Medical Cannabis Beverage Product Amendment Act of 2026

MURIEL BOWSER
MAYOR
April 2, 2026
The Honora
ble 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:
Enclosed for consideration and approval by the Council of the District of Columbia is a proposed
resolution entitled the “Medical Cannabis Beverage Product Amendment Act of 2026.”
The proposed legislation amends Title 25 of the D.C. Official Cod e to create a medical cannabis beverage
production endorsement, which authorizes the endorsement holder to produce medical cannabis beverages
for licensed medical cannabis manufacturer. The bill would further authorize the holders of certain
alcohol manufacturer’s license classes to hold a medical canna bis beverage production endorsement. The
proposed legislation would also establish a medical cannabinoids import endorsement, which would
authorize the import of nonintoxicating cannabinoids into the District, and permit couriers to deliver
medical cannabis to licensed medical canna bis businesses or holders of a medical cannabis beverage
production endorsement. Finally, the proposed legislation clarifies tax laws related to the taxation of
medical cannabis and medical cannabis products.
If you have any questions on this matter, please contact Donovan Anderson, Chair, Alcoholic Beverage
and Cannabis Board, at (202) 442-4423.
Sincerely,
Muriel Bowser
Enclosures
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
~~
at the request of the Mayor
A BILL
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To amend Title 25 of the District of Columbia Official Code to establish a medical cannabis
beverage production endorsement and to authorize the holders of an alcohol
manufacturer's license class A or B to apply for a medical cannabis beverage production
endorsement; to amend the Legalization of Marijuana for Medical Treatment Initiative of
1999 to establish a medical cannabinoids import endorsement to authorize the import into
the District of certain cannabinoids; to amend the Legalization of Marijuana for Medical
Treatment Initiative of 1999 to permit couriers to deliver medical cannabis to licensed
medical cannabis businesses or holders of a medical cannabis beverage production
endorsement; and to amend title 4 7 of the District of Columbia Official Code to clarify
certain provisions regarding the taxation of medical cannabis and medical cannabis
products.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
act may be cited as the "Medical Cannabis Beverage Product Amendment Act of 2026".
Sec. 2. Title 25 of the District of Columbia Official Code is amended as follows:
(a) Chapter 1 is amended as follows:
(1) The table of contents is amended by adding a new section designation to read
as follows:
"25-132. Medical cannabis beverage production endorsement.".
(2) A new section 25-132 is added to read as follows:
"§ 25-132. Medical cannabis beverage production endorsement.
"(a) A licensee under a manufacturer's license class A or B shall be eligible to apply to
the Board for a medical cannabis beverage production endorsement.
1
2

“(b) A medical cannabis beverage production endorsement shall authorize the licensee to, 37
pursuant to a written agreement with a licensed medical cannabis manufacturer: 38
“(1) Receive cannabis or THC from the licensed medical cannabis manufacturer 39
for the purpose of producing medical cannabis beverages; 40
“(2) Produce medical cannabis beverages with the cannabis or THC received from 41
the licensed medical cannabis manufacturer; and 42
“(3) Deliver the medical cannabis beverages to the licensed medical cannabis 43
manufacturer. 44
“(c) Medical cannabis beverages produced by the holder of a medical cannabis beverage 45
production endorsement shall not contain alcohol. 46
“(d) The holder of a medical cannabis beverage production endorsement shall deliver the 47
medical cannabis beverages it produces only to the licensed medical cannabis manufacturer that 48
provided the holder with cannabis or THC pursuant to a written agreement executed pursuant to 49
subsection (b) of this section and shall not deliver such beverages to another medical cannabis 50
manufacturer, a medical cannabis retailer, a medical cannabis internet retailer, or any other 51
person. 52
“(e) The holder of a medical cannabis beverage production endorsement shall comply 53
with the testing, electronic tracking, and reporting requirements of Chapter 16B of Title 7 for the 54
production and delivery of medical cannabis beverages. 55
“(f) Any cannabis or THC received by a holder of a medical cannabis beverage 56
production endorsement under this section that is not used by the holder of the medical cannabis 57
beverage production endorsement to produce medical cannabis beverages (“excess cannabis or 58
THC”) shall be returned by the holder of the medical cannabis beverage production endorsement 59
3

