Chapter 16B. Use of Marijuana for Medical Treatment.

§ 7–1671.01. Definitions.

*NOTE: This section includes amendments by emergency legislation that will expire on January 16, 2025. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Permanent Version.*

*NOTE: This section includes amendments by emergency legislation that will expire on February 11, 2025. To view the text of this section after the expiration of all emergency and temporary legislation affecting this section, click this link: Permanent Version.*

*NOTE: This section includes amendments by temporary legislation that will expire on July 10, 2025. To view the text of this section after the expiration of all emergency and temporary legislation affecting this section, click this link: Permanent Version.*

For the purposes of this chapter, the term:

(1) "ABC Board" means the Alcoholic Beverage and Cannabis Board established by § 25-201.

(1A) "ABCA" means the Alcoholic Beverage and Cannabis Administration established by § 25-202.

(1B) "Adjacent" means located within the same physical structure as, and is abutting, adjoining, bordering, touching, contiguous to, or otherwise physically meeting.

(1C) “Administer” or “administration” means the direct introduction of medical cannabis, whether by inhalation, ingestion, or any other means, into the body of a person.

(1D) "Advanced practice registered nurse" means an individual licensed and in good standing to practice advanced practice registered nursing under District law.

(1E) "Affected ANC" means any Advisory Neighborhood Commission within 600 feet of where a medical cannabis cultivator, manufacturer, retailer, or internet retailer facility is or will be located.

[(1F)] "Another jurisdiction" means any state, commonwealth, or territory of the United States.

[(1G)] "Authorized practitioner" means a physician, advanced practice registered nurse, physician assistant, dentist, or naturopathic physician who is licensed and in good standing to practice under District law.

(2) “Bona fide relationship with a qualifying patient” means a relationship between an authorized practitioner and qualifying patient for which the authorized practitioner:

(A) Has completed a full assessment of the patient's medical or dental history and current medical or dental condition, including a personal physical or dental examination; and

(B) Has responsibility for the ongoing care and treatment of the patient.

(2A) "Cannabis" shall have the same meaning as provided in § 48-901.02(3).

(3) "Caregiver" means a person at least 18 years of age who is designated by a qualifying patient as the person authorized, on the qualifying patient's behalf, to possess, obtain from a licensed retailer, internet retailer or courier, dispense, administer, and assist in the administration of medical cannabis.

(4) “Controlled Substances Act” means Unit A of Chapter 9 of Title 48 [ § 48-901.02 et seq.].

(4A) "Courier" means a platform or business that:

(A) Is licensed to conduct business in the District;

(B) Has a contractual relationship with a holder of a medical cannabis retailer license or internet retailer license to provide delivery services or facilitate the sale of medical cannabis or medical cannabis products for deliveries in the District to qualifying patients or caregivers through the use of the internet, a mobile application, or a similar technology platform; and

(5) “Cultivation center” means a facility operated by an organization or business registered with ABCA pursuant to § 7-1671.05 from or at which medical cannabis is cultivated, possessed, manufactured, and distributed in the form of medical cannabis, and paraphernalia is possessed and distributed to dispensaries.

(5A) "Daycare center" means a child development center, as that term is defined in § 4-401(2), that is licensed by the Office of the State Superintendent of Education.

(5B) "Dentist" means an individual who is licensed and in good standing to practice dentistry under District law, but does not include an individual who only holds a dental teaching license.

(6) Repealed.

(7) Repealed.

(8) “Dispense” means to distribute medical cannabis to a qualifying patient or caregiver pursuant to this chapter and the rules issued pursuant to § 7-1671.13.

(9) “Distribute” means the actual, constructive, or attempted transfer from one person to another.

(9A) "DSLBD" means the Department of Small and Local Business Development.

(9B) "Economically disadvantaged individual" shall have the same meaning as provided in § 2-218.02(7).

(9C) "Internet retailer" means a platform or business that is licensed to conduct business in the District, provides delivery services, and facilitates the sale of medical cannabis or medical cannabis products for deliveries to qualifying patients or caregivers through the use of the internet, a mobile application, or similar technology platform, and that does not have a physical location that is open to the public.

(10) “Manufacture” means the production, preparation, propagation, compounding, conversion, or processing of cannabis, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or re-labeling of its container.

(11) Repealed.

(11A) "Manufacturer" means a facility operated by an organization or business licensed with ABCA pursuant to § 7-1671.05 to:

(A) Process medical cannabis from cultivation centers into medical cannabis concentrates and medical cannabis-infused products;

(B) Package and label medical cannabis concentrates and medical cannabis-infused products for dispensing at licensed retailers and internet retailers; and

(C) Sell medical cannabis concentrates and medical cannabis-infused products at wholesale to licensed retailers and internet retailers.

(12) "Medical cannabis" means cannabis cultivated, manufactured, possessed, distributed, dispensed, obtained, or administered in accordance with this chapter and the rules issued pursuant to § 7-1671.13.

(12A) "Medical cannabis certified business enterprise" means a business enterprise that operates a cultivation center, retailer, internet retailer, courier, manufacturer, or testing laboratory that:

(A) Is certified by DSLBD as an equity impact enterprise, as that term is defined in § 2-218.02(8A), and rules issued pursuant to subchapter IX-A of Chapter 2 of Title 2;

(B) Demonstrates to the satisfaction of DSLBD that more than 50% of the employees of the business enterprise are residents of the District; and

(C) Submits a form to ABCA attesting under the penalty of perjury that the annual personal net income of each owner of the enterprise applying for a cultivation center, retailer, internet retailer, cultivator, courier, manufacturer, or testing laboratory license does not exceed $349,999.

(12B) "Medical cannabis product" means a product derived from or composed of medical cannabis, in part or in whole.

(13) “Minor” means any person under 18 years of age, but does not include an emancipated minor.

(13A) "Naturopathic physician" means an individual who is licensed and in good standing to practice naturopathic medicine under District law.

(13B) "Non-resident cardholder" means a non-District resident who is a person who resides or is domiciled in another state, territory, foreign country, or foreign territory and who is a person who resides or is domiciled in another state, territory, foreign country, or foreign territory and who:

(A) Is not enrolled in another jurisdiction's medical cannabis program; and

(B) Has submitted documentation required by ABCA for a temporary registration identification card valid for periods established by the ABC Board by rulemaking, which are between 3 days and no longer than one year in length and received confirmation from ABCA of their registration.

(14) “Paraphernalia” means:

(A) Objects used, intended for use, or designed for use in preparing, storing, ingesting, inhaling, or otherwise introducing medical cannabis into the human body; and

(B) Kits, objects, devices, or equipment used, intended for use, or designed for use in planting, propagating, manufacturing, cultivating, growing, harvesting, processing, or preparing medical cannabis.

(14A) "Pesticide" includes:

(A) Any substance or mixture of substances intended to prevent, destroy, control, repel, or mitigate any insect, rodent, snail, slug, fungus, weed, or any other form of plant or animal life or virus, except a virus on or in a living person or other animal, that is normally considered to be a pest;

(B) Any substance or mixture of substances intended to be used as a plant regulator, defoliant, or desiccant; and

(15) “Physician” means an individual who is licensed and in good standing to practice medicine or osteopathy under District law.

(15A) "Physician assistant" means an individual who is licensed and in good standing to practice as a physician assistant under District law.

(16) “Program” means the medical cannabis program established by § 7-1671.05.

(17) "Qualifying medical or dental condition" means any condition for which treatment with medical cannabis would be beneficial, as determined by an authorized practitioner.

(18) “Qualifying medical or dental treatment” means:

(A) Chemotherapy;

(B) The use of azidothymidine or protease inhibitors;

(D) Any other treatment, as determined by rulemaking, whose side effects require treatment through the administration of medical cannabis in the same manner as a qualifying medical or dental condition.

(19) “Qualifying patient” means a resident of the District who has a qualifying medical or dental condition or is undergoing a qualifying medical or dental treatment, a patient who is a non-resident cardholder, or a patient enrolled in another jurisdiction's medical cannabis program; provided, that a patient who is a non-resident cardholder or a patient from another jurisdiction shall not be a qualifying patient if ABCA determines that there is a shortage of medical cannabis or the real-time electronic records system referenced in § 7-1671.05(4)(A) [rewritten] is inactive.

(19B) "Recreation center" means a Department of Parks and Recreation public facility.

(19A) "Real-time electronic records" means a records system that is able to track the amount of medical cannabis that District residents and patients from another jurisdiction purchase in real-time.

(20) “Residence” means a dwelling or dwelling unit in which a person lives in a particular locality with the intent to make it a fixed and permanent home.

(20A) "Retailer" means a facility operated by an organization or business licensed with ABCA pursuant to § 7-1671.05 from or at which medical cannabis is possessed and dispensed, and paraphernalia is possessed and distributed to a qualifying patient or a caregiver.

(20B) "Returning citizen" means a District resident who was arrested, convicted, or incarcerated for a cannabis or drug-related offense.

(20C) "Social equity applicant" means an applicant for licensure with ABCA pursuant to § 7-1671.06 who satisfies 2 or more of the following criteria:

(A) The applicant has at least one owner who is a District resident, individually or collectively owns at least 50% of the business, and is a returning citizen;

(B) The applicant has at least one owner who is a District resident, individually or collectively owns at least 50% of the business, and is married to or in a civil union, has a child, or is the child of a person or has a non-parent legal guardian, or a grandparent or a sibling who is or has been arrested, convicted, or incarcerated in the District or in any other jurisdiction for a cannabis or drug-related offense; or

(C) The applicant has at least one owner who is a District resident, individually or collectively owns at least 50% of the business and has an income that does not exceed 150% of the median family income as set forth by the United States Department of Housing and Urban Development, adjusted for household size, at the time the applicant submits the application.

(20D) "Straw ownership" means nominal ownership without the attendant benefits and risks of genuine ownership, where a person, often for a fee, allows themselves to be named on documents or purports in writing to be an owner, in whole or in part, for the purpose of satisfying a government regulatory requirement.

(21) "Testing laboratory" means an entity that is not owned or operated by a director, officer, member, incorporator, agent, or employee of a cultivation center, manufacturer, retailer, internet retailer, courier, or other license category established by rulemaking and is licensed by ABCA to test medical cannabis and medical cannabis products that are to be sold pursuant to this chapter.

(22) "Unlicensed establishment" means a sole proprietorship, partnership, or other business entity that:

(A) Sells, exchanges as part of a commercial transaction, or delivers cannabis and cannabis products;

(B) Operates at or delivers from a specific location in the District; and

(C) Is not licensed by ABCA as a cultivation center, retailer, internet retailer, manufacturer, courier, or testing laboratory.

§ 7–1671.02. Use of medical cannabis.

(a) Notwithstanding any other District law, a qualifying patient may purchase, possess, use, and administer medical cannabis, and purchase, possess, and use paraphernalia, in accordance with this chapter and the rules issued pursuant to § 7-1671.13.

(b) Notwithstanding any other District law, a caregiver may obtain, possess, dispense, administer, and assist in the administration of medical cannabis to a qualifying patient, and obtain, possess, and use paraphernalia, for the sole purpose of assisting in the administration of medical cannabis to a qualifying patient in accordance with this chapter and the rules issued pursuant to § 7-1671.13.

(b-1) When registering pursuant to § 7-1671.05, a caregiver shall not be required to submit a criminal background check to ABCA.

(c) A qualifying patient may purchase, possess, and administer medical cannabis, and purchase, possess, and use paraphernalia, only for the treatment of a qualifying medical or dental condition or the side effects of a qualifying medical treatment, and only after having:

(1)(A) Obtained a signed, written recommendation from an authorized practitioner within the last 2 years in accordance with § 7-1671.04, except for individuals 21 years of age and older who shall be permitted to self-certify on a form provided by ABCA that they are utilizing cannabis for medical purposes as part of the registration process; and

(B) Registered with ABCA pursuant to § 7-1671.05; or

(2) Enrolled in another jurisdiction's medical cannabis program.

(c-1)(1) When a qualifying patient's or caregiver's registration identification card has expired or will expire at any time between March 1, 2020, and March 31, 2023, and the qualifying patient or caregiver has not submitted an application for a new registration identification card, the qualifying patient or caregiver may continue to obtain, purchase, possess, dispense, use, administer, and assist in the administration of, respectively, medical cannabis in accordance with this chapter and the rules issued pursuant to § 7-1671.13 until March 31, 2023.

