District Of Columbia 2025-2026 Regular Session

District Of Columbia Council Bill B26-0162 Compare Versions

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1- ENROLLED ORIGINAL
21
32
43
5-1
4+Muriel Bowser
5+Mayor
6+Enclosure
67
7-AN ACT
8-
9-___________
10-
11-
12-IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13-
14-___________
15-
16-
17-To amend, on an emergency basis, the Legalization of Marijuana for Medical Treatment
18-Initiative of 1999 to amend the definition of an unlicensed establishment to include
19-establishments that sell Schedule I substances or products that contain Schedule I
20-substances, to authorize enforcement actions to be taken against all unlicensed
21-establishments beginning on April 1, 2025, regardless of whether the unlicensed
22-establishments have an application pending before the Alcoholic Beverage and Control
23-Board , to authorize certain enforcement actions before April 1, 2025, against an
24-unlicensed establishment that has an application pending before the Alcoholic Beverage
25-and Control Board if the unlicensed establishment sells a Schedule I substance or a
26-product that contains a Schedule I substance, to authorize summary closures and related
27-enforcement actions to continue for as long as the imminent danger to the public persists
28-and is likely to recur , and to allow the Alcoholic Beverage and Cannabis Administration
29-and Metropolitan Police Department to take related enforcement actions against a
30-licensed medical cannabis establishment that engages in certain unlawful activity.
31-
32- BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
33-act may be cited as the “Unlicensed Establishment Enforcement Clarification Emergency
34-Amendment Act of 2025 ”.
35-
36- Sec. 2. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective
37-July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7- 1671.01 et seq. ), is amended as follows:
38- (a) Section 2 (D.C. Official Code § 7- 1671.01) is amended as follows:
39- (1) A new paragraph (20B-i) is added to read as follows:
40- “(20B-i) “Schedule I substance” means a controlled substance listed in section
41-204 of the District of Columbia Uniform Controlled Substances Act of 1981, effective August 5,
42-1981 (D.C. Law 4- 29; D.C. Official Code § 48- 902.04), or rules implementing that section.”.
43- (2) Paragraph (22) is amended to read as follows:
44- “(22) “Unlicensed establishment” means:
45- “(A) A sole proprietorship, partnership, or other business entity that: ENROLLED ORIGINAL
8+MURIEL BOWSER
9+MAYOR
4610
4711
4812
13+February 28, 2025
14+
15+The Honorable Phil Mendelson
16+Chair
17+Council of the District of Columbia
18+1350 Pennsylvania Avenue, N.W., Suite 506
19+ Washington, D.C. 20004
20+Dear Chairman Mendelson:
21+
22+Enclosed for consideration and enactment by the Council of the District of Columbia is the
23+“Unlicensed Establishment Enforcement Clarification Emergency Amendment Act of 2025,”
24+along with accompanying an accompanying emergency declaration resolution, and the
25+“Unlicensed Establishment Enforcement Clarification Temporary Amendment Act of 2025.”
26+
27+To date, the Alcoholic Beverage and Cannabis Administration (ABCA), along with the
28+Metropolitan Police Department, have been able to take action to close down thirty- one
29+unlicensed cannabis establishments operating in the District illegally. Despite this progress,
30+additional enforcement authority will better equip ABCA to move forward with the closure of the
31+remaining operating unlicensed establishments. These emergency measures would therefore
32+expand ABCA’s authority to take summary action and padlock businesses engaged in illegal
33+commerce in cannabis and Schedule I substances by expanding the agency’s padlocking authority
34+to medical cannabis businesses and non- licensed businesses engaged in the illegal sale of
35+cannabis or Schedule I substances and ending the grace period that prevented enforcement against
36+certain unlicensed businesses that applied for a license with ABCA but have not obtained a
37+license by April 1, 2025.
38+
39+For these reasons discussed above, I urge the Council to take prompt and favorable action on the
40+enclosed proposed bill .
