B26-0051 Comprehensive Cannabis Legalization and Regulation…

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Councilmember Kenyan McDuffie Chairman Phil Mendelson 2
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Councilmember Robert C. White, Jr. Councilmember Charles Allen 6
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Councilmember Christina Henderson 10
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A BILL 14
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 18
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To amend Title 25 of the District of Columbia Official Code to establish the Alcoholic Beverage 22
and Cannabis Board and the Alcoholic Beverage and Cannabis Administration; to 23
establish that the Chairperson of the ABCA Board may also have demonstrated 24
knowledge in the cannabis industry; to establish the Cannabis Regulation Division; to 25
establish the Cannabis Advisory Committee; to define various terms for new chapters 21 26
through 30; to prohibit the sale of cannabis or cannabis products without a license; to 27
prohibit exchanges of cannabis for purchasing another item; to provide the Board with 28
the authority to issue cannabis licenses for 3 year periods; to create the Cannabis Equity 29
and Opportunity Fund; to set aside a certain percentage of licenses for Social Equity 30
Applicants; to establish grant and loan programs for Social Equity Applicants; to create 31
requirements for the transfer of Social Equity Applicant licenses; to establish the 32
Community Reinvestment Fund, Program and Board; to authorize the Board to create 33
incentives for the production of medical cannabis and medical cannabis products; to 34
create cultivation, manufacturer, microbusiness, internet retailer, retailer, courier and 35
testing facility license categories; to create a research and development license category; 36
to require laboratory agent registration with the ABCA; to require cannabis 37
microbusinesses and retailers to obtain a delivery endorsement from the Board to deliver 38
cannabis and cannabis products to District residents’ homes; to create general 39
qualifications for applicants; to establish general qualifications for proposed 40
establishments; to clarify when the appropriateness standards apply to cannabis license 41
applications; to prohibit a microbusiness or retailer from being located within 400 feet of 42
schools, daycare, or recreation centers or in a residential-use district; to require the Board 43
to give notice to the Councilmembers and affected ANCs for 45 days of various cannabis 44
license applications; to establish grounds for protest; to establish licensing fees for 45
cannabis license applications; to establish requirements for filing a protest; to provide an 46

affected ANC great weight; to establish general operating and product testing 47
requirements; to require posting of licenses; to establish hours of operation for cannabis 48
licensees; to require licensees use a Board-approved seed-to-sale tracking system; to 49
establish maximum permitted sale amounts for microbusinesses and retailers; to create 50
packaging and labeling requirements for cannabis products; to restrict what can be 51
displayed on signs or logos from cannabis licensees; to restrict the content and methods 52
for advertising cannabis and cannabis products; to prohibit the sale of cannabis or 53
cannabis products to minors; to prohibit minors from entering a licensed premises; to 54
require the production of valid photo identification for entrance on to the premises or for 55
the sale of cannabis or cannabis products; to require security plans and measures for 56
licensed cannabis establishments; to require safekeeping by ABCA of licenses that are 57
temporarily suspended; to provide enforcement authority to ABCA investigators, the 58
Board, and MPD; to require the Board to establish a civil penalty fine schedule by 59
rulemaking and establish penalties against unlicensed establishments; to prohibit the sale 60
of cannabis or cannabis products at licensed alcohol and tobacco establishments; to 61
prohibit the sale of alcohol or tobacco infused cannabis products; to prohibit tampering 62
with packages or containers; to make it unlawful to provide vaping devices to persons 63
under 21 years of age; to make it unlawful to forge a cannabis license; to provide a 64
penalty for violations where no specific penalty is provided; to prohibit purchase, 65
possession, use or consumption by persons under the age of 21; to impose an excise tax 66
on cannabis sold or transferred from cultivators to distributors, manufacturers, and 67
retailers; to establish the authority for financial institutions to transact business with 68
licensees; to create a portal to ensure compliance of financial institutions; and to allow 69
the transfer to another person 21 years or older cannabis weighing ‘one ounce or less, or 70
one clone, regardless of weight. 71
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 73
act may be cited as the “Comprehensive Cannabis Legalization and Regulation Amendment Act 74
of 2025”. 75
Sec. 2. The Small, Local, and Disadvantaged Business Enterprise Development and 76
Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2- 77
218.01 et seq.) is amended as follows: 78
(a) Section 2302 (D.C. Official Code § 2-218.02) is amended as follows: 79
(1) A new paragraph (16B) is added to read as follows: 80
“(16B) “Social equity applicant” shall have the same meaning as § 25-2101(40).”. 81
(b) A new section 2316 is added to read as follows: 82

“Sec. 2316. Loans and grants to social equity applicants. 83
“(a) The Department shall, in consultation with ABCA, establish grant, equity, and loan 84
programs for the purposes of providing financial assistance, loans, grants, equity, and technical 85
assistance to social equity applicants. 86
“(b) The Department shall have the power to: 87
“(1) Provide Cannabis Social Equity loans, equity, and grants from appropriations 88
from the Cannabis Equity and Opportunity Fund to assist Social Equity Applicants in gaining 89
entry to, and successfully operating in, the District's regulated cannabis marketplace; 90
“(2) Enter into agreements that set forth terms and conditions of the financial 91
assistance, accept funds or grants, and engage in cooperation with private entities to carry out the 92
purposes of this section; 93
“(3) Fix, determine, charge, and collect any premiums, fees, charges, costs, and 94
expenses, including application fees, commitment fees, program fees, financing charges, or 95
publication fees in connection with its activities under this section; 96
“(4) Provide staff, administration, and related support required to administer this 97
section; 98
“(5) Establish application, notification, contract, and other forms, procedures, or 99
rules deemed necessary and appropriate; and 100
“(6) Utilize vendors or contract work to carry out the purposes of this act. 101
“(c) Grants made under this section shall be awarded on a competitive and annual basis. 102
Grants made under this Section shall further and promote the goals of this act, including the 103
promotion of Social Equity Applicants, job training and workforce development, and technical 104
assistance to Social Equity Applicants. 105

“(d) Loans made under this section shall be in such principal amount and form and 106
contain such terms and provisions with respect to security, insurance, reporting, delinquency 107
charges, default remedies, and other matters as DSLBD shall determine appropriate to protect the 108
public interest and to be consistent with the purposes of this section. The terms and provisions 109
may be less than required for similar loans not covered by this section. 110
“(e) Beginning January 1, 2027 and each year thereafter, DSLBD shall annually report to 111
the Council on the outcomes and effectiveness of this section that shall include the following: 112
“(1) The number of persons or businesses receiving financial assistance under this 113
section; 114
“(2) The amount in financial assistance awarded in the aggregate, in addition to 115
the number of loans made that are outstanding and the number of grants awarded; 116
“(3) The location of the project engaged in by the person or business; and 117
“(4) If applicable, the number of new jobs and other forms of economic output 118
created as a result of financial assistance. 119
“(f) The Department shall include engagement with individuals with limited English 120
proficiency as part of its outreach provided or targeted to attract and support Social Equity 121
Applicants.”. 122
Sec. 3. (a) Title 25 of the District of Columbia Official Code is amended as follows: 123
(1) A new section 25-213 is added to read as follows: 124
“Sec. 25-213. Cannabis Regulation Division; Chief of Cannabis Regulation. 125
“(a) There is established a Cannabis Regulation Division (“Division”) within the 126
Alcoholic Beverage and Cannabis Administration, which shall have as its head a Chief of 127
Cannabis Regulation. 128

“(b) The Division shall be responsible for the administration of this act and any laws and 129
regulations under the Legalization of Marijuana for Medical Treatment Initiative of 1999, 130
effective February 25, 2010 (D.C. Law 13-315, D.C. Official Code § 7-1671.01 et seq.). 131
“(c) The Chief of Cannabis Regulation shall be appointed by, and report directly to, the 132
Director of the Alcohol and Cannabis Control Administration. 133
“(d) The Chief of Cannabis Regulation shall: 134
“(1) Be a resident of the District within 6 months of the commencement of his or 135
her term of office; 136
“(2) Possess skills and expertise relevant to the regulation of cannabis. 137
“(e) The Chief of Cannabis Regulation shall be a full-time position, for which annual 138
compensation shall be fixed in accordance with subchapter X-A of Chapter 6 of Title 1.”. 139
(2) A new section 25-214 is added to read as follows: 140
“Sec. 25-214. Cannabis Advisory Committee. 141
“(a) Within 90 days of the effective date of the Comprehensive Cannabis Legalization 142
and Regulation Amendment Act of 2025, the Mayor shall appoint a Cannabis Advisory 143
Committee to study and make recommendations to the Board on the regulation and taxation of 144
cannabis in the District. 145
“(b) The Committee shall consist of the following members: 146
“(1) The Director of ABCA, who shall serve as the Committee Chair; 147
“(2) The Attorney General of the District of Columbia or his or her designee; 148
“(3) The Chief Financial Officer or his or her designee; 149
“(4) The Director of the Department of Health or his or her designee; 150
“(5) A person with expertise in cannabis cultivation; 151

“(7) A person with expertise in cannabis product manufacturing; 152
“(8) Two returning citizens who meet the definition of social equity applicant 153
pursuant to 154
“(9) Two persons from Disproportionately Impacted Areas as defined in D.C. 155
Code § 25-2101; 156
“(10) A person with expertise in economic development; 157
“(11) A person with expertise in racial and economic justice; and 158
“(12) A person who is a current qualifying patient registered with ABCA for the 159
District’s medical cannabis program.”. 160
“(c) A member shall disclose any conflicts of interest and recuse him or herself from the 161
discussion or consideration of any recommendations where a conflict of interest exists. 162
“(d)(1) The Committee shall advise on the preparation of regulations and consider all 163
matters submitted to it by the Board. 164
“(2) Where the Board rejects recommendations from the Committee, it must 165
provide the Committee a justification for the rejection. 166
“(e) The Chair may establish subcommittees in order to expedite the work of the 167
Committee. 168
“(f) The Committee shall sunset after the Board adopts final rules implementing the 169
provisions of the Comprehensive Cannabis Legalization and Regulation Amendment Act of 170
2025.”. 171
(3) A new section 25-215 is added to read as follows: 172
“Sec. 25-215. Cannabis license data portal. 173
“ABCA shall establish a public portal that includes information on the following: 174

“(a) The number of licenses available, pending approval, and awarded in each license 175
category, including Social Equity Applicants; 176
“(b) The demographic characteristics of licensees; 177
“(c) License numbers and other relevant information on licensed cannabis establishments 178
in the District; 179
“(d) Monthly production and sales activity; 180
“(e) Monthly enforcement and compliance data, including the number and type(s) of 181
violations and the number and type(s) of enforcement visits; 182
“(f) The location of Disproportionately Impacted Areas in the District; and 183
“(g) Annual data on the distribution of grant, equity or loans as described in D.C. Official 184
Code § 25-2107.”. 185
(b) A new Chapter 21 is added to read as follows: 186
CHAPTER 21. GENERAL PROVISIONS, SOCIAL EQUITY, COMMUNITY 187
REINVESTMENT, AND MEDICAL CANNABIS INCENTIVES. 188
“§ 25-2101. Definitions 189
For purposes of chapters 21 through 29 of this title, the following terms shall apply: 190
“(1) “ABC Board” means the means the Alcoholic Beverage and Cannabis Board 191
established by § 25-201. 192
“(2) “ABCA” means the Alcoholic Beverage and Cannabis Administration established by 193
§ 25-202. 194
“(3) “Adjacent” means located within the same physical structure as, and is abutting, 195
adjoining, bordering, touching, contiguous to, or otherwise physically meeting. 196
“(4) “Adult” means a person who is 21 years of age or older. 197

“(5) “Affected ANC” means any Advisory Neighborhood Commission within 600 feet of 198
where a cultivator, manufacturer, microbusiness, retailer, or internet retailer facility is or will be 199
located. 200
“(6) “Cannabidiol” or “CBD” means a non-psychoactive cannabinoid found in 201
the plant Cannabis sativa L. or Cannabis indica or any other preparation thereof that is 202
essentially free from plant material and has a tetrahydrocannabinol level of no more than 203
0.3%. 204
“(7) “Cannabinoid” means any of the chemical compounds that are the active principles 205
of cannabis. 206
“(8) “Cannabis” means all parts of the plant from the genus Cannabis, whether growing 207
or not, with a THC concentration greater than 0.3% on a dry weight basis, the seeds thereof; the 208
resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, 209
mixture, or preparation on the plant, its seeds or resin. The term does not include the mature 210
stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, 211
any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks 212
(except the resin extracted therefrom) fiber, oil, cake, or the sterilized seed of the plant which is 213
incapable of germination. 214
“(9) “Cannabis concentrate” means a product derived from cannabis that is produced by 215
extracting cannabinoids from the plant through the use of propylene glycol, glycerin, butter, 216
middle chain triglyceride oils, olive oil or other typical cooking fats; water, ice, or dry ice; or 217
butane, propane, CO2, ethanol, or isopropanol. 218

“(10) “Cannabis establishment” means a cannabis cultivator, testing laboratory, 219
manufacturer, microbusiness, internet retailer, retailer, or any other type of licensed cannabis-220
related business. 221
“(11) “Cannabis tincture” means an alcoholic extract of cannabis commonly used in the 222
production of cannabis extracts. 223
“(12) “Child-resistant” means special packaging that is: 224
“(A) Designed or constructed to be significantly difficult for children under five 225
years of age to open and not difficult for normal adults to use properly as defined by 16 C.F.R. 226
1700.15 (1995) and 16 C.F.R. 1700.20 (1995). Note that this Rule does not include any later 227
amendments or editions to the Code of Federal Regulations; 228
“(B) Opaque so that the packaging does not allow the product to be seen without 229
opening the packaging material; and 230
“(C) Resealable for any product intended for more than a single-use or containing 231
multiple servings. 232
“(13) “Courier” means a platform or business that: 233
“(A) Is licensed to conduct business in the District; 234
“(B) Has a contractual relationship with a holder of a microbusiness, retailer, or 235
internet retailer license to provide delivery services or facilitate the sale of medical or 236
recreational cannabis or medical or recreational cannabis products for deliveries in the District to 237
adult customers, qualifying patients, or caregivers through the use of the internet, a mobile 238
application, or a similar technology platform; and 239
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(C) Uses its own employees or independent contractors. 241

“(14) “Daycare center” means a child development center, as that term is defined in § 4-242
401(2), that is licensed by the Office of the State Superintendent of Education. 243
“(15) “Disproportionately Impacted Area” means a census tract or comparable 244
geographic area that satisfies the following criteria as determined by the Cannabis Regulation 245
Division of the Alcoholic Beverage and Cannabis Administration: 246
“(A) Meets at least one of the following criteria: 247
“(i) The area has a poverty rate of at least 15%; or 248
“(ii) The share of households in the area that receive public assistance 249
income as defined by the Census Bureau is at least 4%; or 250
“(iii) The area has an average unemployment rate, as determined by the 251
Department of Employment Services, that is more than 120% of the national unemployment 252
average as determined by the United States Department of Labor, for a period of at least 2 253
consecutive calendar years preceding the date of the application; and 254
“(B) Has or had high rates of arrest, conviction, and incarceration related to the 255
sale, possession, use, cultivation, manufacture, or transport of cannabis. 256
“(16) “DFS” means the Department of Forensic Sciences. 257
“(17) “DOB” means the Department of Buildings. 258
“(18) “DOH” means the Department of Health, also known as DC Health. 259
“(19) “Edible cannabis product” means any cannabis product for which the intended use 260
is oral consumption, including any type of food, drink, or pill. 261
“(20) “Electronic smoking device” shall have the same meaning as it is used in the 262
Electronic Cigarette Parity Amendment Act of 2016, effective February 18, 2017 (D.C. Law 21-263
189; D.C. Official Code § 7-741.01(1)). 264

