Washington D.C. Cannabis Program Expanded

Washington D.C. cannabis program has been expanded due to a new bill. On January 31st, DC Mayor Muriel Bowser signed legislation, B24-0013: The Medical Cannabis Amendment Act. 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 as of 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. 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.

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.”

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.

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.

Cultivation Center means an establishment that is licensed to grow and distribute cannabis to retailers registered in DC for medical purposes.

Courier License: means a platform or business that:

• Is licensed to conduct business in the District;
• 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.

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

• Is certified by DSLBD as an equity impact enterprise

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.

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.

Manufacturer means a facility operated by an organization or business

licensed with ABCA to:

• Process medical cannabis from cultivation centers into medical cannabis concentrates and medical cannabis-infused products;
• Package and label medical cannabis concentrates and medical cannabis-infused products for dispensing at licensed retailers and internet retailers; and
• Sell medical cannabis concentrates and medical cannabis-infused products at wholesale to licensed retailers and internet retailers.

Unlicensed Establishment: 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:

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.

Social Equity Program

Social equity applicant” means an applicant for licensure with ABCA 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

For new social equity applicants, ABCA shall waive up to 75% of any nonrefundable license fees.

Regulators must make applications available for new licensees no later than May 1, 2023. The ABC Board shall issue rules within 180 days following the effective date of the Medical Cannabis Amendment Act of 2022, passed on 2nd reading on December 20, 2022, 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. After one year following the effective date of the Medical Cannabis Amendment Act of 2022, passed on December 20, 2022, the ABC Board may, by rulemaking, limit the number of cultivation centers, retailers, and internet retailers.

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