to the licensed medical cannabis manufacturer with which it has a written agreement before the 60
expiration or termination of the agreement. 61
“(g) The holder of a medical cannabis beverage production endorsement may use a 62
courier licensed under Chapter 16B of Title 7 to transport the medical cannabis beverages it 63
produces and any excess cannabis or THC to the licensed medical cannabis manufacturer with 64
which it has a written agreement pursuant to subsection (b) of this section. 65
“(h) The minimum annual licensing fee for a medical cannabis beverage production 66
endorsement shall be $500. 67
“(i) For the purposes of this section, the terms “medical cannabis,” “medical cannabis 68
beverage,” and “THC” shall have the meanings ascribed to them in § 7-1671.01.”. 69
(b) Section 25-822 is amended by adding a new subsection (c) to read as follows: 70
“(c) The holder of a manufacturer’s license class A or B shall not be in violation of 71
subsection (a)(2) of this section if the licensee has been issued a medical cannabis beverage 72
production endorsement in accordance with § 25-132 and engages in conduct related to the 73
distribution, production, and sale of medical cannabis beverages in accordance with the terms of 74
the endorsement.”. 75
Sec. 3. The Legalization of Marijuana for Medical Treatment Initiative of 1999, effective 76
February 25, 2010 (D.C. Law 13-315; D.C. Official Code § 7-1671.01 et seq.), is amended as 77
follows: 78
(a) Section 2 (D.C. Official Code § 7-1671.01) is amended to read as follows: 79
(1) Paragraph (2A) is redesignated as paragraph (2B). 80
(2) A new paragraph (2A) is added to read as follows: 81
“(2A) “Cannabinoid” means: 82
4

“(A) A chemical compound derived from cannabis, or from hemp, as that 83
term is defined in 7 U.S.C. § 1639o(1)) (collectively, “natural cannabinoids”); or 84
“(B) A synthetic cannabinoid.”. 85
(3) Paragraphs (12A) and (12B) are redesignated as paragraphs (12B) and (12C). 86
(4) A new paragraph (12A) is added to read as follows: 87
“(12A) “Medical cannabis beverage” means a liquid capable of consumption by a 88
human that contains medical cannabis.”. 89
(5) Paragraph (17) is redesignated as paragraph (17A). 90
(6) A new paragraph (17) is added to read as follows: 91
“(17) “Qualified import source” means a medical cannabis facility licensed under 92
federal or state law to manufacture cannabinoids for lawful medical use and that complies with 93
laboratory testing, product safety, and quality assurance standards set by ABCA.”. 94
(7) A new paragraph (20E) is added to read as follows: 95
“(20E) “Synthetic cannabinoid” means a substance with a similar chemical 96
structure and pharmacological activity to a natural cannabinoid, but which is not extracted or 97
derived from cannabis or hemp and is instead created or produced by chemical or biochemical 98
synthesis.”. 99
(8) A new paragraph (21A) is added to read as follows: 100
“(21A) “THC” means tetrahydrocannabinol.”. 101
(b) Section 6a (D.C. Official Code § 7-1671.05a) is amended as follows: 102
(1) Subsections (a) and (b) are amended to read as follows: 103
“(a) A courier license shall be required for a third party to deliver: 104
5