“(21) “Especially appealing to persons under 21 years of age” means a product, label, 265
sign or advertisement that contains: 266
“(A) Images of cartoon characters, toys, or animals; 267
“(B) Bubble-type or other cartoon-like font; 268
“(C) A design, brand, or name that resembles a non-cannabis consumer product; 269
“(D) Symbols or celebrities that are commonly used to market products to persons 270
under the age of 21; or 271
“(E) The word candy or candies. 272
“(22) “FEMS” means the Fire and Emergency Medical Services Department. 273
“(23) “Finished cannabis” means usable cannabis, cannabis resin or 274
cannabis concentrate. 275
“(24) “Hemp” means a plant of the genus Cannabis and any part of the plant, whether 276
growing or not, containing a delta-9 tetrahydrocannabinol (THC) concentration of no more than 277
three-tenths of one percent (0.3%) on a dry weight basis. 278
“(25) “Internet retailer” means a platform or business that is licensed to conduct business 279
in the District, provides delivery services, and facilitates the sale of medical or recreational 280
cannabis or medical or recreational cannabis products for deliveries to adult customers, 281
qualifying patients, or caregivers through the use of the internet, a mobile application, or similar 282
technology platform, and that does not have a physical location that is open to the public. 283
“(26) “Laboratory agent” means an employee of an independent testing facility who 284
transports, possesses, or tests cannabis. 285
“(27) “Cannabis tincture” means an alcoholic extract of cannabis commonly used in the 286
production of cannabis extracts. 287

“(28) “Manufacturer” means a facility operated by an organization or business licensed 288
with ABCA to: 289
“(A) Process medical or recreational cannabis from holders of a cultivation 290
license into medical or recreational cannabis concentrates and medical or recreational cannabis-291
infused products; 292
“(B) Package and label medical or recreational cannabis concentrates and medical 293
or recreational cannabis-infused products for sale at licensed microbusinesses, retailers, and 294
internet retailers; and 295
“(C) Sell medical or recreational cannabis concentrates and medical or 296
recreational cannabis-infused products at wholesale to licensed microbusinesses, retailers, and 297
internet retailers. 298
“(29) “Minor” means a person who is 20 years of age or younger. 299
“(30) “MPD” means the Metropolitan Police Department. 300
“(31) “OAH” means the Office of Administrative Hearings. 301
“(32) “OTR” means the Office of Tax and Revenue. 302
“(33) “Paraphernalia” means: 303
“(A) Objects used, intended for use, or designed for use in preparing, storing, 304
ingesting, inhaling, or otherwise introducing medical or recreational cannabis into the human 305
body; and 306
“(B) Kits, objects, devices, or equipment used, intended for use, or designed for 307
use in planting, propagating, manufacturing, cultivating, growing, harvesting, processing, or 308
preparing medical or recreational cannabis. 309

“(34) “Qualifying patient” means a resident of the District who has a qualifying medical 310
or dental condition or is undergoing a qualifying medical or dental treatment, a patient who is a 311
non-resident cardholder, or a patient enrolled in another jurisdiction's medical cannabis program; 312
provided, that a patient who is a non-resident cardholder or a patient from another jurisdiction 313
shall not be a qualifying patient if ABCA determines that there is a shortage of medical cannabis 314
or the real-time electronic records system referenced in § 7-1671.05(4)(A) is inactive. 315
“(35) “Qualified social equity applicant” means social equity applicant who has been 316
awarded a conditional license under this act to operate a cannabis business establishment. 317
“(36) “Research project” means a discrete scientific endeavor to answer a research 318
question or a set of research questions. A research project must include the description of a 319
defined protocol, clearly articulated goal(s), defined methods and outputs, and a defined start and 320
end date. 321
“(37) “Returning citizen” means a District resident who was arrested, convicted, or 322
incarcerated for a cannabis or drug-related offense. 323
“(38) “Sale” or “sell” includes offering for sale, keeping for sale, cultivating or 324
manufacturing for sale, soliciting orders for sale, trafficking in, importing, exporting, bartering, 325
delivering for value or in any way other than by purely gratuitously transferring. Every delivery 326
of cannabis or a cannabis product made other than purely gratuitously shall constitute a sale. 327
“(39) “Seed to sale tracking system” means an inventory control system used by ABCA 328
and licensees under this title to track the cultivation, manufacturing, and sales of cannabis and 329
cannabis products. 330
“(40) “Social equity applicant” means an applicant for licensure with ABCA pursuant to 331
who satisfies two or more of the following criteria: 332

“(A) The applicant has at least one owner who is a District resident, 333
individually or collectively owns at least 50% of the business, and is a returning citizen; 334
“(B) The applicant has at least one owner who is a District resident, 335
individually or collectively owns at least 50% of the business, and is married to or in a civil 336
union, has a child, or is the child of a person or has a non-parent legal guardian, or a grandparent 337
or a sibling who is or has been arrested, convicted, or incarcerated in the District or in any other 338
jurisdiction for a cannabis or drug-related offense; or 339
“(C) The applicant has at least one owner who is a District resident, 340
individually or collectively owns at least 50% of the business and has an income that does not 341
exceed 150% of the median family income as set forth by the United States Department of 342
Housing and Urban Development, adjusted for household size, at the time the applicant submits 343
the application. 344
“(41) “Straw ownership” is nominal ownership without the attendant benefits and risks of 345
genuine ownership, where someone, often for a fee, allows themselves to be named on 346
documents or purports in writing to be an owner, in whole or in part, to the government for the 347
sake of satisfying a regulatory requirement. Straw ownership for the sake of satisfying a 348
regulatory requirement is a species of fraud and may be used to submit a false claim. 349
“(42) “Sweat equity contributions” are non-monetary investments that founders, owners, 350
and employees contribute to a business venture, through which they obtain shares of ownership 351
as specified in a service agreement. 352
“(43) “Testing laboratory” means an entity that is not owned or operated by a director, 353
officer, member, incorporator, agent, or employee of a cultivation center, manufacturer, retailer, 354
internet retailer, courier, or other license category established by rulemaking and is licensed by 355

ABCA to test medical cannabis and medical cannabis products that are to be sold pursuant to this 356
chapter. 357
“(44) “THC” means tetrahydrocannabinol. 358
“(45) “Unlicensed establishment” means a sole proprietorship, partnership, or other 359
business entity that: 360
“(A) Sells, exchanges as part of a commercial transaction, or delivers cannabis 361
and cannabis products; 362
“(B) Operates at or delivers from a specific location in the District; and 363
“(C) Is not licensed by ABCA pursuant to this act. 364
“§ 25-2102. Sale of cannabis or cannabis products without a license prohibited. 365
“(a) No person shall sell cannabis or cannabis products in the District without 366
having first obtained an appropriate license as required by this title. 367
“(b) No cultivator, manufacturer, or microbusiness located within the District shall offer 368
cannabis or any cannabis products for sale to, or solicit orders for the sale of cannabis or 369
cannabis products from, any person not licensed under this title. 370
“(c) This Act shall not be construed to regulate or include hemp plants and hemp 371
products as the Agriculture Improvement Act of 2018 legalized industrial hemp under 372
Federal law [Public Law No.: 115-334]. 373
“§ 25-2103. Authority to grant licenses. 374
“(a) The Board may issue licenses to persons who meet the requirements set forth 375
in this title. 376

“(b) All cannabis business licenses issued under this title shall be valid for a term of 3 377
years and may be renewed upon completion of the renewal procedures established by the Board 378
and payment of the required fees. 379
“(c) A license to sell cannabis or cannabis products can only be granted by the 380
Board upon completion of the application and review process as contained in this title. 381
“(d) A license for a cannabis establishment shall describe the location of where the rights 382
of the license are to be exercised. 383
“(e) The Board, in issuing licenses, may require that certain conditions be met if it 384
determines that the inclusion of conditions will be in the best interest of the locality, section, or 385
portion of the District where the licensed establishment is to be located. The Board, in setting the 386
conditions, shall state, in writing, the rationale for the determination.”. 387
“§ 25-2104. Social equity in the cannabis industry. 388
“(a) There is established a fund designated as the Cannabis Equity and Opportunity Fund 389
(“Fund”), which shall be separate from the General Fund of the District of Columbia. 30% of 390
monies obtained pursuant to D.C. Official Code § 25-2901 shall be deposited into the Fund 391
without regard to fiscal year limitation pursuant to an act of Congress and used solely to pay the 392
costs of operating and maintaining the Fund and for the purposes stated in subsection (c) of this 393
section. All funds, interest, and other amounts deposited into the Fund shall not be transferred or 394
revert to the General Fund of the District of Columbia at the end of any fiscal year or at any other 395
time but shall continually be available for the uses and purposes set forth in this section, subject 396
to authorization by Congress in an appropriations act. 397
“(b) The Fund shall be administered by the Department of Small and Local Business 398
Development (“DSLBD”). 399

“(c) The fund shall be used for the purposes of providing loans, equity, and grants as 400
outlined in § 2–218.16, and for the following purposes: 401
“(1) To pay for outreach to attract and support Social Equity Applicants; 402
“(2) To conduct any study or research concerning the participation of people of 403
color, women, veterans, or people with disabilities in the cannabis industry, including, without 404
limitation, barriers to such individuals entering the industry as equity owners of cannabis 405
establishments; 406
“(3) To assist with job training and technical assistance for residents in 407
Disproportionately Impacted Areas. 408
“§ 25-2105. Social equity applicant set-asides. 409
“(a) The Board shall set aside at least half of all available licenses for social equity 410
applicants in each license category, including any licenses created by the Board through the 411
rulemaking process. 412
“(b) Straw ownership for the sake of fulfilling the ownership requirements of Social 413
Equity Applicant license section is prohibited, both for the District resident(s) and the out of state 414
residents purporting to give the District resident(s) a 50% ownership share. 415
“§ 25-2106. Transfer of license awarded to a social equity applicant. 416
“(a) In the event a Social Equity Applicant seeks to transfer, sell, or grant a cannabis 417
business establishment license within 5 years after it was issued to a person or entity that does 418
not qualify as a Social Equity Applicant, the transfer agreement shall require the new license 419
holder to pay the Cannabis Equity and Opportunity Fund an amount equal to: 420
“(1) Any fees that were waived by the Board based on the applicant's status as a 421
Social Equity Applicant, if applicable; 422

“(2) Any outstanding amount owed by the Qualified Social Equity Applicant for a 423
loan through the Cannabis Equity and Opportunity Fund, if applicable; and 424
“(3) The full amount of any grants that the Qualified Social Equity Applicant 425
received from ABCA, if applicable. 426
“(b) In cases where a Social Equity Applicant seeks to transfer, sell, or grant a cannabis 427
business establishment license to a non-Social Equity Applicant, the Board shall consider 428
whether the transfer would undermine the set-aside thresholds established in § 25-2105 when 429
determining approval of said transfer. 430
“(c) Transfers of cannabis business establishment licenses awarded to a Social Equity 431
Applicant are subject to all other provisions of this Act and applicable rules regarding transfers. 432
“§ 25-2107. Community re-investment program. 433
“(a) There is established a Community Re-Investment Program Fund (“Fund”) which 434
shall be separate from the General Fund of the District of Columbia. 30% of monies obtained 435
pursuant to § 25-2901 shall be deposited into the Fund without regard to fiscal year limitation 436
pursuant to an act of Congress and used solely to pay the costs of operating and maintaining the 437
Fund and for the purposes stated in subsection (b) of this section. All funds, interest, and other 438
amounts deposited into the Fund shall not be transferred or revert to the General Fund of the 439
District of Columbia at the end of any fiscal year or at any other time but shall continually be 440
available for the uses and purposes set forth in this section, subject to authorization by Congress 441
in an appropriations act. 442
“(b) The Fund shall be administered by the Department of Social Equity in consultation 443
with ABCA. 444

(c)(1) Monies from the fund may be used to provide direct cash assistance to residents, or 445
for grants to residents and community-based organizations for programs, projects, or initiatives 446
that address economic development, education, mental health treatment, substance use disorder 447
treatment, non-law enforcement violence prevention services, homeless prevention services, re-448
entry services, youth development, and civil legal aid in eligible program areas as determined by 449
the Department of Social Equity in paragraph (2) of this section. 450
“(2) Within 180 days after the effective date of this act, the Department of Social 451
Equity shall identify areas in the District that are eligible to participate in the Community 452
Reinvestment Program. Eligibility shall be determined by an analysis of data that finds that the 453
area is high need, underserved, disproportionately impacted by economic disinvestment, and 454
experiences high levels of gun violence, unemployment, or child poverty. 455
“(3) The Department of Social Equity shall send to the Council and make publicly 456
available its analysis and identification of eligible areas in the District. The Department of Social 457
Equity shall recalculate the eligibility criteria every 4 years. 458
“(c) There is established a Community Reinvestment Program Board (CRPB) that is 459
responsible for the selection of grantees eligible under (b)(2)(B) of this section. The Board shall 460
be under the Department of Social Equity, who shall work in consultation with ABCA. The 461
CRPB shall be constituted within 180 days after the eligible areas have been designated. 462
Members shall be appointed by the Mayor, with the advice and consent of the Council pursuant 463
to section 2(a) of the Confirmation Act of 1978, effective March 3, 1979 (D.C. Law 2-142; D.C. 464
Official Code § 1-523.01(a)), and shall include: 465

“(1) Three members of community-based organizations that provide services such 466
as job placement and training, educational services, workforce development, and wealth-building 467
in marginalized communities. 468
“(2) Three persons who have been previously incarcerated in the District; and 469
“(3) Three persons from areas eligible for grant funding under the Community 470
Reinvestment Program. 471
“(d) The Board shall also include the following ex-officio members: 472
“(4) The Director of Department of Employment Services or his or her designee; 473
“(5) The Director of the Office of Neighborhood Safety and Engagement or his or 474
her designee; and 475
“(6) The Director of the Department of Health or his or her designee. 476
“(e) A non-ex-officio member shall disclose any conflicts of interest and recuse him or 477
herself from the discussion or consideration of any grant application or program recommendation 478
where a conflict of interest exists. 479
“(f) Within 12 months after the effective date of this Act, the CRPB shall: 480
“(1) Develop a process to solicit community input on the types of programs and 481
grant activities that should be a priority within eligible areas; 482
“(2) Develop a process to solicit applications from eligible areas; 483
“(3) Identify resources sufficient to support the full administration and evaluation 484
of the program, including building and sustaining core program capacity; 485
“(4) Review grant applications and proposed agreements and approve the 486
distribution of resources; 487

