Medical Cannabis Modernization Rulemaking Approval Resolution of 2025

MURIELBOWSERMAYOR
September24,2025
‘TheHonorablePhilMendelsonChairmanCounciloftheDistrictofColumbia
JohnA.WilsonBuilding1350PennsylvaniaAvenue,NW, Suite504Washington,DC 20004
DearChairmanMendelson
EnclosedforconsiderationandapprovalbytheCounciloftheDistrictofColumbiaisaproposedresolutionentitledthe“MedicalCannabisModernizationRulemakingApprovalResolutionof2025”.
TheproposedresolutionwouldapproveaproposedfinalrulemakingtoamendSubtitleC (MedicalMarijuana)ofTitle22(Health)oftheDistrictofColumbiaMunicipalRegulationsthattheDistrictofColumbiaAlcoholicBeverageandCannabisBoardvotedtoadoptonNovember11,2024byavoteoffive(5)tozero(0).
ThisrulemakingmodemizestheregulationsgoverningtheadministrationoftheDistrict’smedicalcannabisprograminseveralways.Specifically,therulemakingwouldcreateanewapplication,protest,andenforcementprocessformedicalcannabismodeledontreatmentofapplicationsforalcohollicensesand violationsof the District'salcohol laws by licenseesand non-licensees;update medical cannabis
patientpurchaselimitstoaccountfordifferenttypesofmedicalcannabisproducts;and,makeother
changesnecessarytotheoperationofanorderly,safe,andefficientmedicalcannabismarket.
Ifyouhaveanyquestionsonthismatter,pleasecontactDonovanAnderson,Chair,AlcoholicBeverageandCannabisBoard,at(202)442-4423.
Sincerely,
MbrielBolyser
Enclosure
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~~
at the request of the Mayor
A PROPOSED RESOLUTION
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To approve proposed final rules of the Alcoholic Beverage and Cannabis Board amending
Subtitle C of Title 22 of the District of Columbia Municipal Regulations.
RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
resolution may be cited as the "Medical Cannabis Modernization Rulemaking Approval
Resolution of 2025".
Sec. 2. Pursuant to section 14(b) of the Legalization of Marijuana for Medical Treatment
Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210; D.C . Official Code§ 7-
1671.13(b )), the Council of the District of Columbia approves the proposed final rulemaking of
the Alcoholic Beverage and Cannabis Board, to amend Subtitle C (Medical Marijuana) of Title
22 (Health) of the District of Columbia Municipal Regulations, which was transmitted by the
Mayor to the Council on September 24, 2025, and a notice of proposed rulemaking for which
was published in the District of Columbia Register on April 25, 2025, at 72 DCR 005051.
Sec. 3. Transmittal.
The Council of the District of Columbia shall transmit a copy of this resolution, upon its
adoption, to both the Mayor and the Chairperson of the Alcoholic Beverage Control Board.
Sec. 4. Fiscal impact statement.
1
2
The Council adopts the fiscal impact statement in the Chief Financial Officer as the fiscal 32
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 33
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a) 34
Sec. 5. Effective date. 35
This resolution shall take effect immediately. 36
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 13, 2025

SUBJECT: Fiscal Impact Statement – Medical Cannabis Modernization
Rulemaking Approval Resolution of 2025

REFERENCE: Draft Resolution as provided to the Office of Revenue Analysis on
August 4, 2025

Conclusion

Funds are sufficient in the proposed revised fiscal year 2025 budget and proposed fiscal year 2026
through fiscal year 2029 budget and financial plan to implement the resolution.

Background

The resolution approves a proposed rulemaking 1 by the A lcoholic Beverage and Cannabis
Administration (ABCA) that makes technical changes to regulations, polices, procedures, and
interpretations to align the regulation of medical cannabis with the regulation of alcohol . This
includes creating a proposed application process, protest and enforcement hearing process, and a
violation and penalty system based upon the District’s current alcohol laws and regulations.

