DC Hospitality Amendment Act of 2026

MURIEL BOWSER
MAYOR

March 20, 2026

The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004

Dear Chairman Mendelson:

Today, I am transmitting to the Council of the District of Columbia (Council) the DC
Hospitality Amendment Act of 2026 (bill) for its consideration and approval. The bill amends D.C.
Official Code Title 25 to modernize the District’s alcoholic beverage laws, provide support to the
District’s hospitality industry particularly in Wards 5, 7, 8, and Downtown DC, and makes several
business practices permanent that have evolved due to the pandemic.

In summary, the bill seeks to attract new restaurants to Wards 5, 7, 8, and Downtown DC
and provides new opportunities that encourage inclusivity and entrepreneurship in the hospitality
industry in all eight wards. This measure also serves to play an impor tant role in the District’s
efforts to attractresidents and tourists to Downtown DC.

A few of the amendments include:

1. Attracting New Restaurants and Art Galleries to Wards 5, 7, 8, and Downtown DC - creates a new
Pop-Up restaurant license category that eases the process to open a new restaurant quickly
in Wards 5, 7, 8, and Downtown DC. The Pop-Up restaurant license is valid for 90 days and allows
the restaurant to operate between 6 a.m. and 1 a.m., daily.

2. Later Weekend Hours - allows for on-premises alcohol sales, service and consumption until 4
a.m. in Downtown DC on weekends.

3. Made in DC Manufacturing - allows a brewery to apply for an on-premises alcohol retailer
license with a brew pub endorsement in Wards 5, 7, 8, or Downtown DC.
The new location in Wards 5, 7, 8, and Downtown DC, would be required to brew at least
250 barrels of malt beverages annually at the location with the pub endorsement.

4. Social Equity - allows small start-up breweries to develop business relationships with larger
licensed breweries and brew pubs to produce malt beverages in the District. The bill also makes
it easier for returning citizens to work at, manage, or own a licensed alcohol establishment.

For these reasons discussed above, I urge the Council to take prompt and favorable action on the
enclosed proposed bill.