“(5) Develop a performance measurement system that focuses on positive 488
outcomes; 489
“(6) Develop a process to support ongoing monitoring and evaluation of grantee 490
or programmatic performance; 491
“(7) Deliver an annual report to the Mayor and the Council on the distribution of 492
grant funding, performance measurement outcomes, grantee activities, and any other information 493
deemed necessary. 494
(g) The Fund shall be subject to annual audits by the Office of the Chief Financial 495
Officer, which shall be submitted to Council no later than February 1 of each year. The audit 496
shall examine and determine compliance with all applicable laws, rules, and regulations. The 497
audit reports shall be submitted to the Council and the Mayor. 498
“§ 25-2108. Incentives for the production of medical cannabis products. 499
“The Board is authorized, through rulemaking, to develop and provide incentives for 500
licensees to produce an adequate supply of medical cannabis and medical cannabis products for 501
qualified patients. Incentives may include the lowering of application and license fees, expedited 502
application and license review, or other financial or non-financial incentives for licensees who 503
will dedicate a percentage of his or her cannabis cultivation, manufacturing, or retail sale to the 504
cultivation, manufacturing, or sale of medical cannabis or medical cannabis products.”. 505
(e) A new Chapter 22 is added to read as follows: 506
CHAPTER 22. CLASSIFICATION OF LICENSES. 507
“§ 25-2201. Cultivation licenses. 508

“(a) A cultivation license shall authorize the licensee to grow and produce medicinal 509
and/or recreational cannabis for sale and delivery at wholesale directly to manufacturers, testing 510
facilities, retailers, and internet retailers. 511
“(b) The holder of a cultivation license shall not be permitted to sell or deliver cannabis 512
or cannabis products directly to an adult customer, qualifying patient, or caregiver. 513
“(c) Cannabis or cannabis products shall not be consumed, smoked, applied, or 514
vaped on the licensed premises. 515
“(d) The holder of a cultivation license shall provide the Board with the method of 516
disposal used when a testing facility determines that pesticides, mold, or mildew exceed 517
permitted levels or that the cannabis plants are otherwise not suitable for retail 518
distribution. 519
“(e) The Board may create tiers or types of cultivation licenses that are based on square 520
footage, plant count, or annual sales. 521
“§ 25-2202. Manufacturer licenses. 522
“(a) A manufacturer's license shall authorize the licensee to process, package, and label 523
medical or recreational cannabis and medical or recreational cannabis products for sale and 524
delivery at wholesale directly to testing facilities, microbusinesses, retailers, and internet 525
retailers. 526
“(b) The holder of a manufacturer’s license shall not be permitted to sell or deliver any 527
cannabis or cannabis products directly to an adult customer, qualifying patient, or caregiver. 528
“(c) Cannabis or cannabis products shall not be consumed, smoked, applied, or 529
vaped on the licensed premises. 530
“§ 25-2203. Microbusiness licenses. 531

“(a)(1) A microbusiness license shall authorize the licensee to cultivate, manufacture, and 532
sell at retail medical or recreational cannabis and medical or recreational cannabis products. 533
“(2) The holder of a microbusiness license shall be permitted to sell any cannabis 534
or cannabis products to retailers and internet retailers for sale. 535
“(b) A microbusiness shall not have a total canopy of more than 500 square feet for the 536
cultivation of medical or recreational cannabis. 537
“(c) The holder of a microbusiness license shall comply with all applicable laws and 538
regulations regarding cultivation, manufacturing, and sale of medical or recreational cannabis 539
and medical or recreational cannabis products. 540
“(d) Medical cannabis and medical cannabis products must be stored in a manner that 541
separates these products from recreational cannabis or recreational cannabis products. 542
“(e) Cannabis or cannabis products shall not be opened, or the contents consumed, 543
smoked, applied, or vaped, at licensed establishments. 544
“§ 25-2204. Retailer licenses. 545
“(a)(1) A retailer’s license shall authorize the licensee to sell medical or recreational 546
cannabis and medical or recreational cannabis products received from a licensed cultivator, 547
microbusiness, or manufacturer, at retail directly to adult customers, qualifying patients, or 548
caregivers. 549
“(2) In order to sell medical cannabis or medical cannabis products, a retailer 550
must: 551
“(A) Register in a form and manner specified by the Board; and 552

“(B) Store and display medical cannabis and medical cannabis products in 553
a manner that separates these products from recreational cannabis or recreational cannabis 554
products. 555
“(b) Cannabis or cannabis products shall not be opened, or the contents consumed, 556
smoked, applied, or vaped, at licensed establishments that do not have an on-premises use 557
endorsement. 558
“(c) The holder of a retailer’s license shall not be permitted to sell any medical or 559
recreational cannabis or medical or recreational cannabis products to other licensees for resale. 560
“§ 25-2205. Internet retail licenses. 561
“(a)(1) An internet retail license shall authorize the licensee to sell medical or 562
recreational cannabis, and medical and recreational cannabis products received from a licensed 563
cultivator, microbusiness, or manufacturer, through the internet, a mobile application, or similar 564
technology platform. 565
“(2) The holder of an internet retail license shall not have a physical location that 566
is open to the public. 567
“(3) The holder of an internet retail license shall not be permitted to sell any 568
medical or recreational cannabis or medical or recreational cannabis products, to other licensees 569
for sale. 570
“(4) The holder of an internet retail license shall not be required to obtain a 571
delivery endorsement to be permitted to deliver cannabis directly to an adult customer, 572
qualifying patient, or caregiver. 573
“(b) Internet retail licensees shall not be permitted to obtain an on-premises use 574
endorsement. 575

“§ 25-2206. Testing Facility licenses. 576
“(a) A testing facility license shall authorize the licensee to test medical and recreational 577
cannabis plants and medicinal and recreational cannabis products for contaminants and potency. 578
“(b) The holder of a testing facility license shall be permitted to transport samples to and 579
from another licensee. 580
“(c)(1) The Board, in coordination with the DFS, shall establish certification and testing 581
protocols for the sampling, testing, and analysis of medical and recreational cannabis and 582
medical and recreational cannabis products. 583
“(2) Certification protocols shall include, at a minimum, an analysis of a testing 584
facility’s standard operating procedures and facilities and equipment. 585
“(d) DFS may obtain samples sufficient to perform tests and may conduct inspections of 586
licensees’ premises in order to effectuate the purposes of this title. 587
“§ 25-2206. Research and development facility licenses. 588
“(a) A research and development facility license shall authorize the licensee to cultivate 589
or possess medical cannabis and medical cannabis products for the use in research projects only. 590
“(b) A licensed cultivation, manufacturer, or microbusiness may transfer medical 591
cannabis or medical cannabis products to a research and development facility for use in research 592
projects only. 593
“(c) At a minimum, regulations issued pursuant to § 25-2804 for research and 594
development facilities shall include a description of authorized research activities for research 595
and development facilities, establish thresholds for the number of medical cannabis plants that a 596
research and development facility may possess at any one time, define procedures for medicinal 597
cultivators or manufacturers to transfer medical cannabis and medical cannabis products to a 598

research and development facility, and establish minimum standards for research involving 599
animal or human subjects; provided, that, the minimum standards for human subject research 600
conform to the Federal Policy for the Protection of Human Subjects. 601
“§ 25-2207. Courier license. 602
“(a) A courier license shall authorize the licensee to deliver medical or recreational 603
cannabis and medical or recreational cannabis products, on behalf of a microbusiness, retailer, or 604
internet retailer to an adult customer, qualifying patient, or caregiver. 605
“(b) A microbusiness, retailer or internet retailer licensed under this chapter may utilize 606
the services of a courier license holder by means of the telephone, Internet, mobile application, 607
or other electronic means to facilitate the transport of medical or recreational cannabis, or 608
medical or recreational cannabis products. 609
“(c) A holder of a courier license shall: 610
(1) Deliver only to an adult customer, qualifying patient, or caregiver at a District 611
of Columbia address provided by the adult consumer, qualifying patient, or caregiver and shall 612
not leave the product without verifying the identity and age of the recipient; 613
(2) Travel only through the District of Columbia and not any surrounding 614
jurisdiction to make deliveries; 615
(3) Abide by rules and standards as may be established by the ABC Board 616
through rulemaking concerning the frequency of deliveries to a single patient or customer in a 617
day, week, or month; 618
(4) Abide by the rules posted by a landlord or property owner with respect to 619
prohibitions on cannabis deliveries on its property; 620

(5) Abide by the rules and standards as may be established by the ABC Board 621
concerning making overnight storage of any product if necessary; 622
(6) Use its employees or independent contractor to deliver medical or recreational 623
cannabis and medical or recreational cannabis products; and 624
(7) Not be permitted to offer curbside pick-up at a microbusiness, retailer, internet 625
retailer, or its ABC Board-approved location to customers or patients. 626
“(d)(1) At the time of the order, a holder of a courier license shall require the adult 627
customer, qualifying patient, or caregiver to provide information necessary to verify that the 628
adult customer, qualifying patient, or caregiver is qualified to purchase and receive a delivery of 629
medical or recreational cannabis and medical or recreational cannabis products in accordance 630
with this chapter and regulations issued pursuant to § 25-2804. 631
“(2) Prior to transferring possession of the order to an adult customer, qualifying 632
patient, or caregiver, the holder of a courier license shall inspect the person’s government-issued 633
identification card and, if applicable, valid ABCA registration to verify the possession of a valid 634
registration and that the information provided at the time the order was placed matches the 635
information listed on the government issued identification card and, if applicable, ABCA 636
registration. 637
“(3) Failure of the courier license holder to check information in accordance with 638
paragraphs (1) and (2) of this subsection may result in the ABC Board issuing a fine against the 639
courier or suspending or revoking its license in accordance with this chapter or regulations issued 640
pursuant to § 25-2804. 641
“(e)(1) A holder of a courier license shall maintain in each vehicle used for deliveries of 642
medical or recreational cannabis or medical or recreational cannabis products, a secure, locked 643

storage compartment for purposes of transporting and securing cash used as payment and the 644
medical or recreational cannabis or medical or recreational cannabis products. 645
“(2) A holder of a courier license shall not store cash and medical or recreational 646
cannabis or medical recreational cannabis products in the same storage compartments. 647
“(g)(1) A holder of a courier license shall abide by rules concerning the operation and 648
number of vehicles allowed, as set forth in regulations issued pursuant to § 25-2804. 649
“(2) A courier vehicle shall contain a Global Positioning System ("GPS") device 650
for identifying the geographic location of the courier vehicle. The GPS device shall be either 651
permanently or temporarily affixed to the courier vehicle while the courier vehicle is in 652
operation, and the GPS device shall remain active and in the possession of the delivery employee 653
at all times during the delivery. 654
“(3) A courier vehicle shall not bear any markings, images, words, or phrases that 655
would indicate the vehicle is used to deliver medical or recreational cannabis, including the name 656
of the courier or cannabis-related related images. 657
“(h) Applicants for the courier license shall complete an application prescribed by the 658
ABC Board by regulations issued pursuant to § 25-2804. 659
§ 25-2208. Laboratory agent registration. 660
“(a) A laboratory agent volunteering or working at a licensed testing facility shall register 661
with the ABCA prior to starting work or volunteering. 662
“(b) The holder of a testing facility license may apply to ABCA for a registration card for 663
each affiliated laboratory agent by submitting at a minimum the name, address, and date of birth 664
of the laboratory agent. 665

“(c) The holder of a testing facility license shall notify ABCA within one business day if 666
a laboratory agent ceases to be associated with the laboratory, and the laboratory agent’s 667
registration card shall be immediately revoked by ABCA. 668
“(d) A registered laboratory agent shall not be subject to arrest, prosecution, civil 669
penalty, sanctions, or disqualifications under District law, and shall not be subject to seizure or 670
forfeiture of assets under District law for actions taken under the authority of a licensed testing 671
facility and consistent with applicable District laws, regulations, and issuances, including 672
possessing, processing, storing, transferring or testing medical or recreational cannabis or 673
medical or recreational cannabis products within the District of Columbia, provided the 674
registered laboratory agent presents his or her registration card to MPD, any other law 675
enforcement official, or an ABCA investigator or DFS inspector who questions the laboratory 676
agent concerning their cannabis-related activities. 677
“(e) The fee for a laboratory agent registration card shall be determined by rulemaking by 678
the Board. 679
“§ 25-2209. Delivery endorsements. 680
“(a) The holder of a microbusiness or retailer’s license shall obtain a delivery 681
endorsement from the Board to be eligible to deliver recreational or medical cannabis, or 682
recreational or medical cannabis products, directly to District resident’s homes. 683
“(b) A delivery employee for a microbusiness or retailer with a delivery endorsement, or 684
an internet retailer, shall: 685
“(1) Deliver only to an adult customer, qualifying patient, or caregiver at a 686
District of Columbia address provided by the adult customer, qualifying patient, or caregiver and 687
shall not leave the product without verifying the identity and age of the recipient; 688

“(2) Travel only through the District of Columbia and not any surrounding 689
jurisdiction to make deliveries; 690
(3) Abide by rules and standards as may be established by the ABC Board 691
through rulemaking concerning the frequency of deliveries to a single adult customer or 692
qualifying patient in a day, week, or month; 693
(4) Abide by the rules posted by a landlord or property owner with respect to 694
prohibitions on cannabis deliveries on its property; 695
(5) Abide by the rules and standards as may be established by the ABC Board 696
concerning making overnight storage of any product if necessary; and 697
(6) Use its employees or independent contractor to deliver medical or recreational 698
cannabis or medical or recreational cannabis products. 699
“(d)(1) At the time of the order, a delivery employee shall require the adult customer, 700
qualifying patient, or caregiver to provide information necessary to verify that the adult 701
customer, qualifying patient, or caregiver is qualified to purchase and receive a delivery of 702
medical or recreational cannabis or medical or recreational cannabis products in accordance with 703
this chapter and regulations issued pursuant to § 25-2804. 704
“(2) Prior to transferring possession of the order to an adult customer, qualifying 705
patient, or caregiver, the delivery employee shall inspect the person’s government-issued 706
identification card and, if applicable, valid ABCA registration to verify the possession of a valid 707
registration and that the information provided at the time the order was placed matches the 708
information listed on the government issued identification card and, if applicable, ABCA 709
registration. 710