Financial Plan Impact

Funds are sufficient in the proposed revised fiscal year 2025 budget and proposed fiscal year 2026
through fiscal year 2029 budget and financial plan to implement the resolution. ABCA can implement
the proposed rulemaking with current resources.

1 Pursuant to section 14(b) of the Legalization of Marijuana for Medical Treatment Initiative of 1999, effective
July 27, 2010 (D.C. Law 18-210; D.C. Official Code § 7-1671.13(b)).
1350 Pennsylvania Avenue, N.W., Suite 409, Washington, D.C. 20004
Phone (202) 262-6402 Email: adele.el-khouri@dc.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE ATTORNEY GENERAL
BRIAN L. SCHWALB
ATTORNEY GENERAL

LEGAL COUNSEL DIVISION
M
EMORANDUM
T
O: Jonathan Berman
Interim General Counsel
Alcoholic Beverage and Cannabis Administration
FROM: Adele El-Khouri
Deputy Attorney General
Legal Counsel Division
DATE: July 24, 2025
SUBJECT: Legal Sufficiency Review of Medical Cannabis Eighth Emergency Rulemaking
(AR-24-73 F)
_____________________________________________________________________________________
T
his memorandum responds to your request that t he Office of the Attorney General conduct a legal
sufficiency review of the above-referenced rulemaking.
T
his is the eighth round of rules that the Alcoholic Beverage and Cannabis Administration (“ABCA”) has
adopted, on an emergency basis, to comprehensively implement the Medical Cannabis Amendment Act of
2022 (“Act”),1 and subsequent statutory amendments, pursuant to its authority to issue regulations
governing the District’s medical cannabis program. 2 This eighth emergency rulemaking is substantively
and technically identical to the sixth rulemaking that we previously approved, and required only minor
adjustments to its Preamble. One of those adjustments was to clarify that part of the emergency
circumstances necessitating this emergency rulemaking was the steady pace of legislative amendments to
the medical cannabis program. You have advised us that the sixth emergency and proposed rulemaking
concerning medical cannabis—an omnibus rule substantially similar to this one—is pending OPLA review
for submission to the Council. T o avoid the significant legal concerns that would flow from the issuance
of a ninth emergency rulemaking,3 we advise that this sixth rulemaking be promptly submitted for Council
approval.
1 Effective Mar. 22, 2023 (D.C. Law 24-332; 70 DCR 1582).
2 See D.C. Official Code § 7-1671.13.
3 See id. § 2-505(c) (delineating when emergency rules may be issued); Office of Documents and Admin. Issuances,
Rulemaking Handbook and Publications Style Manual 13 (2023), available from https://www.dcregs.dc.gov/ (noting that delay
caused by “inaction by an agency” does not constitute a valid emergency).

2

The rulemaking, which incorporates changes we recommended and you approved, is legally sufficient. I
have attached a rulemaking transmittal form for your use. In keeping with the District of Columbia
Administrative Procedure Act, you should publish the rulemaking in the D.C. Register as quickly as
possible. If you have any questions regarding this memorandum, please contact Joshua A. Turner, Assistant
Attorney General, Legal Counsel Division, at (202) 442-9834, or me at (202) 262-6402.

AME/jat

1

ALCOHOLIC BEVERAGE AND CANNABIS BOARD
ALCOHOLIC BEVERAGE AND CANNABIS ADMINISTRATION

NOTICE OF FINAL RULEMAKING
as transmitted to the Council for its review and approval pursuant to section 14(b) of the
Legalization of Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010
(D.C. Law 18-210; D.C. Official Code § 7-1671.13(b))

The Alcoholic Beverage and Cannabis Board (“Board”), pursuant to Section 14 of the Legalization
of Marijuana for Medical Treatment Initiative of 1999, effective July 27, 2010 (D.C. Law 18-210;
D.C. Official Code § 7-1671.13); and Mayor’s Order 2020-099, dated September 30, 2020; hereby
gives notice of the adoption of the following amendments to Subtitle C (Medical Marijuana) of
Title 22 (Health) of the District of Columbia Municipal Regulations (“DCMR”).