Sincerely,

Muriel Bowser

Enclosure

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A BILL
ainnan Phil Mendelson
at the request of the Mayor
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To amend Title 25 of the District of Columbia Official Code to pe1mit licensees to
ship and export alcoholic beverages outside of the District consistent with
federal and state law; to clarify the Board's authority to grant permits and
endorsements; to allow for distillery collaborations; to allow a
manufacturer to obtain a second location under its license for production
and storage; to clarify that wholesalers are required to sell alcoholic
beverages received from the primary American source; to fix various
typographical errors contained in Title 25; to allow a location under the
jurisdiction of the Washington Convention and Sports Authority with
commercial street frontage to obtain a cany out and delivery license; to
repeal the requirement that the gross annual food sales per occupant be
adjusted for inflation every 5 years; to amend the "doggie bag" provisions
to allow for the removal of securely resealed malt beverages; to apply the
"doggie bag" provisions to taverns; to allow the holder of a
manufacturer's license class B to open a brew pub in Wards 5, 7 or 8, or
downtown under certain conditions; to allow the holder of both a brewery
license and brew pub endorsement to transport beer brewed at the brewery
or brew pub between the two facilities; to clarify that a licensed
wholesaler is not required to obtain an import permit, as long as all
required taxes related to the impo1iation are paid; to clarify the parameters
of a distillery pub endorsement, to expand upon the types of alcoholic
beverages that can be sold at a brewery, winery, or distillery that possesses
an on-site sales and consumption pe1mit; to clarify who is eligible to apply
for and modify the parameters of a commercial lifestyle center license; to
create a contract brewing license; to create Wards 5, 7 and 8 and
Downtown Pop -Up and permanent restaurant license categories; to create
an outdoor activation license; to clarify that the Board may refer alleged
violations to the appropriate District agency; to amend the qualification
requirements for Board members; to clarify the Board's rulemaking
review process; to modify the qualifications of applicants to expand upon
the ability of returning citizens to work at and own licensed alcohol
establishments; to amend the conflict of interest restrictions to include the
newly created restaurant categories and address breweries opening a brew
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pub in Wards 5, 7 or 8, or downtown; to clarify that restrictive land 46
covenants and deeds are not to be considered by the Board in determining 47
whether to issue an initial license or transfer a license to a new location; to 48
clarify that the Board is required to make a licensee’s investigative history 49
available to the public for review; to set the cap on class A retailer licenses 50
at 275; to clarify that a 25% class B retailer’s license must be located 51
inside of a hotel; to replace the term “Board of Zoning” with the term 52
“Board of Zoning Adjustment”; to allow the Board to extend the 53
expiration date of an existing moratorium by emergency rulemaking to 54
allow an ANC to consider or vote upon a moratorium petition or 55
resolution; to allow the Board to dismiss an individual protestant or deny a 56
license application or prohibit participation by a person seeking to 57
influence the application process in exchange for anything of value; to 58
allow the Board to continue a hearing for good cause; to allow a party that 59
requested a served subpoena to seek recourse in Superior Court if the 60
subpoena recipient fails to honor the subpoena; to make clarifying changes 61
to the existing settlement agreement process language and to provisions 62
that can and cannot be included in a settlement agreement; to add a 63
provision regarding unenforceable agreements; to add a provision 64
regarding ANC redistricting and successor ANCs; to clarify the Board’s 65
process regarding the non-payment of license fees; to clarify that the 66
Board may amend permit and endorsement fees; to establish fees for 67
contract brewing licenses, Wards 5, 7 and 8 and Downtown Pop-Up 68
registrations, and class C/RB and D/RB retailer licenses; to waive 69
application and annual license fees for art galleries that locate in Wards 5, 70
7 and 8 and downtown for the first three years; to confer standing to 71
successor ANCs as a result of redistricting; to consolidate provisions 72
related to the hours off-premises retailers can sell and deliver alcoholic 73
beverages; to add Juneteenth National Independence Day to the extended 74
hour holiday schedule; to clarify the payment due date to a wholesaler or 75
manufacturer when the due date occurs on a weekend or holiday; to clarify 76
that the cost of a licensed wholesaler hosting a one-day or one-time event 77
at a licensed retailer’s premises may exceed $500; to allow an individual 78
17 years of age who has completed an alcohol training and education 79
certification program to sell or serve alcoholic beverages to patrons 80
alongside a licensed and certified manager or owner on-duty at a 81
restaurant, hotel, or tavern, that are not seated or standing at a bar; to 82
establish procedures for cease and desist orders for catering sites; and to 83
update and remove expired provisions from the civil penalty rulemaking 84
review process. 85
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BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF 87
COLUMBIA, That this act may be cited as the “DC Hospitality Amendment Act 88
of 2026”. 89
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Sec. 2. Title 25 of the District of Columbia Official Code is amended as follows: 91
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(a) Chapter 1 is amended as follows: 93
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(1) The table of contents for Subchapter II is amended by adding new 95
section designations to read as follows: 96
Ҥ 25-132. Contract Brewing License. 97
Ҥ 25-133. Wards 5, 7 and 8 and Downtown Pop-Up Restaurant Registration. 98
Ҥ 25-134. Wards 5, 7 and 8 and Downtown Class C/RB and D/RB Restaurant 99
Retailer Licenses. 100
“§ 25-135. Outdoor Activation License.”. 101
(2) Section 25-101 is amended as follows: 102
(A) A new paragraph (7A) is added to read as follows: 103
“(7A) “Art gallery” means a building or part thereof where works of art 104
such as paintings, sculpture, pottery, glass, and weaving are displayed for public 105
viewing.”. 106
(B) Paragraph (8) is repealed. 107
(C) New paragraphs (15D) and (15E) are added to read as follows: 108
“(15D) “Contract brewing agreement” means a written contractual agreement 109
between the holder of a manufacturer’s license class B or of a brew pub endorsement and 110
the holder of a contract brewing license to brew malt beverages at the Board-approved 111
location of the licensed manufacturer class B or brew pub. 112
“(15E) “Contract brewing license” means a business (a “contract brewer”) that 113
is licensed by the Board to enter into a contract brewing agreement with a manufacturer’s 114
license class B or the holder of a brew pub endorsement to brew malt beverages at the 115
Board approved location of the licensed manufacturer class B or brew pub.”. 116
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(D) A new paragraph (20A) is added to read as follows: 117
“(20A) “Electronic Signature” means an electronic sound, symbol, or 118
process attached to or logically associated with a record and executed or adopted by a 119
person with the intent to sign the record.”. 120
(E) Paragraph (37B) is amended by striking the phrase “under an 121
on-premises restaurant license (R), as defined in § 25-113(b),” and inserting the phrase, 122
“under an off-premises retailer’s license, as defined in § 25-112(d)(1), or an on-premises 123
retailer’s license, as defined in § 25-113(a)(1),” in its place. 124
(F) A new paragraph (38C) is added to read as follows: 125
“(38C) “Primary American source” means the manufacturer, distiller, 126
rectifier, vintner, or importer of the brand of alcoholic beverages at the time that the 127
beverage became a marketable product in the United States, or its duly authorized 128
agent.”. 129
(G) Paragraph (43)(C) is repealed. 130
(H) A new paragraph (55A) is added to read as follows: 131
“(55A) “Washington Convention and Sports Authority food and alcohol 132
business” means a retailer with commercial street frontage at a location under the 133
jurisdiction of the Washington Convention and Sports Authority that sells food and is 134
approved by the Washington Convention and Sports Authority to sell alcoholic beverages 135
for on-premises consumption.”. 136
(3) Section 25-102 is amended by adding new subsections (f) and (g) to 137
read as follows: 138
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“(f) A licensed manufacturer, or a licensed retailer holding a brew pub, wine pub, 139
or distillery pub endorsement, may ship, export, or cause to be shipped or exported 140
outside the District any alcoholic beverage they produce or are otherwise permitted to sell 141
in closed containers as required by law so long as such action complies with the receiving 142
state’s law and federal law. 143
“(g) A licensed wholesaler or any licensed off-premises retailer may 144
ship, export, or cause to be shipped or exported outside of the District any alcoholic 145
beverage they are permitted to distribute or sell by law so long as such action complies 146
with the receiving state’s law and federal law.”. 147
(4) Section 25-104 is amended as follows: 148
(A) Subsection (a) is amended by striking the phrase “issue 149
licenses to” and insert the phrase “issue licenses, permits, or endorsements to” in its 150
place. 151
(B) Subsection (b) is amended by striking the phrase “All licenses 152
issued” and inserting the phrase “All licenses, endorsements, and permits issued” in its 153
place. 154
(C) Subsection (c) is amended by striking the phrase “A license to” 155
and inserting the phrase “A license, permit, or endorsement to” in its place. 156
(D) Subsection (e) is amended by striking the phrase “licenses, 157
may” and inserting the phrase “licenses, permits, and endorsements, may” in its place. 158
(5) Section 25-110 is amended as follows: 159
(A) A new subsection (a-2) is added to read as follows: 160
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“(a-2)(1) A holder of a manufacturer’s license, class A, may collaborate with 161
another distillery, regardless of jurisdiction, to use spirits manufactured at the licensed 162
premises or the licensee’s spirit recipe to produce a new spirit at another location, owned 163
by the other distillery, that may be sold by the holder of the manufacturer’s license, class 164