(2) On or after April 1, 2023, the qualifying patient or caregiver shall possess a valid registration identification card to continue to obtain, purchase, possess, dispense, use, administer, and assist in the administration of, respectively, medical cannabis.

(c-2) Notwithstanding the requirements of subsection (c) of this section, the ABC Board may, by rule, establish alternative or additional processes and procedures for qualifying patients to:

(1) Register in the medical cannabis program; or

(2) Obtain temporary or permanent approval to purchase medical cannabis from a retailer or internet retailer within one business day.

(d) A qualifying patient or caregiver shall only obtain, purchase, possess, dispense, use, administer, or assist in the administration of medical cannabis, or obtain, purchase, possess, or use paraphernalia obtained from a retailer or internet retailer licensed with ABCA pursuant to § 7-1671.05.

(e)(1) A qualifying patient who is a minor may purchase, possess, use, and administer medical cannabis, and purchase, possess, and use paraphernalia, only after having received a recommendation from an authorized practitioner and registered with ABCA.

(2) A signed, written statement from the minor qualifying patient's parent or legal guardian shall be submitted when registering with ABCA, which affirms that the parent or legal guardian:

(A) Understands the qualifying medical or dental condition or qualifying medical or dental treatment of the minor;

(B) Understands the potential benefits and adverse effects of the use of medical cannabis, generally, and specifically, in the case of the minor;

(C) Consents to the use of medical cannabis for the minor's qualifying medical or dental condition or qualifying medical or dental treatment; and

(D) Consents to, or designates another adult to, serve as the caregiver for the qualifying patient, and that the caregiver controls the acquisition, possession, dosage, and frequency of use of medical cannabis by the qualifying patient.

§ 7–1671.03. Restrictions on use of medical cannabis.

(a)(1) The maximum amount of dried medical cannabis that any qualifying patient or caregiver may possess at any moment is 8 ounces.

(2) The Mayor shall promulgate through rulemaking limits on the amount of medical cannabis in forms other than dried medical cannabis that any qualifying patient or caregiver may possess at any one moment.

(b) Medical cannabis shall only be administered by or to a qualifying patient at:

(1) A qualifying patient's residence, if permitted;

(2) The residence of an individual who has given permission to the qualifying patient to administer medical cannabis at the individual's residence, if permitted;

(3) A medical treatment facility, when the qualifying patient is receiving medical care for a qualifying medical or dental condition or a qualifying medical or dental treatment, if permitted by the medical treatment facility;

(4) A safe use treatment facility licensed by ABCA pursuant to § 7-1671.06c; or

(5) A school in which the qualifying patient is enrolled, if the school has a policy in place for allowing the administration of medication at school; provided, that the medical cannabis shall be in non-smokable form.

(c) A qualifying patient or caregiver shall transport medical cannabis in a labeled container or sealed package in a manner and method established by rulemaking.

(d) Nothing in this chapter permits a person to:

(1) Undertake any task under the influence of medical cannabis when doing so would constitute negligence or professional malpractice; or

(2) Operate, navigate, or be in actual physical control of any motor vehicle, aircraft, or motorboat while under the influence of medical cannabis.

(e) The use of medical cannabis as authorized by this chapter and the rules issued pursuant to § 7-1671.13 does not create a defense to any crime and does not negate the mens rea element for any crime except to the extent of the voluntary-intoxication defense recognized in District of Columbia law.

(f) Notwithstanding any other law, a person or entity may provide information about the existence or operations of a cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory to another person pursuant to this law.

(g) A qualifying patient, caregiver, or an employee of a cultivation center, manufacturer, retailer, internet retailer, courier, testing laboratory, or other holder of a license in a license category established by this chapter or by rulemaking pursuant to this chapter who is stopped by the police upon reasonable suspicion or probable cause that the stopped individual is in possession of cannabis may not be further detained or arrested on this basis alone if the police determine that the individual is in compliance with this chapter and the rules issued pursuant to § 7-1671.13.

§ 7–1671.04. Recommending authorized practitioner; protections.

*NOTE: This section includes amendments by temporary legislation that will expire on March 1, 2025. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Permanent Version.*

(a) A qualifying patient may receive a recommendation from an authorized practitioner to use medical cannabis for a qualifying medical or dental condition or a qualifying medical or dental treatment.

(b) An authorized practitioner may recommend the use of medical cannabis to a qualifying patient, on a form provided by ABCA, if the authorized practitioner makes the recommendation based on an assessment of the qualifying patient's current medical or dental condition.

(c) An authorized practitioner shall not be subject to any penalty, including arrest, prosecution, or disciplinary proceeding, or denial of any right or privilege, for advising a qualifying patient about the use of medical cannabis or recommending the use of medical cannabis to a qualifying patient pursuant to this chapter and any rules issued pursuant to § 7-1671.13.

(d) An authorized practitioner recommending the use of medical cannabis to a qualifying patient shall not have a professional office located at a retailer, internet retailer, cultivation center, manufacturer, or testing laboratory or receive financial compensation from a cultivation center, manufacturer, or testing laboratory, or a director, officer, member, incorporator, agent, or employee of a retailer, internet retailer, cultivation center, courier, manufacturer, or testing laboratory.

(e)(1) Within 14 calendar days of receiving a notice as described in paragraph (2) of this subsection, a qualifying patient shall:

(A) Surrender his or her registration card to the Board; and

(B) Notify his or her registered caregiver, if applicable, of the change described in the notice.

(2) For the purposes of this subsection, "notice" means:

(A) An authorized practitioner declaring that:

(i) The qualifying patient no longer suffers from a qualifying medical or dental condition; or

(ii) The authorized practitioner no longer recommends use of medical cannabis for a qualifying medical or dental treatment for the qualifying patient; or

(B) A qualifying patient notifying ABCA that they no longer need cannabis for the treatment of a qualifying medical or dental condition or for a qualifying medical or dental treatment.

§ 7–1671.05. Medical cannabis program.

(a) There is established a medical cannabis program, which shall regulate the cultivation, manufacture, distribution, dispensing, purchase, delivery, sale, possession, administration, and testing of medical cannabis and the manufacture, distribution, purchase, sale, possession, and use of paraphernalia.

(b) The Program shall:

(1) Require the registration with ABCA of all:

(A) Qualifying patients, except qualifying patients enrolled in another jurisdiction's medical cannabis program pursuant to § 7-1671.02(c)(2), and the caregivers of qualifying patients; and

(B) Non-resident cardholders;

(2) Require the licensing with ABCA of all cultivation centers, manufacturers, retailers, internet retailers, couriers, and testing laboratories, including all directors, officers, members, incorporators, agents, and employees of those facilities;

(3) Create a self-certification form that may be used by qualifying patients ages 21 and older as part of the registration process, which shall contain the following statement:

"I will only use cannabis purchased from a District retailer as a qualifying patient for the treatment of a qualifying medical or dental condition or for the side effects of a qualifying or medical treatment. I understand my rights and obligations as set forth by the Medical Cannabis Program and agree to these requirements. I certify under penalty of perjury that the foregoing is true and correct.

"_______________________________________________

"[Signature Here]

"Willfully making a false statement that is in fact material, in writing, directly or indirectly, on this application is a violation of District of Columbia law and subject to criminal penalties of a fine of not more than $1,000 or imprisonment for not more than 180 days, or both. (D.C. Official Code § 22-2405).".

(4)(A) As part of the registration process, permit a non-resident qualifying patient visiting the District of Columbia to apply to ABCA to receive a temporary non-resident registration identification card, which shall be valid for periods established by the ABC Board by rulemaking, which are between 3 days and no longer than one year in length; and

(B) After the expiration of a temporary non-resident registration identification card, permit a non-resident qualifying patient to apply to ABCA to be issued another temporary non-resident identification card.

(5) Issue nontransferable registration identification cards to persons and entities registered pursuant to paragraph (1) of this subsection; provided, that:

(A) With respect to registration identification cards issued to persons and entities registered pursuant to paragraph (1)(A) of this subsection, such cards expire every 6 years;

(B) The cards may be presented to and used by law enforcement to confirm whether a person or entity is authorized to cultivate, manufacture, distribute, dispense, deliver, sell, possess, test, or administer medical cannabis or medical cannabis products, or manufacture, possess, deliver, purchase, sell, distribute, or use paraphernalia; and

(C) The ABC Board may, by rule, establish license and registration periods and fees under the section that are valid for one year, 2 years, or 3 years, except for temporary non-resident registration identification cards that are valid for periods established by the ABC Board by rulemaking, which shall be between 3 days and no longer than one year in length.

(6) Require all cultivation centers, manufacturers, retailers, internet retailers, couriers, and testing laboratories to:

(A) Maintain true, complete, and real-time electronic records of:

(i) The name, address, home telephone number, and date of birth of each employee;

(ii) Each transaction conducted by the facility, including:

(I) The quantity of medical cannabis tested, processed, distributed, delivered, or dispensed;

(II) The consideration given for the medical cannabis, if any; and

(III) The recipient of the medical cannabis;

(iii) The quantity of medical cannabis or medical cannabis products at the cultivation center, manufacturer, retailer, internet retailer, or testing laboratory;

(iv) The disposal method used for any medical cannabis that was cultivated, processed, or acquired but did not meet the requirements for sale established by the ABC Board through rulemaking pursuant to § 7-1671.13 or that was not sold for any other reason, including evidence of the disposal of the medical cannabis; and

(v) Any other information required by ABCA; and

(B) Notify ABCA and the Chief of the Metropolitan Police Department in writing and within 24 hours of the loss, theft, or destruction of any medical cannabis;

(7) Require all retailers and internet retailers to maintain true, complete, and real-time electronic records of the name and address of the qualifying patient or caregiver authorized to obtain medical cannabis;

(8) Upon the licensing of at least one testing laboratory pursuant to paragraph (2) of this subsection, require that cultivation centers segregate all harvested medical cannabis into batches before manufacturing any medical cannabis products, or packaging dried medical cannabis for sale to a manufacturer, retailer, or internet retailer, and hold the harvested medical cannabis from sale until:

(A) The medical cannabis has been tested by a testing laboratory;

(B) The cultivation center has received the information required pursuant to paragraph (9) of this subsection; and

(C) The cultivation center has determined that the medical cannabis meets the requirements for sale established by the ABC Board through rulemaking;

(9) Require testing laboratories to provide cultivation centers with the following information after testing harvested medical cannabis samples:

(A) The concentration of tetrahydrocannabinol and cannabidiol in the testing material;

(B) Whether the tested material is organic or inorganic;

(D) The presence of mold, mildew, or pests;

(E) Whether the medical cannabis samples contain mycotoxin, pesticides, or heavy metals above a threshold determined by the ABC Board through rulemaking; and

(F) Any other information that the ABC Board may require through rulemaking;

(10) Upon licensing of at least one testing laboratory pursuant to paragraph (2) of this section, require that manufacturers segregate all processed medical cannabis products into batches, and hold the processed medical cannabis products from sale until:

(A) The medical cannabis products have been tested by a testing laboratory;

(B) The manufacturer has received the information required pursuant to paragraph (11) of this subsection; and

(C) The manufacturer has determined that the medical cannabis products meet the requirements for sale established by the ABC Board through rulemaking;

(11) Require testing laboratories to provide manufacturers with the following information after testing medical cannabis product samples:

(A) The concentration of tetrahydrocannabinol and cannabidiol in the testing material;

(B) Whether the tested material is organic or inorganic;

(D) Whether the medical cannabis product samples contain mycotoxin or residual solvents above a threshold determined by the ABC Board through rulemaking; and

(E) Any other information that the ABC Board may require through rulemaking;

(11A) Allow testing laboratories to:

(A) Receive and test samples of medical cannabis products from qualifying patients; provided, that the qualifying patient must present proof that he or she is currently registered, and that the medical cannabis product was purchased from a retailer or internet retailer licensed with ABCA.