PROCEDURAL HISTORY

On March 22, 2023, the Medical Cannabis Amendment Act of 2022, effective March 22, 2023
(D.C. Law 24- 332; D.C Official Code § 7- 1761.01 et seq.) (“Act”), took effect . Among other
changes, the Act allows qualifying patients to self -certify to participate in the Medical Cannabis
Program (“Program”), provides a mechanism for unlicensed cannabis businesses to obtain medical
cannabis facility licenses, creates new license categories and endorsements, creates various
benefits for qualified social equity applicants and medical cannabis certified business enterprises,
reforms the license application process, allows for Advisory Neighborhood Commissions to
protest the issuance of cultivation center, manufacturer, retailer, and internet retailer licenses, and
permits the Board to enforce section 1761 of Title 7 of the D.C. Official Code and Title 22- C of
the DCMR.

On April 12, 2023, the Board, by a vote of five (5) to one (1), approved a Notice of Emergency
and Proposed Rulemaking to implement the Act. As part of the implementation of the Act, the
Board adopted rules to implement a new license application protest process, enforcement
procedures, patient purchase limits, patient self -certification requirements, elaborate on
manufacturing and testing standards, and other changes to modernize the District’s medical
cannabis program in accordance with the requirements of the Act. The emergency rules were set
to expire on August 10, 2023. As part of its approval, the Board gave notice of its intent to adopt
the proposed rules as final rules, after submission to the Council for review.

On June 7, 2023, the Board held a public hearing and received extensive testimony on the
emergency and proposed rules. On August 9, 2023, the Board, by a vote of five (5) to zero (0),
enacted a Notice of S econd Emergency and P roposed rulemaking in response to the numerous
comments that were received.

The updated rulemaking also included changes resulting from the Medical Cannabis Clarification
and Non-Resident Patient Access Emergency Amendment Act of 2023, which took effect on July
31, 2023; the Medical Cannabis Clarification and Non- Resident Patient Access Temporary
Amendment Act of 2023, which took effect on November 28, 2023; and the Medical Cannabis
Clarification and Non-Resident Patient Access Temporary Amendment Act of 2024, effective
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November 27, 2024 (D.C. Law 25-225, 71 DCR 15779) (Clarification Act). The Clarification Act
makes temporary patient cards available to non-residents for periods other than 30 days, expands
the definition of a social equity applicant to include arrests and convictions of qualifying family
members related to drug-related offenses, and adds siblings and grandparents to the list of eligible
family members. The legislation clarifies that the 50 percent set aside requirement does not include
medical cannabis cu ltivation center, manufacturer, or retailer license applications that are
statutorily permitted to be filed with ABCA outside of an open application period. The legislation
further clarifies that the five cultivation center applicants that scored 150 points or more during
the prior open application period are automatically eligible to receive a manufacturer ’s license
provided they register with the Board and pay the annual fee . Finally, the legislation permits the
waiver of the application fee for testing laboratories, allows the issuance of conditional licenses to
testing laboratories, allows testing laboratories to test products submitted by qualifying patients
and caregivers, and allow s testing for the purposes of quality assurance and research and
development.

On December 6, 2023, by a vote of three (3) to zero (0), the Board approved a Notice of Third
Emergency and Proposed Rulemaking, which made amendments to the rules in order to comply
with the Medical Cannabis Patient Access Clarification Emergency Amendment Act of 2023,
effective October 30, 2023, (D.C. Act 25-276; 70 DCR 14480), and the Medical Cannabis Patient
Access Clarification Temporary Amendment Act of 2023, effective January 23, 2024 (D.C. Law
25-103; 70 DCR 15444). That emergency and proposed rule making also included changes
resulting from comments that were received regarding employee training requirements and
caregiver patient limits.