41+
42+
43+Sincerely, 1
4944 2
45+3 at the request
46+of the Mayor
47+4
48+5
49+6
50+7
51+8
52+9 A BILL
53+10
54+11
55+12
56+13
57+14 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
58+15
59+16
60+17
61+18
62+19 To amend, on an emergency basis, the Legalization of Marijuana for Medical Treatment
63+20 Initiative
64+of 1999 to amend the definition of an unlicensed establishment to include
65+21 establishments that sell Schedule I substances or products that contain Schedule I
66+22 substances; to authorize enforcement actions
67+to be taken against all unlicensed
68+23 establishments beginning on April 1, 2025, regardless of whether the unlicensed
69+24 establishments have an application pending application before the Alcoholic Beverage
70+25 and Control Board ("ABC Board"); to authorize certain enforcement actions before April
71+26
72+1, 2025, against an unlicensed establishment that has an application pending before the
73+27 ABC Board
74+if the unlicensed establishment sells a Schedule I substance or a product that
75+28 contains a Schedule I substance; to authorize summary closures and related enforcement
76+29 actions to continue for
77+as long as the imminent danger to the public persists and is likely
78+30 to recur; and to authorize the ABC Board
79+to issue a notice of summary closure to and
80+31 order the padlocking of, and the Alcoholic Beverage and Cannabis Administration and
81+32 Metropolitan Police Department to take related enforcement actions against, a licensed
82+33 medical cannabis establishment that engages in certain unlawful activity.
83+34
84+35 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
85+36 act may be cited
86+as the "Unlicensed Establishment Enforcement Clarification Emergency
87+37 Amendment Act
88+of 2025".
89+38 Sec. 2. The Legalization
90+of Marijuana for Medical Treatment Initiative of 1999, effective
91+39 July 27, 2010 (D.
92+C. Law 18-210; D. C. Official Code§ 7-1671.01 et seq.), is amended as follows:
93+40 (a) Section 2 (D.C. Official
94+Code§ 7-1671.01) is amended as follows: (1) A new paragraph (2B) is added to read as follows: 41
95+ “(2B) “Cannabis product” means a product derived from or composed of 42
96+cannabis, in part or in whole.”. 43
97+(2) A new paragraph (20B-i) is added to read as follows: 44
98+ “(20B-i) “Schedule I substance” means a controlled substance listed in section 45
99+204 of the District of Columbia Uniform Controlled Substances Act of 1981, effective August 5, 46
100+1981 (D.C. Law 4- 29; D.C. Official Code § 48- 902.04), or rules implementing that section.”. 47
101+ (3) Paragraph (22) is amended to read as follows: 48
102+ “(22) “Unlicensed establishment" means: 49
103+ “(A) A sole proprietorship, partnership, or other business entity that: 50
104+ “(i) Sells, exchanges as part of a commercial transaction, or 51
105+delivers cannabis and cannabis products; 52
106+ “(ii) Operates at or delivers from a specific location in the District; 53
107+and 54
108+ “(iii) Is not licensed by ABCA as a cultivation center, retailer, 55
109+internet retailer, manufacturer, courier, or testing laboratory; or 56
110+ “(B) For the purposes of section 9(g), (h), and (i), a sole proprietorship, 57
111+partnership, or other business entity that: 58
112+ “(i) Sells, exchanges as part of a commercial transaction, or 59
113+delivers Schedule I substances or products that contain Schedule I substances; and 60
114+ “(ii) Operates at or delivers from a specific location in the 61
115+District.”. 62 (b) Section 7b (D.C. Official Code § 7- 1671.06b) is amended by adding a new subsection 63
116+(a-1) to read as follows: 64
117+ “(a-1) Notwithstanding subsection (a) of this section: 65
118+ “(1) Regardless of whether an unlicensed establishment has a retailer or internet 66
119+retailer application pending review with the ABC Board, the ABCA may inspect the entire 67
120+premises, inventory, and business records of the unlicensed establishment pursuant to section 68
121+9(g), ABCA investigators from testing products of the unlicensed establishment under section 69
122+9(i), and the ABC Board from summarily closing and ordering the padlocking of the unlicensed 70
123+establishment pursuant to section 9(g), ABCA or MPD from padlocking the unlicensed 71
124+establishment pursuant to section 9(g), ABCA or MPD from seizing cannabis, cannabis products, 72