“(1) Medical cannabis, medical cannabis concentrates, medical cannabis-infused 105
products, or paraphernalia on behalf of a licensed medical cannabis retailer or internet retailer to 106
a qualifying patient or caregiver, as provided in section 7e(c)(6); 107
“(2) Medical cannabis, medical cannabis concentrates, medical cannabis-infused 108
products, or paraphernalia to a licensed medical cannabis business on behalf of another licensed 109
medical cannabis business if the transfer of the medical cannabis, medical cannabis concentrates, 110
medical cannabis-infused products, or paraphernalia between the businesses is authorized by this 111
act; or 112
“(3) Cannabis, THC, or medical cannabis beverages between a medical cannabis 113
beverage production endorsement holder and a licensed medical cannabis manufacturer, as 114
provided in D.C. Official Code § 25-132. 115
“(b) The services of a courier authorized by subsection (a) of this section may be 116
requested by telephone, internet, mobile application, or other electronic means.”. 117
(2) Subsection (c) is repealed. 118
(3) Subsections (d) and (e) are amended to read as follows: 119
“(d) A holder of a courier license shall, with respect to all deliveries: 120
“(1) Deliver only to the address provided by the qualifying patient, qualifying 121
patient’s caregiver, licensed medical cannabis business, or medical cannabis beverage production 122
endorsement holder; 123
“(2) Deliver only to a residential or commercial building address located in the 124
District that is not on District government or Federal property or on public or private school 125
grounds, with the exception of deliveries to qualifying patients or caregivers at colleges and 126
universities who are 21 years of age or older. 127
6

“(3) Travel only through the District of Columbia and not any surrounding 128
jurisdiction to make deliveries; 129
“(4) Abide by any rules posted by a landlord or property owner with respect to 130
prohibitions on cannabis deliveries on its property; 131
“(5) Abide by any rules issued by the Mayor concerning overnight storage of any 132
product, and store such product overnight only if necessary; 133
“(6) Use only its employees or independent contractors to make authorized 134
deliveries; 135
“(7) Abide by any rules issued by the Mayor concerning the operation and 136
number of vehicles allowed; 137
“(8) When a delivery to a licensed medical cannabis business, a qualifying 138
patient, or a qualifying patient’s caregiver is requested through the courier by a medical cannabis 139
licensed business, a qualifying patient, or qualifying patient’s caregiver that will receive the 140
order, require the individual or entity requesting the order to provide information necessary to 141
verify their qualifications to purchase and receive a delivery in accordance with this act and rules 142
issued in accordance with section 14. 143
“(e) In addition to the requirements in subsection (d) of this section, a holder of a courier 144
license shall, with respect to deliveries to a qualifying patient or the qualifying patient's 145
caregiver: 146
“(1) Abide by any rules issued by the Mayor concerning the frequency of 147
deliveries to a single patient or caregiver in a day, week, or month; 148
“(2) Not offer or provide curbside pick-up to qualifying patients or caregivers or 149
from a retailer or internet retailer; 150
7

“(3) Before transferring possession of the order to a qualifying patient or to a 151
qualifying patient’s caregiver, inspect the person’s government-issued identification card and 152
ABCA registration issued pursuant to this act to verify the identity of the individual, verify the 153
possession of a valid registration, and confirm that the information provided at the time the order 154
was placed matches the information listed on the government-issued identification card and 155
ABCA registration.”. 156
(4) Subsection (f) is repealed. 157
(5) Subsection (g) is amended to read as follows: 158
“(g)(1) A courier vehicle shall: 159
“(A) Contain a global positioning system (“GPS”) device that identifies 160
the geographic location of the courier vehicle and that shall: 161
“(i) Be either permanently or temporarily affixed to the courier 162
vehicle while the courier vehicle is in operation; and 163
“(ii) Remain active and in the possession of the delivery employee 164
at all times during the delivery; 165
“(B) Not bear any markings, images, words, or phrases that would indicate 166
the vehicle is used to deliver medical cannabis, including the name of the courier or cannabis-167
related related images; and 168
“(C) Have a secure, locked storage compartment for purposes of 169
transporting and securing cash used as payment and a separate secure, locked storage 170
compartment for purposes of transporting and securing medical cannabis and medical cannabis 171
products. 172
8

