J) An applicant seeking a streatery, summer garden, or sidewalk 16 café endorsement for a previously operating streatery who files that application by 17 December 30, 2024 may continue to operate the streatery past December 31, 2024 until 18 the Board renders a decision on the endorsement application. 19 “(K) A streatery endorsement shall be valid for 3 years.”. 20 (3) Section 25- 113.01 is amended as follows: 21 (A) Subsection (g) is amended by striking the phrase “Convention 22 4 Center food and alcohol business” wherever it appears and inserting the phrase 1 "Washington Convention and Sports Authority food and alcohol business” in its place. 2 (B) A new subsection ( i) is added to read as follows: 3 “(i)(1) Effective January 1, 2025, an on- premises retailer, 4 manufacturer with an on-sites sales and consumption permit shall obtain a streatery 5 endorsement, and a Washington Convention and Sports Authority food and alcohol 6 business shall obtain a streatery license, from the Board to be eligible to sell, serve, and 7 permit the consumption of alcoholic beverages on an outdoor streatery. 8 “(2) A manufacturer with an on- site sales and consumption permit and a 9 streatery endorsement or a Washington Convention and Sports Authority food and 10 alcohol business with a streatery license may conduct business operations on a streatery 11 up to 7 days a week, but only between the hours of 6:00 a.m. and 1:00 a.m. 12 “(3) The holder of a streatery endorsement or license shall have its own 13 clearly delineated outdoor space and not share tables and chairs with any other 14 business.”. 15 Sec. 5. Fiscal impact statement. 16 The Council adopts the fiscal impact statement of the Chief Financial Officer as 17 the fiscal impact statement required by section 4a of the General Legislative Procedures 18 Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-19 301.47a). 20 Sec. 6. Effective date. 21 This act shall take effect following approval by the Mayor (or in the event of veto 22 by the Mayor, action by the Council to override the veto), and shall remain in effect for 23 5 no longer than 90 days, as provided for emergency acts of the Council of the District of 1 Columbia in section 412(a) of the District of Columbia Home Rule Act, approved 2 December 24, 1973 (87 Stat. 788; D.C. Official Code § 1- 204.12( a)). 3 Government of the District of Columbia Office of the Chief Financial Officer Glen Lee Chief Financial Officer 1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 (202)727-2476 www.cfo.dc.gov MEMORANDUM TO: The Honorable Phil Mendelson Chairman, Council of the District of Columbia FROM: Glen Lee Chief Financial Officer DATE: October 2, 2024 SUBJECT: Fiscal Impact Statement – Streatery Program and Protest Process Amendment Act of 2024 (and accompanying emergency and temporary versions) REFERENCE: Draft Bill as provided to the Office of Revenue Analysis on September 18, 2024 Conclusion Funds are sufficient in the fiscal year 2025 through fiscal year 2028 budget and financial plan to implement the bill. Background The Alcoholic Beverage and Cannabis Administration (ABCA) permits certain licensed establishments to offer food and alcoholic beverage consumption on-site at expanded ground floor or street level outdoor space (“streateries”) via retailer licensees, common carriers, Convention Center food and alcohol retailers, and manufacturers with an on-premises endorsement. This bill permits certain establishments providing food and alcohol under the jurisdiction of the Washington Convention and Sports Authority to apply for and be granted a streatery endorsement. The bill also sets the duration for a streatery endorsement to a uniform three years, and requires streatery endorsement applications to undergo a 45-day public comment period. Financial Plan Impact Funds are sufficient in the fiscal year 2025 through fiscal year 2028 budget and financial plan to implement the bill. ABCA can carry out its licensing and oversight requirements under the bill within its current resources. 2 GOVERNMENT OF THE DISTRICT OF COLUMBIA O FFICE OF THE ATTORNEY GENERAL BRIAN L. SCHWALB ATTORNEY GENERAL LEGAL COUNSEL DIVISION MEMORANDUM TO: Tomás Talamante Director Office of Policy and Legislative Affairs FROM: Megan D. Browder Deputy Attorney General Legal Counsel Division DATE: September 18, 2024 SUBJECT: Legal Sufficiency Review – Dr aft “Streatery Program and Protest Process Emergency Amendment Act of 2024,” “Streatery Program and Protest Process Temporary Amendment Act of 2024,” “Streatery Program and Protest Process Amendment Act of 2024,” and Accompanying Emergency Declaration Resolution (AE-24-443) _____________________________________________________________________________________ This is to Certify that this Office has reviewed the above- referenced draft legislation and found it to be legally sufficient. If you have any questions in this regard, please do not hesitate to call me at (202) 724-5524. _________________________________ Megan D. Browder