ENGROSSED ORIGINAL 1 1 A BILL 2 3 4 26-163 5 6 7 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 8 9 ___________ 10 11 12 To amend, on a temporary basis, the Legalization of Marijuana for Medical Treatment Initiative 13 of 1999 to amend the definition of an unlicensed establishment to include establishments 14 that sell Schedule I substances or products that contain Schedule I substances; to 15 authorize enforcement actions to be taken against all unlicensed establishments beginning 16 on April 1, 2025, regardless of whether the unlicensed establishments have an application 17 pending application before the Alcoholic Beverage and Control Board (“ABC Board”); to 18 authorize certain enforcement actions before April 1, 2025, against an unlicensed 19 establishment that has an application pending before the ABC Board if the unlicensed 20 establishment sells a Schedule I substance or a product that contains a Schedule I 21 substance; to authorize summary closures and related enforcement actions to continue for 22 as long as the imminent danger to the public persists and is likely to recur ; and to 23 authorize the ABC Board to issue a notice of summary closure to and order the 24 padlocking of, and to allow the Alcoholic Beverage and Cannabis Administration and 25 Metropolitan Police Department to take related enforcement actions against a licensed 26 medical cannabis establishment that engages in certain unlawful activity. 27 28 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 29 act may be cited as the “Unlicensed Establishment Enforcement Clarification Temporary 30 Amendment Act of 2025”. 31 Sec. 2. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective 32 July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.01 et seq. ), is amended as follows: 33 (a) Section 2 (D.C. Official Code § 7-1671.01) is amended as follows: 34 ENGROSSED ORIGINAL 2 (1) A new paragraph (2B) is added to read as follows: 35 “ (2B) “Cannabis product” means a product derived from or composed of 36 cannabis, in part or in whole.”. 37 (1 2) A new paragraph (20B-i) is added to read as follows: 38 “(20B- i) “Schedule I substance” means a controlled substance listed in section 39 204 of the District of Columbia Uniform Controlled Substances Act of 1981, effective August 5, 40 1981 (D.C. Law 4-29; D.C. Official Code § 48-902.04), or rules implementing that section.”. 41 (3) Paragraph (22) is amended to read as follows: 42 “(22) “ Unlicensed establishment" means: 43 “ (A) A sole proprietorship, partnership, or other business entity that: 44 “ (i) Sells, exchanges as part of a commercial transaction, or 45 delivers cannabis and cannabis products; 46 “ (ii) Operates at or delivers from a specific location in the District; 47 and 48 “( iii) Is not licensed by ABCA as a cultivation center, retailer, 49 internet retailer, manufacturer, courier, or testing laboratory; or 50 “ (B) For the purposes of section 9(c -1), (g), (h), and (i), a sole 51 proprietorship, partnership, or other business entity that: 52 “(i) Sells, exchanges as part of a commercial transaction, or 53 delivers Schedule I substances or products that contain Schedule I substances; and 54 ENGROSSED ORIGINAL 3 “(ii) Operates at or delivers from a specific location in the 55 District.”. 56 (b) Section 7b (D.C. Official Code § 7-1671.06b) is amended by adding by inserting a 57 new subsection (a-1) to read as follows: 58 (1 ) A new subsection (a-1) is added to read as follows: 59 “( -1) Notwithstanding subsection (a)any other provision of this section, an unlicensed 60 establishment may be summarily closed and padlocked, pursuant to section 9(g) after April 61 1, 2025.”. 62 “(1 ) Regardless of whether an unlicensed establishment has a retailer or internet retailer 63 application pending review with the ABC Board, the ABCA may inspect the entire premises, 64 inventory, and business records of the unlicensed establishment pursuant to section 9(g), ABCA 65 investigators from testing products of the unlicensed establishment under section 9(i), and the 66 ABC Board from summarily closing and ordering the padlocking of the unlicensed establishment 67 pursuant to section 9(g), ABCA or MPD from padlocking the unlicensed establishment pursuant 68 to section 9(g), ABCA or MPD from seizing cannabis, cannabis products, Schedule I substances, 69 and products that contain Schedule I substances found at the premises of the unlicensed 70 establishment pursuant to section 9(g), or the ABC Board, ABCA, or MPD from taking action 71 under section 9(h) if the unlicensed establishment distributes, attempts to distribute, or makes 72 available for sale or exchange a Schedule I substance or a product that contains a Schedule I 73 substance. 74 ENGROSSED ORIGINAL 4 “(2) After April 1, 2025, an unlicensed establishment shall be subject to 75 compliance with this act regardless of whether the unlicensed establishment has a retailer or 76 internet retailer application pending review with the ABC Board.”. 77 (c) Section 9 (D.C. Official Code § 7-1671.08) is amended as follows: 78 (1) A new subsection (c-1) is added to read as follows: 79 “(c-1 ) It shall be a violation of this act for a licensed establishment or an unlicensed 80 establishment (regardless of whether the unlicensed establishment has an application 81 pending before the ABC Board) to sell, exchange as part of a commercial transaction, or 82 deliver Schedule I substances or products that contain Schedule I substances.”. 83 ( 1 2) Subsection (g) is amended as follows: 84 (A) Paragraph (1) is amended as follows: 85 (i) Strike the phrase “this title” and insert the phrase “this act or is 86 selling, exchanging as part of a commercial transaction, or delivering a Schedule I substance or 87 products that contains a Schedule I substance” in its place. 88 (ii) Strike the phrase “cannabis products” and insert the phrase 89 “cannabis products, Schedule I substances, or products that contain Schedule I substances” in its 90 place. 