(B) Receive and test samples of medical cannabis products from licensed cultivation centers or manufacturers for purposes of quality assurance or research and development. Samples collected for quality assurance or research and development testing may be selected by the cultivation center or manufacturer non-randomly. Any tests conducted for purposes of quality assurance or research and development shall not satisfy the requirements of paragraphs (8) through (11) of this subsection.

(12) Develop educational materials about:

(A) The potential adverse drug interactions that could occur from using medical cannabis concurrently with other medical treatments;

(B) Harm reduction strategies for qualifying patients who use medical cannabis; and

(C) The importance of informing health care providers and pharmacists of the use of medical cannabis to help avoid adverse drug interactions;

(13) Revoke or suspend the registration or license of any person or entity if the ABC Board determines that the person or entity has violated a provision of this chapter or the rules issued pursuant to § 7-1671.13;

(14) Conduct announced and unannounced inspections of cultivation centers, manufacturers, retailers, internet retailers, couriers, and testing laboratories;

(14A) Conduct announced and unannounced inspections of unlicensed establishments;

(15) Establish registration, sliding-scale registration, and annual renewal fees for all persons and entities required to register or obtain a license pursuant to this chapter and permit the ABC Board, by rule, to make qualifying patient and caregiver registrations available at no cost; provided, that the licensing and annual renewal fees for cultivation centers, manufacturers, retailers, internet retailers, couriers, and testing laboratories and for the directors, officers, members, incorporators, agents, and employees of cultivation centers, manufacturers, retailers, internet retailers, couriers, and testing laboratories be sufficient to offset the cost of administering this chapter;

(16) Establish a system to provide for the safe and affordable dispensing of medical cannabis to qualifying patients who are unable to afford a sufficient supply of medical cannabis based upon the qualifying patient's income and existing financial resources that:

(A) Allows qualifying patients to apply to the ABC Board to be eligible to purchase medical cannabis from retailers and internet retailers at prices set on a sliding scale based upon the qualifying patient's income and existing financial resources; and

(B) Requires each retailer and internet retailer to provide medical cannabis at prices set on the sliding scale described in subparagraph (A) of this paragraph, as determined by the ABC Board, to qualifying patients determined eligible pursuant to subparagraph (A) of this paragraph;

(17) Establish standards by which applicants for cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory license are evaluated for licensing or license renewal, which may include:

(A) An applicant's knowledge of District and federal law relating to cannabis and rules issued pursuant to § 7-1671.13;

(B) A security plan that has been assessed by the Metropolitan Police Department; and

(18) Repealed.

(19) Require caregivers and qualifying patients to notify ABCA within 48 hours and in writing of the loss, theft, or destruction of a registration identification card; and

(20) Submit to the Council an annual report that includes:

(A) The number of qualifying patients participating in the medical cannabis program;

(B) The number of qualifying patients and caregivers registered;

(D) The number of authorized practitioners providing written recommendations for qualifying patients;

(E) The number and location of cultivation centers, manufacturers, retailers, internet retailers, and testing laboratories;

(F) The amount of cannabis harvested by cultivation centers;

(G) The dollar amount of medical cannabis or medical cannabis products sold by cultivation centers, manufacturers, retailers, and internet retailers; and

(H) The number and types of violations of this chapter and any applicable rules, taken against licensed cultivation centers, manufacturers, retailers, internet retailers, couriers, and testing laboratories.

§ 7–1671.05a. Courier license.

(a) A courier license shall be required for a third party to deliver medical cannabis, medical cannabis concentrates, medical cannabis-infused products, or medical cannabis paraphernalia on behalf of a licensed medical cannabis retailer or internet retailer to a qualifying patient or caregiver.

(b) A medical cannabis retailer or internet retailer licensed under this chapter may utilize the services of a courier license holder by means of the telephone, Internet, mobile application, or other electronic means to facilitate the transport of medical cannabis, medical cannabis concentrates, medical cannabis-infused products or medical cannabis paraphernalia.

(c) The holder of a courier license shall be permitted to deliver medical cannabis directly to a qualifying patient or the qualifying patient's caregiver, on behalf of a retailer or internet retailer, at residential and commercial building addresses located in the District that are not on District government or Federal property or on public or private school grounds, with the exception of deliveries to individuals at colleges and universities who are 21 years of age or older.

(d) A holder of a courier license shall:

(1) Deliver only to the qualifying patient or the qualifying patient's caregiver at a District of Columbia address provided by the patient or caregiver and shall not leave the product without verifying the identity and age of the recipient;

(2) Travel only through the District of Columbia and not any surrounding jurisdiction to make deliveries;

(3) Abide by rules and standards as may be established by the ABC Board through rulemaking concerning the frequency of deliveries to a single patient or caregiver in a day, week, or month;

(4) Abide by the rules posted by a landlord or property owner with respect to prohibitions on cannabis deliveries on its property;

(5) Abide by the rules and standards as may be established by the ABC Board concerning making overnight storage of any product if necessary;

(6) Use its employees or independent contractor to deliver medical cannabis or medical cannabis products; and

(7) Not be permitted to offer curbside pick-up at a retailer, internet retailer, or its ABC Board-approved location to qualifying patients and caregivers.

(e)(1) At the time of the order, a holder of a courier license shall require the qualifying patient or the qualifying patient's caregiver to provide information necessary to verify that the qualifying patient or the patient's caregiver is qualified to purchase and receive a delivery of medical cannabis or medical cannabis products in accordance with this chapter and regulations issued in accordance with § 7-1671.13.

(2) Prior to transferring possession of the order to a qualifying patient or to a qualifying patient's caregiver, the holder of a courier license shall inspect the person's government-issued identification card and valid ABCA registration issued pursuant to this chapter to verify the possession of a valid registration and that the information provided at the time the order was placed matches the information listed on the government issued identification card and ABCA registration.

(3) Failure of the courier license holder to check information in accordance with paragraphs (1) and (2) of this subsection may result in the ABC Board issuing a fine against the courier or suspending or revoking its license in accordance with this chapter or regulations issued in accordance with § 7-1671.13.

(f)(1) A holder of a courier license shall maintain in each vehicle used for deliveries of medical cannabis or medical cannabis products, a secure, locked storage compartment for purposes of transporting and securing cash used as payment and the medical cannabis or medical cannabis products.

(2) A holder of a courier license shall not store cash and medical cannabis or medical cannabis products in the same storage compartments.

(g)(1) A holder of a courier license shall abide by rules concerning the operation and number of vehicles allowed, as set forth in regulations issued by the ABC Board pursuant to § 7-1671.13.

(2) A courier vehicle shall contain a Global Positioning System ("GPS") device for identifying the geographic location of the courier vehicle. The GPS device shall be either permanently or temporarily affixed to the courier vehicle while the courier vehicle is in operation, and the GPS device shall remain active and in the possession of the delivery employee at all times during the delivery.

(3) A courier vehicle shall not bear any markings, images, words, or phrases that would indicate the vehicle is used to deliver medical cannabis, including the name of the courier or cannabis-related related images.

(h) Applicants for the courier license shall complete an application prescribed by the ABC Board by regulations issued pursuant to § 7-1671.13.

(i) The minimum initial application fee for a courier license shall be $1,000. The license shall be valid for 3 years with a minimum annual license fee of $2,000.

(j) Notwithstanding the requirements of this section, the ABC Board may, by rule, modify the delivery requirements that the holder of a courier license is required to follow.

(k) For purposes of this section, a public or private park shall not be considered either a residential or commercial building address.

§ 7–1671.06. Cultivation centers, manufacturers, retailers, internet retailers, and testing laboratories.

(a) Notwithstanding any other District law, and in accordance with this chapter and any rules issued pursuant to § 7-1671.13:

(1) A cultivation center may cultivate and possess medical cannabis for the purpose of distribution to a manufacturer, retailer, or internet retailer, and may manufacture, possess, purchase, and use medical cannabis products and paraphernalia;

(2) A manufacturer may possess medical cannabis for the purposes of manufacturing medical cannabis products and distribution to a retailer or internet retailer, and may manufacture, possess, purchase, and use paraphernalia;

(3) A retailer may possess medical cannabis and medical cannabis products for the purpose of dispensing to a qualifying patient or caregiver, and may manufacture, possess, distribute, purchase, and use paraphernalia;

(4) An internet retailer shall not have a physical location that is open to the public and shall be permitted to dispense and distribute medical cannabis, medical cannabis products, and paraphernalia through delivery to any qualifying patient or the qualifying patient's caregiver in the District of Columbia in accordance with this chapter and rules issued pursuant to § 7-1671.13; provided, that the holder of an internet retailer license shall not be permitted to offer curbside pickup at its ABC Board-approved location.

(5) A testing laboratory may possess medical cannabis for the purpose of testing its contents; and

(6) A qualifying patient, caregiver, or non-resident cardholder may only obtain medical cannabis and paraphernalia from a licensed retailer or internet retailer.

(b) Each cultivation center, manufacturer, retailer, internet retailer, courier, and testing laboratory shall be licensed with ABCA prior to cultivating, manufacturing, distributing, dispensing, delivering, selling, possessing, or testing medical cannabis or medical cannabis products, or manufacturing, possessing, purchasing, selling, or distributing paraphernalia.

(b-1) An applicant that filed a medical cannabis retailer or internet retailer license application with ABCA on July 1, 2024, shall be eligible to have its application considered by the ABC Board.

(c)(1) Medical cannabis products shall be packaged in child-resistant packaging in accordance with 16 C.F.R. Part 1700 and shall not contain any statement, depiction, or illustration that:

(A) Promotes over consumption;

(B) Depicts a person under the age of 21 consuming cannabis; or

(2) For purposes of this subsection, the term "especially appealing to persons under 21 years of age" means a product or label including one that contains:

(A) Images of cartoon characters, toys, or animals;

(B) Bubble-type or other cartoon-like font;

(D) Symbols or celebrities that are commonly used to market products to persons under the age of 21; or

(E) The word candy or candies.

(c-1) It shall be a violation of this chapter for any unlicensed or licensed cultivation center, manufacturer, retailer, or internet retailer to represent that goods or services or the business is compliant with the Legalization of Possession of Minimal Amounts of Marijuana for Personal Use Initiative of 2014, effective February 26, 2015 (D.C. Law 20-153; 62 DCR 880); except, that a licensed cultivation center, manufacturer, retailer, or internet retailer may have signage indicating that there is medical cannabis on the property.

(d)(1) A cultivation center licensed with ABCA as of the March 10, 2023, shall automatically receive a manufacturer's license, provided that the annual fee is paid.

(2) A cultivation center licensed with ABCA as of the March 10, 2023, shall be eligible, upon approval of an application and payment of an annual fee, to receive a retailer license.

(3) A dispensary licensed with ABCA as of the March 22, 2023, shall be eligible, upon approval of an application and payment of an annual fee, to receive a cultivation center license and a manufacturer's license.

(4) ABCA shall make applications for additional licenses in paragraphs (2) and (3) of this subsection available no later than May 1, 2023.

(5) Applications for additional licenses pursuant to paragraphs (1) through (3) of this subsection shall be filed with ABCA by the existing cultivation center or dispensary by May 1, 2025.

(e)(1) Before issuing, transferring to a new owner, or renewing a license, the ABC Board shall determine that the applicant is not disqualified because of a conflicting interest in another medical cannabis license, as follows:

(A) No licensee holding a testing laboratory license shall hold a cultivation center, manufacturer, retailer, internet retailer, or courier license.

(B) No licensee holding a retailer, internet retailer, cultivation center, testing laboratory, or manufacturer license shall hold a courier license.

(D) The combined number of retailer and internet retailer licenses held by a licensee shall not exceed 3.

(E) There shall be no limit on the number of manufacturer licenses that a licensee may hold.

(F) No licensee holding a cultivation center license shall hold more than one retailer license.

(G) No licensee holding a cultivation center license shall hold an internet retailer license.

(2) The ABC Board may modify, by rule, the number of licenses that a licensee may hold for one or more of the license categories listed in paragraph (1) of this subsection.

(f) The ABC Board may approve the holder of a cultivation center or manufacturers license that also owns, or has a valid lease for, real property adjacent to its existing cultivation center or manufacturing facility, to physically expand the licensed cultivation center or manufacturing facility into that adjacent real property for the purpose of increasing production of medical cannabis or medical cannabis products.