“(2) A holder of a courier license shall not store cash and medical cannabis or 173
medical cannabis products in the same storage compartments in a vehicle.”. 174
(c) A new section 6b is added to read as follows: 175
“Sec. 6b. Medical cannabinoids import endorsement. 176
“(a) The holder of a medical cannabis manufacturer license or medical cannabis 177
cultivation center license may apply to the Board for a medical cannabinoids import endorsement 178
to import cannabinoids into the District for the purpose of producing medical cannabis products 179
from a qualified import source. 180
“(b) The holder of a medical cannabinoids import endorsement shall not redistribute or 181
resell the imported cannabinoids to any third party but may distribute medical cannabis products 182
produced with or using any imported cannabinoid authorized under the endorsement to a medical 183
cannabis retailer or internet retailer licensed by the Board. 184
“(c) Cannabinoids imported by the holder of a medical cannabinoids import endorsement 185
shall: 186
“(1) Originate from a qualified import source; 187
“(2) Be in compliance with and permitted under federal law; 188
“(3) Contain 0% THC or a non-detectable amount of THC; 189
“(4) Be used exclusively for the production of medical cannabis products; 190
“(5) Be accompanied by a certificate of analysis from a District-licensed testing 191
laboratory verifying the absence of contaminants and THC before being imported into the 192
District of Columbia. 193
“(d) The holder of a medical cannabinoids import endorsement shall maintain records of 194
all importation transactions for a period of 5 years and make such records available for 195
9

inspection upon request by ABCA.” 196
“(e) The minimum annual fee for a medical cannabinoids import endorsement shall be 197
$1,000.”. 198
(d) Section 7e(c)(6) (D.C. Official Code 7-1671.06e(c)(6)) is amended by striking the 199
phrase “medical cannabis or medical cannabis products” and inserting the phrase “medical 200
cannabis, medical cannabis concentrates, medical cannabis-infused products, or medical 201
cannabis paraphernalia” in its place. 202
Sec. 4. Title 47 of the District of Columbia Official Code is amended as follows: 203
(a) Section 47-2002(a)(7) is amended by striking the phrase “medical marijuana” and 204
inserting the phrase “medical cannabis and medical cannabis products” in its place. 205
(b) Section 47-2202(a) is amended by adding a new paragraph (3D) to read as follows: 206
“(3D) The rate of tax shall be 6% of the gross receipts from the sale of or charges 207
for medical cannabis and medical cannabis products, as defined in § 7-1671.01.”. 208
Sec. 4. Fiscal impact statement. 209
The Council adopts the fiscal impact statement in the committee report as the fiscal 210
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 211
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 212
Sec. 6. Effective date. 213
This act shall take effect following approval by the Mayor (or in the event of veto by the 214
Mayor, action by the Council to override the veto), a 30-day period of congressional review as 215
provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 216
24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 217
Columbia Register. 218
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: October 8, 2025

SUBJECT: Fiscal Impact Statement – Medical Cannabis Beverage Product
Amendment Act of 2025

REFERENCE: Draft Bill as provided to the Office of Revenue Analysis on September
22, 2025

Conclusion

Funds are sufficient in the fiscal year 2026 through fiscal year 2029 budget and financial plan to
implement the bill.

Background

The Alcoholic Beverage and Cannabis Administration (ABCA) regulates and oversees the medical
cannabis program in the District of Columbia , including issuing patient cards, regulating medical
cannabis products, and enforcement of all laws related to medical cannabis.

The bill establishes a new medical cannabis beverage production license endorsement 1 for class A
and B alcoholic beverage manufacturer’s licensees. The licensees can obtain the new endorsement if
it wants to receive cannabis or THC from a licensed medical cannabis manufacturer for the purpose
of producing medical cannabis beverages, produce medical cannabis beverages, and deliver medical
cannabis beverages to the cannabis manufacturer through a licensed medical cannabis courier .
Medical cannabis beverages are liquids that contain medical cannabis and are designed for human
consumption. The alcoholic beverage manufacturer must enter into a written agreement with a
medical cannabis manufacturer and only transact cannabis products with that manufacturer. The bill
prohibits an alcoholic beverage manufacturer from including alcohol in any medical cannabis
beverages or delivering these beverages to any person or entity not covered by the written