“(3) Failure of the delivery employee to check information in accordance with 711
paragraphs (1) and (2) of this subsection may result in the ABC Board issuing a fine against the 712
holder of the microbusiness or retail license, or the suspension or revocation of the license 713
holder’s delivery endorsement in accordance with this chapter or regulations issued pursuant to § 714
25-2804. 715
“(e)(1) A delivery employee shall maintain in each vehicle used for deliveries of medical 716
or recreational cannabis or medical or recreational cannabis products, a secure, locked storage 717
compartment for purposes of transporting and securing cash used as payment and the medical or 718
recreational cannabis or medical or recreational cannabis products. 719
“(2) A delivery employee shall not store cash and medical or recreational 720
cannabis or medical or recreational cannabis products in the same storage compartments. 721
“(g)(1) A delivery employee shall abide by rules concerning the operation and number of 722
vehicles allowed, as set forth in regulations issued regulations issued pursuant to § 25-2804. 723
“(2) A delivery vehicle used by the delivery employee for purposes of conducting 724
deliveries pursuant to this section shall contain a Global Positioning System (“GPS”) device for 725
identifying the geographic location of the vehicle. The GPS device shall be either permanently or 726
temporarily affixed to the vehicle while the vehicle is in operation, and the GPS device shall 727
remain active and in the possession of the delivery employee at all times during the delivery. 728
“(3) A delivery vehicle shall not bear any markings, images, words, or phrases 729
that would indicate the vehicle is used to deliver medical or recreational cannabis, including the 730
name of the delivery or cannabis-related related images. 731
“(h) The minimum initial application fee for the endorsement shall be $300. The 732

endorsement shall be valid for 3 years with a minimum annual license fee of $300. The holder of 733
an internet retail license shall not need a delivery endorsement to conduct deliveries. 734
“§ 25-2210. On-premises use endorsement. 735
“(a) The holder of a microbusiness or retail license shall be eligible to apply to the ABC 736
Board for an on-premises use endorsement. The holder of a on-premises use endorsement shall 737
be permitted to: 738
“(1) Sell medical or recreational cannabis, medical or recreational cannabis 739
products, and cannabis-related paraphernalia to adult customers and qualifying patients to be 740
used on the premises at the time of purchase within designated consumption areas that are 741
separated from the remainder of the premises by a secure door; 742
“(2) Allow adult customers or qualifying patients to remove from the premises 743
unused medical or recreational cannabis, medical or recreational cannabis products, or cannabis-744
related paraphernalia that has been purchased from the microbusiness or retailer; 745
“(3) Offer or sell food that does not contain cannabis in the designated 746
consumption areas; 747
“(4) Offer recorded or background music in the designated consumption areas. 748
“(b) A microbusiness or retailer with an on-premises use endorsement shall: 749
“(1) Install security cameras that are operable and able to record for a minimum of 750
30 days; 751
“(2) Display conspicuous warning labels that are visible to the consumers; 752
“(3) Destroy all unadministered medical or recreational cannabis left abandoned 753
or unclaimed in the designated consumption areas; and 754

“(4) Package and label all medical or recreational cannabis, or medical or 755
recreational cannabis products, purchased to be used on the premises in the designated 756
consumption area in accordance with regulations issued pursuant to § 25-2804. 757
“(c) A microbusiness or retailer’s facility shall have the following characteristics: 758
“(1) The area where medical or recreational cannabis or medical or recreational 759
cannabis products are to be consumed shall be isolated from the other areas of the microbusiness 760
or retailer, separated by walls and a secure door, and shall have access only from the 761
microbusiness or retailer; 762
“(2) A smoke-free area for employees to monitor the designated consumption 763
area, if combustible cannabis products are available to customers to consume in the designated 764
consumption area; and 765
“(3) If combustible cannabis products are available to customers to consume in 766
the designated consumption area, a ventilation system that directs air from the designated 767
consumption area to the outside of the building through a pollution control unit or odor control 768
unit that, at a minimum, eliminates all detectable odor, smoke, and by-products of combustion so 769
as to prevent any and all public nuisances. 770
“(d) A microbusiness or retailer with an on-premises use endorsement shall not: 771
“(1) Allow a person to consume alcohol, tobacco, or tobacco products on the 772
premises; 773
“(2) Allow a consumer to bring into or use in the designated consumption area 774
any medical or recreational cannabis or medical or recreational cannabis products, that were not 775
purchased at the microbusiness or retailer unless otherwise permitted by the ABC Board by 776
rulemaking; 777

“(4) Sell, offer to sell, or provide medical or recreational cannabis, medical 778
cannabis or recreational products, or cannabis-related paraphernalia in excess of the quantity 779
limits set forth in this act or regulations issued pursuant to § 25-2804; 780
“(5) Encourage or permit an organized game or contest on the premises that 781
involves consuming medical or recreational cannabis or medical or recreational cannabis 782
products, or the awarding of medical or recreational cannabis or medical or recreational cannabis 783
products; or 784
“(6) Advertise or promote, in any way, either on or off the premises, a practice 785
prohibited under this section. 786
“(e) An applicant for a on-premises use endorsement shall: 787
“(1) Complete an application on a form the ABC Board prescribes by regulations 788
issued pursuant to § 25-2804; 789
“(2) If applicable, include with the application a ventilation proposal, which shall 790
include information to address the following: 791
“(A) Air change for the designated consumption area; 792
“(B) Air change for common areas inside the microbusiness or retailer 793
establishment; 794
“(C) Filter type and odor control measures for the designated consumption 795
area; 796
“(D) Location of air intakes and exhaust outlets; 797
“(E) Whether the designated consumption area shares space with 798
employee work areas; and 799
“(F) Any other information deemed necessary through rulemaking. 800

“(f) The minimum initial application fee for the on-premises endorsement shall be 801
$1,000. The endorsement shall be valid for 3 years, with a minimum annual fee of $2,000. 802
“§ 25-2211. Education tasting endorsement. 803
“(a) The holder of a microbusiness or retailer license shall be eligible to apply to the ABC 804
Board for an education tasting endorsement. The holder of an education tasting endorsement 805
shall be permitted to offer cooking and how-to classes and demonstrations, and tastings for 806
educational purposes to adult customers and qualifying patients. Activities offered by a 807
microbusiness or retailer under an education tasting endorsement shall be permitted to occur on 808
the premises of the microbusiness or retailer; except, that educational activities that include the 809
smoking of recreational or medical cannabis by consumers shall only occur in an ABC Board-810
approved designated consumption areas. The holder of an internet retailer license shall not be 811
eligible for an education tasting endorsement. 812
“(b) A microbusiness or retailer with an education tasting endorsement shall: 813
“(1) Display in the licensed area conspicuous warning labels that are visible to the 814
consumers concerning the consumption of medical or recreational cannabis or medical or 815
recreational cannabis products; 816
“(2) Destroy all unconsumed medical or recreational cannabis or medical or 817
recreational cannabis products remaining from the educational activity, except as permitted 818
under paragraph (4) of this subsection; 819
“(3) Ensure that containers of medical or recreational cannabis or medical or 820
recreational cannabis products to be used for educational activities are labeled as such and may 821
not be sold; and 822

“(4) Be permitted to allow a consumer to leave the premises with medical or 823
recreational cannabis or medical or recreational cannabis products that was made available or 824
offered as part of the educational activity in accordance with the requirements and limits set forth 825
in this act. 826
“(c) A microbusiness or retailer with an education tasting endorsement shall not: 827
“(1) Allow a person to consume alcohol, tobacco, or tobacco products on the 828
premises; 829
“(2) Advertise or promote, in any way, either on or off the premises, a practice 830
prohibited under this section; or 831
“(3) Make unsubstantiated medical claims about cannabis or cannabis products. 832
“(d) The holder of an education tasting endorsement may offer educational activities on 833
the licensed premises between the hours of 7:00 a.m. and 9:00 p.m., 7 days per week; provided, 834
that the ABC Board may alter these hours through rulemaking. 835
“(e) The ABC Board shall establish, by regulation, permitted recreational or medical 836
cannabis tasting or consumption limits for educational activities. 837
“(f) An applicant for an education tasting endorsement shall complete an application on a 838
form the ABC Board prescribes by regulations issued pursuant to § 25-2804. 839
“(g) The minimum initial application fee for an education tasting endorsement shall be 840
$130. The endorsement shall be valid for 3 years, with a minimum annual fee of $130.”. 841
(f) A new Chapter 23 is added to read as follows: 842
CHAPTER 23. LICENSEE AND ESTABLISHMENT QUALIFICATIONS. 843
“§ 25-2301.Criminal background checks of applicants. 844

“(a)(1) A criminal background check shall not be required to be submitted to ABCA with 845
an employee, agent, or manager as part of the employee’s, agent’s, or manager’s application. 846
“(2) Except with respect to evaluating the applications of social equity applicants 847
and returning citizens, the ABC Board shall not: 848
“(A) Inquire into or consider: 849
“(i) A director, officer, member, or incorporator’s criminal 850
conviction until after the applicant is found by ABCA to be otherwise qualified; 851
“(ii) A criminal conviction that has been sealed, expunged, 852
vacated, or pardoned, including a criminal conviction that has been set aside pursuant to the 853
Youth Rehabilitation Amendment Act of 1985, effective December 7, 1985 (D.C. Law 6-69; 854
D.C. Official Code § 24-901 et seq.); 855
“(iii) A juvenile adjudication; or 856
“(iv) Non-conviction information, including information related to 857
a deferred sentencing agreement, participation in a diversion program, or an arrest that did not 858
result in a criminal conviction; or 859
“(B) Consider a criminal conviction of an offense of a director, officer, 860
member, incorporator of a cultivation, manufacturer, retailer, internet retailer, courier, or testing 861
laboratory that is not directly related to the position of employment sought or to the specific 862
business for which the license is sought. 863
“(2) Pursuant to paragraph (1)(B) of this subsection, ABCA shall determine 864
whether a criminal conviction of an offense of a director, officer, member, or incorporator of a 865
cultivation, manufacturer, microbusiness, retailer, internet retailer, or testing laboratory is 866

directly related to the position of employment sought or to the specific business for which the 867
license is sought, by considering the following factors: 868
“(A) Whether the elements of the offense are directly related, by clear and 869
convincing evidence, to the license sought; 870
“(B) Any evidence produced by the director, officer, member, or 871
incorporator concerning their rehabilitation and fitness, including: 872
“(i) Evidence as to whether the director, officer, member, 873
incorporator has recidivated; 874
“(ii) Evidence demonstrating compliance with any terms and 875
conditions of probation, supervised release, or parole; 876
“(iii) The length of time that has elapsed since the offense was 877
committed; 878
“(iv) The age at which the offense was committed; 879
“(v) Any circumstances related to the offense, including mitigating 880
circumstances; 881
“(vi) Evidence of work history, particularly any training or work 882
experience related to the license sought; and 883
“(vii) Letters of reference; and 884
“(C) The District’s interest in promoting opportunities for business 885
ownership and employment for returning citizens and individuals with criminal records. 886
“(3) Before acting on a determination made pursuant to paragraph (2) of this 887
subsection, the ABC Board shall notify the director, officer, member, or incorporator, in writing, 888
of the following information: 889

“(A) The criminal conviction that forms the basis for the action and the 890
ABC Board’s reasoning for determining the offense is directly related to the license sought; 891
“(B) A copy of any criminal history records on which the ABC Board 892
relies; “(C) A statement that the director, officer, member, or incorporator may 893
provide evidence of inaccuracies within the criminal history records; 894
“(D) A description of additional information that the director, officer, 895
member, incorporator may provide to demonstrate their rehabilitation and fitness; and 896
“(E) Information about any applicable hearing procedures. 897
“(4)(A) After receiving notice pursuant to paragraph (3) of this subsection, the 898
director, officer, member, or incorporator, shall have 45 business days to issue a response to the 899
ABC Board. 900
“(B) The ABC Board shall respond no later than 45 business days after 901
receipt of a response pursuant to subparagraph (A) of this paragraph. 902
“(5) The Board may establish by rulemaking a list of criminal conviction offenses 903
that are directly related to the operation of a cultivation, manufacturer, microbusiness, retailer, 904
internet retailer, courier, or testing laboratory for purposes of implementing this subsection. 905
“(u) The ABC Board may fine, suspend, or revoke the license or registration of a person 906
or business found to have violated any provision in this act or rules issued under the act. The 907
Board may also issue a written warning to a licensed or registered person or business for a 908
violation of the act or rules issued under the act to the extent permitted by regulations issued 909
pursuant to § 25-2804. 910
“§ 25-2302. Restrictions on holding a conflict of interest. 911

(a)(1) Before issuing, transferring to a new owner, or renewing a license, the ABC Board 912
shall determine that the applicant is not disqualified because of a conflicting interest in another 913
cannabis license, as follows: 914
“(A) No licensee holding a testing laboratory license shall hold a 915
cultivation, manufacturer, microbusiness, retailer, internet retailer, or courier license. 916
“(B) No licensee holding a retailer, internet retailer, cultivation, testing 917
laboratory or manufacturer license shall hold a microbusiness or courier license. 918
“(C) No licensee shall hold more than two cultivation licenses. 919
“(D) The combined number of retailer and internet retailer licenses held 920
by a licensee shall not exceed three. 921
“(E) There shall be no limit on the number of manufacturer licenses that a 922
licensee may hold. 923
“(F) No licensee holding a cultivation license shall hold more than one 924
retailer or internet retailer license. 925
“(2) The ABC Board may modify, by rule, the number of licenses that a licensee 926
may hold for one or more of the license categories listed in paragraph (1) of this subsection. 927
“§ 25-2303. Social equity applicant and cannabis certified business enterprise 928
requirements. 929
“(a) An applicant seeking to qualify as a: 930
“(1) Social equity applicant shall submit an affidavit with the application for a 931
cultivation, manufacturer, microbusiness, retailer, internet retailer, courier, or testing laboratory 932
license attesting to: 933

“(A) The number of owners who meet the criteria for a social equity 934
applicant; 935
“(B) The ownership interests, incomes, and net worth of any owners; 936
“(C) The location of all managerial employees in the principal office; 937
“(D) The residency of owners, employees, and contractors; and 938
“(E) The locations of the assets and the percentages of the assets in each 939
location; 940
“(2) Cannabis certified business enterprise applicant shall submit an affidavit with 941
the application for a cultivation, manufacturer, microbusiness, retailer, internet retailer, courier, 942
or testing laboratory license attesting to: 943
“(A) The number of owners who are economically disadvantaged 944
individuals or individuals who have been subjected to racial or ethnic prejudice or bias because 945
of their identities as members of a group without regard to their individual qualities; 946
“(B) The ownership interests, incomes, and net worth of any owners; 947
“(C) The location of all managerial employees in the principal office; 948
“(D) The residency of owners, employees, and contractors; and 949
“(E) The locations of the assets and the percentages of the assets in each 950
location. 951
“(e) Except for those owners of medical cannabis facilities licensed as of the effective 952
date of this Act, a cultivation, manufacturer's, microbusiness or retailer’s licensee shall have at 953
least 60% of its licensed employees submit adequate proof of District residency according to 954
standards determined by ABCA, and that proof shall affirm an intent and severe offenses and 955
encompass occasional or inadvertent failure to comply with basic administrative procedures and 956

protocols or minor changes to plans submitted in licensing documents that do not affect the 957
health, safety, or welfare of the public, nor the integrity of the program established and regulated 958
by this title. 959
“(f) The Board shall require annual certification of compliance with the local hiring 960
requirements. If a licensee covered by local hiring requirements falls below the 60% local hiring 961
requirement and does not submit clear and convincing evidence that it has cured the deficit 962
within 90 days, the Board shall revoke the licensee’s license.”. 963
“(g) In addition to any fines imposed for violations or prosecutions, ABCA is authorized 964
to issue warnings, impose additional conditions on licensees, ban persons who have committed 965
violations from participating or purchasing cannabis or working in establishments licensed under 966
this act. 967
“(h) The Board may develop and provide incentives to promote the hiring of District 968
residents who reside in Disproportionately Impacted Areas as defined in § 25-2101(15). 969
“(i) Exceptions to local hire requirements in subsection (e) shall apply to license renewals 970
as well as initial licenses. 971
“§ 25-2304. Qualification of establishments. 972
“(a) Except as provided by subsection (b) of this section, no license shall be issued to an 973
applicant unless he or she provides the Board with a zoning determination letter, issued by the 974
Department of Buildings, stating that the establishment to be licensed is located within a zone 975
that permits the establishment's operation. 976
“(b)(1) The ABC Board shall be authorized to issue a two-year conditional license for a 977
cultivation, retailer, internet retailer, manufacturer, or courier that does not currently have a 978
proposed location. 979