(g) An applicant seeking to qualify as a:

(1) Social equity applicant shall submit an affidavit with the application for a cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory license attesting to:

(A) The number of owners who meet the criteria for a social equity applicant pursuant to § 7-1671.01(20C);

(B) The ownership interests, incomes, and net worth of any owners;

(D) The residency of owners, employees, and contractors; and

(E) The locations of the assets and the percentages of the assets in each location;

(2) Medical cannabis certified business enterprise applicant shall submit an affidavit with the application for a cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory license attesting to:

(A) The number of owners who are economically disadvantaged individuals or individuals who have been subjected to racial or ethnic prejudice or bias because of their identities as members of a group without regard to their individual qualities;

(B) The ownership interests, incomes, and net worth of any owners;

(D) The residency of owners, employees, and contractors; and

(E) The locations of the assets and the percentages of the assets in each location.

(h) At least 50% of all new retailer, internet retailer, courier, cultivation center, and manufacturer licenses issued after March 22, 2023, shall be set aside for social equity applicants; except, that this set aside shall not apply to cultivation centers and retailers, and applicants who scored 150 points or more during the ABC Board open application period that occurred between November 29, 2021 and March 28, 2022, who receive a cultivation center, manufacturer, or retailer's license pursuant to subsections (d), (w), (x) and (y) of this section.

(i)(1) The ABC Board shall issue rules within 180 days following March 22, 2023, to establish processes and procedures for requesting, reviewing, and implementing a cap or moratorium on the issuance of cultivation center, retailer, or internet retailer licenses in a Ward, ANC, or Single Member District of an ANC.

(2) After one year following March 22, 2023, the ABC Board may, by rulemaking, limit the number of cultivation centers, retailers, and internet retailers in a Ward, ANC, or Single Member District of an ANC.

(3) The ABC Board shall analyze and consider supply and demand when determining whether to institute a cap or moratorium pursuant to this subsection.

(j)(1) Straw ownership for the purposes of meeting the ownership requirements of social equity applicants and medical cannabis certified business enterprises is prohibited for both District residents and out-of-state residents.

(2) A person or business who is found to have willfully asserted straw ownership shall have the person's or business's license or registration revoked and be subject to a civil penalty of not more than $30,000.

(k)(1) The ABC Board shall be authorized to issue a one-year conditional license for a cultivation center, retailer, internet retailer, manufacturer, courier, or testing laboratory that does not currently have a proposed location; except, that the ABC Board shall be authorized to convert a one-year conditional license to 2 years for a cultivation center or manufacturer that does not currently have a proposed location.

(2) Under the conditional license, the applicant shall have 2 years from the date of ABC Board approval to submit to ABCA:

(A) A lease or similar documentation;

(B) A security plan;

(D) Any remaining licensing or endorsement fees owed to ABCA; and

(E) Any other documentation requested by the ABC Board.

(3) The holder of a conditional license shall not engage in purchasing, possessing, cultivating, manufacturing, or selling of medical cannabis or cannabis products.

(4) A conditional license that does not meet the terms of this subsection or is not operating after a period of 2 years shall be canceled by the ABC Board.

(k-1) A one-year conditional license that is in effect as of the effective date of the Medical Cannabis Clarification and Program Enforcement Amendment Act of 2024, passed on 2nd reading on October 1, 2024 (Enrolled version of Bill 25-581), shall automatically convert to a 2-year conditional license, expiring one year after the date the original conditional license was set to expire, at no additional cost and without additional ABC Board approval.

(l) A one-year conditional license approved by the ABC Board shall not be permitted to be transferred to a new owner.

(m)(1) For new social equity applicants, ABCA shall waive up to 75% of any nonrefundable license fees, including any nonrefundable application fees and annual or renewal license fees associated with receiving a medical cannabis facility license to operate for the first 3 years.

(2) This subsection shall not apply to fees associated with any endorsements requested by the applicant.

(n)(1)(A) Cultivation center, manufacturer, retailer, internet retailer, courier, and testing laboratory license fees shall be paid annually by credit card, debit card, cashier's check, money order, or certified check made payable to the D.C. Treasurer.

(B) The fee for the first year shall be paid within 60 calendar days of ABC Board approval but prior to license issuance, and the renewal fee shall be paid on or before the anniversary date of issuance of the registration.

(2)(A) The ABC Board shall, by rules issued pursuant to § 7-1671.13, establish the initial application and renewal fees for cultivation center, manufacturer, retailer, internet retailer, and courier licenses. The ABC Board may revise these fees as considered necessary.

(B) There shall be no initial application fee for a testing laboratory license. Renewal fees for a testing laboratory license shall be established by rules issued pursuant to sub-paragraph (A) of this paragraph.

(3) A cultivation center, manufacturer, retailer, internet retailer, courier, and testing laboratory license shall be valid for 3 years unless:

(A) Suspended or revoked; or

(B) The license takes effect on a date in between the dates established by the ABC Board for the regular license period of each license, in which case the license shall be valid only until the end of the license period.

(4)(A) The ABC Board may impose a late fee upon an applicant for a cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory that fails to timely renew their license. The late fee shall be $50 for each business day after the due date of payment. The total amount of the late fee to be paid shall not exceed the annual cost of the license.

(B)(i) The ABC Board may suspend a previously approved license until the renewal fee is paid.

(ii) A cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory that has not timely renewed its license shall not be permitted to operate with an expired license.

(5)(A) The ABC Board may suspend a license where the payment was made by the applicant with a check returned unpaid, invalid credit card, or any other form of payment that is denied by an intermediary institution.

(B) The applicant, in addition to any late fees imposed by the ABC Board pursuant to paragraph (4) of this subsection, shall also be charged a $100 returned check/denied payment fee.

(o)(1) Subject to paragraph (2) of this subsection, a retailer or internet retailer may not dispense more than 8 ounces of medical cannabis in a 30-day period to a qualifying patient, either directly or through the qualifying patient's caregiver.

(2) The Mayor, through rulemaking, may place alternate limits on the amount of medical cannabis that may be dispensed in forms other than dried medical cannabis.

(p) No medical cannabis or paraphernalia at a cultivation center, manufacturer, retailer, internet retailer, or testing laboratory shall be visible from any public or other property.

(q)(1) A retailer or internet retailer shall not locate within any residential district or within 400 feet of a preschool, primary or secondary school, or recreation center; except, that a license holder or an applicant who has applied prior to the effective date of the Medical Cannabis Clarification and Program Enforcement Amendment Act of 2024, passed on 2nd reading on October 1, 2024 (Enrolled version of Bill 25-581), may be permitted to locate within 300 feet of a preschool, primary or secondary school, or recreation center.

(2) A retailer or internet retailer that received a license in compliance with paragraph (1) of this subsection shall not have to relocate to renew its license at its existing location if a preschool, primary or secondary school, or recreation center subsequently locates within 400 feet of its facility.

(q-1)(1) No retailer license shall be issued for a facility that is located within 400 feet from another facility operating under a retailer license.

(2) In determining whether a retailer application is eligible to be approved, the ABC Board shall ensure that the retailer application will not be located within 400 feet of a previously submitted retailer application filed timely by another applicant.

(3) ABCA shall proceed forward with the application filed by the facility that is first in time. If the application is subsequently denied, ABCA shall proceed with the application that is second in time, third in time, et cetera, until an application is approved.

(q-2) In determining the appropriateness of the initial issuance of a license or a transfer of a license to a new location for a medical cannabis retailer, the Board shall also consider:

(1) The proximity of the medical cannabis retailer to a daycare center;

(2) The effect of the medical cannabis retailer on the operation and clientele of a daycare center; and

(3) Whether school-aged children frequenting the daycare center or centers in proximity to the medical cannabis retailer will be unduly attracted to the retailer while present at, or going to or from, the daycare center.

(r)(1) A cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory may be permitted to change ownership or controlling interest upon approval from the ABC Board.

(2) A license approved by the ABC Board for a social equity applicant or an unlicensed establishment shall not be permitted to be transferred to a new owner until 3 years after the issuance of the permanent license, except to a social equity applicant. After 3 years, should the license transfer to neither a medical cannabis certified business enterprise nor a social equity applicant, the new owner shall be required to repay any grants or loans provided by the District to the medical cannabis certified business enterprise or social equity applicant and pay ABCA any waived licensing and application fees.

(s) Each cultivation center, manufacturer, retailer, internet retailer, courier, and testing laboratory shall:

(1) Be either a for-profit or nonprofit corporation incorporated within the District;

(2) Implement a security plan to prevent the theft or diversion of medical cannabis, including maintaining all medical cannabis in a secure, locked room that is accessible only by authorized persons; and

(3) Ensure that all its employees receive training on compliance with District law, medical cannabis use, security, and theft prevention.

(t) Each retailer or internet retailer shall regularly distribute to all qualifying patients and caregivers the educational materials developed as part of the Program.

(u)(1) A criminal background check shall not be required to be submitted to ABCA with an employee, agent, or manager as part of the employee's, agent's, or manager's application.

(2) Except with respect to evaluating the applications of social equity applicants and returning citizens, the ABC Board shall not:

(A) Inquire into or consider:

(i) A director, officer, member, or incorporator's criminal conviction until after the applicant is found by ABCA to be otherwise qualified;

(ii) A criminal conviction that has been sealed, expunged, vacated, or pardoned, including a criminal conviction that has been set aside pursuant to subchapter I of Chapter 9 of Title 24;

(iii) A juvenile adjudication; or

(iv) Non-conviction information, including information related to a deferred sentencing agreement, participation in a diversion program, or an arrest that did not result in a criminal conviction; or

(B) Consider a criminal conviction of an offense of a director, officer, member, incorporator of a cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory that is not directly related to the position of employment sought or to the specific business for which the license is sought.

[(3)] Pursuant to paragraph (1)(B) of this subsection, ABCA shall determine whether a criminal conviction of an offense of a director, officer, member, or incorporator of a cultivation center, manufacturer, retailer, internet retailer, or testing laboratory is directly related to the position of employment sought or to the specific business for which the license is sought, by considering:

(A) Whether the elements of the offense are directly related, by clear and convincing evidence, to the license sought;

(B) Any evidence produced by the director, officer, member, or incorporator concerning their rehabilitation and fitness, including:

(i) Evidence as to whether the director, officer, member, incorporator has recidivated;

(ii) Evidence demonstrating compliance with any terms and conditions of probation, supervised release, or parole;

(iii) The length of time that has elapsed since the offense was committed;

(iv) The age at which the offense was committed;

(v) Any circumstances related to the offense, including mitigating circumstances;

(vi) Evidence of work history, particularly any training or work experience related to the license sought; and

(vii) Letters of reference; and

(C) The District's interest in promoting opportunities for business ownership and employment for returning citizens and individuals with criminal records.

[(4)] Before acting on a determination made pursuant to paragraph (2) of this subsection, the ABC Board shall provide the director, officer, member, or incorporator, in writing, the following information:

(A) The criminal conviction that forms the basis for the action and the ABC Board's reasoning for determining the offense is directly related to the license sought;

(B) A copy of any criminal history records on which the ABC Board relies;

(C) A statement that the director, officer, member, or incorporator may provide evidence of inaccuracies within the criminal history records;

(D) A description of additional information that the director, officer, member, incorporator may provide to demonstrate their rehabilitation and fitness; and

(E) Information about any applicable hearing procedures.

[(5)](A) After receiving the information pursuant to paragraph (3) of this subsection, the director, officer, member, or incorporator, shall have 45 business days to issue a response to the ABC Board.

(B) The ABC Board shall respond no later than 45 business days after receipt of a response pursuant to subparagraph (A) of this paragraph.

[(6)] The ABC Board may establish by rulemaking a list of criminal conviction offenses that are directly related to the operation of a cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory for purposes of implementing this subsection.

(v)(1) The ABC Board may fine, suspend, or revoke the license or registration of a person or business found to have violated any provision of this chapter or rules issued under this chapter.

(2) The ABC Board may also issue a written warning to a licensed or registered person or business for a violation of this chapter or rules issued under this chapter to the extent permitted by regulations issued under this chapter.