125+Schedule I substances, and products that contain Schedule I substances found at the premises of 73
126+the unlicensed establishment pursuant to section 9(g), or the ABC Board, ABCA, or MPD from 74
127+taking action under section 9(h) if the unlicensed establishment distributes, attempts to distribute, 75
128+or makes available for sale or exchange a Schedule I substance or a product that contains a 76
129+Schedule I substance. 77
130+ “(2) After April 1, 2025, a n unlicensed establishment shall be subject to 78
131+compliance with this act regardless of whether the unlicensed establishment has a retailer or 79
132+internet retailer application pending review with the ABC Board.”. 80
133+ (c) Section 9 (D.C. Official Code § 7- 1671.08) is amended as follows: 81
134+ (1) Subsection (g) is amended as follows: 82
135+ (A) Paragraph (1) is amended as follows: 83 (i) Strike the phrase “this title” and insert the phrase “this act or is 84
136+selling, exchanging as part of a commercial transaction, or delivering a Schedule I substance or 85
137+products that contains a Schedule I substance” in its place. 86
138+ (ii) Strike the phrase “cannabis products” and insert the phrase 87
139+“cannabis products, Schedule I substances, or products that contain Schedule I substances” in its 88
140+place. 89
141+ (B) A new paragraph (6) is added to read as follows: 90
142+ “(6) The Board may continue the summary closure and order of padlocking, and 91
143+the padlocking of the premises and seizure of cannabis, cannabis products, Schedule I 92
144+substances, and products containing Schedule I substances may continue, until the imminent 93
145+danger that trigger ed the summary closure is abated. Even if the imminent danger that trigger ed 94
146+the summary closure is abated, the Board may continue the summary closure, and the padlocking 95
147+of the premises and seizure of cannabis, cannabis products, Schedule I substances, and products 96
148+containing Schedule I substances may continue, if the Board determines, in its reasonable 97
149+judgment, the imminent danger is likely to recur.”. 98
150+ (2) Subsection (i)(1) is amended to read as follows: 99
151+ “(i)(1) An ABCA investigator may test substances and products found at a licensed 100
152+establishment or unlicensed establishment for the presence and quantity of THC or a Schedule I 101
153+substance.”. 102
154+(3) A new subsection (j) is added to read as follows: 103
155+ “(j)(1) The ABC Board may summarily close and order the padlocking, by ABCA or 104
156+MPD without a prior hearing, of a licensed establishment, and ABCA or MPD may seize all 105
157+cannabis, cannabis products, Schedule I substances, and products containing Schedule I 106 substances found at the premises, if, after an inspection, ABCA determines that the licensed 107
158+establishment that presents an imminent danger to the health and safety of the public for the 108
159+reasons set forth in subsection (g) (C) through (G) of this section. 109
160+ “(2) ABCA shall provide the licensed establishment’s owner and the property 110
161+owner with written notice of the summary closure and the right to request a hearing. 111
162+ “(3) The owner of the licensed establishment shall have 5 business days after 112
163+service of the notice of summary closure to request a hearing with the ABC Board, which shall 113
164+hold a hearing within 5 business days of a timely request. The ABC Board shall issue a written 114
165+decision within 5 business days after the hearing, or if no hearing is requested, within 10 115
166+business days after the service of the notice . 116
167+ “(4)(A) ABCA or the Metropolitan Police Department may post signage at the 117
168+site of the licensed establishment indicating that unlawful activity has been found to have 118
169+occurred for violations of this chapter. 119
170+ “(B) If the ABC Board orders the closure of a licensed establishment, the 120
171+ABC Board shall post 2 notices in conspicuous places at or near the main street entrance on the 121
172+outside of the establishment. 122
173+ “(C) The posted notice shall state that the closure is ordered because of a 123
174+violation of this chapter or of the regulations promulgated pursuant to this chapter. 124