A, in sealed containers for off-premises consumption. 165
“(2) The sealed container containing the spirits produced by the holder of 166
the manufacturer’s license, Class A, in collaboration with another distillery, shall contain 167
the names of both distilleries.”. 168
(B) A new subsection (e) is added to read as follows: 169
“(e) A holder of a manufacturer’s license, class A, B, or C, may manufacture and 170
store products, including malt beverages brewed under a contract brewing agreement, 171
under its license at a second location that is not on or immediately adjacent to the 172
manufacturer’s initial licensed premises, if: 173
“(1) The licensed manufacturer obtains Board approval; 174
“(2) The second location is within 1,800 feet of the initial licensed 175
premises; 176
“(3) The second location is not open to the public; and 177
“(4) No on-premises or off-premises sales occur at the second 178
location.”. 179
(6) Section 25-111(a) is amended by striking the phrase “beverages from” 180
and inserting the phrase “beverages received from the primary American source from” in 181
its place. 182
(7) Section 25-112 is amended as follows: 183
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(A) Subsection (a-1)(2) is repealed. 184
(B) Subsection (h) is amended to read as follows: 185
“(h)(1) A Washington Convention and Sports Authority food and alcohol business 186
may sell beer, wine, or spirits in closed containers to individuals for carry-out, or may sell 187
or deliver beer, wine, or spirits in closed containers to consumer in the District, if it 188
obtains a carry out and delivery license from the Board pursuant to §§ 25-113(a)(3)(C) 189
and 25-113.01(g). Any carry-out or delivery pursuant to this section shall include one or 190
more prepared food items. 191
“(2) Any carry-out or delivery authorized pursuant to paragraph (1) of 192
this section may take place up to 7 days a week, but only between the hours of 6:00 a.m. 193
and 1:00 a.m.”. 194
(8) Section 25-113 is amended as follows: 195
(A) Subsection (b) is amended as follows: 196
(i) Paragraph (2)(B) is amended to read as follows: 197
“(B) The Board shall make a licensee’s quarterly statements 198
available to any protestant, and to any member of the public who requests it pursuant to 199
the Freedom of Information Act of 1976 (“FOIA”), effective October 21, 1986 (D.C. 200
Official Code § 2-531 et seq.), for the purpose of allowing a protestant of a license to 201
determine the gross annual receipts of a licensee. The disclosure of a quarterly statement 202
to a protestant under this subparagraph, or to a member of the public who requests it, 203
shall be subject to the disclosure exemptions set forth in section 204 of FOIA (D.C. 204
Official Code § 2-534). 205
(ii) Paragraph (3)(B)(iii) is repealed. 206
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(iii) Paragraph (5) is amended to read as follows: 207
“(5)(A) Notwithstanding any other provision of this 208
subchapter, the holder of a class C/R retailer’s license may permit a patron to remove one 209
partially consumed bottle or other container of an alcoholic beverage for off-premises 210
consumption. The holder of a class D/R retailer’s license may permit a patron to remove 211
one partially consumed bottle or other container of wine or beer for off-premises 212
consumption. 213
“(B) A partially consumed bottle or other container of an 214
alcoholic beverage that is to be removed from the premises must be securely resealed by 215
the licensee or its employee before removal from the premises. 216
“(C) The partially consumed bottle or container shall be placed 217
in a bag or other closed container that is secured in such a manner that it is visibly 218
apparent if the closed container has been subsequently opened or tampered with, and a 219
dated receipt for the bottle or container of an alcoholic beverage shall be provided by the 220
licensee and attached to the closed container.”. 221
(B) A new subsection (c)(5) is added to read as follows: 222
“(5)(A) Notwithstanding any other provision of this subchapter, the holder 223
of a class C/T retailer’s license may permit a patron to remove one partially consumed 224
bottle or other container of an alcoholic beverage for off-premises consumption. The 225
holder of a class D/T retailer’s license may permit a patron to remove one partially 226
consumed bottle or other container of wine or beer for off-premises consumption. 227
“(B) A partially consumed bottle or other container of an alcoholic 228
beverage that is to be removed from the premises must be securely resealed by the 229
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licensee or its employee before removal from the premises. 230
“(C) The partially consumed bottle or container shall be placed in a bag or 231
other closed container that is secured in such a manner that it is visibly apparent if the 232
closed container has been subsequently opened or tampered with, and a dated receipt for 233
the bottle or container of an alcoholic beverage shall be provided by the licensee and 234
attached to the closed container.”. 235
(C) Subsection (d)(1) is amended to read as follows: 236
“(1) A nightclub license (N) shall be issued only to a nightclub.”. 237
(D) Subsection (e)(7) is amended to read as follows: 238
“(7)(A) Notwithstanding any other provision of this subsection, a retailer class 239
C/H licensee under this section may permit a patron to remove one partially consumed 240
bottle or container of an alcoholic beverage for off-premises consumption. The holder of 241
a class D/H retailer license may permit a patron to remove one partially consumed bottle 242
or other container of beer or wine for off-premises consumption. 243
“(B) A partially consumed bottle or other container of an alcoholic 244
beverage that is to be removed from the premises shall be securely resealed by the 245
licensee or its employee before removal from the premises. 246
“(C) The partially consumed bottle or other container shall be 247
placed in a bag or other closed container that is secured in such a manner that is visibly 248
apparent if the closed container has been subsequently opened or that a person has 249
tampered with the closed container. 250
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“(D) The licensee or its employee shall provide a dated receipt for 251
the bottle or other container, which shall be attached to the bag or other closed 252
container.”. 253
(E) Subsection (g)(4) is repealed. 254
(9) Section 25-113.01(g) is amended by striking the phrase “Convention 255
Center food and alcohol business” wherever it appears and inserting the phrase 256
"Washington Convention and Sports Authority food and alcohol business” in its place. 257
(10) Section 25-116a is amended by adding new subsections (a-1), (a-2), 258
and (a-3) to read as follows: 259
“(a-1) Notwithstanding any other restrictions in this title, the holder of a 260
manufacturer’s license class B (brewery) shall be permitted to apply for one (1) Class C 261
or D retailer’s license with a brew pub endorsement under the following conditions: 262
“(1) The proposed location is in Ward 5, Ward 7, Ward 8, or downtown, 263
as defined in this section; 264
“(2) The proposed location is constructed after the effective date of the DC 265
Hospitality Amendment Act of 2026, introduced on ______ (Bill 26-__), or renovated 266
with a certificate of occupancy issued after October 1, 2024; 267
“(3) A minimum of 250 barrels of malt beverages are brewed at the 268
licensed location with the brew pub endorsement on an annual basis; and 269
“(4) The holder of the Class C or D retailer’s license with the brew pub 270
endorsement stocks and sells malt beverages produced by other producers to the public 271
that are unaffiliated with the applicant or other entities with shared ownership of 5% or 272
more in the location where the brew pub endorsement is located. 273
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“(a-2) After the holder of a manufacturer’s license class B (brewery) has held a 274
brew pub endorsement pursuant to subsection (a-1) of this section for 24 months, the 275
holder may apply for one additional Class C or D retailer’s license with a brew pub 276
endorsement at a location in Ward 1, 2, 3, 4, or 6, pursuant to the requirements of this 277
section and § 25-117. 278
“(a-3) For purposes of this section: 279
“(1) Ward 5, Ward 7 and Ward 8 means the election ward boundaries for 280
Ward 5, Ward 7 and Ward 8 that were in effect from January 1, 2012, through December 281
31, 2021; and 282
“(2) The term “downtown” includes the Central Business District, as well 283
as any area zoned D-2, D-3, D-4, D-5, D-6, D-7, or D-8, as defined in the District’s 284
zoning regulations.”. 285
(11) Section 25-117 is amended by adding a new subsection (e-1) to read 286
as follows: 287
“(e-1) A licensee holding a brew pub endorsement and a manufacturer’s license 288
class B (brewery) at separate locations in the District shall be permitted to transport beer 289
brewed at either the brew pub facility or brewery to the brewery or brew pub facility for 290
sale and consumption.”. 291
(12) Section 25-119 is amended by adding a new subsection (e) to read as 292
follows: 293
“(e) A licensed wholesaler may import alcoholic beverages without an import 294
permit so long as all required taxes related to the importation of the alcoholic beverages 295
being imported are paid in accordance with District laws and regulations.”. 296
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(13) Section 25-125 is amended by adding a new subsection (j) to read as 297
follows: 298
“(j) Notwithstanding any other restrictions in this section, alcohol infused 299
confectionary food products manufactured at the establishment by the holder of a 300
distillery pub endorsement shall be permitted to be sold to another licensee licensed 301
under this title for resale”. 302
(14) Subsection 25-126(e-1) is amended to read as follows: 303
“(e-1)(1) In addition to the authorizations provided under subsections (a) and (a-304
1) of this section, a manufacturer with an onsite sales and consumption permit may sell 305
the following products: 306
“(A) A class B brewery may sell or serve wine and spirits 307
purchased from a licensed manufacturer or wholesaler to the public; 308
“(B) A Class A winery may sell and serve beer and spirits 309
purchased from a licensed manufacturer or wholesaler to the public; and 310
“(C) A Class A distillery may sell and serve beer and wine 311
purchased from a licensed manufacturer or wholesaler to the public. 312
“(2) The holder of a manufacturer’s license class A or B that holds an on-313
site sales and consumption permit may sell or serve beer, wine, and spirits purchased 314
from a licensed manufacturer or wholesaler at private events not open to the public for 315
on-premises consumption.”. 316