(w)(1) The 2 cultivation center registration applicants that submitted a medical cannabis facility registration application to the ABC Board between November 29, 2021, and March 28, 2022, that tied for second, and received the same total score shall be awarded a cultivation center registration.

(2) A cultivation center registration applicant not referenced in paragraph (1) of this subsection that scored 150 points or more during the same open application period shall be considered for a cultivation center registration after May 1, 2023; provided, that the applicant files a corrected application, including an application to change the facility location, with the ABC Board by May 1, 2025. An applicant that scored 150 points or higher shall be allowed to change the location of the cultivation center facility on its application by May 1, 2025, without negatively affecting the status of the application.

(3) An applicant that filed more than one cultivation center registration application during the open application period with one or more of the same owners shall be considered for only one cultivation center registration under this subsection.

(4) An initial application fee paid by a cultivation center registration applicant that scored 150 points or higher shall be credited by ABCA toward the entire cost of the applicant's cultivation center application fee.

(x)(1) A dispensary registration applicant that submitted a medical cannabis facility registration to the ABC Board between November 29, 2021, and March 28, 2022, and received 150 points or more shall be considered for a retailer registration no earlier than 180 days after March 22, 2023. An applicant shall be allowed to change the location of the retailer facility on its application by May 1, 2025, without negatively affecting the status of the application.

(2) An applicant that filed more than one dispensary registration application during the open application period with one or more of the same owners shall be considered for only one retailer registration under this subsection.

(3) An initial application fee paid by a dispensary registration applicant that scored 150 points or higher shall be credited by ABCA toward the entire cost of the applicant's retailer application fee.

(y) The 5 cultivation center registration applicants that submitted medical cannabis facility registration applications to the ABC Board between November 29, 2021 and March 28, 2022, that scored 150 points or more shall automatically receive a manufacturer license provided that the annual fee is paid after June 29, 2023; provided, that the applicant registers on a form provided by ABCA with the ABC Board by May 1, 2024.

(z)(1) An applicant who has submitted a complete license application for a cultivation center, manufacturer, retailer, or internet retailer to transfer its license to a new location, or for a retailer endorsement may obtain a stipulated license to begin operations authorized by the applied-for license under the following conditions:

(A) The applicant has submitted a stipulated license application on a form provided by the ABC Board;

(B) The applicant has submitted written correspondence from an officer of the Advisory Neighborhood Commission where the applicant's premises is located stating that the Advisory Neighborhood Commission has voted with a quorum present to either support or not object to the issuance of a stipulated license to the applicant pending completion of the 45-day protest period; and

(2) A cultivation center, manufacturer, retailer, or internet retailer applicant shall stop selling, delivering or serving medical cannabis under the stipulated license if a valid protest is filed by an affected Advisory Neighborhood Commission during the 45-day protest period or the 30-day extended public comment period, or the application is withdrawn or denied.

(3) An applicant operating under a stipulated license shall operate in accordance with the laws and regulations applicable to the requested cultivation center, manufacturer, retailer, or internet retailer license.

§ 7–1671.06a. Unlicensed establishments transition.

(a)(1) No earlier than 180 calendar days after March 22, 2023, ABCA shall make additional cultivation center, retailer, and internet retailer licenses available to unlicensed establishments for a 90-calendar day open application period.

(2) To be eligible to apply for a cultivation center license during the 90-calendar day open application period, an unlicensed establishment shall demonstrate to the satisfaction of ABCA that the unlicensed establishment:

(A) Is not located:

(i) Within a residential district; or

(ii) Within 300 feet of a preschool, primary or secondary school, or recreation center;

(B) Facility at which cultivation will take place is suitable for the cultivation of cannabis, including being sufficient in size, power allocation, air exchange and air flow;

(D) Has a valid certificate of occupancy issued prior to the date on which the application is submitted;

(E) Has been in operation since December 31, 2022 at the latest; and

(F) Can demonstrate that business taxes were paid to the District of Columbia for each year following the issuance of a certificate of occupancy or business license, if applicable.

(3) To be eligible to apply for a retailer license during the 90-calendar day open application period, an unlicensed establishment shall demonstrate to the satisfaction of ABCA that the unlicensed establishment:

(A) Is not located:

(i) Within a residential district;

(ii) Within 300 feet of a preschool, primary or secondary school, or recreation center; or

(iii) Within 400 feet of an existing retailer;

(B) Has a valid, active business license issued on or before December 31, 2022;

(D) Has been in operation since December 31, 2022, at the latest; and

(E) Can demonstrate that business taxes were paid to the District of Columbia for each year following the issuance of a certificate of occupancy or business license, if applicable.

(4) To be eligible to apply for an internet retailer license during the 90-calendar day open application period, an unlicensed establishment shall demonstrate to the satisfaction of ABCA that the unlicensed establishment:

(A) Is not open to the public and not located:

(i) Within a residential district; or

(ii) Within 300 feet of a preschool, primary or secondary school, or recreation center;

(B) Has a valid, active business license issued on or before December 31, 2022;

(D) Has been in operation since December 31, 2022, at the latest; and

(E) Can demonstrate that business taxes were paid to the District of Columbia for each year following the issuance of a certificate of occupancy or business license, if applicable.

(b) An unlicensed establishment may relocate its operations to a compliant location prior to the filing of an application under this section but shall not relocate its business to an address different from the address provided in the application for purposes of complying with the location requirements of this section.

(c) For purposes of this section, the 300-foot restrictions shall not apply where the main entrance to the preschool, primary or secondary school, or recreation center, or the nearest property line of the school or recreation center, is actually on or occupies ground zoned commercial or industrial according to the official atlases of the Zoning Commission of the District of Columbia.

(c-1)(1) An unlicensed establishment that applied for a retailer license under subsection (a)(3) of this section may be allowed to change the location of the retailer facility on its application within 180 days after the effective date of the Medical Cannabis Clarification and Program Enforcement Amendment Act of 2024, passed on 2nd reading on October 1, 2024 (Enrolled version of Bill 25-581), without negatively affecting the status of the application; provided, that:

(A) The location of the establishment in the original application filed with ABCA was within 300 feet of a preschool, primary or secondary school, or recreation center; and

(B) The main entrance to the preschool, primary or secondary school, or recreation center or the nearest property line of the school or recreation center is actually on or occupies ground zoned commercial or industrial according to the official atlases of the Zoning Commission of the District of Columbia.

(2) An unlicensed establishment that elects to change the location of its facility pursuant to paragraph (1) shall not locate its new facility:

(A) Within a residential district;

(B) Within 400 feet of a preschool, primary or secondary school, or recreation center; or

(d)(1) In determining whether a retailer application filed by an unlicensed establishment is eligible to be approved, the ABC Board shall ensure that the retailer application will not be located within 400 feet of a previously submitted retailer application filed by another applicant during the 90-calendar day open application period.

(2) Consistent with this subsection, ABCA shall proceed forward with the application filed by the unlicensed establishment that is first in time. If that application is subsequently denied, ABCA shall proceed with the application that is second in time, third in time, et cetera, until an application is approved.

(e)(1) At least half of all licenses issued to unlicensed establishments shall be issued to social equity applicants.

(2) Straw ownership for purposes of meeting the ownership requirement of this subsection is prohibited. A person or business who is found to have willfully asserted straw ownership shall have the person's or business's license revoked and be subject to a civil penalty of not more than $30,000.

(f) Unregistered establishments shall not apply for a conditional license in order to meet the requirements of this subsection during the 90-calendar day open application period.

(g) ABCA shall post a list of unlicensed establishments that applied for a retailer or internet retailer license during the 90-calendar day open application period to its website and provide a copy of the list to the Director of the Department of Licensing and Consumer Protection.

(h)(1) The ABC Board shall provide notice of complete and eligible cultivation center, retailer, and internet retailer license applications received from unlicensed establishments to the Ward Councilmember, and any affected ANC, for a 45-day public comment period. The ABC Board may, at the request of both an affected ANC and the applicant, extend the ANC's protest petition deadline by up to an additional 30 calendar days for the sole purpose of allowing the ANC to vote on whether to support or protest the license application. The ABC Board may, on a motion of any party or on its own motion, also continue a hearing to permit an affected ANC to vote on a material issue in the hearing.

(2) An affected ANC may protest the issuance of the license.

(3) The ABC Board shall hold a contested case protest hearing within 120 days of receiving a timely protest from an affected ANC pursuant to paragraph (2) of this subsection.

(i) The grounds for a protest filed by an affected Advisory Neighborhood Commission shall relate to the impact of the unlicensed establishment on:

(1) Peace, order, and quiet of the relevant area;

(2) Residential parking needs and vehicular and pedestrian safety; and

(3) Real property values.

§ 7–1671.06b. Unlicensed establishment compliance.

(a) Unlicensed establishments that submit a complete application with ABCA during the 90-calendar day open application period for a cultivation center, retailer, or internet retailer shall not be subject to compliance with this chapter while their retailer or internet retailer application is pending review with the ABC Board; except, that nothing in this subsection shall prohibit ABCA from issuing cease and desist orders to an applicant if the applicant is found to be selling cannabis products that may be especially appealing to children or is using packaging or advertisements that might be especially appealing to children.

(b)(1) A decision by the ABC Board to approve a cultivation center, retailer, or internet retailer license for an unlicensed establishment shall be made in writing at least 15 days prior to the issuance of the license. The notice shall state that the unlicensed establishment shall cease any unlicensed activity once its license is issued by ABCA.

(2)(A) An unlicensed establishment that is approved for a cultivation center, retailer, or internet retailer license shall obtain issuance of its license by the later date of either September 30, 2024, or within 180 days of ABC Board approval, or have its ABC Board approval rescinded.

(B)(i) An unlicensed establishment that temporarily discontinues operations after ABC Board approval that is not involved in unlicensed activity may request that the ABC Board extend the deadline in subparagraph (A) of this paragraph by one additional 180-day period to allow the applicant to take deliberate steps to resume business operations at the applicant's proposed location.

(ii) The ABC Board shall approve the applicant's extension request; provided, that the applicant can demonstrate to the ABC Board that the applicant is making reasonable progress to resume business operations at the proposed location.

(i) An unlicensed establishment that applies for a retailer or internet retailer license under this section shall be required to have its license issued and be in operation no later than March 31, 2025, or have its Board approval rescinded or its application denied by the Board; and

(ii) A cultivation center, retailer, or internet retailer applicant shall cease any unlicensed activity once its license is issued by ABCA.

(3)(A) A decision by the ABC Board to deny an unlicensed establishment's application for a retailer or internet retailer license shall be made in writing to the applicant and shall state the reasons for the denial.

(B)(i) Within 15 days of receipt of the ABC Board's written denial decision, the applicant may submit, in writing, an appeal to the ABC Board to reconsider the denial decision. With the written appeal, the applicant may include any relevant documentation or evidence that contests findings of fact or conclusions of law in the ABC Board's written denial decision.

(ii) If an applicant submits an appeal, the ABC Board shall hold a hearing and render a decision within 30 days.

(C) If the applicant does not appeal the written denial decision, or after the ABC Board renders a decision on an appeal, the ABC Board shall notify the unlicensed establishment that it must close within 30 days after receipt of the denial or be subject to penalties pursuant to § 47-2844(a-2)(1B).

(c) The ABC Board may deny an unlicensed establishment's application for a cultivation center, retailer, or internet retailer license that does not provide the ABC Board with documents necessary to complete the application within 30 days of the ABC Board's request.

(d)(1) An unlicensed establishment that is issued a cultivation center, retailer, or internet retailer license shall be required to open within 120 days of being issued the retailer or internet retailer license.

(2) The ABC Board shall cancel a retailer or internet retailer license issued to an unlicensed establishment that does not open within 120 days.

(e) An unlicensed establishment shall not display signage or images advertising:

(1) The prices of cannabis or cannabis product in any window of the establishment;

(2) Cannabis or a cannabis product on the exterior of any window or on the exterior or interior of any door; or

(3) Cannabis or a cannabis product on the exterior or visible from the exterior of the unlicensed establishment or elsewhere in the District.

§ 7–1671.06c. Safe-use treatment facility endorsement.