“(2) Under the conditional license, the applicant shall have two years from the 980
date of ABC Board approval to submit to ABCA: 981
“(A) A lease or similar documentation; 982
“(B) A security plan; 983
“(C) A certificate of occupancy for the proposed location; 984
“(D) Any remaining licensing or endorsement fees owed to ABCA; and 985
“(E) Any other documentation requested by the ABC Board. 986
“(3) An applicant shall not be permitted to purchase, manufacture, process, 987
distribute, or sell cannabis with a conditional license. A conditional license that does not meet 988
the terms of this subsection or is not operating after a period of one year shall be canceled by the 989
ABC Board. 990
“(4) A two-year conditional license approved by the ABC Board to a shall not be 991
permitted to be transferred to a new owner. 992
“(c) The applicant shall bear the burden of proving to the satisfaction of the Board 993
that the establishment for which the license is sought is appropriate for the locality, section, or 994
portion of the District where it is to be located; provided, that if proper notice has been given 995
under subchapter II of Chapter 4 of this title, and no objection to the appropriateness of the 996
establishment is filed with the Board, the establishment shall be presumed to be appropriate for 997
the locality, section, or portion of the District where it is located. 998
“(d) No license shall be issued to an applicant that holds an alcohol license or a license to 999
sell tobacco at the same location unless otherwise authorized by the Board. 1000
“§ 25-2305. Appropriateness standard. 1001

“(a) To qualify for the issuance, renewal of a license, or transfer of a license, an applicant 1002
for a cultivation, manufacturer, microbusiness, or retailer license shall be required to satisfy the 1003
appropriateness standards set forth in § 25-313. 1004
“(b)(1) The Board shall also consider whether issuance of the license would create or 1005
contribute to an overconcentration of licensed establishments which is likely to affect adversely 1006
the locality, section, or portion in which the establishment is located. 1007
“(2) The Board may also consider whether there is an under-concentration of 1008
licensed establishments in other localities, sections, or portions of the District to ensure a more 1009
equitable distribution of establishments. 1010
“(c) No cannabis establishment license shall be issued to an outlet, property, 1011
establishment or business that sells motor vehicle gasoline or has drive-through sales. 1012
“25-2306. Transfer of licensed establishment to a new owner. 1013
“(a) In determining the appropriateness of the transfer of a cannabis establishment to a 1014
new owner, the Board shall consider only the applicant’s qualifications as set forth in § 25-2301, 1015
and whether any sale defeats or impairs the social equity thresholds in § 25-2105 or the local 1016
hiring goals embodied in § 25-2303. 1017
“(b) Notwithstanding subsection (a), the Board shall deny a transfer of ownership 1018
application to a new owner and cancel the cannabis license if the previous applicant 1019
either: 1020
“(1) Failed to open for business within 180 days of being issued a cannabis 1021
license or 365 days for a Social Equity Applicant; 1022
“(2) Stopped operating within 90 days of being issued a cannabis establishment 1023
license for more than 14 calendar days in the absence of a showing of good cause and approval 1024

by ABCA for a longer period of delay or closure. This subsection shall not apply to an applicant 1025
that has stopped operations due to a fire, flood, or other natural disaster, a public health 1026
emergency, or due to rebuilding or reconstruction. 1027
“(c) For the purposes of this section, the term “public health emergency” means a period 1028
of time for which the Mayor has declared a public health emergency pursuant to D.C. Official 1029
Code § 7-2304.01. 1030
“§ 25-2307. Transfer of licensed establishment to a new location. 1031
“(a) The Board shall consider an application to transfer a license to a new location 1032
according to the same standards and procedures as an application for an initial license and 1033
shall not presume appropriateness if a protest to the application is filed as set forth in Chapter 6. 1034
“(b) An application to transfer a license to a new location shall not be permitted to be 1035
filed by an applicant who: 1036
“(1) Failed to open for business within 180 days of being issued a cannabis 1037
license; 1038
“(2) Stopped operating within 90 days of being issued a cannabis license for more 1039
than 14 calendar days in the absence of a showing of good cause and approval by ABCA for a 1040
longer period of delay or closure. This subsection shall not apply to an applicant that has stopped 1041
operations due to a fire, flood, or other natural disaster, a public health emergency, or due to 1042
rebuilding or reconstruction. 1043
“(c) For the purposes of this section, the term “public health emergency” means a period 1044
of time for which the Mayor has declared a public health emergency pursuant to § 7-2304.01. 1045
“§ 25-2308. Restrictions on proximity to schools, daycare centers, recreation centers, and 1046
other retail licensees. 1047

“(a) The Board shall not issue, except as to entities licensed as of the effective date of this 1048
act, a cultivation, manufacturer, microbusiness, internet retailer, or retailer’s license to any 1049
establishment located within 400 feet of the proximity of a pre-existing public, private, or 1050
parochial preschool, primary or secondary school, daycare center, or recreation center operated 1051
by the District of Columbia Department of Parks and Recreation. 1052
“(b) Licensees engaging in retail sales of cannabis shall not be located within 400 feet of 1053
each other. 1054
“(c) This subsection shall not apply to an applicant that was approved by ABRA for a 1055
medical cannabis license at the same location prior to the effective date of the act. 1056
“(d) The restrictions in subsections (a) of this section shall not apply where the main 1057
entrance to the preschool, primary or secondary school, or recreation center, or the nearest 1058
property line of the school or recreation center, is actually on or occupies ground zoned 1059
commercial or industrial according to the official atlases of the Zoning Commission of the 1060
District of Columbia. 1061
“§ 25-2309. Retail licenses prohibited in residential-use districts. 1062
“No microbusiness, internet retailer, or retailer’s license shall be issued for or transferred 1063
to a business operating in a residential-use district as defined in the zoning regulations and 1064
shown in the official atlases of the Zoning Commission for the District, including areas 1065
designated R, RF, and RA. 1066
“§ 25-2310. Restrictions on the total number of cannabis business licenses. 1067
“(a) The Board may, through rulemaking, consider restrictions on the total number of 1068
licenses issued under each license category in Chapter 22, provided that any such restriction shall 1069
be: 1070

“(1) Based on an analysis of the supply of cannabis and cannabis products 1071
necessary to significantly shrink the scale of the illicit cannabis market, and available evidence 1072
on the impacts of cannabis businesses on crime and property values; and 1073
“(2) Subject to revision by the Board should developments in the legal cannabis 1074
market or social conditions of the District necessitate such a revision. 1075
“(b) Any analysis conducted pursuant to paragraph (a)(1) of this section shall be sent to 1076
the Council and made publicly available for comment. 1077
“(c) Any restriction on the total number of licenses shall not affect the percentage of 1078
licenses set aside for Social Equity Applicants.”. 1079
(g) A new Chapter 24 is added to read as follows: 1080
CHAPTER 24. APPLICATION AND LICENSE FEES. 1081
“§ 25-2401. Form of application. 1082
“The Board shall propose regulations within 180 days of the effective date of the Act 1083
setting forth the license application requirements on forms approved by the Board for cannabis 1084
licenses. 1085
“§ 25-2402. License renewal. 1086
“The Board shall propose regulations within 180 days of the effective date of this act 1087
setting forth the license application requirements on forms approved by the Board for renewing 1088
licenses. 1089
“§ 25-2403. Application fee. 1090
“(a) The initial application fee for a cultivation, manufacturing, microbusiness, retailer, 1091
internet retailer, or testing facility license shall be $1,000. 1092

“(b) The initial application fee shall be paid at the time of application to the D.C. 1093
Treasurer. 1094
“§ 25-2404. License fees. 1095
“(a) The initial fees and renewal fees for licenses shall be set forth below: 1096
License Class Cost 1097
Cultivation $8,000 1098
Manufacturer $5,000 1099
Microbusiness 40% of all applicable license fees 1100
Retailer $8,000 1101
Internet retailer $10,000 1102
Testing facility $3,000 1103
Research and development facility $2,500 1104
Courier $2,000 1105
“(b) There shall be no additional fee for microbusiness, internet retailers, or retailers that 1106
register to sell medical cannabis or medical cannabis products pursuant to D.C. Official Code § 1107
25-220(a)(2). 1108
“(c) A licensee’s failure to timely remit the license fee shall be cause for the Board to 1109
suspend the license until the licensee pays the fee and any fines imposed by the Board for late 1110
payment. The Board shall cancel the license if the licensee is more than 30 days delinquent on 1111
payment of the annual fee. 1112
“(d) The Board shall establish renewal fees for each license class in subsection (a) of this 1113
section through rulemaking. 1114
“§ 25-2405. Alteration of application or license fees. 1115
“The Board may propose regulations, pursuant to § 25-2202, to alter the license fees 1116
established by this chapter or to create additional license categories. 1117
“§ 25-2406. Fee waivers for social equity applicants. 1118

“(a) For Social Equity Applicants, ABCA shall waive 75% of any nonrefundable license 1119
application fees, any nonrefundable fees associated with receiving a license to operate a cannabis 1120
establishment, and any surety bond or other financial requirements. 1121
“(b) The Board may require Social Equity Applicants to attest that they meet the 1122
requirements for a fee waiver as provided in subsection (a). 1123
“(c)(1) If the Board determines that an applicant who applied as a Social Equity 1124
Applicant is not eligible for such status, the Board shall provide notice to the applicant. 1125
“(2) Upon receipt of the notice, the applicant shall have 15 days to provide 1126
alternative evidence that he or she qualifies as a Social Equity Applicant. 1127
“(3) The Board shall make a determination of the applicant’s status 10 days after 1128
the receipt of any alternative evidence. The Board shall notify the applicant of this determination. 1129
“(d) If the applicant does not qualify as a Social Equity Applicant, he or she may pay the 1130
remainder of the waived fee and be considered as a non-Social Equity Applicant. If he or she 1131
cannot do this, then ABCA may keep the initial application fee to cover any administrative costs 1132
associated with the application process, and the application shall not be considered.”. 1133
(h) A new Chapter 25 is added to read as follows: 1134
CHAPTER 25. PROTESTS. 1135
“§ 25-2501. Standing to file a protest. 1136
“(a) The following persons may be permitted to file a protest the issuance of a license, the 1137
renewal of a license, or transfer to new location for a microbusiness, retailer, or internet retailer 1138
license: 1139
“(1) A property owner or commercial tenant whose property abuts where the 1140
establishment is or will be located; 1141

“(2) A property owner or commercial tenant whose property is located directly 1142
across the street from where the establishment is or will be located; 1143
“(3) A daycare center located within 400 feet of where the establishment is or will 1144
be located; or 1145
“(4) Any affected ANC. 1146
“§ 25-2502. Notice to ANCs and Councilmembers. 1147
“(a) ABCA shall provide electronic notice to the Councilmember representing the ward 1148
where the establishment is or will be located and any affected ANC at least 45 calendar days 1149
prior to the approval of a location for a microbusiness, internet retailer’s license, or retailer’s 1150
license. 1151
“(b) The ABC Board may, at the request of both an affected ANC and the applicant, 1152
extend the ANC's protest petition deadline set forth in subsection (a) of this section by up to an 1153
additional 30 calendar days for the sole purpose of allowing the ANC to vote on whether to 1154
support or protest the license application. The ABC Board may, on a motion of any party or on 1155
its own motion, also continue a hearing to permit an affected ANC to vote on a material issue in 1156
the hearing. 1157
“§ 25-2503. Grounds for protest. 1158
“(a) A protest against a microbusiness, internet retailer, or retailer license by a person 1159
with standing pursuant to § 25-2501 shall be on the basis of: 1160
“(1) A violation of the Comprehensive Cannabis Legalization and Regulation 1161
Amendment Act of 2025 or regulations issued pursuant to § 25-2804 by the applicant; 1162
“(2) A violation of civil law by the applicant that is directly related to the 1163
operation of the business or establishment for which the license is sought; or 1164

“(3) Vehicular and pedestrian safety. 1165
(b) The ABC Board shall determine whether a violation of civil law is directly related to 1166
the operation of the business or establishment for which the license is sought by considering the 1167
totality of the following factors: 1168
“(1) Whether specific elements of the violation are directly related to the specific 1169
duties and responsibilities of the license; and 1170
“(2) Any evidence produced by the applicant concerning the applicant's fitness, 1171
including the length of time that has elapsed since the violation and mitigating circumstances. 1172
(c) The ABC Board may issue a license, approve the renewal of a license, or approve the 1173
transfer of a retailer license, internet retailer license, or microbusiness license to a new location 1174
without a hearing on the protest if the ABC Board finds that the basis of the protest lacks 1175
substance. 1176
“§ 25-2504. ANC Comments. 1177
“(a) The Board shall give the recommendations of an affected ANC great weight 1178
pursuant to the requirements set forth in D.C. Official Code § 25-609. 1179
“(b) In the event that an affected ANC submits a settlement agreement to the Board on a 1180
protested license application, the Board, upon its approval of the settlement agreement, shall not 1181
dismiss any protest filed by a property owner or commercial tenant or a daycare center under § 1182
25-2501(a) upon the Board’s approval of the ANC’s settlement agreement submission.”. 1183
(i) A new Chapter 26 is added to read as follows: 1184
CHAPTER 26. OPERATING STANDARDS. 1185
“§ 25-2601. General operating requirements. 1186

“(a) A licensee shall be required to secure every entrance to the establishment so that 1187
access to areas containing cannabis or cannabis products is restricted to the owner or approved 1188
employees. 1189
“(b) A licensee shall secure its inventory and equipment during and after hours to deter 1190
and prevent theft of cannabis, cannabis products, and cannabis accessories. 1191
“(c)(1) A licensee shall not cultivate, process, test, store, or manufacture cannabis or 1192
cannabis products at any location other than at a physical address approved by the Board and 1193
within an area that is enclosed and secured in a manner that prevents access by persons not 1194
permitted by the cannabis establishment to access that area. 1195
“(2) A licensee who has a cultivation and manufacturing license may co-locate 1196
licenses in order to minimize the impacts associated with business operations. The Board shall 1197
develop rules for the co-location of cultivation and manufacturing licenses. 1198
“(d) A licensee shall not allow the cultivation, processing, manufacture, sale, or display 1199
of cannabis or cannabis products to be visible from a public place without the use of binoculars, 1200
aircraft, or other optical aids. 1201
“(e) Investigators or officers from ABCA, DOB, DFS, DOH, FEMS, and MPD 1202
shall be permitted to inspect the entire licensed premises during its hours of operation and, if 1203
within their office’s responsibilities, to obtain samples sufficient for testing pursuant to this title, 1204
and an ABCA investigator or MPD officer shall be permitted to audit the books and records of 1205
the licensed establishment during its hours of operation. 1206
“(f) ABCA-licensed microbusinesses and retailers shall not admit any person, other than 1207
a person hired to guard the premises pursuant to a security plan filed with the ABCA, who is 1208
carrying a gun or other weapon. 1209