(15) Section 25-129(b) is amended by striking the phrase “suspended or”. 317
(16) Section 25-131 is amended as follows: 318
(A) Subsection (a) is amended by striking the phrase "lifestyle 319
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center.” and inserting the phrase “lifestyle center, Arena C/X licensee, or Washington 320
Convention and Sports Authority food and alcohol business that hosts sporting events.” 321
in its place. 322
(B) Subsection (b) is amended by striking the phrase “a private 323
club,” and inserting the phrase " an Arena C/X licensee, or a Washington Convention and 324
Sports Authority food and alcohol business that hosts sporting events,” in its place. 325
(3) A new subsection (c-1) is added to read as follows: 326
“(c-1) An Arena C/X licensee or a Washington Convention and Sports 327
Authority food and alcohol business that hosts sporting events may request Board 328
approval to allow the sale, service, and consumption of beer, wine, or spirits on outdoor 329
public space for a specific event that involves a street closure.”. 330
(17) New sections 25-132, 25-133, 25-134, and 25-135 are added to read 331
as follows: 332
“25-132. Contract Brewing License. 333
“(a) A contract brewing license shall be valid for 3 years and authorize the 334
licensee (the “contract brewer”) to enter into a written contract brewing agreement with 335
the holder of a manufacturer’s license, class B, or a brew pub endorsement to brew malt 336
beverages at the Board-approved location of the licensed class B manufacturer or brew 337
pub. 338
“(b) A contract brewing license shall authorize the contract brewer to sell and 339
deliver malt beverages brewed at the Board-approved location to licensed wholesalers 340
and a dealer licensed under the laws of any state or territory of the United States for 341
resale. The contract brewer may also sell and deliver up to 15,500 gallons of malt 342
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beverages brewed at the Board-approved location annually to other retail licensees for 343
resale purposes. 344
“(c) A contract brewer may sell and deliver malt beverages for off-premises 345
consumption from the Board-approved brewing location. 346
“(d) A contract brewer may sell malt beverages for on-premises consumption at 347
the brew pub or manufacturer’s license, class B, location where the malt beverages were 348
brewed. 349
“(e) A written contract brewing agreement between a contract brewer and the 350
holder of a manufacturer’s license, class B, or a brew pub endorsement may also include 351
terms allowing the sale of malt beverages brewed at the Board-approved location for on-352
premises and off-premises consumption. 353
“(f) The following restrictions shall apply to a contract brewing license: 354
“(1) The contract brewer shall retain title to the malt beverages brewed at 355
the Board-approved location and shall be the ultimate seller of the product; 356
“(2) The parties to the written contract brewing agreement shall maintain, 357
for a period of 3 years, complete and accurate records of the list and quantities of malt 358
beverages brewed at the Board-approved location and sales of the respective products; 359
and 360
“(3) The contract brewer shall only sell malt beverages to a consumer 361
under the following conditions: 362
“(A) Malt beverages shall only be sold for off-premises 363
consumption, 364
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“(B) Malt beverages shall be sold in barrels, kegs, cans, including 365
crowlers, and sealed bottles, including growlers, and 366
“(C) Purchased malt beverages shall not be opened after sale, or 367
the contents consumed, on the premises where sold.”. 368
“25-133. Wards 5, 7 and 8 and Downtown Pop-Up Restaurant Registration. 369
“(a) An applicant or an eligible retailer shall be permitted to 370
register with the Board to open up a pop-up restaurant in Ward 5, Ward 7, Ward 8, or 371
downtown, as defined in this section. For the purposes of this section, the term “eligible 372
retailer” means a licensed on-premises retailer, a class B full-service grocery store, or a 373
class A 25% grocery store. 374
“(b) An applicant or an eligible retailer that registers with the Board may sell and 375
serve alcoholic beverages for both on-premises and off-premises consumption. 376
“(c) A registered applicant or registered eligible retailer operating a pop-up 377
restaurant pursuant to this section may sell beer and wine in closed containers for off-378
premises consumption without being accompanied by one or more prepared food items. 379
A registered new applicant or an eligible retailer may sell spirits for off-premises 380
consumption in closed containers accompanied by one or more prepared food items. 381
“(d) An applicant or an eligible retailer seeking to register as a pop-up restaurant 382
pursuant to this section shall be required to submit a menu with food items to be offered, 383
excluding snack items, with its registration application. 384
“(e) A registered applicant, or a registered eligible retailer, that seeks to register as 385
a pop-up restaurant pursuant to this section, shall have adequate kitchen and dining 386
facilities and keep its kitchen facilities open, have a menu in use, and be ready, willing, 387
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and able to prepare and serve food, other than just snack items, until at least 2 hours 388
before closing. For purposes of this subsection, “snack items” includes potato chips, 389
popcorn, pretzels, crackers, nuts, cookies, and candy. 390
“(f) The Board shall fine, suspend, cancel, or revoke the pop-up restaurant 391
registration of an applicant, after a hearing, that is not in compliance with the 392
requirements of this section. The Board shall give the registered applicant a minimum of 393
five (5) calendar days’ notice prior to holding a hearing and rendering a decision, as 394
permitted by the subsection. 395
“(g) A registration application for a pop-up restaurant in Ward 5, Ward 7, Ward 8, 396
or downtown shall not be required to follow the restrictions set forth in §§ 25-314(b)(1) 397
and 25-333. 398
“(h) An applicant or eligible retailer shall not apply for or operate more than three 399
pop-up restaurants under this section at one time. 400
“(i) Board approval of the pop-up restaurant registration, beyond the approval 401
described in this section, shall not be required provided that: 402
“(1) The applicant’s proposed location possesses a valid certificate of 403
occupancy issued to either the prior tenant, building owner, or the applicant, unless the 404
proposed location is only on outdoor private space; 405
“(2) The applicant has been authorized by the owner of the building or the 406
property to utilize the space as a restaurant; 407
“(3) The applicant’s proposed location is located in a commercial or 408
mixed-use zone as defined in the zoning regulations for the District; and 409
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“(4) The applicant agrees to follow all applicable Department of Licensing 410
and Consumer Protection and Department of Health laws and regulations. 411
“(j) The permitted hours of indoor operation for a pop-up restaurant shall be 6 412
a.m. to 1 a.m., 7 days a week. A pop-up restaurant registrant may offer indoor 413
entertainment, which may include a cover charge, between the hours of 8 a.m. and 414
midnight, 7 days a week. 415
“(k) The permitted hours of off-premises alcohol sales at the pop-up restaurant, 416
including carry out and delivery shall be 6 a.m. to 1 a.m., 7 days a week. 417
“(l) A pop-up restaurant registrant may operate under this section for no longer 418
than 90 calendar days. The Board may approve a written request from a pop-up 419
restaurant registrant to extend its operations for one additional 30 calendar day period. A 420
pop-up restaurant registrant shall not operate for more than 120 days unless a completed 421
application for a license pursuant to § 25-134 has been filed with the Board with notice 422
provided to the public in accordance with § 25-421. 423
“(m) The terms of a settlement agreement that an eligible retailer has in effect at 424
its current licensed location shall not follow the licensee to its additional proposed pop-up 425
restaurant registration location. 426
“(n) For purposes of this section: 427
“(1) Ward 5, Ward 7 and Ward 8 means the election ward boundaries for 428
Ward 5, Ward 7 and Ward 8 that were in effect from January 1, 2012, through December 429
31, 2021; and 430
18
“(2) The term “downtown” includes the Central Business District, as well as 431
any area zoned D-2, D-3, D-4, D-5, D-6, D-7, or D-8, as defined in the District’s zoning 432
regulations. 433
“25-134. Wards 5, 7 and 8 and Downtown Class C/RB and D/RB Restaurant 434
Retailer Licenses. 435
“(a) An applicant with a proposed location in Ward 5, Ward 7, Ward 8, or 436
downtown, as defined in this section, shall be eligible to apply for a class C/RB or class 437
D/RB restaurant retailer’s license. A class C/RB or class D/RB restaurant retailer’s 438
license shall be a type of restaurant license pursuant to § 25-113(b), and shall authorize 439
the holder to operate both a restaurant and a wine and beer store with on-premises and 440
off-premises alcohol sales at the same location. 441
“(b) A class C/RB restaurant retailer’s license shall authorize the holder to sell 442
and serve spirits, wine, and beer for on-premises consumption and sell and deliver wine 443
and beer in either sealed or closed containers for off-premises consumption without being 444
accompanied by a prepared food item. The holder of a class C/RB restaurant retailer’s 445
license may obtain a carry out and delivery endorsement to sell spirits for carry out and 446
delivery in closed containers accompanied by one or more prepared food items for off-447
premises consumption. 448
“(c) A class D/RB restaurant retailer’s license shall authorize the holder to sell 449
and serve beer and wine for on-premises consumption and sell and deliver wine and beer 450
in either sealed or closed containers for off-premises consumption without being 451
accompanied by a prepared food item. 452
“(d) An applicant for a class C/RB or class D/RB restaurant retailer’s license shall 453
19
be required to undergo a 45-day public comment period with notice provided to the 454
public in accordance with the requirements set forth in § 25-421. 455
“(e) The holder of a class C/RB or class D/RB restaurant retailer’s license shall 456
comply with the statutory restaurant requirements set forth in §§ 25-101(43) and 25-457
113(b). 458
“(f) An applicant for a class C/RB or class D/RB restaurant license for a location 459
in Ward 5, Ward 7, Ward 8, or downtown shall be exempt from the restrictions set forth 460
in §§ 25-314(b)(1) and 25-333. 461
“(g) After 24 months of operation in Ward 5, Ward 7 or Ward 8, the holder of a 462