(a)(1) The holder of a retailer license shall be eligible to apply to the ABC Board for a safe-use treatment facility endorsement. The holder of a safe-use treatment facility endorsement shall be permitted to:

(A) Sell medical cannabis, medical cannabis products, and paraphernalia at the retailer to qualifying patients and caregivers to be administered on the premises by or to the qualifying patient at the time of purchase within designated consumption areas that are separated from the remainder of the premises by a secure door and have a separate ventilation system;

(B) Allow a qualifying patient or the qualifying patient's caregiver to remove from the premises unused medical cannabis, medical cannabis products, or paraphernalia that has been purchased from the retailer or internet retailer in accordance with the requirements and limits set forth in this chapter; provided, that the removed items are packaged in accordance with regulations issued pursuant to § 7-1671.13;

(D) Offer recorded or background music in the designated consumption area.

(2) The holder of an internet retailer license shall not be eligible for a safe use treatment facility endorsement.

(b) A retailer with a safe-use treatment facility endorsement shall:

(1) Install security cameras that are operable and able to record for a minimum of 30 days;

(2) Display conspicuous warning labels that are visible to the qualifying patient and the qualifying patient's caregiver concerning administering medical cannabis and medical cannabis products;

(3) Destroy all unadministered medical cannabis left abandoned or unclaimed in the designated consumption area; and

(4) Package and label all medical cannabis or medical cannabis products purchased to be administered on the premises of the safe-use treatment facility in accordance with regulations issued pursuant to § 7-1671.13.

(1) The area where medical cannabis is to be administered on-site by qualifying patients shall be isolated from the other areas of the retailer, separated by walls and a secure door, and shall have access only from the retailer;

(2) A smoke-free area for employees to monitor the designated consumption area, if combustible medical cannabis products are available to qualifying patients to consume in the designated consumption area; and

(3) If combustible medical cannabis products are available to qualifying patients to consume in the designated consumption area, a ventilation system that directs air from the designated consumption area to the outside of the building through a pollution control unit or odor control unit that, at a minimum, eliminates all detectable odor, smoke, and by-products of combustion so as to prevent any and all public nuisances.

(d) A retailer with a safe-use treatment facility endorsement shall not:

(1) Allow a person to consume alcohol, tobacco, or tobacco products in the safe-use treatment facility;

(2) Allow any member of the public other than a qualifying patient or the qualifying patient's caregiver to enter the safe-use treatment facility;

(3) Allow a person to bring into or administer in the safe-use treatment facility any medical cannabis or medical cannabis products that were not purchased at the retailer unless otherwise permitted by the ABC Board by rulemaking;

(4) Sell, offer to sell, or provide medical cannabis, medical cannabis products, or paraphernalia in excess of the quantity limits set forth in this chapter or regulations issued pursuant to § 7-1671.13;

(5) Encourage or permit an organized game or contest on the premises that involves consuming cannabis or cannabis products or the awarding of cannabis or cannabis products; or

(6) Advertise or promote, in any way, either on or off the premises, a practice prohibited under this section.

(e) An applicant for a safe-use treatment facility endorsement shall:

(1) Complete an application on a form the ABC Board prescribes by regulations issued pursuant to § 7-1671.13;

(2) If combustible medical cannabis products will be available to qualifying patients to consume in the designated consumption area, include with the application a ventilation proposal, which shall include information to address:

(A) The air change for the designated consumption space;

(B) The air change for common areas inside the retailer;

(D) The location of air intakes and exhaust outlets;

(E) Whether the designated consumption space area shares space with employee work areas; and

(F) Any other information considered necessary through rulemaking.

(f) The minimum initial application fee for the safe-use treatment facility endorsement shall be $1,000. The endorsement shall be valid for 3 years, with a minimum annual fee of $2,000.

§ 7–1671.06d. Education tasting endorsement.

(a)(1)(A) The holder of a retailer license shall be eligible to apply to the ABC Board for an education tasting endorsement.

(B) The holder of an education tasting endorsement shall be permitted to offer cooking and how-to classes and demonstrations, and tastings for educational purposes to qualifying patients and caregivers on-site.

(C) Activities offered by a retailer under an education tasting endorsement shall be permitted to occur on the premises of the retailer; except, that educational activities that include the smoking of medical cannabis by qualifying patients shall occur only in an ABC Board-approved safe-use treatment facility.

(2) The holder of an internet retailer license shall not be eligible for an education tasting endorsement.

(b) A retailer with an education tasting endorsement shall:

(1) Display in the licensed area conspicuous warning labels that are visible to the qualifying patient and the qualifying patient's caregiver concerning the consumption of medical cannabis and medical cannabis products;

(2) Destroy all unconsumed medical cannabis remaining from the educational activity, except as permitted under paragraph (4) of this subsection;

(3) Ensure that containers of medical cannabis to be used for educational activities are labeled as such and may not be sold; and

(4) Be permitted to allow a qualifying patient or caregiver to leave the premises with medical cannabis that was made available or offered as part of the educational activity in accordance with the requirements and limits set forth in this chapter; provided, that it is packaged in accordance with regulations issued pursuant to § 7-1671.13.

(1) Allow a person to consume alcohol, tobacco, or tobacco products on the premises;

(2) Advertise or promote, in any way, either on or off the premises, a practice prohibited under this section; or

(3) Make unsubstantiated medical claims about cannabis or cannabis products.

(d)(1) Subject to paragraph (2) of this subsection, the holder of an education tasting endorsement may offer educational activities on the licensed premises between the hours of 7:00 a.m. and 9:00 p.m., 7 days per week.

(2) The ABC Board may alter the hours set forth in paragraph (1) of this subsection through rulemaking.

(e) The ABC Board shall establish, by regulation, permitted medical cannabis tasting or consumption limits for educational activities.

(f) An applicant for an education tasting endorsement shall complete an application on a form the ABC Board prescribes by regulations issued pursuant to § 7-1671.13.

(g) The minimum initial application fee for an education tasting endorsement shall be $130. The endorsement shall be valid for 3 years, with a minimum annual fee of $130.

§ 7–1671.06e. Retailer delivery endorsement and internet retailer deliveries.

(a) The holder of a retailer license shall be eligible to apply to the ABC Board for a delivery endorsement. The holder of a delivery endorsement shall be permitted to offer curbside pickup and deliver medical cannabis directly to a qualifying patient or the qualifying patient's caregiver at residential and commercial building addresses located in the District that are not on District government or Federal property or public or private school grounds.

(b)(1) The holder of an internet retailer license shall not be required to obtain a delivery endorsement to be permitted to deliver medical cannabis directly to a qualifying patient or the qualifying patient's caregiver at residential and commercial building addresses located in the District that are not on District government or Federal property or public or private school grounds.

(2) The holder of an internet retailer license shall not be permitted to offer curbside pickup at its ABC Board-approved location to qualifying patients and caregivers.

(1) Only receive and accept an order by electronic or other means from a qualifying patient or the qualifying patient's caregiver;

(2) Only deliver to the qualifying patient or the qualifying patient's caregiver at the District address provided by the patient or caregiver and not leave the product without verifying the identity of the recipient;

(3) Only travel through the District and not any surrounding jurisdictions to make deliveries;

(4) Abide by rules and standards as may be established by the ABC Board pursuant to § 7-1671.13 concerning:

(A) The frequency of deliveries to a single qualifying patient or caregiver in a day, week, or month;

(B) Overnight storage of any medical cannabis or medical cannabis products; and

(5) Abide by the rules posted by any landlord or property owner with respect to prohibitions on cannabis deliveries on its property;

(6) Use its employees or a licensed courier to deliver medical cannabis or medical cannabis products;

(7) At the time of an order, require the qualifying patient or the qualifying patient's caregiver to provide information necessary to verify that the qualifying patient or the qualifying patient's caregiver is qualified to purchase and receive a delivery of medical cannabis or medical cannabis products in accordance with this chapter and regulations issued pursuant to § 7-1671.13;

(8)(A) Prior to transferring possession of the order to a qualifying patient 21 years of age or older or the qualifying patient's caregiver, inspect the qualifying patient's or qualifying patient's caregiver's valid government-issued identification card and valid ABCA registration to verify their age and that the information provided at the time the order was placed matches information listed on the government-issued identification card and ABCA registration; and

(B) Prior to transferring possession of the order to a qualifying patient under age 21 or to the qualifying patient's caregiver, inspect the qualifying patient or caregiver's government-issued identification card and ABCA registration to verify the possession of a valid registration and that the information provided at the time the order was placed matches the information listed on the government-issued identification and ABCA registration;

(9)(A) Maintain, in each vehicle used for deliveries of medical cannabis or medical cannabis products, a secure, locked storage compartment for purposes of transporting and securing cash used as payment and the medical cannabis or medical cannabis products.

(B) The retailer shall not store cash and medical cannabis or medical cannabis products in the same storage compartments;

(10) Only use delivery vehicles that:

(A) Contain a Global Positioning System ("GPS") device for identifying the geographic location of the delivery vehicle; which GPS device shall be either permanently or temporarily affixed to the delivery vehicle while the delivery vehicle is in operation and remain active and in the possession of the delivery employee at all times during the delivery; and

(B) Do not bear any markings, images, words, or phrases that would indicate the delivery vehicle is used to deliver medical cannabis, including the name of the retailer or internet retailer, or any cannabis-related related images; and

(11) Be permitted to dispense medical cannabis or medical cannabis products through curbside pickup or at-the-door pickup to a qualifying patient or caregiver if the retailer:

(A) Implements a process to verify age and validate the ABCA registration of the patient or caregiver;

(B) Implements procedures to ensure that curbside pickup or at-the-door pickup is completed quickly and efficiently; and

(C) Implements a mechanism or recordkeeping process for qualifying patients or caregivers to document receipt of curbside pickup or at-the-door pickup.

(d)(1) Subject to paragraph (2) of this subsection, the holder of the retailer delivery endorsement may offer curbside pickup or deliver medical cannabis during the hours of 9:00 a.m. to 9:00 p.m., 7 days per week.

(2) The ABC Board may alter the hours set forth in paragraph (1) of this subsection through rulemaking.

(e) Applicants for the retailer delivery endorsement shall complete an application prescribed by the ABC Board by regulations issued pursuant to § 7-1671.13.

[(f)] The minimum initial application fee for the endorsement shall be $300. The endorsement shall be valid for 3 years with a minimum annual license fee of $300.

(g) The retailer's or internet retailer's failure to check the required information in subsection(c)(8)(A) or (B) of this paragraph may result in the ABC Board issuing a fine against the retailer or internet retailer or suspending or revoking its license in accordance with this chapter or regulations issued pursuant to § 7-1671.13

(h) For purposes of this section, a public or private park shall not be considered to be either a residential or commercial building address.

§ 7–1671.06f. Summer garden endorsement.

(a) The holder of both a retailer license and a safe use treatment facility endorsement shall obtain a summer garden endorsement from the ABC Board to be eligible to conduct operations in a summer garden, which may include the sale, service, and consumption of medical cannabis on outdoor private space.

(b) The holder of a summer garden endorsement may be authorized to conduct business operations in the summer garden only between the hours of 8:00 a.m. and 12:00 a.m., 7 days a week.

(b-1) No holder of a retailer and safe use treatment facility endorsement located within 400 feet of a day care center may obtain a summer garden endorsement pursuant to this section.

(c) The minimum initial application fee for the endorsement shall be $300. The endorsement shall be valid for 3 years with a minimum annual license fee of $300.

§ 7–1671.06g. Standing to file protest against a retailer license.

*NOTE: This section was created by emergency legislation that will expire on February 11, 2025.*

(a) Except as provided in § 7-1671.05a regarding protests against unlicensed establishments that applied for licenses prior to January 30, 2024, the following persons may protest the issuance of a license, the renewal of a license, or the transfer of a medical cannabis retailer license to a new location:

(1) A property owner or commercial tenant whose property abuts where the establishment is or will be located;

(2) A property owner or commercial tenant whose property is located directly across the street from where the establishment is or will be located; or

(3) A daycare center located within 400 feet of where the establishment is or will be located, or

(4) Any affected ANC.

(b) Any person objecting under subsection (a) of this section to the approval of an application shall notify the ABC Board in writing of his or her intention to object and the specific grounds for the objection within the protest period.

§ 7–1671.06h. Notice to ANCs and Councilmembers.

