Washington D.C Medical Marijuana Program Overview

Washington D.C. legalized medical cannabis in 2010, through the Legalization of Marijuana for Medical Treatment Amendment Act of 2010, which provided a legal way for qualifying patients in the state to obtain, use and possess medical cannabis with a physician’s written certification for the treatment of a state qualifying condition. Access to medical cannabis is through state licensed businesses that are allowed to grow, manufacture, process, transport and sell medical cannabis.

On January 31, 2023, DC Mayor Muriel Bowser signed legislation, B24-0013: The Medical Cannabis Amendment Act, expanding the medical cannabis program in D.C. allowing for more access to medical cannabis. After undergoing an obligatory Congressional review process, the measure became law on March 22, 2023.

Among other things it removes certain prohibitions against returning citizens ability to take part in the medical marijuana industry. The legislation also creates licenses for new types of cannabis businesses, including marijuana delivery services, online sales, educational programs such as cooking classes, and cannabis consumption areas at dispensaries. Half of the new licenses will be reserved for social equity applicants, which are defined as D.C. residents who have a low income, have spent time in prison, or are related to someone who was incarcerated for a cannabis or drug-related offense. There has been no cap set on the expansion of the program yet. 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.

Licensing Opportunities for Washington D.C Medical Cannabis Businesses

Cultivation Center – means an establishment that is licensed to grow and distribute

cannabis to retailers registered in DC for medical purposes. There are currently 8 licensed Cultivators in D.C. of the 8, only 5 are operational. There are 6 Cultivation Tiers:

• Tier 1 = Mature cannabis plant grow canopy area greater than 0 sq ft but no more than 10,000 square feet
• Tier 2 = Mature cannabis plant grow canopy area greater than 10,000 sq ft but no
• more than 25,000 sq ft
• Tier 3 = Mature cannabis plant grow canopy area greater than 25,000 sq ft but no
• more than 50,000 sq ft
• Tier 4 = Mature cannabis plant grow canopy area greater than 50,000 sq ft but no
• more than 75,000 sq ft
• Tier 5 = Mature cannabis plant grow canopy area greater than 75,000 sq ft but no
• more than 100,000 sq ft
• Tier 6 = Mature cannabis plant grow canopy area greater than 100,000 sq ft.

Manufacturer – means a facility operated by an organization or business licensed with ABCA to: 1) Process medical cannabis from cultivation centers into medical cannabis concentrates and medical cannabis-infused products; 2) Package and label medical cannabis concentrates and medical cannabis-infused products for dispensing at licensed retailers and internet retailers; and 3) Sell medical cannabis concentrates and medical cannabis-infused products at wholesale to licensed retailers and internet retailers. There are two types of Manufacturers: Type 1) Infusing Only; and Type 2) Extraction and Infusion.

Retailer – means a facility operated by an organization or business licensed with ABCA from or at which medical cannabis is possessed and dispensed, and paraphernalia is possessed and distributed to a qualifying patient or a caregiver. There are currently 7 licensed Retailers, all retailers are operational.

• Education tasting endorsement – the holder of a retailer license shall be eligible to apply to the ABC Board for an education tasting endorsement. 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. 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 only occur in an ABC Board-approved safe-use treatment facility.

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.

Courier License – means a platform or business that:

• 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
• Uses its own employees or independent contractors.

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 act.

There are no caps on licenses allowed, however, D.C. will only be accepting applications for licenses during allocated timeframe, described below. Application will be checklist based and license will be issued as long as applicant is compliant.

Are you interested in obtaining a cannabis business license in Washington D.C? Are you seeking guidance on developing an effective business plan? Call us to speak with an industry expert at 602-290-9424.