Washington D.C Cannabis Licensing

Washington D.C Cannabis Licensing

Sabrina
MARCH 1ST, 2024

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.

Recreational use was voted to be approved in 2014 on a ballot known as I-71. Consistently, Congress has obstructed the city’s efforts to establish regulations and impose taxes on commercial cannabis sales, even though the possession of small quantities of cannabis remains lawful.

On January 31, 2023, D.C. 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. This new legislation brings about comprehensive changes to the medical cannabis program in Washington, D.C. This program caters to a considerable number of individuals, including approximately 29,000 distinct D.C. resident patients as well as numerous patients from outside the District of Columbia.

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.

Key Points:

  • A person who has been issued a Medical Marijuana Card by the District Department of Health may continue to possess up to two ounces of medical marijuana per month. However, the use of medical marijuana in public remains a criminal offense and can result in arrest.
  • It is legal to possess two ounces or less of marijuana.
  • Individuals are allowed to grow a maximum of six marijuana plants in their own homes, with the condition that only three of these plants are in their mature state.
  • D.C. residents cannot use marijuana on federal government-owned properties like national parks, military buildings, and government buildings.
  • Breaking marijuana laws in Washington D.C. can lead to various consequences, such as imprisonment, monetary penalties, the suspension of one’s driver’s license, and in certain cases, the confiscation of assets.
  • You may not consume cannabis in any D.C. dispensaries.
  • Washington D.C’s regulations surrounding marijuana prohibit the direct purchase of cannabis through conventional buyer-seller transactions. Instead, they enable individuals to acquire a different product, commodity, or service, and as part of this exchange, they receive a complimentary marijuana item that is presented as a “gift” or donation from the vendor, rather than being sold outright.
  • There are no official recreational dispensaries in Washington D.C.

 

Sources:

https://www.washingtonpost.com/dc-md-va/2023/04/19/buying-cannabis-legally-dc/

https://mpdc.dc.gov/marijuana#:~:text=As%20of%2012%3A01%20am,years%20of%20age%20and%20older.

https://washingtondccannabis.org/laws

https://www.cnbc.com/2018/09/15/heres-what-you-need-to-know-about-dc-marijuana.html

Types of Medical Marijuana 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 sq ft
  • 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.
  • NOTE: Couriers will serve as same day delivery only, if delivery is unsuccessful all inventory must be returned to provider.

 

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.

 

Social Equity Applicants

Social equity applicant means an applicant for licensure who satisfies two or more of the following criteria:

  • 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;
  • 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 who is or has been incarcerated in the District or in any other jurisdiction for a cannabis or drug-related offense; or
  • 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

 

Unlicensed Operators

D.C. allowed operators operating in the “gray/gifting” market the ability to be licensed in 2022. For “unlicensed operators”, that meet the requirements below, D.C. will allow these licensees to be eligible to apply for another retailer license during the 90-calendar day open application period. An unlicensed establishment shall demonstrate to the satisfaction of ABCA that the unlicensed establishment:

  • Is not located:
    • Within a residential district;
    • Within 300 feet of a preschool, primary or secondary school, or recreation center; or “(iii) Within 400 feet of an existing retailer;
  • Has a valid, active business license issued on or before December 31, 2022;
  • Has a valid certificate of occupancy issued prior to the date on which the application is submitted;
  • Has been in operation since December 31, 2022, at the latest; and
  • 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.

Washington D.C. Marijuana Program Timeline

2010 – Washington D.C. legalizes medical cannabis

2014 – Washington D.C. legalizes recreational cannabis

January 31, 2023 – Washington D.C. passes Cannabis Amendment Act of 2022

May 1, 2023 – Social Equity application opens for Courier, Cultivation, and Manufacturer licenses

August 29, 2023 – Non-Social Equity application opens for Courier, Cultivation, and Manufacturer licenses

March 1, 2024 – Application portal opens for Social Equity Applicants for Retailer and Internet Retailer licenses

July 1, 2024 – Application portal opens for Non-Social Equity Applicants for Retailer and Internet Retailer licenses

 

 

 

Want to learn more?

Visit our state page and schedule a consultation today!

Contact us by phone at 602-290-9424 or via email at info@thecannabisbusinessadvisors.com for more information on how to get started.

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