*NOTE: This section was created by emergency legislation that will expire on February 11, 2025.*

(a) ABCA shall provide electronic notice to the Councilmember representing the ward where the establishment is or will be located and any affected ANC at least 45 calendar days prior to the approval of a location for a retailer.

(b) The ABC Board may, at the request of both an affected ANC and the applicant, extend the ANC's protest petition deadline set forth in subsection (a) of this section by up to an additional 30 calendar days for the sole purpose of allowing the ANC to vote on whether to support or protest the license application. The ABC Board may, on a motion of any party or on its own motion, also continue a hearing to permit an affected ANC to vote on a material issue in the hearing.

§ 7–1671.06i. Grounds for protest.

*NOTE: This section was created by emergency legislation that will expire on February 11, 2025.*

(a) A protest against a medical cannabis retailer license by persons with standing under § 7-1671.06g shall be on the basis of:

(1) A violation of this chapter by the applicant;

(2) A violation of civil law by the applicant that is directly related to the operation of the business or establishment for which the license is sought; or

(3) Vehicular and pedestrian safety.

(b) The ABC Board shall determine whether a violation of civil law is directly related to the operation of the business or establishment for which the license is sought by considering the totality of the following factors:

(1) Whether specific elements of the violation are directly related to the specific duties and responsibilities of the license; and

(2) Any evidence produced by the applicant concerning the applicant's fitness, including the length of time that has elapsed since the violation and mitigating circumstances.

(c) The ABC Board may issue a license, approve the renewal of a license, or approve the transfer of a medical cannabis retailer license to a new location without a hearing on the protest if the ABC Board finds that the basis of the protest lacks substance.

§ 7–1671.06j. ANC comments.

*NOTE: This section was created by emergency legislation that will expire on February 11, 2025.*

The ABC Board shall accord great weight to input provided by an affected ANC regarding the proposed or existing location of a retailer when approving or rejecting an application for a license.

§ 7–1671.07. Health Occupations Boards review of medical marijuana authorized practitioner recommendations. [Repealed]

Repealed.

§ 7–1671.08. Penalties.

(a) Any person who manufactures, cultivates, possesses, administers, dispenses, distributes, or uses cannabis, or manufactures, possesses, distributes, or uses paraphernalia, in a manner not authorized by this chapter or the rules issued pursuant to § 7-1671.13 shall be subject to criminal prosecution and sanction under subchapter I of Chapter 11 of Title 48 [§ 48-1101 et seq.].

(b)(1) Any person who makes a fraudulent representation to a law enforcement official of any fact or circumstance relating to the person's manufacture, cultivation, possession, administration, dispensing, distribution, or use of medical cannabis, or manufacture, possession, distribution, or use of paraphernalia to avoid arrest or prosecution shall be subject to a criminal fine not to exceed $1,000.

[(2)] The imposition of the fine set forth in paragraph (1) of this subsection shall be in addition to any other penalties that may otherwise apply for the making of a false statement or for the manufacture, cultivation, possession, administration, dispensing, distribution, or use of cannabis, or the manufacture, possession, distribution, or use of paraphernalia.

(c) It shall be an affirmative defense to a criminal charge of possession or distribution of cannabis, or possession with intent to distribute cannabis, that the person charged with the offense is a person who:

(1) Was in possession of medical cannabis only inside the qualifying patient’s residence or a medical treatment facility;

(2) Only administered or assisted in administering the medical cannabis to the qualifying patient and only within the qualifying patient’s residence or at a permitted medical treatment facility;

(3) Assisted the qualifying patient only when the caregiver was not reasonably available to provide assistance; and

(4) Is 18 years of age or older.

(d) The ABC Board may impose and adjudicate civil fines for violations of this chapter and rules issued in accordance with § 7-1671.13 committed by licensed or unlicensed cultivation centers, manufacturers, retailers, internet retailers, testing laboratories, and couriers.

(e) Within 180 days after March 22, 2023, the ABC Board shall submit proposed regulations to the Council setting forth a schedule of civil penalties, fines, and fees for violations of this chapter for a 90-day period of review, including Saturdays, Sundays, holidays, and periods of Council recess. If the Council does not approve, in whole or in part, the proposed regulations within the 90-day review period, the regulations shall be deemed approved. The schedule shall replace all civil penalties, except as expressly provided in this chapter.

(f) Beginning January 31, 2024, the ABC Board may issue the following fines to an unlicensed establishment that violates § 7-1671.06(c-1) or § 7-1671.06b(e), or has not filed an accepted and pending application with the ABC Board and knowingly engages or attempts to engage in the purchase, sale, exchange, delivery, or any other form of commercial transaction involving cannabis that is not purchased, sold, exchanged, or delivered in accordance with the provisions of this chapter or § 48-904.01:

(1) For the first violation, the ABC Board may:

(A) Issue a fine in the amount of $10,000; and

(B) Require the unlicensed establishment to submit a remediation plan to the ABC Board that contains the unlicensed establishment's plan to prevent any future recurrence of purchasing, selling, exchanging, delivering, or otherwise transacting any cannabis or cannabis products that are not purchased, sold, exchanged, or delivered in accordance with the provisions of this chapter or § 48-904.01;

(2) For any subsequent violations or if the unlicensed establishment fails to submit a remediation plan in accordance with paragraph (1) of this subsection, or if the ABC Board rejects the unlicensed establishment's remediation plan, the ABC Board may issue additional fines as follows:

(A) For the second violation, a fine in the amount of $20,000;

(B) For the third or subsequent violation, a fine in the amount of $30,000;

(C) For failing to submit a remediation plan or having its remediation plan rejected by the ABC Board, a fine of in the amount of $10,000.

(3) Revenue collected from fines imposed pursuant to this subsection shall be deposited as follows:

(A) The first $100,000 shall be deposited into the Litigation Support Fund established pursuant to § 1-301.86b(b)[(6)]; and

(B) Any revenue collected from fines after the first $100,000 shall be deposited into the Medical Cannabis Social Equity Fund established pursuant to § 7-1671.08b.

(4) Nothing in this subsection shall preclude the ABC Board from issuing a cease-and-desist order or the closure of an unlicensed establishment for a first or subsequent violation of this subsection.

(g)(1) Notwithstanding §§ § 7-1671.06(b) and § 7-1671.08(f), ABCA shall have the authority to inspect the entire premises, inventory, and business records of an unlicensed establishment to determine whether the business is conducting activity in violation of this title. If, after an inspection, ABCA determines that an unlicensed establishment presents an imminent danger to the health or safety of the public, as described in paragraph (2) of this subsection, the ABC Board may summarily close and order the padlocking, by ABCA or MPD without a prior hearing, of the unlicensed establishment, and ABCA or MPD may seize all cannabis and cannabis products found at the premises.

(2) For the purpose of this subsection, the term "imminent danger to the health or safety of the public" includes any of the following:

(A) The unlicensed establishment distributes or attempts to distribute cannabis or a cannabis product to one or more persons under the age of 21.

(B) The unlicensed establishment manufactures, produces, or cultivates cannabis or cannabis products at the building or premises.

(C) Once a testing laboratory has been licensed under this chapter, the unlicensed establishment distributes, attempts to distribute, or makes available for sale or exchange cannabis or a cannabis product untested by a testing laboratory licensed under this chapter.

(D) The unlicensed establishment distributes, attempts to distribute or makes available for sale or exchange cannabis or a cannabis product that fails to contain a label identifying the source of the cannabis or cannabis product, including where it was manufactured, the contents of the package, and the cannabis or cannabis product's ingredients, and tetrahydrocannabinol (THC) content, or is otherwise not labeled in accordance with this chapter.

(E) The unlicensed establishment fails to comply with a cease-and-desist order.

(F) The unlicensed establishment distributes, attempts to distribute, or makes available for sale or exchange Schedule I substances, or products that contain Schedule I substances, as enumerated in § 48-902.04.

(G) An employee, agent, or owner of the unlicensed establishment has unlawful firearms or weapons on the premises.

(H) A dangerous crime, as defined in § 23-1331(3), or a crime of violence, as defined in § 23-1331(4), was committed on the premises of the unlicensed establishment.

(I) The unlicensed establishment engages in any activity or operation established as an imminent danger to the health or safety of the public by the ABC Board by rule.

(3) ABCA shall provide the unlicensed establishment's owner and the property owner with written notice of the summary closure and the right to request a hearing.

(4) The owner of the unlicensed establishment shall have 5 business days after service of the notice of summary closure to request a hearing with the ABC Board, which shall hold a hearing within 5 business days of a timely request.

(5) The ABC Board shall issue a written decision within 5 business days after the hearing.

(h)(1) ABCA or the Metropolitan Police Department may post signage at the site of the unlicensed establishment indicating that unlicensed activity has been found to have occurred for violations of this chapter.

(2) If the ABC Board orders the closure of an unlicensed establishment, the ABC Board shall post 2 notices in conspicuous places at or near the main street entrance on the outside of the establishment.

(3) The posted notice shall state that the closure is ordered because of a violation of this chapter or of the regulations promulgated pursuant to this chapter.

(4) Any person willfully removing, obliterating, or defacing the notice shall be guilty of a violation of this chapter.

(i)(1) An ABCA investigator may test cannabis and cannabis products to quantify their THC content.

(2) In any proceeding before the ABC Board, labeling or packaging in an unlicensed establishment that states that the product contains cannabis or tetrahydrocannabinol, whether in whole or in part, or a derivative thereof, shall create a presumption that the product contains cannabis and contains the amounts of the chemicals indicated on the label or packaging unless such presumption is overcome by a preponderance of evidence to the contrary.

§ 7–1671.08a. Medical Cannabis Administration Fund.

(a) There is established as a special fund the Medical Cannabis Administration Fund ("Fund"), which shall be administered by ABCA in accordance with subsection (c) of this section.

(b) All funds received from medical cannabis licensing, permitting, and registration fees shall be deposited into the Fund.

(d)(1) The money deposited into the Fund shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.

(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.

(e) Funds received from penalties and fines imposed under § 7-1671.08 shall be credited to the unassigned fund balance of the General Fund of the District of Columbia.

§ 7–1671.08b. Medical Cannabis Social Equity Fund.

(a) There is established as a special fund the Medical Cannabis Social Equity Fund ("Fund"), which shall be administered by Department of Small and Local Business Development ("DSLBD") in consultation with ABRA and in accordance with subsection (c) of this section.

(b) Revenue from the following sources shall be deposited into the Fund:

(1) All revenue in excess of the amount budgeted in the Fiscal Year 2023 budget for Fiscal Years 2024, 2025, and 2026 collected pursuant to § 47-2002(a)(7);

(2) Beginning October 1, 2026, all revenue collected pursuant to § 47-2002(a)(7);

(3) Any amount above $100,000 in fines imposed and collected pursuant to § 7-1675.01; and

(4) Any amount above $100,000 in fines imposed and collected pursuant to § 47-2844(a-2)(1B).

(1) Administer the medical cannabis certified business enterprise program; and

(2) Provide equity, grants, and loans to assist social equity applicants and medical cannabis certified business enterprises in gaining entry to, and successfully operating in, the Program.

(d)(1) The money deposited into the Fund shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.

(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.

(e) ABRA and DSLBD shall enter into a memorandum of understanding to effectively implement the distribution of funds in the Fund for the purpose set forth in subsection (c) of this section.

§ 7–1671.08c. Equity, grants, and loans to social equity applicants and medical cannabis certified business enterprises.

(a) DSLBD shall establish grant and loan programs for the purposes of providing financial assistance and technical assistance to social equity applicants and medical cannabis certified business enterprises.

(b) DSLBD shall have the authority to:

(1) Provide equity, grants, and loans from monies in the Medical Cannabis Social Equity Fund established in § 7-1671.08b to assist social equity applicants and medical cannabis certified business enterprises in gaining entry to, and successfully operating in, the Program;

(2) Enter into agreements that set forth the terms and conditions of the financial assistance, accept funds or grants, and cooperate with private entities to carry out the purposes of this section;

(3) Fix, determine, charge, and collect any premiums, fees, charges, costs, and expenses, including application fees, commitment fees, program fees, financing charges, or publication fees in connection with its activities under this section;

(4) Provide staff, administration, and related support required to administer this section;

(5) Establish application, notification, contract, and other forms, procedures or rules; and

(6) Utilize vendors or contractors to carry out the purposes of this section.