91 (B) A new paragraph (6) is added to read as follows: 92 “(6) The Board may continue the summary closure, and order of padlocking of 93 the premises, and the padlocking of the premises and seizure of cannabis , cannabis products, 94 ENGROSSED ORIGINAL 5 Schedule I substances, and products containing Schedule I substances may continue, until the 95 imminent danger that trigger ed the summary closure is abated . Even if the imminent danger that 96 triggered the summary closure is abated , the Board may continue the summary closure, order of 97 and the padlocking, of the premises and seizure of cannabis, cannabis products, Schedule I 98 substances, and products containing Schedule I substances may continue, if the Board 99 determines, in its reasonable judgment, the imminent danger is likely to recur .”. 100 (3 ) A new subsection (g-1) is added to read as follows: 101 “ -1)(1) The ABC Board may summarily close and order the padlocking, by ABCA 102 or MPD without a prior hearing, of a licensed establishment, and ABCA or MPD may seize 103 all cannabis, cannabis products, Schedule I substances, and products containing Schedule I 104 substances found at the premises, if, after an inspection, ABCA determines that the 105 licensed establishment presents an imminent danger to the health and safety of the public 106 for the reasons set forth in subsection (g)(2)(C) through (G) of this section. 107 “ (2) ABCA shall provide the licensed establishment’s owner and the property 108 owner with written notice of the summary closure and the right to request a hearing. 109 “ (3) The owner of the licensed establishment shall have 5 business days after 110 service of the notice of summary closure to request a hearing with the ABC Board, which 111 shall hold a hearing within 5 business days of a timely request. 112 ENGROSSED ORIGINAL 6 “(4) The ABC Board shall issue a written decision within 5 business days 113 after the hearing, or if no hearing is requested, within 10 business days after the service of 114 the notice.”. 115 “ (5) The Board may continue the summary closure, padlocking of the 116 premises, and seizure of cannabis, cannabis products, Schedule I substances, and products 117 containing Schedule I substances until the imminent danger that triggered the summary 118 closure is abated. Even if the imminent danger that triggered the summary closure is 119 abated, the Board may continue the summary closure, order of padlocking, and seizure of 120 cannabis, cannabis products, Schedule I substances, and products containing Schedule I 121 substances, if the Board determines, in its reasonable judgment, the imminent danger is 122 likely to recur.”. 123 (4 ) Subsection (h) is amended as follows: 124 ( A) Paragraph (1) is amended to read as follows: 125 “( 1) ABCA or the Metropolitan Police Department may post signage at the 126 site of the unlicensed establishment or licensed establishment indicating that activity that 127 violates this act has been found to have occurred at the establishment.”. 128 ( B) Paragraph (2) is amended by striking the phrase “unlicensed 129 establishment” and inserting the phrase “unlicensed establishment or licensed 130 establishment” in its place. 131 (5 2) Subsection (i)(1) is amended to read as follows: 132 ENGROSSED ORIGINAL 7 “(i)(1) An ABCA investigator may test cannabis substances and cannabis products 133 found at a licensed establishment or unlicensed establishment for the presence and to quantity 134 their of THC content and may test other substances and products found at a licensed 135 establishment or unlicensed establishment for the presence and quantity of or a Schedule I 136 substance.”. 137 (3 138 “ 139 MPD without a prior hearing, of a licensed establishment, and ABCA or MPD may seize all 140 cannabis, cannabis products, Schedule I substances, and products containing Schedule I 141 substances found at the premises, if, after an inspection, ABCA determines that the licensed 142 establishment that presents an imminent danger to the health and safety of the public for the 143 reasons set forth in subsection (g)(C) through (G) of this section. 144 “ (2) ABCA shall provide the licensed establishment’s owner and the property 145 owner with written notice of the summary closure and the right to request a hearing. 146 “(3 ) The owner of the licensed establishment shall have 5 business days after 147 service of the notice of summary closure to request a hearing with the ABC Board, which shall 148 hold a hearing within 5 business days of a timely request. The ABC Board shall issue a written 149 decision within 5 business days after the hearing, or if no hearing is requested, within 10 150 business days after the service of the notice. 151 ENGROSSED ORIGINAL 8 “(4)(A) ABCA or the Metropolitan Police Department may post signage at the 152 site of the licensed establishment indicating that unlawful activity has been found to have 153 occurred for violations of this chapter. 154 “ (B) If the ABC Board orders the closure of a licensed establishment, the 155 ABC Board shall post 2 notices in conspicuous places at or near the main street entrance on the 156 outside of the establishment. 157 “( C) The posted notice shall state that the closure is ordered because of a 158 violation of this chapter or of the regulations promulgated pursuant to this chapter. 159 “ (D) Any person willfully removing, obliterating, or defacing the notice 160 shall be guilty of a violation of this chapter.”. 161 Sec 4. Fiscal impact statement. 162 The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal 163 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 164 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 165 Sec. 5. Effective date. 166 (a) This act shall take effect following approval by the Mayor (or in the event of veto by 167 the Mayor, action by the Council to override the veto), a 30 -day period of congressional review 168 as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 169 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 170 Columbia Register. 171 ENGROSSED ORIGINAL 9 (b) This act shall expire after 225 days of its having taken effect. 172