175+ “(D) Any person willfully removing, obliterating, or defacing the notice 125
176+shall be guilty of a violation of this chapter.”. 126
177+Sec 4. Fiscal impact statement. 127 The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal 128
178+impact statement required by section 4a of the General Legislative Procedures Act of 1975, 129
179+approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a). 130
180+ Sec. 5. Effective date. 131
181+ This act shall take effect following approval by the Mayor (or in the event of veto by the 132
182+Mayor, action by the Council to override the veto), and shall remain in effect for no longer than 133
183+90 days, as provided for emergency acts of the Council of the District of Columbia in section 134
184+412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788; 135
185+D.C. Official Code § 1- 204.12(a)). 136 3
50186
51- “(i) Sells, exchanges as part of a commercial transaction, or
52-delivers cannabis and cannabis products;
53- “(ii) Operates at or delivers from a specific location in the District;
54-and
55- “(iii) Is not licensed by ABCA as a cultivation center, retailer,
56-internet retailer, manufacturer, courier, or testing laboratory; or
57- “(B) For purposes of section 9(c -1), (g), (h), and (i), a sole proprietorship,
58-partnership, or other business entity that:
59- “(i) Sells, exchanges as part of a commercial transaction, or
60-delivers Schedule I substances or products that contain Schedule I substances; and
61- “(ii) Operates at or delivers from a specific location in the
62-District.”.
63- (b) Section 7b (D.C. Official Code § 7- 1671.06b) is amended by adding a new subsection
64-(a-1) to read as follows:
65- “(a-1) Notwithstanding any other provision of this section , an unlicensed establishment
66-may be summarily closed and padlocked pursuant to section 9(g) after April 1, 2025.”.
67- (c) Section 9 (D.C. Official Code § 7- 1671.08) is amended as follows:
68- (1) A new subsection (c-1) is added to read as follows:
69- “(c-1) It shall be a violation of this act for a licensed establishment or an unlicensed
70-establishment (regardless of whether the unlicensed establishment has an application pending
71-before the ABC Board) to sell, exchange as part of a commercial transaction, or deliver Schedule
72-I substances or products that contain Schedule I substances.”.
73- (2) Subsection (b) is amended by re designating the second paragraph (1) as
74-paragraph ( 2).
75- (3) Subsection (g) is amended as follows:
76- (A) Paragraph (1) is amended as follows:
77- (i) Strike the phrase “this title” and insert the phrase “this act ” in
78-its place.
79- (ii) Strike the phrase “cannabis products” and insert the phrase
80-“cannabis products, Schedule I substances, or products that contain Schedule I substances” in its
81-place.
82- (B) A new paragraph (6) is added to read as follows:
83- “(6) The ABC Board may continue the summary closure, padlocking of the
84-premises, and seizure of cannabis, cannabis products, Schedule I substances, and products
85-containing Schedule I substances until the imminent danger that trigger ed the summary closure is
86-abated. Even if the imminent danger that trigger ed the summary closure is abated, the ABC
87-Board may continue the summary closure, order of padlocking, and seizure of cannabis, cannabis
88-products, Schedule I substances, and products containing Schedule I substances, if the ABC
89-Board determines, in its reasonable judgment, the imminent danger is likely to recur .”. ENROLLED ORIGINAL
187+GOVERNMENT OF THE DISTRICT OF COLUMBIA
188+O
189+FFICE OF THE ATTORNEY GENERAL
190+
191+
192+BRIAN L. SCHWALB PRIVILEGED AND CONFIDENTIAL
193+ATTORNEY GENERAL ATTORNEY-CLIEN T COMMUNICATION
90194
91195
92196
93-3
94-
95- (4) A new subsection (g-1) is added to read as follows:
96- “(g-1)(1) The ABC Board may summarily close and order the padlocking, by ABCA or
97-MPD without a prior hearing, of a licensed establishment, and ABCA or MPD may seize all
98-cannabis, cannabis products, Schedule I substances, and products containing Schedule I
99-substances found at the premises, if, after an inspection, ABCA determines that the licensed
100-establishment presents an imminent danger to the health and safety of the public for the reasons
101-set forth in subsection (g)(2)(C) through (G) of this section.