class C/RB or class D/RB restaurant retailer’s license shall be permitted to apply for one 463
additional class C/RB or class D/RB restaurant retailer’s license at a location in Wards 1 464
through 4 and 6. 465
“(h) A class C/RB or class D/RB restaurant retailer’s license shall be valid for 3 466
years. 467
“(i) For purposes of this section: 468
“(1) Ward 5, Ward 7 and Ward 8 means the election ward boundaries for 469
Ward 5, Ward 7 and Ward 8 that were in effect from January 1, 2012, through December 470
31, 2021; and 471
“(2) The term “downtown” includes the Central Business District, as well as 472
any area zoned D-2, D-3, D-4, D-5, D-6, D-7, or D-8, as defined in the District’s zoning 473
regulations. 474
“25-135. Outdoor Activation License. 475
20
“(a) An outdoor activation license shall authorize a BID corporation to sell, serve, 476
and permit the consumption of alcoholic beverages at an outdoor space named on the 477
license that is owned, controlled, or managed by the District. 478
“(b) An outdoor activation license shall be issued for a period of one year. A BID 479
corporation may request in writing that the Board renew the license for an additional 480
year, subject to the payment of an annual fee. 481
“(c) The issuance of an outdoor activation license shall be based upon the 482
applicant’s compliance with § 25-301. 483
“(d) The Board may deny the renewal of an outdoor activation license application 484
if the applicant has failed to control the environment during the previous year or has 485
sustained police action or substantiated community complaints. 486
“(e) There shall be 2 classes of outdoor activation licenses: 487
“(1) Class O (beer and wine); and 488
“(2) Class N (spirits, beer, and wine). 489
“(f) The annual fee for a Class O license shall be $130. The 490
annual fee for a Class N license shall be $300.”. 491
(b) Chapter 2 is amended as follows: 492
(1) Section 25-201 is amended as follows: 493
(A) Subsection (c) is amended as follows: 494
(i) Paragraph (6) is amended by striking the phrase “title;” 495
and inserting the phrase, “title, where appropriate;” in its place. 496
(ii) Paragraph (8) is amended to read as follows: 497
“(8) Refer evidence of criminal misconduct or other violations of law to 498
21
the Inspector General of the District of Columbia, the Attorney General for the District of 499
Columbia, the United States Attorney for the District, an appropriate District agency, or 500
other law enforcement agency for investigation and prosecution.”. 501
(2) Section 25-206 is amended as follows: 502
(A) Subsection (c) is amended by striking the phrase “licensed 503
establishments” and inserting the phrase “licensed alcohol establishments and medical 504
cannabis facilities” in its place. 505
(B) Subsection (f)(2) is amended by striking the phrase “alcoholic 506
beverages in” and inserting the phrase “alcoholic beverages and medical cannabis in” in 507
its place. 508
(C) Subsection (g) is amended as follows: 509
(i) Strike the phrase “alcoholic beverages, or” and insert the 510
phrase “alcoholic beverages or medical cannabis, or” in its place. 511
(ii) Strike the phrase “alcoholic beverages;” and insert the 512
phrase “alcoholic beverages or medical cannabis;” in its place. 513
(3) Section 25-211 is amended as follows: 514
(A) Subsection (a) is repealed. 515
(B) Subsection (b) is amended to read as follows: 516
“(b)(1) The Mayor shall submit proposed regulations to the Council for a 517
60-day period of review, excluding days of Council recess. 518
“(2) The Council may approve the proposed regulations in whole or in 519
part. If the Council has not approved the regulations upon expiration of the 60-day 520
review period, the regulations shall be deemed approved.”. 521
22
(c) Chapter 3 is amended as follows: 522
(1) Section 25-301 is amended as follows: 523
(A) Subsection (a) is amended as follows: 524
(i) Paragraph (3) is amended to read as follows: 525
“(3)(A) Except as provided in subparagraph (B) of this paragraph, the 526
applicant has not been convicted of a felony for a crime of violence, a gun offense, tax 527
evasion, fraud, as defined in § 22-3221, or credit card fraud within the 3 years preceding 528
the date the application is filed with ABCA; 529
“(B) A applicant for a solicitor’s license or manager’s license has 530
not been convicted of a felony for a crime of violence, a gun offense, tax evasion, fraud, 531
or credit card fraud within the 3 years preceding the date the application is filed with 532
ABCA. 533
(ii) Paragraph (4) is repealed. 534
(B) Subsection (c-1) is amended by striking the phrase “within 5 535
years” and inserting the phrase “for a crime of violence, a gun offense, tax evasion, fraud, 536
or credit card fraud within 3 years” in its place. 537
(2) Section 25-303(a) is amended by adding new paragraphs (6) and (7) to 538
read as follows: 539
“(6) Notwithstanding any other provisions in this subsection, the holder of 540
a retailer’s license class C or Class D, a full-service grocery store class B, or a 25% 541
grocery store class A may hold one or more class C/RB or class D/RB restaurant retailer 542
licenses, as permitted by this title. 543
23
“(7) Notwithstanding the restrictions set forth in subsection (a)(1A) of this 544
section, the holder of a manufacturer’s license, class B, may apply for a class C or class D 545
retailer’s license with a brew pub endorsement subject to the requirements of § 25-546
116a.”. 547
(3) Section 25-314 is amended as follows: 548
(A) Subsection (b) is amended as follows: 549
(i) The lead-in language is amended by striking the phrase 550
“through (11)” and inserting the phrase “through (12)” in its place. 551
(ii) A new paragraph (12) is amended to read as follows: 552
“(12) Pursuant to § 25-134(f), the 400-foot restriction shall not apply to 553
the holder of a class C/RB or class D/RB restaurant license for a location in Ward 5, 554
Ward 7, Ward 8, or downtown as defined in this title.”. 555
(B) A new subsection (d) is added to read as follows: 556
“(d) In determining the appropriateness of an establishment for initial issuance of 557
a license or a transfer of a license to a new location, the Board shall not consider any 558
restrictive land covenant, deed, or other use restriction of any type, excluding a property’s 559
zoning designation, that bans, restricts, or in any way prohibits the placement and use of 560
an alcoholic beverage license at an applicant’s proposed location. Nothing in this 561
subsection shall prohibit a protest of an application for the initial issuance of a license or 562
the transfer of a license to a new location from being filed pursuant to the requirements 563
set forth in chapter 4 of this title.”. 564
(4) Section 25-315(b) is amended as follows: 565
24
(A) Paragraph (1) is amended by striking the period at the end of 566
the sentence and inserting the phrase “or Board Order.” In its place. 567
(B) Paragraph (2) is amended to read as follows: 568
“(2) The Board shall make the licensee’s investigative history, which shall 569
consist of the licensee’s record of alcoholic beverage violations, available to 570
the public for review.”. 571
(5) Section 25-331(a) is amended by striking the word “250” and inserting 572
the word “275” in its place. 573
(6) Section 25-332(e) is amended by striking the phrase, “class B, for the 574
sale of alcoholic beverages in an establishment if the;” and inserting the phrase “class B, 575
located inside of a hotel, for the sale of alcoholic beverages in an establishment if the:” in 576
its place. 577
(7) Section 25-336(g)(1) is amended by striking the phrase, “Board of 578
Zoning” and inserting the phrase “Board of Zoning Adjustment” in its place. 579
(8) Section 25-351 is amended by adding a new subsection (h) to read as 580
follows: 581
“(h) The Board may adopt emergency rules to extend the expiration date of an 582
existing moratorium to allow an ANC where the moratorium is located to consider or 583
vote on a moratorium petition or resolution at a noticed ANC meeting.”. 584
(d) Chapter 4 is amended as follows: 585
(1) The table of contents is amended by adding new section designations 586
to read as follows: 587
“§ 25-446.03 Unenforceable Agreements Generally.” 588
25
“§ 25-446.04 ANC Redistricting and Successor ANC.”. 589
(2) Section 25-434 is amended by adding a new subsection (c) to read as 590
follows: 591
“(c) If an applicant or protestant is convicted of violating subsection (a) of this 592
section, after final entry of judgment of conviction the Board may: 593
“(1) Dismiss the individual protestant or deny the license application; or 594
“(2) Bar the applicant or protestant, for up to 5 years, from protesting or 595
filing a license application.”. 596
(3) Section 25-441(a) is amended by striking the phrase “for good cause.” 597
And inserting the phrase “for good cause, by the Board sua sponte, or by a motion filed 598
by any party.” in its place. 599
(4) Section 25-443(c) is amended by striking the phrase “The Board” and 600
inserting the phrase “The party seeking the subpoena” in its place. 601
(5) Section 25-446 is amended to read as follows: 602
Ҥ 25-446. Settlement agreements; approval process; penalties for violations. 603
“(a) The applicant, any protestant, and any person or entity who would otherwise 604
have standing to protest an application pursuant to § 25-601 may, at any time, negotiate a 605
settlement and enter into a written settlement agreement setting forth the terms of the 606
settlement. 607
“(b)(1) The signatories to the agreement shall submit the agreement to the Board 608
for approval. 609
“(2) Except as provided in § 25-446.02, all provisions of a settlement 610
agreement approved by the Board shall be enforceable by ABCA or the Board. 611
26
“(c) If it determines that the settlement agreement complies with all applicable 612
laws and regulations and the applicant otherwise qualifies for licensure, the Board, in its 613
discretion, may condition its approval of the license application upon the licensee’s 614
compliance with the terms of the agreement. The Board shall incorporate the text of the 615
settlement agreement in its order and the settlement agreement shall be enforceable by 616
the Board. 617
“(c-1) The Board shall reject any settlement agreement that is not in accordance 618
with the law and may reject any settlement agreement that requires compliance with 619
statutory or regulatory requirements enforced by another agency. 620
“(d)(1) Unless a shorter term is agreed upon by the parties, a settlement agreement 621
approved by the Board shall run for the term of a license, including renewal periods, 622
unless it is terminated or amended in writing by the parties and the termination or 623
amendment is approved by the Board. 624
“(2) The Board may accept an application to amend or terminate a 625
settlement agreement by fewer than all parties in the following circumstances: 626