On April 3, 2024, the Board unanimously voted to approve a Notice of Fourth Emergency and
Proposed Rulemaking. Subsequently, on April 11, 2024, an amended version of th e fourth
emergency and proposed rule was adopted by unanimous vote of the Board to further clarify rules
related to the documents non- District residents must submit to retailers to qualify to purchase
medical cannabis. The Board adopted an amended version of the rule on April 11, 2024, because
the Board determined that the original proposed versions of subsections 503.7 and 503.8 failed to
provide a method for individuals who recently changed their place of residence and lack
identification from their new state at the time of purchase to participate in the program to comply
with the regulations . The rules were subsequently amended by the Board to allow patients to
comply by providing a completed written certification form from an authorized practitioner from
the state or jurisdiction where they currently reside. Thus, on April 11, 2024, in a 3- 0 vote, the
Board reconsidered and voted to replace the rules passed on April 3, 2024, with an amended
version of the rules.

On July 31, 2024, the Board, by a vote of three ( 3) to zero ( 0), approved a Notice of Fifth
Emergency and Proposed Rulemaking.

On November 20, 2024, the Board, by a vote of five (5) to zero (0), approved a Notice of Sixth
Emergency and Proposed Rulemaking.

On March 19, 2025, the Board, in a five (5) to zero (0) vote, approved the Notice of Seventh
Emergency Rulemaking.
3

Each rulemaking w as posted to the agency’s website while the rulemaking underwent legal
sufficiency review. The initial emergency rules were published on the agency’s website on April
12, 2023; the second emergency rulemaking was published on the agency’s website on August 11,
2023; the third emergency rulemaking was published on the agency’s website on December 11,
2023; the original fourth emergency rulemaking was published on the agency’s website on April
3, 2024; and the amended fourth emergency rulemaking was published on the agency’s website
on April 11, 2024. The fifth emergency rulemaking was published on the agency’s website on
July 31, 2024. The sixth emergency and proposed rulemaking was published on the agency
website on November 20, 2024. The seventh emergency and proposed rulemaking was published
on the agency’s website on March 20, 2025.

The Notice of Fifth Emergency and Proposed Rulemaking was published in the District of
Columbia Register on December 13, 2024, at 71 DCR 15088. The Notice of Sixth Emergency and
Proposed Rulemaking was published in the District of Columbia Register on April 25, 2025, at 72
DCR 5051.

PUBLIC COMMENTS

The Board has reviewed and duly considered the comments it received at the public hearing and
in writing. Below is a summary of those comments and the Board’s response in italics. The Board
notes that many commentators broadly supported the emergency and proposed regulations and
only took issue with a few aspects of the proposed rules. The Board’s responses, while largely the
same during the prior rulemakings , have been revised in light of changes made as part of the
rulemaking process.

Kinner & McGowan PLLC , the Generational Equity Movement, and other commentators
requested that the Board revise the rules to modify the social equity criteria; and refrain from
applying the 50 percent set aside to unlicensed establishments or delay implementation of the set
aside until a later date.

Response: The revised rulemaking has been amended to modify the social equity criteria based
upon recently enacted legislation. The other proposed changes require modification of the statute
and are beyond the scope of the Board’s authority to change by rulemaking. Of note, D.C. Official
Code § 7-1671.06a(e)(1) states that “At least half of all licenses issued to unlicensed
establishments shall be issued to social equity applicants.”

Kinner & McGowan PLLC, the Generational Equity Movement, and other commentators
requested that the Board eliminate consideration of unlicensed establishment applications on a first
come, first serve basis.

Applications must be considered in the order that they are filed because the statute requires that
unlicensed establishment applications be considered on a first in time basis pursuant to D.C.
Official Code § 7-1671.06a(d)(2). As a result, the Board cannot select different criteria.

Various public comments requested that the Board lower the purchase limit of medical cannabis
4

to an amount lower than 8 ounces.

ANC Commissioner Gwendolyn Lohse , ANC Commissioner Zach Adams , and other
commentators urged the agency to increase the minimum distance from schools to 400 feet as
required by the District’s alcohol laws, rather than 300 feet, as noted in the regulations.