(d)(1) Loans made pursuant to this section shall be in such principal amount and form and contain such terms and provisions with respect to security, insurance, reporting, delinquency, charges, default remedies, and other matters as DSLBD shall determine appropriate to protect the public interest.

(2) All funds received from repayment of loans shall be deposited into the Medical Cannabis Social Equity Fund established pursuant to § 7-1671.08b.

(e) No later than one year after establishing any equity, grant, or loan program pursuant to this section, and annually thereafter, DSLBD shall submit a report to the Mayor and Council on the outcomes of that program. The report shall include:

(1) The number of persons or businesses receiving financial assistance under this section;

(2) The amount of financial assistance awarded in the aggregate, in addition to the number and amount of loans made that are outstanding and the number and amount of grants awarded;

(3) The names of the for-profit and nonprofit vendors, partners, consultants, and advisors engaged by DSLBD to implement this section;

(4) The location of the project engaged in by the person or business; and

(5) If applicable, the economic benefits created due to this financial assistance, such as jobs created.

(Feb. 25, 2010, D.C. Law 13-315, § 9c; as added Mar. 22, 2023, D.C. Law 24-332, § 3(m), 70 DCR 1582.)

Applicability

Section 7285(a) of D.C. Law 25-217 amended section 3(m) of D.C. Law 24-332 removing the applicability provision impacting this section. Therefore the creation of this section by section 3(m) of Law 24-332 has been implemented.

Section 7285(a) of D.C. Act 25-506 amended section 3(m) of D.C. Law 24-332 removing the applicability provision impacting this section. Therefore the creation of this section by section 3(m) of Law 24-332 has been implemented.

Applicability of D.C. Law 24-332: § 9 of D.C. Law 24-332 provided that the creation of this section by § 3(m) of D.C. Law 24-332 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7285(a) of Fiscal Year 2025 Budget Support Emergency Act of 2024 (D.C. Act 25-506, July 15, 2024, 71 DCR 8406).

§ 7–1671.09. Medical Cannabis Advisory Committee.

(a) The Mayor shall establish a Medical Cannabis Advisory Committee (“Committee”), which shall monitor:

(1) Best practices in other states that allow the use of medical cannabis;

(2) Scientific research on the medical use of cannabis; and

(3) The Program's effectiveness.

(b) Repealed.

§ 7–1671.10. Fees.

(a) ABCA is authorized to establish, by rulemaking, fees for the licensing of cultivation centers, manufacturers, retailers, internet retailers, couriers, and testing laboratories and for the inspection and audit of cultivation centers, manufacturers, retailers, internet retailers, couriers, and testing laboratories.

(b) Any of the fees collected pursuant to this chapter shall be applied first toward the cost of administering this chapter.

§ 7–1671.11. Liability.

(a) No liability shall be imposed by virtue of this chapter upon any duly authorized District officer engaged in the enforcement of any law relating to controlled substances.

(b) The District shall not be held liable for any deleterious outcomes from the use of medical cannabis, including the acts or omissions of any qualifying patient attributed to the use of medical cannabis.

§ 7–1671.12. Public and private insurance.

Nothing in this chapter shall require a governmental, private, or any other health insurance provider or health care service plan to be liable for any claim for reimbursement for the use of medical cannabis.

§ 7–1671.12a. Cease and desist orders.

(a) If the ABC Board, after investigation but before a hearing, has cause to believe that a person is violating a provision of this chapter and the violation has caused or may cause, immediate and irreparable harm to the public, the ABC Board may issue an order requiring the alleged violator to cease and desist immediately from the violation. The order shall be served by certified mail or hand-delivered to the licensee or unlicensed establishment.

(b)(1) The alleged violator may, within 15 days after the service of the order, submit a written request to the ABC Board to hold a hearing on the alleged violation.

(2) Upon receipt of a timely request, the ABC Board shall conduct a hearing in accordance with the procedures set forth in Chapter 5 of Title 2, and issue a decision within 90 days after the hearing.

(c)(1) The alleged violator may, within 10 days after the service of an order, submit a written request to the ABC Board for an expedited hearing on the alleged violation.

(2) Upon receipt of a timely request for an expedited hearing, the ABC Board shall conduct a hearing within 10 days after the date of receiving the request and shall deliver to the alleged violator at their last known address a written notice of the hearing by any means guaranteed to be received at least 5 days before the hearing date.

(3) The ABC Board shall issue a decision within 30 days after an expedited hearing.

(d) If a request for a hearing is not timely made under subsection (b) or (c) of this section, the order of the ABC Board shall be final.

(e) If, after a hearing, the ABC Board determines that the alleged violator is not in violation of this chapter, the ABC Board shall revoke the order.

(f) If a person fails to comply with a lawful order of the ABC Board under this section, the ABC Board may petition the Superior Court of the District of Columbia for an order compelling compliance or take any other action authorized by this chapter.

§ 7–1671.12b. Examination of premises, books, and records.

*NOTE: This section was created by emergency legislation that will expire on February 11, 2025.*

(a) An applicant for a license, and each licensee, shall allow any ABCA investigator or agent of the ABC Board full opportunity to examine, at any time during business hours:

(1) The premises where a cannabis product is manufactured, kept, sold, or consumed for which an application for a license has been made or for which a license has been issued; and

(2) The books and records of the business for which an application for a license has been made or for which a license has been issued.

(b) ABCA investigators shall examine the premises and books and records of each licensed establishment in the District at least once each year. The investigators shall make reasonable efforts to ensure that the licensee shall know in advance the date of the inspection.

§ 7–1671.12c. Search warrants for illegal cannabis products; disposition of seized products.

*NOTE: This section was created by emergency legislation that will expire on February 11, 2025.*

If a search warrant is issued by any judge of the Superior Court of the District of Columbia or by a United States Magistrate for the District of Columbia for premises where any cannabis products are sold, exchanged as part of a commercial transaction, delivered, or permitted to be consumed in violation of this title, the cannabis product and any other property designed for use in connection with the unlawful manufacture for sale, keeping for sale, selling, or consumption may be seized and shall be subject to such disposition as the court may make thereof.

§ 7–1671.12d. Notifications from Department of Licensing and Consumer Protection, Office of Tax and Revenue, Fire and Emergency Medical Services Department, and Metropolitan Police Department.

*NOTE: This section was created by emergency legislation that will expire on February 11, 2025.*

(a) The Department of Licensing and Consumer Protection, the Office of Tax and Revenue, and the Fire and Emergency Medical Services Department shall notify the ABC Board if a licensed establishment is the subject of a citation, revocation, or other enforcement action for a violation of laws or regulations enforced by those agencies or offices within 30 days after the citation, revocation, or other enforcement action.

(b) If a licensed establishment is the subject of an incident report by the Metropolitan Police Department, the Metropolitan Police Department shall file a copy of the incident report with the ABC Board within 30 days after the incident. The ABC Board shall make the report available for public inspection upon request.

§ 7–1671.12e. Nuisance.

*NOTE: This section was created by emergency legislation that will expire on February 11, 2025.*

(a) Any unlicensed establishment where cannabis is sold, exchanged as part of a commercial transaction, delivered, or permitted to be consumed shall be a nuisance, except any unlicensed establishment of an applicant that filed an accepted and pending application with the ABC Board during the 90-day open application period.

(b) An action to enjoin any nuisance defined in subsection (a) of this section may be brought in the name of the District of Columbia by the Attorney General for the District of Columbia in the Civil Branch of the Superior Court of the District of Columbia against the owner or operator of the unlicensed establishment or any person conducting or maintaining such nuisance or any person who knows or should have known that such nuisance is being conducted or maintained.

(c)(1) Upon the filing of a complaint to abate the nuisance, the Court shall hold a hearing on a motion for a preliminary injunction within 14 days of the filing of such action.

(2) If it appears, by affidavit or otherwise, that there is a substantial likelihood that the District of Columbia will be able to prove at trial that the building, ground, or premises of the unlicensed establishment is a nuisance, the court may enter an order preliminarily:

(A) Enjoining the nuisance;

(B) Prohibiting the use of the unlicensed establishment for the purpose of selling cannabis, exchanging cannabis as part of a commercial transaction, delivering cannabis, or permitting cannabis to be consumed until such time as the establishment obtains a license; and

(3) The District of Columbia need not prove irreparable harm to obtain a preliminary injunction.

(4) Where appropriate, the Court may order a trial of the action on the merits to be advanced and consolidated with the hearing on the motion for preliminary injunction.

(5) This section shall not be construed to prohibit the application for or the granting of a temporary restraining order, or other equitable relief otherwise provided by law.

(d)(1) Within 14 days of the issuance of any preliminary injunction, the Court shall hold a full hearing on the merits of the nuisance action.

(2) If the Court does not issue a preliminary injunction, the Court shall expeditiously schedule a full hearing. If it is determined by a preponderance of the evidence that the unlicensed establishment is a nuisance, the Court shall issue a final order that mandates closure and sealing of the establishment within 72 hours and continued closure until such time as the establishment obtains a license.

(3) The Court may order other appropriate relief, including issuing an order enjoining the nuisance and prohibiting the use of the unlicensed establishment for the purpose of:

(A) Selling cannabis;

(B) Exchanging cannabis as part of a commercial transaction;

(D) Permitting cannabis to be consumed until such time as the establishment obtains a license.

(4)(A) Execution by the Metropolitan Police Department of any final order to close and seal the establishment shall occur within 7 days of the issuance of the final order.

(B) Notwithstanding subparagraph (A) of this paragraph, if the Metropolitan Police Department has not executed the final order within 5 days of issuance of the final order, the final order shall continue to be executable and valid.

§ 7–1671.13. Rules.

(a) The Mayor, pursuant to subchapter I of Chapter 5 of Title 2 [§ 2-501 et seq.], shall issue rules to implement the provisions of this chapter, including rules to:

(1) Adopt manufacturing practices with which cultivation centers, manufacturers, retailers, and internet retailers shall be required to comply to ensure that medical cannabis sold by cultivation centers, manufacturers, retailers, and internet retailers is appropriate for medical use;

(2) Ensure that the labeling on medical cannabis sold by cultivation centers, manufacturers, retailers, and internet retailers provides sufficient and accurate information, verified by a testing laboratory, for qualifying patients to be able to make informed choices;

(3) Ensure that each cultivation center, manufacturer, retailer, internet retailer, courier, and testing laboratory has appropriate signage and outdoor lighting and an appropriate security system, security plan, and theft prevention plan;

(4) Limit the hours during which cultivation centers, manufacturers, retailers, internet retailers, couriers, and testing laboratories may operate;

(5) Determine, for the purpose of ensuring that qualifying patients have adequate access to medical cannabis, the number of cultivation centers, manufacturers, retailers, internet retailers, and testing laboratories that may operate in the District;"

(6) Determine the amount of any licensing fee for a cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory;

(7) Determine the forms of medical cannabis that cultivation centers, manufacturers, retailers, and internet retailers shall be permitted to dispense or distribute;

(8) Determine the process for permitting a cultivation center, manufacturer, retailer, internet retailer, courier, or testing laboratory to change location or change ownership or controlling interest pursuant to § 7-1671.06(r);

(9) Determine which provisions of a settlement agreement reached between a cultivation center, manufacturer, retailer, or internet retailer and an affected ANC are enforceable and which provisions are unenforceable by the ABC Board; and

(10) Adopt processes and procedures for holding protest and enforcement hearings before the ABC Board.

(a-1) Pursuant to the transfer of functions of the Department of Health to ABCA by § 25-204.02, the Mayor shall issue rules in accordance with subsection (b) of this section, which rules shall allow licensed retailers, internet retailers, and couriers to provide medical cannabis to qualifying patients through delivery, curbside pickup, and at-the-door options.

(a-2) The Mayor may issue rules creating additional license categories, including a transporter license, tiered cultivation center licenses, different types of manufacturer licenses, and a shared facility license to allow licensees to share existing space and equipment.

(b) The Mayor shall submit the proposed rules to the Council for a 30-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution, within this 30-day review period, the proposed rules shall be deemed approved.