“(A) During the licensee’s renewal period; and 627
“(B) After 4 years from the date of the Board’s decision initially 628
approving the settlement agreement. 629
“(3) Notice of an application to amend or terminate a settlement 630
agreement shall be given both to the parties of the agreement and to the public at the time 631
of the applicant’s renewal application according to the renewal procedures required under 632
§§ 25-421 through 25-423. 633
27
“(4) The Board may approve a request by fewer than all parties to amend 634
or terminate a settlement agreement for good cause shown if it makes each of the 635
following findings based upon sworn evidence: 636
“(A)(i) The applicant seeking the amendment or termination has 637
made a diligent effort to locate all other parties to the settlement agreement; or 638
“(ii) If non-applicant parties are located, the applicant has 639
made a good faith attempt to negotiate a mutually acceptable amendment or termination 640
of the settlement agreement; 641
“(B) The need for an amendment or termination is either caused by 642
circumstances beyond the control of the applicant or is due to a change in the 643
neighborhood where the applicant’s establishment is located; and 644
“(C) The amendment or termination will not have an adverse 645
impact on the neighborhood where the establishment is located as determined under §§ 646
25-313 or 25-314, if applicable. 647
“(5) To fulfill the good faith attempt criteria of paragraph (4)(A)(ii) of this 648
subsection, a sworn affidavit from the applicant shall be filed with the Board at the time 649
that an application to amend or terminate a settlement agreement by fewer than all parties 650
is filed stating that either: 651
“(A) A meeting occurred between the parties which did not result 652
in an agreement; or 653
“(B) The non-applicant parties refused to meet with the applicant. 654
“(6) For the purposes of this subsection, the term “license’s renewal 655
period” means the 60-day period before the expiration date of a license. 656
28
“(7) Upon the filing of a valid petition for termination or amendment by 657
the applicant under this section, and the subsequent petition of the applicant that any 658
signatory party has not filed a valid protest during the public comment period, that 659
signatory party shall automatically be removed from the agreement. 660
“(e) If the Board determines, following a show-cause hearing as provided in § 25-661
447, that a licensee has violated a settlement agreement, the Board may penalize the 662
licensee according to the provisions set forth for violations of a license in Chapter 8 of 663
this title. 664
“(f) A settlement agreement shall automatically terminate if the Board finds, upon 665
petition of the applicant, that the Board has approved a transfer of the license to a new 666
location at least 1,200 feet away from the prior location after the approval of the 667
agreement.”. 668
(6) Section 25-446.01 is amended to read as follows: 669
Ҥ 25-446.01. Settlement agreements РEnforceable provisions 670
A settlement agreement enforceable by the Board under this subchapter may 671
include provisions that: 672
“(a) Allow or prohibit amplified or recorded music or other amplified sounds and 673
live entertainment; set maximum decibel limits on sound amplification devices; or restrict 674
the location of entertainment and use of sound equipment or the hours that amplified or 675
recorded music, amplified sound, or live entertainment that may be provided; 676
“(b) Require specific methods, including specific architectural features, to 677
mitigate sound or noise disturbances, such as: requiring doors and windows to remain 678
closed except for the case of ingress and egress; requiring sound barriers and other sound 679
29
proofing elements; requiring the use of sound limiters and other equipment; and 680
restricting the placement of sound equipment; 681
“(c) Require cleanliness, litter and trash control inside of and in the immediate 682
area surrounding the premises by, for example, specifying the frequency with which the 683
immediate area is cleaned, specifying trash removal times, requiring efforts to limit rat 684
and vermin infestation, and requiring trash and recycling management; 685
“(d) Require specific parking arrangements; 686
“(e) Require the use of valet parking through a valet service, but only through a 687
service that is properly approved and has all licenses, permits, and other approvals 688
required by law; 689
“(f) Require that the applicant or existing licensee maintain an incident log and 690
that the incident log be made available to ABCA and the Board, upon request; 691
“(g) Require filing and compliance with a security plan in accordance with this 692
title, to the extent that the Board is authorized to require the filing of a security plan in 693
accordance with this title; 694
“(h) Contain notice to cure provisions; 695
“(i) Restrict the hours of operation, alcohol consumption, alcohol sales, alcohol 696
service, or alcohol possession, outdoor facilities, and entertainment on the premises or 697
specific parts of the premises; 698
“(j) Prohibit or restrict the utilization of floors, prohibit or restrict the utilization 699
of outdoor areas, or limit the occupancy and the number of seats; 700
“(k) Address the prevention of intoxication, public intoxication, public urination, 701
public defecation, and underage drinking by patrons; 702
30
“(l) Require the use of security cameras, minimum identification checking 703
procedures, minimum security personnel staffing, crowd control measures, the use of 704
various doors as exits and entrances, the hiring of the Metropolitan Police Department 705
(MPD) Reimbursable Detail, restricting the consumption of alcohol by the owners or its 706
agents at the premises, and other security policies and procedures; 707
“(m) Require minimum training for managers and staff; 708
“(n) Require the postage of signage or information on the establishment’s 709
website; 710
“(o) Provide minimum kitchen hours, require the service or availability of food 711
and non-alcoholic beverages, and restrictions on the location of alcohol consumption and 712
service on the premises; 713
“(p) Require the sale or service of alcohol in tempered glass, paper, plastic or 714
other soft materials, otherwise designed to break without sharp edges; and 715
“(q) Mandate that the establishment comply with existing District law and all 716
licenses, endorsements, and permits, granted by the District.”. 717
(7) Section 25-446.02 is amended to read as follows: 718
Ҥ 25-446.02 Settlement agreements РUnenforceable provisions. 719
The Board shall not enforce, if included in a settlement agreement covered by this 720
subchapter, provisions that: 721
“(a) Require approval from a signatory or third party to file an application or 722
request with the Board; 723
“(b) Require additional or specific notice to a signatory or third party outside of 724
the notice required by law; 725
31
“(c) Restrict the sale or transfer of the business to new or different owners or 726
require or restrict a change in the class or type of license; 727
“(d) Prohibit the act of filing an application or a request with the District; 728
“(e) Mandate the purchase, service, or sale of specific types of food, non-729
alcoholic beverages, and alcoholic beverages, the type of cuisine, the use of brands or 730
types of alcohol and other products, and alcohol pricing; 731
“(f) Restrict customers based upon age, gender, national origin, status as a 732
student, or other criteria prohibited by the Human Rights Act of 1977, effective 733
December 13, 1977 (D.C. Law 2-38; D.C. Official Code § 2-1401.01 et. seq.); 734
“(g) Require the use of specific businesses, or the hiring of specific persons or 735
categories of persons; 736
“(h) Create additional administrative procedures in addition to those required by 737
ABCA or the District; 738
“(i) Require licensee or their agents to attend ANC or community meetings or 739
otherwise require them to appear or communicate with the signatories or third parties; 740
“(j) Require the establishment to provide money, buy specific goods or services, 741
or provide financial or other benefits to the community; provide the payment of fees or 742
restitution to lawyers, consultants, and other third parties; or provide discounts, free 743
goods and services, or other promotions to the community; 744
“(k) Require that contracts, incident logs, or similar documents be made available 745
to the signatories or third parties; 746
“(l) Require a minimum level of food, non-alcoholic beverage, or alcoholic 747
beverage sales to the public; and 748
32
“(m) Require future negotiation or create probationary periods that alter the terms 749
of the license, settlement agreement, or the operation of the establishment after approval 750
of the agreement.”. 751
(8) A new section 25-446.03 is added to read as follows: 752
Ҥ 25-446.03. Unenforceable Agreements Generally. 753
“(a) A settlement agreement not approved by the Board shall not be 754
enforced by ABCA or the Board. 755
“(b) Any promise by a person, in a contract, settlement agreement, or 756
other agreement, not to exercise that person’s rights to object to, or petition against, a 757
license application or to withdraw a filed objection shall be void if made in exchange for 758
money or other compensation to any individual or entity.”. 759
(9) A new section 25-446.04 is added to read as follows: 760
Ҥ 25.446.04. ANC Redistricting and Successor ANC. 761
“After the approval of a settlement agreement between the licensee and an ANC 762
or the filing of a protest by that ANC, if the Council amends the boundaries of ANCs and 763
the licensed establishment is located in a new ANC’s boundaries, the new ANC shall be 764
deemed the successor-in-interest and replace the original ANC as a party to the 765
agreement and any filed protest.”. 766
(e) Chapter 5 is amended as follows: 767
(1) The table of contents is amended by adding the following section 768
designations: 769
“§ 25-514. Minimum fees for contract brewing license.” 770
“§25-515. Wards 5, 7 and 8 Downtown Pop-Up Restaurant Registration” 771
33
“§25-516. Minimum fees for Class CRB and DRB licenses.” 772
“§25-517. Minimum fees for Art Galleries for Multipurpose Facility Licenses.”. 773
(2) Section 25-501(c) is amended to read as follows: 774
“(c)(1) A licensee’s failure to timely remit the annual fee shall be cause 775
for the Board to suspend the license until the licensee pays the fee and any additional fees 776
imposed by the Board for late payment. The licensee shall have 14 calendar days to 777
respond to the Board’s order suspending its license. If the licensee fails to respond or 778
demonstrate good cause why the fees and additional fees have not been remitted, the 779
Board shall cancel the license. 780
“(2) A license that has been suspended by the Board for the non-payment 781