1 The bill establishes a $500 fee for the endorsement.
The Honorable Phil Mendelson
FIS: “Medical Cannabis Beverage Product Amendment Act of 2025,” Draft Bill as provided to the Office of
Revenue Analysis on September 22, 2025
Page 2 of 2

agreement. The bill requires an entity with a medical cannabis beverage production license to comply
with the same testing, tracking, and reporting requirements as other participants in the in the
District’s medical cannabis program.2

The bill expands the authorizations for a licensed medical cannabis courier. Under the bill, a licensed
courier will be allowed to transport medical cannabis, medical cannabis concentrates, medical
cannabis-infused products, and medical cannabis paraphernalia between licensed medical cannabis
businesses when authorized by the medical cannabis program. The bill also allows a courier to
transport cannabis, THC,3 and medical cannabis beverages between a medical cannabis manufacturer
and an ABCA licensed business with a medical cannabis beverage production endorsement.

The bill establishes a new medical cannabis import endorsement to authorize a licensed medical
cannabis manufacturer or cultivation center to import cannabinoids from a qualified import source4
for the purpose of producing medical cannabis products. The bill requires the cannabinoids to meet
specific criteria related to sourcing, testing, and contents and requires a license endorsement holder
to maintain records for five years. The bill sets an annual endorsement fee of $1,000.

The bill ensures the six percent gross receipts tax rate on medical cannabis5 applies to both medical
cannabis and medical cannabis products.

Financial Plan Impact

Funds are sufficient in the fiscal year 2026 through fiscal year 2029 budget and financial plan to
implement the bill. The bill requires ABCA to establish two new endorsement categories. The first is
a medical cannabis beverage production endorsement for certain licensed alcoholic beverage
manufacturers. The second is a medical cannabis import endorsement for licensed medical cannabis
manufacturers and cultivation centers. ABCA expects that it will receive ten or fewer applications for
each of these new end orsement categories. ABCA will deposit endorsement fees for the beverage
production endorsement into the Alcoholic Beverage and Cannabis Administration Fund and fees for
the import endorsement into the Medical Cannabis Administration Fund.6 ABCA can absorb the cost
of establishing and enforcing the restrictions of these new endorsements within the agency’s existing
budgeted resources.

In fiscal year 2026, the gross receipts tax for medical cannabis and medical cannabis products is
dedicated to the Healthy DC and Health Care Expansion Fund.7 Beginning in fiscal year 2027, all
medical cannabis and medical cannabis product taxes will be deposited into the District’s General
Fund.

2 Legalization of Marijuana for Medical Treatment Amendment Act of 2010, effective July 27, 2010 (D.C. Law
18-210; D.C. Official Code § 7-1671.05).
3 The bill defines THC as tetrahydrocannabinol.
4 The bill defines a qualified import source as a medical cannabis facility licensed under federal or state law to
manufacture cannabinoids These manufacturers must comply with ABCA standards.
5 D.C. Official Code § 47-2002(a)(7); D.C. Official Code § 47-2202(a).
6 D.C. Official Code § 7-1671.08a.
7 Any amounts collected in fiscal year 2026, beyond what was certified for fiscal year 2026 in the fiscal year
2023 budget, are directed to the District’s General Fund. D.C. Official Code § 31-3514.02.
3
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE ATTORNEY GENERAL
BRIAN L. SCHWALB
ATTORNEY GENERAL
LEGAL COUNSEL DIVISION
M
EMORANDUM
TO
: Tomás Talamante
Director
Office of Policy and Legislative Affairs
FROM: Adele El-Khouri
Deputy Attorney General
Legal Counsel Division
DATE: September 19, 2025
SUBJECT: Legal Sufficiency Review of Draft “Medical Cannabis Beverage Product Amendment
Act of 2025”
(AE-25-484)
_____________________________________________________________________________________
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