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District Of Columbia Council Bill PR25-0626

District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill PR25-0626 Compare Versions

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1- ENROLLED ORIGINAL
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63 1
4+ ______________________________ 2
5+ Councilmember Kenyan R. McDuffie 3
6+ 4
7+ 5
8+ 6
9+ 7
10+A PROPOSED RESOLUTION 8
11+ 9
12+_________ 10
13+ 11
14+ 12
15+IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 13
16+ 14
17+__________________ 15
18+ 16
19+ 17
20+To declare the existence of an emergency with respect to the need to amend the Legalization of 18
21+Marijuana for Medical Treatment Initiative of 1999 to clarify which Advisory 19
22+Neighborhood Commissions have standing to file a protest and allow the Alcoholic 20
23+Beverage and Cannabis Board to extend the public comment period for up to 30-calendar 21
24+days, to establish the requirement that all retailers be located more than 400 feet from 22
25+each other, to clarify that cultivation center, retailer, and internet retailer licenses issued 23
26+to unlicensed establishments count toward the overall 50% set aside requirement for 24
27+social equity applicants, and to clarify the process for unlicensed establishments being 25
28+issued a medical cannabis cultivation center, retailer, or internet retailer license. 26
29+ 27
30+RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 28
31+resolution may be cited as the “Medical Cannabis License Clarification Emergency Declaration 29
32+Resolution of 2024”. 30
33+ Sec. 2. (a) The Medical Cannabis Program Enforcement Emergency Amendment Act of 31
34+2024, effective January 25, 2024 (D.C. Act 25-371) (“Act 25-371”), clarified that Advisory 32
35+Neighborhood Commissions within 600 feet of where the establishment is or will be located can 33
36+file a protest of an application filed by an unlicensed establishment during the statutory 90-34
37+calendar day open application period. Act 25-371 also allowed the Alcoholic Beverage and 35
38+Cannabis Board (“Board”) to extend the unlicensed establishment public comment period by an 36
39+additional 30-calendar days. With the next open application period for retailer and internet 37 2
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8-A RESOLUTION
41+retailer social equity applicants beginning on March 1, 2024, it is necessary to apply this same 38
42+protest standard and provide the Board the authority to extend the protest deadline to all 39
43+cultivation center, manufacturer, retailer, and internet retailer applications. 40
44+ (b) The Medical Cannabis Amendment Act of 2022, effective March 22, 2023 (D.C. Law 41
45+24-332; 70 DCR 4303) (“Act”) prohibits retailer applicants that apply during the unlicensed 42
46+establishment 90-calendar day open application period from being located within 400 feet of 43
47+each other. However, District law does not currently apply this 400-foot prohibition to retailer 44
48+applications that are filed with the Alcoholic Beverage and Cannabis Administration (“ABCA”) 45
49+during open application periods other than 90 calendar-day period for unlicensed establishments. 46
50+To avoid issues of overconcentration in specific blocks or areas of the District it is imperative 47
51+that all medical cannabis retailers be required to locate more than 400 feet from each other. 48
52+ (c) The Act requires that at least 50% of all new cultivation center, retailer, internet 49
53+retailer, manufacturer, and courier licenses be set aside for social equity applicants. The 50
54+emergency legislation clarifies that cultivation center, retailer, and internet retailer licenses 51
55+issued to unlicensed establishments during the statutory 90 calendar-day open application period 52
56+count toward the 50% set aside requirement for social equity applicants. 53
57+(d) As noted above, the Act established a 90 calendar-day open application period for 54
58+unlicensed establishments (“establishments”) to apply for cultivation center, retailer, and internet 55
59+retailer licenses. 56
60+ (e) The open application period for unlicensed establishments began on November 1, 57
61+2023, and ended on January 29, 2024. ABCA received 76 applications from unlicensed 58
62+establishments, with 26 placarded thus far. 59 3
963
10-25-429
11-
12-IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13-
14-February 6, 2024
15-
16-
17-To declare the existence of an emergency with respect to the need to amend the Legalization of
18-Marijuana for Medical Treatment Initiative of 1999 to clarify which Advisory
19-Neighborhood Commissions have standing to file a protest and allow the Alcoholic
20-Beverage and Cannabis Board to extend the public comment period for up to 30 calendar
21-days, to establish the requirement that all retailers be located more than 400 feet from
22-each other, to clarify that cultivation center, retailer, and internet retailer licenses issued
23-to unlicensed establishments count toward the overall 50% set aside requirement for
24-social equity applicants, and to clarify the process for unlicensed establishments being
25-issued a medical cannabis cultivation center, retailer, or internet retailer license.
26-
27-RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
28-resolution may be cited as the “Medical Cannabis License Clarification Emergency Declaration
29-Resolution of 2024”.
30-
31- Sec. 2. (a) The Medical Cannabis Program Enforcement Emergency Amendment Act of
32-2024, effective January 25, 2024 (D.C. Act 25-371) (“Act 25-371”), clarified that Advisory
33-Neighborhood Commissions within 600 feet of where the establishment is or will be located can
34-file a protest of an application filed by an unlicensed establishment during the statutory 90
35-calendar day open application period. Act 25-371 also allowed the Alcoholic Beverage and
36-Cannabis Board (“Board”) to extend the unlicensed establishment public comment period by an
37-additional 30 calendar days. With the next open application period for retailer and internet
38-retailer social equity applicants beginning on March 1, 2024, it is necessary to apply this same
39-protest standard and provide to the Board the authority to extend the protest deadline to all
40-cultivation center, manufacturer, retailer, and internet retailer applications.