of license fees and additional fees shall automatically be reinstated by ABCA once all of 782
the imposed fees have been paid. 783
(3) Section 25-502 is amended as follows: 784
(A) The heading is amended by striking the phrase “license fees” and 785
inserting the phrase “license, permit, and endorsement” in its place. 786
(B) Strike the phrase “license fees established by this chapter or to create 787
additional license” and insert the phrase “license, permit, or endorsement fees established 788
by this chapter or to create additional license, permit, or endorsement” in its place. 789
(4) New sections 25-514, 25-515, 25-516, and 25-517 are added to read as 790
follows: 791
Ҥ 25-514. Minimum fees for contract brewing license. 792
“The minimum application fee for a contract brewing license shall be $300. The 793
minimum annual fee for a contract brewing license shall be $500.”. 794
34
Ҥ 25-515. Wards 7 and 8 and Downtown Pop-Up Restaurant 795
Registration. 796
“The minimum fee for a Wards 7 and 8 and Downtown Pop-up Restaurant 797
registration shall be $300. 798
Ҥ 25-516. Minimum fees for Class C/RB and Class D/RB licenses. 799
“The Board shall establish the minimum annual fees for the Class C/RB and Class 800
D/RB retailer license categories by regulation based upon the capacity of the restaurant. 801
Ҥ 25-517. Minimum fees for Art Galleries for Multipurpose Facility 802
Licenses. 803
“If an art gallery or bookstore applies for a new multipurpose facility retailer’s 804
license Class C/X or D/X for a proposed location in Ward 5, Ward 7, Ward 8, or 805
downtown, the art gallery or bookstore shall not be required to pay an application fee and 806
shall not be required to pay a licensing fee for its initial license or for its first two 807
subsequent annual license periods. For purposes of this section: 808
“(a) Ward 5, Ward 7 and Ward 8 means the election ward boundaries for Ward 7 809
and Ward 8 that were in effect from January 1, 2012, through December 31, 2021; and 810
“(b) The term “downtown” includes the Central Business District, as well as any 811
area zoned D-2, D-3, D-4, D-5, D-6, D-7, or D-8, as defined in the District’s zoning 812
regulations. 813
(f) Chapter 6 is amended as follows: 814
(1) Section 25-601 is amended by adding a new subsection (c) to read as 815
follows: 816
“(c) If the boundaries of an ANC are redrawn in a manner that an 817
35
applicant is located in the boundaries of a new ANC, the new ANC, upon the filing of a 818
written request for standing with the Board, shall be entitled to standing as a party and 819
participate as a protestant in any pending protest active on the date the applicant’s 820
existing or proposed location was officially located within the new ANC’s boundaries 821
unless the protest is resolved before the filing of the ANC’s motion for standing.”. 822
(g) Chapter 7 is amended as follows: 823
(1) The table of contents is amended by adding the following section 824
designation: 825
“§ 25-741. Go-cups prohibited.”. 826
(2) Section 25-722 is amended as follows: 827
(A) Subsection (a) is amended to read as follows: 828
“(a) A licensee under an off-premises retailer’s license, class A or 829
B, may sell and deliver alcoholic beverages to District residents, or provide alcoholic 830
beverages to customers by curbside delivery, only between the hours of 6:00 a.m. and 831
1:00 a.m., 7 days a week. 832
(B) Subsection (b) is repealed. 833
(3) Section 25-723 is amended as follows: 834
(A) Subsection (c)(1) is amended as follows: 835
(i) Subparagraph (E) is amended as follows: 836
(I) Strike the phrase "Christmas Day,” and insert the 837
phrase “Christmas Day, Juneteenth National Independence Day, and” in its place. 838
(4) Section 25-731(b) is amended by striking the phrase “purchase or 839
36
delivery” and inserting the phrase “purchase or delivery unless the 16th day falls on a 840
weekend or public holiday, in which case payment shall be made on the next calendar 841
day that does not fall on a weekend or public holiday” in its place. 842
(5) Section 25-736(a-1) is amended to read as follows: 843
“(a-1)(1) Notwithstanding subsections (a), (b), and (c) of this section, with the 844
Board’s prior approval, a licensed wholesaler may rent a retailer’s licensed premises for 845
more than $500 to host a one-day or a one-time event. 846
“(2) The Board shall not grant a wholesaler’s request pursuant to 847
paragraph (1) of this subsection more than one time in a calendar year.”. 848
(6) Section 25-762(b)(17) is repealed. 849
(7) Section 25-784 is amended to read as follows: 850
Ҥ 25-784. Sale or distribution of beverages by minor prohibited. 851
“(a) Except as provided in subsections (b) and (c) of this section, a licensee shall 852
not allow any person under 21 years of age to sell, give, furnish, or distribute an alcoholic 853
beverage. 854
“(b) A licensee may allow an employee who is 18 years of age or older to sell, 855
serve, deliver, or pour an alcoholic beverage; provided, that no employee under 21 years 856
of age shall serve as a bartender. 857
“(c) Notwithstanding subsections (a) and (b), a licensed on-premises retailer class 858
C/R, D/R, C/H, D/H, C/T, or D/T may allow an individual who is 17 years of age to sell 859
or serve alcoholic beverages, except to patrons seated or standing at a bar, if both of the 860
following conditions are met: 861
37
“(1) The individual has completed an alcohol training and education 862
certification program from a Board-approved provider as set forth in § 25-121; and 863
“(2) During the individual’s shift, the retailer has a licensed manager or 864
owner on-duty who is 21 years of age or older and has completed an alcohol training and 865
education certification program from a Board-approved provider.”. 866
(h) Chapter 8 is amended as follows: 867
(1) The table of contents is amended to add a new section designation 868
under Subchapter II to read as follows: 869
“§ 25-829a. Cease and desist orders for catering sites”. 870
(2) Section 25-826(c) is amended by striking the phrase “request a hearing 871
within” and inserting the phrase “request a hearing in writing within” in its place. 872
(3) A new section 25-829a is added to read as follows: 873
Ҥ 25-829a. Cease and desist orders for catering sites. 874
“(a) If the Board, after investigation but before a hearing, has cause to believe that 875
a licensed caterer is engaged in a use or activity not permitted by its caterer’s license at 876
an event site that is causing immediate harm to the public, the Board may issue an order 877
requiring the caterer to cease using the property for catered events or under such 878
restrictions as the Board may impose in accordance with § 25-104(e). 879
“(b) The order shall be served on the caterer, either by certified mail or delivery in 880
person. 881
“(c) The caterer may, within 15 calendar days after the service of the order, 882
submit a written request to the Board to hold a hearing on the alleged violation. 883
38
“(d) Upon receipt of a timely request, the Board shall conduct an expedited 884
hearing within 10 days after the date of receiving the request. 885
“(e) The Board may prohibit the licensed caterer from utilizing its license at a 886
specific property for catered events if it finds any of the following after reviewing the 887
investigative report: 888
“(1) The caterer engaged in a primary tier violation at the event site; 889
“(2) At the time of the event, the premises or event were in violation of the 890
Building Code or the Fire Code; or 891
“(3) One or more catered events at the location had a negative impact 892
upon the peace, order, and quiet of the section of the neighborhood, as defined in § 25-893
101(46), where the event was held if it is shown that: 894
“(A) The caterer produced amplified noise at the catered event that 895
was heard in a dwelling between 10:00 p.m. and 7:00 a.m.; 896
“(B) The caterer permitted the event site to exceed the maximum 897
occupancy permitted by the premise’s certificate of occupancy; or 898
“(C) During the event, a crime of violence or other felony occurred 899
or a weapon was used or unlawfully displayed at the event site. 900
“(f)(1) The caterer of the event may, within 10 days after the service of an order, 901
submit a written request to the Board for an expedited hearing on the alleged violation. 902
“(2) Upon receipt of a timely request for an expedited hearing, the Board 903
shall conduct a hearing within 10 days after the date of receiving the request and shall 904
deliver to the caterer of the event at the individual’s or owner’s last known address a 905
39
written notice of the hearing by any means guaranteed to be received at least 5 days 906
before the hearing date. 907
“(3) The Board shall issue a decision within 30 days after an expedited 908
hearing. 909
“(g) If a request for a hearing is not made under subsection (c) of this section, the 910
order of the Board shall be final. 911
“(h) If, after a hearing, the Board determines that the alleged violator is not in 912
violation of this title, the Board shall rescind the order. 913
“(i) If a person fails to comply with a lawful order of the Board under this section, 914
the Board may petition the Superior Court of the District of Columbia for an order 915
compelling compliance or take any other action authorized by this subchapter. 916
“(j) The Board may lift or modify its order if the property owner demonstrates to 917
the satisfaction of the Board that it will take adequate steps to address the misuse of the 918
event site.”. 919
(4) Section 25-830 is amended as follows: 920
(A) Subsection (a) is amended to read as follows: 921
“(a) The Board may submit amendments to the schedule of civil 922
penalties (“schedule”) for violations of this title to the Council for a 90-day period of 923
review, including Saturdays, Sundays, holidays, and periods of Council recess. If the 924
Council does not approve, in whole or in part, the proposed regulations by resolution 925
within the 90-day period of review, the regulations shall be deemed approved. The 926
schedule, which shall be consistent with this title, shall replace all civil penalties, except 927
as expressly provided in this title. 928
40
(B) Paragraphs (e)(2) and (3) are repealed. 929
Sec. 3. Fiscal impact statement. 930
The Council adopts the fiscal impact in the committee report as the fiscal impact 931
statement required by section 4a of the General Legislative Procedures Act of 1975, 932
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 933
Sec. 4. Effective date. 934
This act shall take effect following approval by the Mayor (or in the event of veto 935
by the Mayor, action by the Council to override the veto), a 60-day period of 936
congressional review as provided in section 602(c)(1) of the District of Columbia Home 937
Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-938
206.02(c)(1)), and publication in the District of Columbia Register. 939

