1 _____________________________ _____________________________ 1 Chairman Phil Mendelson Councilmember Kenyan R. McDuffie 2 3 4 A PROPOSED RESOLUTION 5 _________________ 6 7 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 8 _________________________ 9 10 To declare the existence of an emergency with respect to the need to allow the Alcoholic 11 Beverage and Cannabis Board to issue temporary non-resident registration identification 12 cards that are valid for periods between 3 days and no longer than one year in length, 13 allow licensed testing laboratories to receive and test samples of medical cannabis 14 products from qualifying patients, allow licensed testing laboratories to conduct quality 15 assurance or research and development testing for cultivation centers and manufacturers, 16 amend the definition of a social equity applicant to include arrests and convictions of 17 qualifying family members for a cannabis or drug offense, expand the list of eligible 18 family members under the social equity applicant definition to include siblings and 19 grandparents, clarify that existing licensed cultivation centers and retailers, and applicants 20 that scored 150 points or more during the open application period that occurred between 21 November 29, 2021 and March 28, 2022 that are authorized by statute to receive a 22 cultivation center, manufacturer, or retailer license apart from a designated open 23 application period are not counted in calculating the 50% set aside requirement, clarify 24 that the five cultivation center registration applicants that scored 150 points or more 25 during the same open application period shall automatically receive a manufacturer 26 license provided they pay the annual fee and register with the ABC Board, allow the 27 Alcoholic Beverage and Cannabis Board to issue conditional licenses to testing 28 laboratory applicants, and to waive the application fee for testing laboratory licenses. 29 30 31 RESOLVED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 32 resolution may be cited as the “Medical Cannabis Clarification and Non-Resident Patient Access 33 Emergency Declaration Resolution of 2023”. 34 Sec. 2. (a) First, there exists an immediate need to expand non-resident patient access at 35 licensed retailers by making temporary non-resident patient registrations valid for periods other 36 than 30 days. 37 2 (b) Non-resident access to medical cannabis is critical for visiting patients. 38 Between October 20, 2022 and June 29, 2023, the Alcoholic Beverage and Cannabis 39 Administration (ABCA) has issued approximately 13,489 temporary non-resident patient 40 registrations. Non-resident temporary registrations have been issued to patients from all 50 states 41 and approximately 33 countries. However, currently temporary non-resident patient registrations 42 can only be issued for a 30-day period. This has resulted in requests from some visiting patients 43 and stakeholders to be able to purchase a less expensive 3-day non-resident patient registration as 44 they are only visiting the District for the weekend. Other non-resident patients and stakeholders 45 have asked to be able to purchase a temporary non-resident patient registration that is valid for 46 longer than a 30-day period as they are visiting the District for longer than 30 days. Allowing 47 ABCA to issue temporary non-resident patient cards that are between 3 days and one year in 48 length addresses both needs. 49 (c) Second, there exists an immediate need to expand the definition of a social equity 50 applicant to: (1) include arrests and convictions of qualifying family members for a cannabis or 51 drug-related offense, and (2) add siblings and grandparents to the list of eligible family members. 52 (d) The first open application period implementing the Medical Cannabis Amendment 53 Act of 2022, which took effect on March 22, 2023, ends on June 30, 2023 and is limited to social 54 equity applicants. As of June 27, 2023, ABCA has received 11 complete medical cannabis 55 facility applications from social equity applicants for either a cultivation center, manufacturer, or 56 courier license. All 11 complete social equity applications filed with ABCA by June 27, 2023 57 are from returning citizens. None of the 11 social equity applications are from an eligible family 58 member applicant with a qualifying family member who was incarcerated for a cannabis or drug-59 related offense. 60 3 (e) While the current social equity definition includes a returning citizen applicant’s 61 arrest, conviction, or incarceration for a cannabis or drug related offense, an eligible family 62 member is only permitted to apply if the qualifying returning citizen was incarcerated for a 63 cannabis or drug related offense. This inconsistency is addressed by including arrests and 64 convictions of qualifying family members for a cannabis or drug offense. The list of eligible 65 family members has also been expanded to add siblings and grandparents as their arrest, 66 conviction, or incarceration for a cannabis or drug related offense can have a significant financial 67 and emotional impact on other immediate family members. 68 (f) Third, the open application period for cultivation center, manufacturer, and courier 69 licenses for non-social equity applicants begins on August 29, 2023. The Medical Cannabis 70 Amendment Act of 2022 requires, with minor exceptions, that at least 50% of all cultivation 71 center, manufacturer, and courier licenses be set aside for social equity applicants. There exists 72 an immediate need to clarify that the number of cultivation center, manufacturer, and courier 73 licenses available to non-social equity applicants beginning on August 29, 2023 is based upon 74 the number of ABC Board approved social equity applicants for the open application period 75 ending June 30, 2023, and does not take into account cultivation center, manufacturer, and 76 retailer applicants that are statutorily permitted to be filed with ABCA apart from a designated 77 open application period. 78 (g) Fourth, there is an immediate need to clarify that the five cultivation center 79 registration applicants that scored 150 points or more as a result of the ABC Board open 80 application period that occurred between November 29, 2021 and March 28, 2022 are 81 automatically eligible to receive a manufacturer license provided they pay the annual fee and 82 register with the ABC Board. This will help to shorten the timeline necessary for these five 83 4 cultivation centers to increase the production of and the availability of medical cannabis products 84 in the District. 85 (h) Four of the five cultivation center registration applicants that scored 150 points or 86 more as a result of the open application period have been designated by the Department of Small 87 and Local Business Development as a Medical Cannabis Certified Business Enterprise with an 88 equity impact enterprise certification subcategory. 89 (i) And fifth, in a medical cannabis marketplace, products are tested for moisture content, 90 cannabinoid potency, microbial contamination, pesticides, and other items to ensure that the 91 product is safe and the patient can make an informed purchase. Despite years of effort to attract 92 testing laboratory licensees, we currently do not have any testing laboratories operating in the 93 District to test medical cannabis products from cultivation centers or manufacturers. To 94 incentivize applications for testing laboratories, there exists an immediate need to waive the 95 application fee, to allow ABCA to issue conditional licenses to successful testing laboratory 96 applicants, to allow a licensed testing laboratory to test samples of medical cannabis products 97 from qualifying patients and to allow cultivation centers and manufacturers to submit product 98 samples to a testing laboratory for purposes of quality assurance or research and development. 99 Sec. 3. The Council of the District of Columbia determines that the circumstances 100 enumerated in section 2 constitute emergency circumstances, making it necessary that the 101 Medical Cannabis Clarification and Non-Resident Patient Access Emergency Amendment Act of 102 2023 be adopted after a single reading. 103 Sec. 4. This resolution shall take effect immediately. 104