“§ 25-2602. Testing requirements. 1210
“(a) No cannabis or cannabis product shall be sold or otherwise marketed by a licensee 1211
that has not first been tested by an independent testing facility licensed by the Board. 1212
“(b) An independent testing facility shall report any results indicating contamination to 1213
the Board and DOH within 72 hours of identification. 1214
“(c) In the event that only one licensed testing facility exists in the District, the Board 1215
may establish, through rulemaking, reasonable prices for testing facility services. 1216
“§ 25-2603. Posting and carrying of licenses. 1217
“(a) A person receiving a license to operate a cannabis establishment shall post the 1218
license conspicuously in the licensed establishment. If a settlement agreement is a part of the 1219
license, the license shall be marked “settlement agreement on file” by the Board, and the licensee 1220
shall make a copy of the settlement agreement immediately accessible to any member of the 1221
public, ABCA investigator, or MPD officer upon request. 1222
“(b) A microbusiness or retailer’s licensee shall post window lettering in a conspicuous 1223
place on the front window or front door of the licensed premises that contains the correct name 1224
or names of the licensee and the class and number of the license in plain and legible lettering not 1225
less than one inch nor more than 1.25 inches in height. 1226
“§ 25-2604. Hours of operation for cultivation and manufacturers. 1227
“The sale or delivery of cannabis or cannabis products by a cannabis cultivator or 1228
manufacturer shall only be permitted only between the hours of 6:00 a.m. and midnight, seven 1229
days a week, or as may be further limited pursuant to § 25-2606. 1230
“§ 25-2605. Hours of operation for retail sales. 1231

“(a) A licensee authorized to sell cannabis or cannabis products at retail to consumers 1232
shall be permitted to sell cannabis or cannabis products between the hours of 7 a.m. and 1233
midnight, seven days a week, or as may be further limited pursuant to D.C. Official Code § 25-1234
2606. 1235
“(b) A licensee under a microbusiness or retailer's license that possesses a delivery 1236
endorsement shall also be permitted to deliver cannabis or cannabis products to the homes of 1237
District residents between the hours of 7 a.m. and midnight, 7 days a week. 1238
“§ 25-2606. Board authorized to further restrict hours of operation for a particular 1239
applicant or licensee. 1240
“At the time of initial application of any class of license or at renewal, the Board 1241
may further limit the hours of sale and delivery for a particular applicant or licensee: 1242
“(a) Based upon the Board’s findings of fact and conclusions of law, and order following 1243
a protest hearing; or 1244
“(b) Under the terms of a settlement agreement. 1245
“§ 25-2607. Seed-to-sale tracking and wholesale purchase systems. 1246
“(a) A licensee shall be required to utilize and record inventory in a seed-to-sale tracking 1247
system selected and approved by the Board. The licensee shall be responsible for purchasing 1248
radio-frequency identification (RFID) tags and hardware to utilize the designated software and 1249
may be charged a user fee by the Board. The Board shall establish rules regarding the entry of 1250
data by licensees into the seed-to-sale tracking system. 1251
“(b) In addition to a seed-to-sale tracking system in subsection (a), the Board may, 1252
through rulemaking, require all licensees to utilize a wholesale purchasing system for wholesale 1253
buying and selling of cannabis and cannabis products. 1254

“§ 25-2608. Permitted sale amounts for microbusinesses, internet retailers, and retailers. 1255
“(a) A microbusiness, internet retail, or retail licensee shall not sell more than the 1256
following to a customer in either one transaction or in one day: 1257
“(1) One ounce of usable cannabis flower; 1258
“(2) 5 grams of cannabis concentrate; 1259
“(3)(i) 16 ounces of cannabis-infused edibles; 1260
“(ii) Cannabis-infused edibles shall have a serving size limit of 20 1261
milligrams of THC with a total product dose of 100 milligrams. 1262
“(4) 72 ounces of cannabinoid product in liquid form; 1263
“(5) 30 milliliters of a cannabis tincture, or a container of tincture containing more 1264
than 1500 milligrams of CBD; or 1265
“(6) 1000 milligrams of CBD e-liquid for use in an electronic smoking device. 1266
“(b) Permitted sale amounts under subsection (a) of this section may be adjusted by the 1267
Board for qualifying patients participating in the District’s medical cannabis program. 1268
“§ 25-2609. Packaging requirements. 1269
“(a) Prior to sale at a microbusiness or transfer to a retailer or internet retailer, all 1270
cannabis and cannabis products shall be packaged in a child-resistant container. 1271
“(b) Containers shall not include any statement, depiction, or illustration that is especially 1272
appealing to persons under 21 years of age. 1273
“§ 25-2610. Labeling requirements. 1274
“(a) Prior to sale at a cannabis microbusiness or transfer to a retailer, every container of 1275
cannabis and cannabis products shall be affixed with a label that identifies: 1276

“(1) The license numbers of the cultivator, manufacturer, microbusiness, internet 1277
retailer, and retailer where the cannabis or cannabis product was cultivated, manufactured, and 1278
offered for sale, as applicable; 1279
“(2) The net contents; 1280
“(3) The level of THC and CBD contained in the product in percentage terms or 1281
in amount per serving, or both, as appropriate to the product, and as may be prescribed by 1282
ABCA. 1283
“(4) Information on gases, solvents, and chemicals used in cannabis extraction, if 1284
applicable; 1285
“(5) Instructions on usage; 1286
“(6) For cannabis products, a list of ingredients and possible allergens; and 1287
“(7) For edible cannabis products, a nutrition fact panel. 1288
“(b) Labels shall not contain any statement, depiction, or illustration that is especially 1289
appealing to persons under 21 years of age. 1290
“(c) Labels shall not contain any false or misleading statements and shall not make 1291
health-related claims. 1292
“§ 25-2611. Signage and logos. 1293
“(a)(1) Cannabis licensees shall not erect or produce signage contain any statement, 1294
depiction, or illustration that is especially appealing to persons under 21 years of age. 1295
“(2) Logos shall not contain medical symbols, images of cannabis, cannabis 1296
paraphernalia, or colloquial references to cannabis. 1297

“(b) No signage placed on the exterior of a licensed cannabis establishment or elsewhere 1298
in the District, including the licensee’s trade name, shall be illuminated or contain intermittent 1299
flashing lights. 1300
“(c) No signage shall not contain false or misleading statements. 1301
“(d) A sign that does not conform to this section shall be removed. 1302
“§ 25-2612. Advertising and marketing restrictions. 1303
“(a) Any advertisement of cannabis or cannabis products shall not contain any statement, 1304
depiction, or illustration that: 1305
“(1) Is especially appealing to persons under 21 years of age; 1306
“(2) Depicts someone who is or appears to be under 21 years of age consuming 1307
cannabis; and 1308
“(3) Promotes over consumption. 1309
“(b) Any radio or television broadcast or publication advertising cannabis or cannabis 1310
products shall be limited to audiences that can be reasonably expected to consist of at least 75% 1311
of persons 21 years of age or older. 1312
“(c) A cannabis establishment’s website or any advertisement shall not make health-1313
related claims and shall indicate that cannabis and cannabis products are for persons 21 years of 1314
age or older. 1315
“(d)(1) A cannabis licensee shall be prohibited from advertising cannabis or cannabis 1316
products on any exterior sign, special sign as defined in Section N101 of Subtitle 12-A of the 1317
D.C. Construction Code, or outdoor billboard. 1318
“(2) Advertisements related to cannabis or cannabis products shall not be 1319
displayed on the exterior or interior of any window or door of licensed cannabis establishment. 1320

“(e) Any advertisement of cannabis or cannabis product shall not contain false or 1321
misleading statements. 1322
“(f) No person shall publish or disseminate or cause to be published or disseminated, 1323
directly or indirectly, through any radio or television broadcast, in any newspaper, magazine, 1324
periodical, or other publication, or by any sign, placard, or any printed matter, an advertisement 1325
or cannabis or cannabis products that are not in conformity with this title. 1326
“§ 25-2613. Sale to minors and intoxicated persons prohibited; restriction on minor’s 1327
entrance to licensed premises. 1328
“(a) The sale or delivery of cannabis or cannabis products to the following persons is 1329
prohibited: 1330
“(1) A person under the age of 21, either for the person’s own use or for the use of 1331
any other person, is prohibited, provided that: 1332
“(A) A microbusiness, internet retailer, or retailer may sell medical 1333
cannabis or medical cannabis products to qualifying patients aged 18 to 20 who are participating 1334
in the District’s medical cannabis program; and 1335
“(B) A microbusiness, internet retailer, or retailer may sell medical 1336
cannabis or medical cannabis products to parents, legal guardians, or caregivers of qualified 1337
patients under the age of 18 who are participating in the District’s medical cannabis program. 1338
“(2) An intoxicated person, or any person who appears to be intoxicated or under 1339
the influence. 1340
“(b)(1) A microbusiness or retailer shall not permit a person under the age of 21 to enter 1341
the licensed premises unless the person is a qualified patient aged 18 to 20 with a valid medical 1342
cannabis registration card. 1343

“(2) A microbusiness or retailer shall not permit a patron to enter the licensed 1344
establishment until the licensee or the licensee’s employee is shown a valid identification 1345
document showing that the individual is 21 years of age or older, or in the case of a of a patient 1346
aged 18 to 20 who is participating in the medical cannabis program, a valid identification 1347
document and a valid registration card. 1348
“(c) It shall be an affirmative defense of violating subsection (b) or (c) of this section that 1349
the licensee or the licensee’s employee was shown a valid identification document that the 1350
licensee or the licensee’s employee reasonably believed was valid and that the licensee or the 1351
licensee’s employee reasonably believed that the person was of age. 1352
“(d) Notwithstanding the provisions of this section, the holder of a microbusiness or 1353
retailer’s license shall not discriminate on any basis prohibited by Unit A of Chapter 14 of Title 2 1354
of the D.C. Code. 1355
“§ 25-2614. Production of valid identification document required. 1356
“(a) A licensee shall refuse to sell or deliver cannabis or cannabis products to any person 1357
who cannot or refuses to provide the licensee with a valid identification document. 1358
“(b) A licensee or a licensee’s employee shall take reasonable steps to ascertain whether 1359
any person to whom the licensee sells or delivers cannabis or cannabis products is of legal age. 1360
“(c) In order to ensure individual privacy is protected, customers shall not be required to 1361
provide microbusiness, internet retailer, or retailer with personal information other than a valid, 1362
government-issued identification necessary to determine the customers’ age. 1363
“§ 25-2615. Sale or distribution of cannabis or cannabis products by minors prohibited. 1364
“A licensee shall not allow any person under the age of 21 to volunteer or work at a 1365
cannabis establishment. 1366

“§ 25-2616. Security plans and measures. 1367
“(a) A licensed cannabis establishment shall be required to submit a security plan with its 1368
license application. At a minimum, the plan shall: 1369
“(1) Account for the prevention of theft or diversion of cannabis; 1370
“(2) Demonstrate safety procedures for employees and patrons; 1371
“(3) Establish procedures, equipment, and designs that provide for safe delivery 1372
and storage of currency; and 1373
“(4) Demonstrates that all security procedures, equipment, and designs are and 1374
will be kept compliant with all applicable laws and rules, including regulations issued pursuant 1375
to § 25-2804. 1376
“(b) A licensed cannabis establishment shall be required to maintain security cameras and 1377
video footage that satisfies rules established by the Board pursuant § 25-2804. 1378
“(c) ABCA-licensed microbusinesses or retailers shall not admit any person, other than a 1379
person hired to guard the premises pursuant to its security plan filed with the ABCA, who is 1380
carrying a gun or other weapon. 1381
“§ 25-2617. Temporary surrender of license—safekeeping. 1382
“(a)(1) A cannabis license that is discontinued for any reason for more than 14 calendar 1383
days shall be surrendered by the licensee to the Board for safekeeping. 1384
“(2) The licensee shall submit to ABCA a plan to dispose of cannabis or cannabis 1385
products upon surrendering their license. 1386
“(b)(1) The Board shall hold the license until the licensee resumes business at the 1387
licensed establishment or the license is transferred to a new owner. If the licensee has not 1388

initiated proceedings to resume operations or transfer within one year, the Board shall deem the 1389
license abandoned and cancel the license. 1390
“(2) The Board may extend the period in paragraph (1) if a licensee can 1391
demonstrate: 1392
“(A) A good faith effort has been made to resume operations or transfer 1393
the license; and 1394
“(B) Personal or financial hardships have caused delays in resuming 1395
operations or transferring the license. 1396
“(c) ABCA shall review licenses in safekeeping every 6 months to ensure that the 1397
licensee is making reasonable progress on returning to operation. 1398
“(d) A license suspended by the Board under this title shall be stored at ABCA. 1399
“(e) A license shall not be eligible for safekeeping and shall be canceled by the 1400
Board if the licensee failed to open for business within 180 days of initially being issued a 1401
cannabis license or 365 days for Social Equity Applicants or stopped within 90 days of initially 1402
being issued a cannabis license. 1403
“§ 25-2618. Authorized products and methods of sale. 1404
“(a) Except as permitted by the Board, a microbusiness, internet retailer, or retailer shall 1405
not be authorized to sell any products or services other than cannabis, cannabis products, or 1406
cannabis paraphernalia intended for the storage or use of cannabis or cannabis products, unless 1407
otherwise authorized by law. 1408
“(b) It shall be unlawful for microbusinesses or retailers, or any other business or person 1409
in the District, to offer cannabis or cannabis products via a vending machine. 1410

“(c) Microbusinesses and retailers shall keep all products secured behind a counter, 1411
locked door, or under glass not accessible to the customer. Customers are not permitted to help 1412
themselves to a product but shall place an order with authorized employees of the retailer.”. 1413
(j) A new Chapter 27 is added to read as follows: 1414
CHAPTER 28. ENFORCEMENT, INFRACTIONS, AND PENALTIES. 1415
“§ 25-2701. Authority of the Board and ABCA investigators. 1416
“(a) The Board shall have the authority to enforce the provisions of this title with respect 1417
to licensees and with respect to any person not holding a license and selling cannabis and 1418
cannabis products without a license in violation of the provisions of the Comprehensive 1419
Cannabis Legalization and Regulation Amendment Act of 2025. 1420
“(b) ABCA investigators shall issue citations for civil violations of this title that are set 1421
forth in the schedule of penalties established under § 25-2703. 1422
“(c) ABCA investigators may: 1423
“(1) Request and check the identification of a patron inside of or attempting to 1424
enter an establishment with a cannabis license; 1425
“(2) Seize evidence that substantiates a violation under this title, which shall 1426
include the seizing of cannabis or cannabis products believed to have been sold to minors and 1427
fake identification documents used by minors. 1428
“(d) ABCA investigators may seize a cannabis license from an establishment if: 1429
“(1) The cannabis license has been suspended, revoked, or canceled by the 1430
Board; 1431
“(2) The business is no longer in existence; or 1432
“(3) The business has been closed by another District government agency. 1433