102- “(2) ABCA shall provide the licensed establishment’s owner and the property
103-owner with written notice of the summary closure and the right to request a hearing.
104- “(3) The owner of the licensed establishment shall have 5 business days after
105-service of the notice of summary closure to request a hearing with the ABC Board, which shall
106-hold a hearing within 5 business days of a timely request.
107- “(4) The ABC Board shall issue a written decision within 5 business days after the
108-hearing, or if no hearing is requested, within 10 business days after the service of the notice.”.
109- “(5) The ABC Board may continue the summary closure, padlocking of the
110-premises, and seizure of cannabis, cannabis products, Schedule I substances, and products containing Schedule I substances until the imminent danger that triggered the summary closure is
111-abated. Even if the imminent danger that triggered the summary closure is abated, the ABC Board may continue the summary closure, order of padlocking, and seizure of cannabis, cannabis products, Schedule I substances, and products containing Schedule I substances, if the ABC Board determines, in its reasonable judgment, the imminent danger is likely to recur.”.
112- (5) Subsection (h) is amended as follows: (A) Paragraph (1) is amended to read as follows: “ (h)(1) ABCA or the Metropolitan Police Department may post signage at the site of the
113-unlicensed establishment or licensed establishment indicating that activity that violates this act has been found to have occurred at the establishment.”. (B) Paragraph (2) is amended by striking the phrase “unlicensed establishment” and inserting the phrase “unlicensed establishment or licensed establishment” in its place. (6) Subsection (i)(1) is amended to read as follows: “(i)(1) An ABCA investigator may test cannabis and cannabis products found at a
114-licensed establishment or unlicensed establishment to quantify their THC content and may test other substances and products found at a licensed establishment or unlicensed establishment for the presence and quantity of a Schedule I substance.”.
115-
116-Sec 4. Fiscal impact statement.
117- The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact
118-statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). ENROLLED ORIGINAL
197+LEGAL COUNSEL DIVISION
119198
120199
121-
122-4
200+MEMORANDUM
123201
124202
125- Sec. 5. Effective date.
126- This act shall take effect following approval by the Mayor (or in the event of veto by the
127-Mayor, action by the Council to override the veto), and shall remain in effect for no longer than
128-90 days, as provided for emergency acts of the Council of the District of Columbia in section
129-412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788;
130-D.C. Official Code § 1- 204.12(a)).
203+TO: Tomás Talamante
204+
205+Director
206+ Office of Policy and Legislative Affairs
131207
132208
209+FROM: Adele El-Khouri
210+Deputy Attorney General
211+Legal Counsel Division
133212
213+DATE: February 27, 2025
214+ SUBJECT: Legal Sufficiency Review – Draft “Unlicensed Establishment Enforcement
215+Clarification Emergency Amendment Act of 2025,” “Unlicensed Establishment
216+Enforcement Clarification Temporary Amendment Act of 2025,” and “Unlicensed Establishment Enforcement Clarification Emergency Declaration Resolution of 2025”
134217
218+(AE-25-66)
219+_____________________________________________________________________________________
135220
136-___________________________________
137-Chairman
138-Council of the District of Columbia
139-
221+This is to Certify that this Office has reviewed the above-referenced draft
222+legislation and found it to be legally sufficient. If you have any questions in this regard, please do
223+not hesitate to call me at (202) 262-6402.
140224
141225
142226
143227
144228 _________________________________
145-Mayor
146-District of Columbia
147-
229+Adele El-Khouri
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149231
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