41- (b) The Medical Cannabis Amendment Act of 2022, effective March 22, 2023 (D.C. Law
42-24-332; 70 DCR 4303) (“Act”) prohibits retailer applicants that apply during the unlicensed
43-establishment 90 calendar day open-application period from being located within 400 feet of
44-each other. However, District law does not currently apply this 400-foot prohibition to retailer
45-applications that are filed with the Alcoholic Beverage and Cannabis Administration (“ABCA”)
46-during open application periods other than the 90 calendar-day period for unlicensed ENROLLED ORIGINAL
47-
48-
49-
50-
51-2
52-
53-establishments. To avoid issues of overconcentration in specific blocks or areas of the District it
54-is imperative that all medical cannabis retailers be required to locate more than 400 feet from
55-each other.
56- (c) The Act requires that at least 50% of all new cultivation center, retailer, internet
57-retailer, manufacturer, and courier licenses be set aside for social equity applicants. The
58-emergency legislation clarifies that cultivation center, retailer, and internet retailer licenses
59-issued to unlicensed establishments during the statutory 90 calendar day open-application period
60-count toward the 50% set aside requirement for social equity applicants.
61-(d) As noted above, the Act established a 90 calendar day open-application period for
62-unlicensed establishments (“establishments”) to apply for cultivation center, retailer, and internet
63-retailer licenses.
64- (e) The open-application period for unlicensed establishments began on November 1,
65-2023, and ended on January 29, 2024. ABCA received 76 applications from unlicensed
66-establishments, with 26 placarded thus far.
67- (f) The Act requires the Board to notify successful establishments of license approval at
68-least 15 days prior to the issuance of the license and to cease unlicensed activity immediately.
69- (g) However, these cessations would impede the good faith and legitimate pathway to
70-licensure that the Council intended with the unanimous passage of the Act if establishments are
71-afforded no opportunity to transition into the regulated market.
72- (h) Emergency legislation is necessary to allow ABCA to issue licenses by the later date
73-of either September 30, 2024, or within 180 days of Board approval and require unlicensed
74-activity to cease once an establishment’s license is issued by ABCA. This procedure would
75-stagger the demand for supply at cultivation centers and set these establishments up for success.
76-These changes would solely assist the establishments approved for licensure, while all other
77-unlicensed activity would remain on track for enforcement.
78- (i) Emergency legislation is also necessary to allow those establishments that choose to
79-discontinue operations after Board approval and are not involved in unlicensed activity to request
80-one additional 180-day period extension to allow the applicant to take steps to resume business
81-operations at the applicant’s proposed location. This extension would only be granted if the
82-applicant can demonstrate to the Alcoholic Beverage and Cannabis Board that it is making
83-reasonable progress to resume business operations at the proposed location.
84- (j) The Committee on Business and Economic Development is currently considering
85-legislation to enact these changes on a permanent basis.
86-
87- Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute
88-emergency circumstances making it necessary that the Medical Cannabis License Clarification
89-Emergency Amendment Act of 2024 be adopted after a single reading.
90-
91- Sec. 4. This resolution shall take effect immediately.
64+ (f) The Act requires the Board to notify successful establishments of license approval at 60
65+least 15 days prior to the issuance of the license and to cease unlicensed activity immediately. 61
66+ (g) However, these cessations would impede the good faith and legitimate pathway to 62
67+licensure that the Council intended with the unanimous passage of the Act if establishments are 63
68+afforded no opportunity to transition into the regulated market. 64
69+ (h) Emergency legislation is necessary to allow ABCA to issue licenses by the later date 65
70+of either September 30, 2024, or within 180 days of Board approval and require unlicensed 66
71+activity to cease once an establishment’s license is issued by ABCA. This procedure would 67
72+stagger the demand for supply at cultivation centers and set these establishments up for success. 68
73+These changes would solely assist the establishments approved for licensure, while all other 69
74+unlicensed activity would remain on track for enforcement. 70
75+ (i) Emergency legislation is also necessary to allow those establishments that choose to 71
76+discontinue operations after Board approval and are not involved in unlicensed activity to request 72
77+one additional 180-day period extension to allow the applicant to take steps to resume business 73
78+operations at the applicant’s proposed location. This extension would only be granted if the 74
79+applicant can demonstrate to the Alcoholic Beverage and Cannabis Board that it is making 75
80+reasonable progress to resume business operations at the proposed location. 76
81+ (j) The Committee on Business and Economic Development is currently considering 77
82+legislation to enact these changes on a permanent basis. 78
83+ Sec. 3. The Council determines that the circumstances enumerated in section 2 constitute 79
84+emergency circumstances making it necessary that the Medical Cannabis License Clarification 80
85+Emergency Amendment Act of 2024 be adopted after a single reading. 81
86+ Sec. 4. This resolution shall take effect immediately. 82