“(e) Any show cause enforcement hearings brought by the Board for violations of 1434
this title shall follow the procedures set forth in § 25-447. 1435
“§ 25-2702. Revocation or suspension of licenses for violations of this title. 1436
“(a) Pursuant to Subchapter II of Chapter 8, the Board may fine, suspend, 1437
summarily suspend or revoke the license of a licensee. 1438
“(b) Pursuant to § 25-827, or if the Chief of Police finds that a licensed establishment is 1439
diverting cannabis product out of state, selling cannabis or cannabis products to minors, or if the 1440
facility is associated with crimes of violence, the Chief of Police may close a cannabis 1441
establishment for up to 96 hours. 1442
“§ 25-2703. Civil penalties. 1443
“(a) In the rules implementing the Comprehensive Cannabis Legalization and Regulation 1444
Amendment Act of 2025, the Board shall include a schedule of civil penalties and fine ranges for 1445
violations of this act, including any civil penalties against unlicensed establishments. 1446
“(b) The schedule shall contain three tiers that shall reflect the severity of the violation 1447
for which the penalty is proposed: 1448
“(1) Tier 1 shall apply to violations that may hurt the efficiency and overall 1449
performance of programs for the regulated sale of cannabis, such as failure to comply with basic 1450
administrative procedures and protocols and minor changes to plans that do not affect the health 1451
safety or welfare of the public. 1452
“(2) Tier 2 shall apply to violations that are more severe than Tier 1 but generally 1453
do not have an immediate or potential negative impact on the health, safety, and welfare of the 1454
public. This tier may include violations of advertising and marketing requirements, violations of 1455

packaging and labeling requirements that do not directly impact patient or consumer safety, and 1456
minor or clerical errors in the seed-to-sale tracking system. 1457
“(3) Tier 3 shall apply to violations that generally have an immediate or potential 1458
negative impact on the health, safety, and welfare of the public, including unlicensed retail sales 1459
of cannabis, selling to minors, making false statements, or utilizing advertising or marketing 1460
materials that target minors. 1461
“(c) The schedule shall contain escalating penalties for repeat violations and a list of 1462
potential mitigating or aggravating factors that may be considered when determining the 1463
imposition of a civil penalty. 1464
“§ 25-2704. Cease and desist orders. 1465
“(a) If the ABC Board, after investigation but before a hearing, has cause to believe that a 1466
person is violating a provision of the Comprehensive Cannabis Legalization and Regulation 1467
Amendment Act of 2025 and the violation has caused or may cause, immediate and irreparable 1468
harm to the public, the ABC Board may issue an order requiring the alleged violator to cease and 1469
desist immediately from the violation. The order shall be served by certified mail or hand-1470
delivered to the licensee or unlicensed establishment. 1471
“(b)(1) The alleged violator may, within 15 days after the service of the order, submit a 1472
written request to the ABC Board to hold a hearing on the alleged violation. 1473
“(2) Upon receipt of a timely request, the ABC Board shall conduct a hearing in 1474
accordance with the procedures set forth in Chapter 5 of Title 2, and issue a decision within 90 1475
days after the hearing. 1476
“(c)(1) The alleged violator may, within 10 days after the service of an order, submit a 1477
written request to the ABC Board for an expedited hearing on the alleged violation. 1478

1479
“(2) Upon receipt of a timely request for an expedited hearing, the ABC Board 1480
shall conduct a hearing within 10 days after the date of receiving the request and shall deliver to 1481
the alleged violator at their last known address a written notice of the hearing by any means 1482
guaranteed to be received at least 5 days before the hearing date. 1483
“(3) The ABC Board shall issue a decision within 30 days after an expedited 1484
hearing. 1485
“(d) If a request for a hearing is not timely made under subsection (b) or (c) of this 1486
section, the order of the ABC Board shall be final. 1487
“(e) If, after a hearing, the ABC Board determines that the alleged violator is not in 1488
violation of this chapter, the ABC Board shall revoke the order. 1489
“(f) If a person fails to comply with a lawful order of the ABC Board under this section, 1490
the ABC Board may petition the Superior Court of the District of Columbia for an order 1491
compelling compliance or take any other action authorized by the Comprehensive Cannabis 1492
Legalization and Regulation Amendment Act of 2025. 1493
“§ 25-2705. Penalties against unlicensed establishments and commercial property 1494
owners. 1495
“(a) The ABC Board may issue the following fines to an unlicensed establishment that 1496
knowingly engages or attempts to engage in the purchase, sale, exchange, delivery, or any other 1497
form of commercial transaction involving cannabis that is not purchased, sold, exchanged, or 1498
delivered in accordance with the provisions of the Comprehensive Cannabis Legalization and 1499
Regulation Amendment Act of 2025: 1500
“(1) For the first violation, the ABC Board may: 1501

“(A) Issue a fine in the amount of $10,000; and 1502
“(B) Require the unlicensed establishment to submit a remediation plan to 1503
the ABC Board that contains the unlicensed establishment’s plan to prevent any future 1504
recurrence of purchasing, selling, exchanging, delivering, or otherwise transacting any cannabis 1505
or cannabis products that are not purchased, sold, exchanged, or delivered in accordance with the 1506
provisions of Comprehensive Cannabis Legalization and Regulation Amendment Act of 2025; 1507
“(2) For any subsequent violations or if the unlicensed establishment fails to 1508
submit a remediation plan in accordance with paragraph (1) of this subsection, or if the ABC 1509
Board rejects the unlicensed establishment's remediation plan, the ABC Board may issue 1510
additional fines as follows: 1511
“(A) For the second violation, a fine in the amount of $20,000; 1512
“(B) For the third or subsequent violation, a fine in the amount of $30,000; 1513
1514
“(C) For failing to submit a remediation plan or having its remediation 1515
plan rejected by the ABC Board, a fine of in the amount of $10,000. 1516
“(b)(1) Notwithstanding any other provision of law, ABCA shall have the authority to 1517
inspect the entire premises, inventory, and business records of an unlicensed establishment to 1518
determine whether the business is conducting activity in violation of the Comprehensive 1519
Cannabis Legalization and Regulation Amendment Act of 2025. If, after an inspection, ABCA 1520
determines that an unlicensed establishment presents an imminent danger to the health or safety 1521
of the public, as described in paragraph (2) of this subsection, the ABC Board may summarily 1522
close and order the padlocking, by ABCA or MPD without a prior hearing, of the unlicensed 1523

establishment, and ABCA or MPD may seize all cannabis and cannabis products found at the 1524
premises. 1525
“(2) For the purpose of this subsection, the term “imminent danger to the health or 1526
safety of the public” includes any of the following: 1527
“(A) The unlicensed establishment distributes or attempts to distribute 1528
cannabis or a cannabis product to one or more persons under the age of 21. 1529
“(B) The unlicensed establishment manufactures, produces, or cultivates 1530
cannabis or cannabis products at the building or premises. 1531
“(C) The unlicensed establishment distributes, attempts to distribute or 1532
makes available for sale or exchange cannabis or a cannabis product that fails to contain a label 1533
identifying the source of the cannabis or cannabis product, including where it was manufactured, 1534
the contents of the package, and the cannabis or cannabis product's ingredients, and 1535
tetrahydrocannabinol (THC) content, or is otherwise not labeled in accordance with the 1536
Comprehensive Cannabis Legalization and Regulation Amendment Act of 2025. 1537
“(D) The unlicensed establishment fails to comply with a cease-and-desist 1538
order. 1539
“(E) The unlicensed establishment distributes, attempts to distribute, or 1540
makes available for sale or exchange Schedule I substances, or products that contain Schedule I 1541
substances, as enumerated in § 48-902.04. 1542
“(F) An employee, agent, or owner of the unlicensed establishment has 1543
unlawful firearms or weapons on the premises. 1544

“(G) A dangerous crime, as defined in § 23-1331(3), or a crime of 1545
violence, as defined in § 23-1331(4), was committed on the premises of the unlicensed 1546
establishment. 1547
“(H) The unlicensed establishment engages in any activity or operation 1548
established as an imminent danger to the health or safety of the public by the ABC Board by 1549
rule. 1550
“(3) ABCA shall provide the unlicensed establishment's owner and the property 1551
owner with written notice of the summary closure and the right to request a hearing. 1552
“(4) The owner of the unlicensed establishment shall have 5 business days after 1553
service of the notice of summary closure to request a hearing with the ABC Board, which shall 1554
hold a hearing within 5 business days of a timely request. 1555
“(5) The ABC Board shall issue a written decision within 5 business days after the 1556
hearing. 1557
“(c)(1) ABCA or the Metropolitan Police Department may post signage at the site of the 1558
unlicensed establishment indicating that unlicensed activity has been found to have occurred for 1559
violations of the Comprehensive Cannabis Legalization and Regulation Amendment Act of 2025 1560
or regulations issued pursuant to § 25-2804. 1561
“(2) If the ABC Board orders the closure of an unlicensed establishment, the ABC 1562
Board shall post 2 notices in conspicuous places at or near the main street entrance on the outside 1563
of the establishment. 1564
“(3) The posted notice shall state that the closure is ordered because of a violation 1565
of the Comprehensive Cannabis Legalization and Regulation Amendment Act of 2025 or 1566
regulations issued pursuant to § 25-2804. 1567

“(d)(1) An ABCA investigator may test cannabis and cannabis products to quantify their 1568
THC content. 1569
“(2) In any proceeding before the ABC Board, labeling or packaging in an 1570
unlicensed establishment that states that the product contains cannabis or tetrahydrocannabinol, 1571
whether in whole or in part, or a derivative thereof, shall create a presumption that the product 1572
contains cannabis and contains the amounts of the chemicals indicated on the label or packaging 1573
unless such presumption is overcome by a preponderance of evidence to the contrary. 1574
“§ 25-2706. Alcohol or tobacco infused cannabis. 1575
“(a) Except in the case of tincture products containing distilled spirits in conformance 1576
with regulations issued by the Tax and Trade Bureau of the United States Department of 1577
Treasury, it shall be unlawful for a person to sell or offer for sale alcohol that has been infused 1578
with cannabis; or cannabis products that have been infused with tobacco products. 1579
“(b) A licensee shall not sell or offer for sale alcohol that has been infused with 1580
cannabis except in the case of tinctures that are infused with distilled spirits in conformance with 1581
regulations issued by the Tax and Trade Bureau; or tobacco products. 1582
“(c) A licensee who violates this section shall be assessed a civil fine in an amount of no 1583
more than $1,000. 1584
“§ 25-2707. Tampering with packaging or container. 1585
“(a) A licensee or a licensee’s employee shall not knowingly: 1586
“(1) Misrepresent the brand or contents of any cannabis product sold or offered 1587
for sale; 1588
“(2) Tamper with the contents of any cannabis packaging; 1589
“(3) Remove or obliterate any label from cannabis packaging being offered for 1590

sale; 1591
“(4) Deliver or sell the contents of any cannabis packaging that has had its label 1592
removed or obliterated. 1593
“(b) It shall be unlawful for a person to willfully or knowingly alter, forge counterfeit, 1594
endorse, or make use of any false or misleading document reasonably calculated to deceive the 1595
public as being a genuine cannabis license issued by ABCA. 1596
“§ 25-2708. Vaping devices. 1597
“(a) It shall be unlawful for a person to sell, offer for sale, or give a vaping device to a 1598
person who is under 21 years of age. 1599
“(b) A licensee shall not sell, offer for sale, or give a vaping device to a customer who is 1600
under 21 years of age. 1601
“(c) A licensee who violates this section shall be assessed a civil fine in an amount of no 1602
more than $1,000. 1603
“§ 25-2709. Forged licenses. 1604
“(a) It shall be unlawful for a person to willfully or knowingly alter, forge counterfeit, 1605
endorse, or make use of any false or misleading document reasonably calculated to deceive the 1606
public as being a genuine license issued by ABCA. 1607
“(b) It shall be unlawful for a person to willfully or knowingly furnish to a member of 1608
MPD or an ABCA investigator an altered, forged, counterfeited, endorsed or false or misleading 1609
document reasonably calculated to deceive MPD or the ABCA investigator as being a genuine 1610
license issued by ABCA. 1611
“(c) A person convicted of a violation of this section shall be fined no more than 1612
the amount set forth in § 22-3571.01, or incarcerated for more than one year or both. 1613

“§25-2710. Other penalties. 1614
“(a) Any person who knowingly and significantly alters or at all falsifies any reports, 1615
documents, or plans, or misrepresents any information required for licensing or purchasing 1616
cannabis under this title shall be guilty of a misdemeanor and, upon conviction, shall be punished 1617
by a fine of not more than the amount set forth in D.C. Official Code § 22-3571.01, or 1618
imprisoned for not more than one year, or both. 1619
“(b) Any person required to file taxes for sales or transfer of cannabis or cannabis 1620
products under this title who willfully attempts in any manner to evade or defeat a tax, or the 1621
payment there; any person who knowingly diverts cannabis or cannabis products outside of the 1622
regulated system, shall be guilty of a felony and, upon conviction, shall be fined not more than 1623
the amount set forth in D.C. Official Code § 22-3571.01, or imprisoned for not more than three 1624
years, or both. The penalty provided herein shall be in addition to other penalties provided under 1625
District or federal law. 1626
“(c) Violations of this section that are misdemeanors shall be prosecuted on information 1627
filed in the Superior Court of the District of Columbia by the Office of the Attorney General. 1628
Violations of this subsection that are felonies shall be prosecuted by the United States Attorney 1629
for the District of Columbia. 1630
“(d) In addition to any civil penalties or fines imposed, ABCA is authorized to issue 1631
warnings, impose additional conditions on licensees, ban persons who have committed violations 1632
from participating or purchasing cannabis or working in establishments under this act. 1633
“(e) A civil fine may be imposed by ABCA as an alternative sanction for any violation of 1634
this title for which no specific penalty is provided, or any rules or regulations issued under the 1635

authority of this title, under Chapter 18 of Title 2. Adjudication of an infraction that is contested 1636
or appealed under this section shall be heard by OAH pursuant to Chapter 18 of Title 2.”. 1637
(j) A new Chapter 28 is added to read as follows: 1638
CHAPTER 28. LIMITATIONS ON CONSUMERS; PUBLIC EDUCATION; 1639
RULES. 1640
“§ 25-2801. Purchase, possession, use, or consumption by persons under the age of 21; 1641
misrepresentation of age; penalties. 1642
“(a)(1) No person who is under 21 years age shall purchase, attempt to purchase, possess, 1643
use, or consume cannabis or cannabis products in the District, provided that this shall not apply 1644
to qualifying patients ages 18 to 20 participating in the District’s medical cannabis program. 1645
“(2) Only a parent, legal guardian, or caregiver of the qualifying patient shall be 1646
allowed to purchase cannabis or cannabis products for minors under the age of 18 who are 1647
participating in the District’s medical cannabis program. 1648
“(b) No person shall falsely represent his or her age or possess as proof of age an 1649
identification document which is in any way fraudulent for the purpose of purchasing, 1650
possessing, using, or consuming cannabis in the District. 1651
“(c) No person shall present a fraudulent identification document for the purposes 1652
of entering an establishment possessing a microbusiness or retailer’s license licensed under 1653
chapter 21 of this title. 1654
“(d) For the purpose of determining valid representation of age, each person shall be 1655
required to present to the establishment owner or representative at least one form of valid 1656
identification, which shall have been issued by an agency of government (local, state, federal, or 1657
foreign) and shall contain the name, date of birth, signature, and photograph of the individual; 1658

provided, that a military identification card issued by an agency of government (local, state, 1659
federal, or foreign) shall be an acceptable form of valid identification whether or not it contains 1660
the individual's signature. 1661
“(e) Any person guilty of violating this section shall be subject to fines and penalties as 1662
follows: 1663
“(1) Upon the first violation, a fine of not more than $25, or the performance of 1664
10 hours of community service; 1665
“(2) Upon the second violation, a fine of not more than $50, the performance of 1666
15 hours of community service, or both; and 1667
“(3) Upon the third and subsequent violations, a fine of not more than $100, the 1668
performance of 20 hours of community service, or both. 1669
“(f) If the individual subject to penalties in subsection (e) is under the age of 18, the 1670
Office of Administrative Hearings shall mail a copy of the notice of violation to the parent or 1671
guardian of the person to whom the notice of violation is issued at the address provided by the 1672
the person at the time the citation is issued pursuant to § 48-1202. 1673
“§ 25-2802. Cannabis paraphernalia. 1674
“A person 21 years of age or older shall not be arrested, prosecuted, penalized or 1675
disqualified and shall not be subject to seizure or forfeiture of assets for possessing, 1676
purchasing or otherwise obtaining or manufacturing cannabis accessories or for selling 1677
or otherwise transferring cannabis accessories to a person who is 21 years of age or 1678
older.”. 1679
“§ 25-2803. Public education. 1680