For these reasons discussed above, I urge the Council to take prompt and favorable action on the
enclosed proposed bill.

Sincerely,

Muriel Bowser

Enclosure

Government of the District of Columbia
Office of the Chief Financial Officer
Glen Lee
Chief Financial Officer
1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 (202)727- 2476
www.cfo.dc.gov
MEMORANDUM
TO: The Honorable Phil Mendelson
Chairman, Council of the District of Columbia
FROM: Glen Lee
Chief Financial Officer
DATE: August 11, 2025
SUBJECT:
REFERENCE:
Fiscal Impact Statement – DC Hospitality Amendment Act of 2026
Draft bill as provided to the Office of Revenue Analysis on June 6,
2025
Conclusion
Funds are sufficient in the fiscal year 2026 through the fiscal year 2029 budget and financial plan to
implement the bill.
Background
The Alcoholic Beverage and Cannabis Board (the Board), through its direction of the Alcoholic
Beverage and Cannabis Administration (ABCA), oversees alcohol and medical cannabis laws in the
District. The bill makes numerous changes to the sale and use of alcohol in the District, including
adding new alcohol licensing categories and expanding how bars, restaurants, distilleries, wineries,
and breweries can serve patrons. Provisions of the bill include:
Outdoor Activation License: The bill creates a new license type to permit the sale and consumption
of alcohol in registered outdoor public spaces . It also provides that an Arena C/X licensee or a
Washington Convention and Sports Authority food and alcohol business that hosts sporting events
may request Board approval to allow the sale, service, and consumption of beer, wine, or spirits on
outdoor public space for a specific event that involves a street closure
Employment restrictions for returning citizens and individuals under 18: Under current law,
returning citizens with a felony conviction cannot be employed in some positions in alcohol-serving
establishments. The bill limits the prohibition on employment to within three years; and limits the
prohibition to certain felonies (crime of violence, gun offenses, tax evasion, fraud, or credit card
The Honorable Phil Mendelson
FIS: “Ward 5, Ward 7, Ward 8 and Downtown DC Hospitality Support Act of 202 5,” Draft bill as provided to
the Office of Revenue Analysis on June 6, 2025
Page 2 of 2

fraud). The bill would permit 17-year-olds who take an alcohol training course to serve alcoholic
beverages to individuals not seated at or standing at a bar, provided there is also a licensed manager
or owner onsite who is over 21 years of age . Currently, individuals under the age of 18 are not
permitted to sell or serve alcohol.
Partially consumed beverages: The bill would allow restaurant patrons to take an opened container
of alcohol with them when they leave. The allowance extends to taverns (as well as restaurants and
hotels) and covers malt beverages (as well as wine and beer).
New alcohol licensing types and license waivers : The bill permits restaurants to sell alcohol for on -
or off-premises consumption without requiring an accompanying food item . The bill also increases
the types of alcohol products that can be sold for on and off -premises consumption. The bill creates
new license types for contract brewing (between two breweries or brew pubs) and cross -distillery
collaborations (between two dist illeries). It also expands the ability of alcohol manufacturers to
manufacture and store alcohol on or near their venue. The bill allows existing breweries to open a
new brewpub in Ward 5, Ward 7, Ward 8 , or downtown. The bill also waives application licensing
fees for new art galleries for three years in Ward 5, Ward 7, Ward 8, and downtown.

Extended hours: The bill adds Juneteenth to the list of holidays for which alcohol sales can be
extended.

Financial Plan Impact
Funds are sufficient in the fiscal year 2026 through the fiscal year 2029 budget and financial plan to
implement the bill. The Alcoholic Beverage and Cannabis Board and the Alcoholic Beverage and
Cannabis Administration can absorb any costs associated with the bill. ABCA will issue rulemaking
outlining the various fees for new license types and endorsements included in the bill.

2
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE ATTORNEY GENERAL
BRIAN L. SCHWALB
ATTORNEY GENERAL

LEGAL COUNSEL DIVISION
MEMORANDUM
TO: Tomás Talamante
Director
Office of Policy and Legislative Affairs
FROM: Adele El-Khouri
Deputy Attorney General
Legal Counsel Division
DATE: June 6, 2025
SUBJECT: Legal Sufficiency Review – DC Hospitality Amendement Act of 2026
(AE-23-428 C)

_____________________________________________________________________________________
This is to Certify that this Office has reviewed the above-referenced draft
legislation and found it to be legally sufficient. If you have any questions in this regard, please do
not hesitate to call me at (202) 262-6402.
_________________________________
Adele El-Khouri