“The Board shall develop and implement a public education campaign that includes 1681
information on: 1682
“(a) Who is legally authorized to purchase, possess, and use cannabis or cannabis 1683
products pursuant to the Comprehensive Cannabis Legalization and Regulation Amendment Act 1684
of 2025; 1685
“(b) Sale and dosage limits pursuant to the Comprehensive Cannabis Legalization and 1686
Regulation Amendment Act of 2025 and regulations issued pursuant to § 25-2804; 1687
“(c) Places or locations where the possession and/or use of cannabis or cannabis products 1688
are prohibited; 1689
“(d) Methods of cannabis use, including the effects and potentials risks associated with 1690
each method; 1691
“(e) The health effects of cannabis use; and 1692
“(f) Responsible use and harm reduction strategies, including safe storage of cannabis 1693
and cannabis products in the home, not operating a motor vehicle while impaired, avoiding the 1694
use of cannabis and cannabis products while pregnant, and not consuming cannabis with alcohol 1695
or other drugs. 1696
“§ 25-2804. The Mayor, pursuant to subchapter I of Chapter 5 of Title 2 [§ 2-501 et seq.], 1697
shall issues rules to implement the provisions Chapters 21 through 28.”. 1698
(j) A new Chapter 29 is added to read as follows: 1699
CHAPTER 29. TAXES AND REVENUES. 1700
“§ 25-2901. Imposition and collection of taxes. 1701

“(a)(1) A tax is imposed upon all vendors for the privilege of selling retail cannabis and 1702
cannabis products. The rate of such tax shall be 13% of the gross receipts from sales or charges 1703
for retail cannabis or cannabis products. 1704
“(2) For medical cannabis and medical cannabis products, the rate of such tax 1705
shall be 6% of the gross receipts from sales or charges. 1706
“(b) The taxes imposed in subsection (a) shall be collected by the microbusiness, internet 1707
retailers, and retailers from the purchaser on all sales of retail cannabis or cannabis products. 1708
“§ 25-2902. Revenues. 1709
“All funds obtained from initial cannabis licensing and permitting fees, and the renewal 1710
of cannabis licenses and permits, shall be used by ABCA for purposes of administering this act 1711
and regulations issued pursuant to § 25-2804.”. 1712
Sec. 5. Discrimination prohibited. 1713
“(a) Neither the presence of cannabinoid components or metabolites in a person's bodily 1714
fluids nor possession of cannabis-related paraphernalia, nor conduct related to the use of 1715
cannabis or the participation in cannabis-related activities lawful under this act by a custodial or 1716
non-custodial parent, grandparent, legal guardian, foster parent, or other person charged with the 1717
well-being of a child shall form the sole basis for any action or proceeding by a child welfare 1718
agency or in family or juvenile court, any adverse finding, adverse evidence, or restriction of any 1719
right or privilege in a proceeding related to adoption of a child, acting as a foster parent of a 1720
child, or a person’s fitness to adopt a child or act as a foster parent of a child, or serve as the 1721
basis of any adverse finding, adverse evidence or restriction of any right or privilege in a 1722
proceeding related to guardianship, conservatorship, trusteeship, the execution of a will, or the 1723
management of an estate, unless the person's actions in relation to cannabis created an 1724

unreasonable danger to the safety of the minor or otherwise show the person to not be competent 1725
as established by clear and convincing evidence. This section applies only to conduct protected 1726
under this act. 1727
“(b) A person shall not be denied eligibility for public assistance programs based solely 1728
on conduct that is permitted under this act unless otherwise required by federal law. 1729
“(c) No landlord may be penalized or denied any benefit under District law for leasing to 1730
a person who uses cannabis under this act. 1731
“(d) Nothing in this Act may be construed to require any person or establishment in 1732
lawful possession of property to allow a guest, client, lessee, customer, or visitor to use cannabis 1733
on or in that property. 1734
Sec. 6. Sentence reductions and release of District residents serving sentences for 1735
cannabis-related offenses. 1736
“(a) If a person is serving a sentence solely for a violation of the District of Columbia 1737
Uniform Controlled Substances Act of 1981, effective August 5, 1981 (D.C. Law 4-29; D.C. 1738
Official Code § 48-901.02 et seq.) relating to cannabis or cannabis paraphernalia, whether by 1739
trial verdict or guilty plea, the Superior Court shall automatically vacate, dismiss and expunge 1740
such conviction. The Superior Court shall immediately notify the appropriate agencies to release 1741
the person serving a sentence from their custody. 1742
“(b) If a person is serving a sentence for another crime in addition to a violation of the 1743
District of Columbia Uniform Controlled Substances Act of 1981, effective August 5, 1981 1744
(D.C. Law 4-29; D.C. Official Code § 48-901.02 et seq.) relating to cannabis or cannabis 1745
paraphernalia, the Superior Court shall automatically vacate, dismiss, and expunge the 1746
conviction related to cannabis or cannabis-paraphernalia. The Superior Court shall immediately 1747

notify the appropriate agencies of any sentence reduction that occurs as a result of the cannabis 1748
or cannabis-paraphernalia conviction being vacated, dismissed, and expunged. 1749
Sec. 7. Section 23-1321(c)(1)(B)(ix) of the District of Columbia Official Code is 1750
amended as to read as follows: 1751
“(ix) Refrain from excessive use of alcohol or cannabis or any use of a narcotic drug or 1752
other controlled substance without a prescription by a licensed medical practitioner; provided, 1753
that a positive test for the use of cannabis, a violation of § 48-1201, or legal possession or use of 1754
cannabis pursuant to the Comprehensive Cannabis Legalization and Regulation Amendment Act 1755
of 2025 shall not be considered a violation of the conditions of pretrial release, unless the judicial 1756
officer expressly prohibits the use or possession of cannabis, as opposed to controlled substances 1757
generally, as a condition of pretrial release; the terms “narcotic drug” and “controlled substance” 1758
shall have the same meaning as in § 48-901.02;”. 1759
Sec. 8. Section 4(c) of An Act For the establishment of a probation system for the District 1760
of Columbia, approved June 25, 191 (36 Stat. 865; D.C. Official Code § 24-304), is amended to 1761
read as follows: 1762
“(c) A positive test for the use of cannabis, a violation of § 48-1201, or legal possession 1763
or use of cannabis pursuant to the Comprehensive Cannabis Legalization and Regulation 1764
Amendment Act of 2025 shall not be considered a violation of a condition of probation unless 1765
the judicial officer expressly prohibits the use or possession of cannabis, as opposed to controlled 1766
substances generally, as a condition of probation.”. 1767
Sec. 9. The 21st Century Financial Modernization Act of 2000, effective June 9, 2001 1768
(D.C. Law 13-308; D.C. Official Code §26-551.01 et seq.) is amended by adding new sections 1769
124a, 124b, and 124c to read as follows 1770

“Sec. 124a. Authority to transact business with cannabis licensees. 1771
“(a) A financial institution authorized to conduct business in the District of Columbia 1772
pursuant to the District of Columbia Banking Code is authorized to provide financial services to 1773
persons or entities with ABCA-approved cannabis licenses; and 1774
“(b) The financial institution shall not be in violation of the following by virtue of 1775
providing financial services to persons or entities with ABCA-approved cannabis licenses, 1776
provided that the financial institution complies with the Bank Secrecy Act Expectations 1777
Regarding Cannabis-Related Businesses Guidelines (FIN-2014-G001), February 14, 2014, in the 1778
provision of the financial services: 1779
“(1) Section 2(k) of the District of Columbia Regional Interstate Banking 1780
Act of 1985, effective November 23, 1985 (D.C. Law 6-107 § 2(k); D.C. Official Code § 1781
26-109); 1782
“(2) Sections 122; 203(c)(4), (8), (12) and (13); 211(a), (e)(6); 217(6); 1783
and 219(a), of the 21st Century Financial Modernization Act of 2000, effective June 9, 1784
2001 (D.C. Law 13-308 § 122; D.C. Official Code § 26-101 et seq., 521, 26-551.22); and 1785
“(3) Section 10c(a)(1) and (2) District of Columbia Regional Interstate 1786
Banking Act of 1985, effective November 23, 1985 (D.C. Law 9-42; D.C. Official Code 1787
§ 26-109(a)(1) and (2)). 1788
“Sec. 124b. Cannabis License and Compliance Portal. 1789
“(a) The Department of Insurance, Securities and Banking, in consultation 1790
with ABCA, shall establish a cannabis license and compliance portal for use by financial 1791
institutions. 1792

“(b) The portal shall be an online portal aggregating data on cannabis businesses from 1793
ABCA. The portal shall be designed to support financial institutions’ compliance and provide 1794
information so that financial institutions can with the Bank Secrecy Act Expectations Regarding 1795
Cannabis-Related Businesses Guidelines (FIN-2014-G001), February 14, 2014. 1796
“(c) At a minimum, the portal shall include the following information: 1797
“(1) Licensing and regulatory information; 1798
“(2) Product lists and sources of supply; 1799
“(3) Financial records of licensed establishments, including major transactions; 1800
“(4) Civil or criminal enforcement actions against licensees; 1801
“(5) Evidence of suspicious or illegal activity; and 1802
“(6) Other information to assist financial institutions, as determined by 1803
the Commissioner. 1804
“Sec. 124c. Banking services enhancement. 1805
“(a) DISB shall conduct an analysis of additional changes in laws or regulations that 1806
might enable legal cannabis-related businesses to have better access to banking services and 1807
issue a report on such analysis within 18 months of the effective date of final regulations issued 1808
by the Alcoholic Beverage and Cannabis Board. 1809
“(b) DISB shall issue any rules necessary to repeal or amend any local rules, regulations, 1810
and practices that might impair access to financial services by persons licensed pursuant to this 1811
act, or to issue such rules to increase the availability of such services. 1812
“(c) Upon the enactment of any statute authorizing state-chartered credit unions in the 1813
District of Columbia, it shall be legal under District law for such a credit union to open accounts 1814

on behalf of and accept receipts from licensed cannabis businesses from their licensed 1815
activities.”. 1816
Sec. 10. Section 106a of The Prevention of Child Abuse and Neglect Act of 1977, 1817
effective September 23, 1977 (D.C. Law 2-22; D.C. Official Code § 4-1301.06a) is amended by 1818
adding new subsections (d) and (e) to read as follows: 1819
“(d) Where a newborn tests positive for the presence of cannabinoid components or 1820
metabolites, the positive test result alone shall not be sufficient to commence an investigation 1821
pursuant to paragraph (a)(1). 1822
“(e) Legal possession and use of cannabis by parents, legal guardians, or custodians 1823
pursuant to the Comprehensive Cannabis Legalization and Regulation Amendment Act of 2025 1824
shall not form the sole basis of an investigation pursuant to paragraph (a)(1).”. 1825
Sec. 11. Section 47-1803.02(a)(2) of the District of Columbia Official Code is amended 1826
by adding two new subparagraphs (ZZ) and (AAA) to read as follows: 1827
“(ZZ) Direct cash payments made pursuant to § 25-2107. 1828
“(AAA) Grants issued pursuant to § 25-2107.”. 1829
Sec. 12. Title 48 of the District of Columbia Official Code is amended as follows: 1830
(a) Section 48-904.01(a)(1)(B) is amended to read as follows: 1831
“(B) Transfer to another person 21 years of age or older, without remuneration, 1832
cannabis weighing one ounce or less, or one clone, regardless of weight.”. 1833
(b) Section 48-904.01(a)(1)(C) is amended to read as follows: 1834
“(C) Possess, grow, harvest, or process, within the interior of a house, rental unit, or 1835
outdoor space accessible only from inside the house that is in the exclusive control of the 1836
resident, and constitutes such person’s principal residence, no more than 6 cannabis plants, with 1837

3 or fewer being mature, flowing plants; provided, that all persons residing within a single house 1838
or single rental unit may not possess, grow, harvest, or process, in the aggregate, more than 12 1839
cannabis plants, with 6 or fewer being mature, flowering plants;” 1840
(c) Section 48-904.01a(1) is amended by adding a new paragraph (E) to read as 1841
follows: 1842
“(E) “The Mayor shall be responsible for issuing all rules necessary to implement the 1843
provisions of this chapter.”. 1844
Sec. 13. Department of Social Equity. 1845
(a) Pursuant to section 404(b) of the District of Columbia Home Rule Act, approved 1846
December 24, 1973 (87 Stat. 787; D.C. Official Code § 1-204.04(b)), there is established, as a 1847
subordinate agency within the executive branch of the District of Columbia government, the 1848
Department of Social Equity, which shall be headed by a Director who shall carry out the 1849
functions and authorities assigned to the Department. 1850
(b) The Department is charged with the implementation and administration of the 1851
Community Re-Investment Program established pursuant to § 25-2107. 1852
(c) The Director shall manage and administer the Department and all functions and 1853
personnel assigned thereto, including the power to redelegate to other employees and officials of 1854
the Department such powers and authority as in the judgment of the Director is warranted in the 1855
interests of efficiency and sound administration. 1856
Sec. 14. Severability. 1857
If any provision of this act, or the application thereof to any person or circumstance, is 1858
found by a court invalid, such determination shall not affect other provisions or applications of 1859
this act which can be given effect without the invalid provision or application. 1860

Sec. 15. Fiscal impact statement. 1861
The Council adopts the fiscal impact statement in the committee report as the fiscal 1862
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 1863
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 1864
Sec. 16. Effective date. 1865
This act shall take effect following approval by the Mayor (or in the event of veto by the 1866
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 1867
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 1868
24, 1973, (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 1869
Columbia Register. 1870

Comprehensive Cannabis Legalization and Regulation Amendment Act of 2025

Plain English Breakdown

Comprehensive Cannabis Legalization and Regulation Amendment Act

What This Bill Does

Who It Names or Affects

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Current Bill Text