The minimum distance requirement of 300 feet from schools and recreation centers was placed in
the regulations because it is required by D.C. Official Code § 7- 1671.06(q). The Board is not
authorized to change the statutory distance requirement by regulation. The Board notes that it is
still authorized to consider the appropriateness of an application for a proposed location that is
more than 300 feet from a school or recreation center notwithstanding the 300-feet threshold.

Antoine Pritchett, II, commented that the regulations unfairly prevent employees of licensees from
consuming medical cannabis on-site even though such consumption would be for medical
purposes.

On the issue of employee consumption of medical cannabis, the Board notes that permitting
employees to consume cannabis at a licensed medical cannabis facility in most cases would
require a change to D.C. Official Code § 7-1671.03(b). Nevertheless, if a retailer has a safe-use
treatment facility or summer garden, nothing prevents employees of a licensee from consuming
medical cannabis in that location in accordance with the rules of those facilities. The Board
reminds licensees that they remain responsible for the behavior of their employees if they are
intoxicated while working.

ANC Commissioner Jeffrey Rueckgauer expressed concern that unlike alcohol licenses, only
ANCs have been given the right to protest an application and no other groups have been given
standing to protest a license. Jen Brunenkant indicated that requiring notice to all ANCs in a Ward
was excessive.

On the issue of standing, the Board is aware that the standing requirement to protest a medical
cannabis license is different than the alcohol license process. Nevertheless, the Board has no
authority to change statutory standing requirements through rulemaking.

On the issue of requiring notice of an application to all ANCs within a Ward, the Board notes that
this requirement is mandated by the statute and cannot be altered by the Board.

ANC Commissioner Zach Adams requested that criminal background checks be eliminated for all
medical cannabis facility applicants.

On the issue of criminal background checks, the statute requires some consideration of an
applicant’s criminal background, and thus cannot be eliminated by regulation (D.C. Code § 7-
1671.06(u)). The Board notes that the proposed rules significantly limit the review as described
in D.C. Code § 7-1671.06(u).

Jen Brunenkant and Linda Greene suggested that insurance be required to cover medical cannabis
use in certain circumstances.
5

On the issue of requiring insurance coverage for medical cannabis, the Board notes that imposing
such a requirement goes beyond the scope of the Board’s authority.

Kinner & McGowan PLLC and other commentators asked the Board to modify the open
application timeline for unlicensed operators and stated that “ABCA has complete discretion over
the open application timeline.”

Response: Current law requires the Board to open the open application period for unlicensed
establishments no earlier than 180 days after the effective date of the Medical Cannabis
Amendment Act of 2022 and mandates that the period be open for 90 days. D.C. Official Code §
7-1671.06a(a)(1). The Board cannot shorten or extend the 90-day application period. The Board
further finds that the current start date for this application period is appropriate and best serves
the interests of the program and the public.

Kinner & McGowan PLLC requested that the rules address and permit the use of management
agreements.

Response: The Board agrees that the medical cannabis industry requires guidance on this common
business practice and the matter should be addressed by the rules. The rules have been revised to
adopt the current management agreement rulemaking requirements found in Title 25 of the D.C.
Official Code.

Advisory Neighborhood Commission (ANC) Commissioner Chander Jayaraman and other
commentators suggested that the Board delay the implementation of the safe-use treatment facility
and summer garden endorsement privileges based upon concerns regarding potential health and
nuisance concerns regarding smoke both inside and outside of the facility and its impact on
neighboring properties. ANC Commissioner Chuck Elkins, ANC 3D, and Laurence J. Schoen
requested that the Board include more technical requirements an d elici t more information
regarding the applicant’s plans to abate smoking nuisances in safe- use treatment facilities and
summer gardens. ANC 3D and ANC 3B further requested the elimination of the requirement that
windows and doors be closed and ANC 3B specifically requested that smoking be banned in
summer garden spaces. Jen Brunenkant commented that it was unreasonable to mandate that
summer garden holders prevent odor, smoke, and smells from entering private indoor space.

Response: The Board does not believe it is authorized to further delay the issuance of summer
garden permits since the law passed by the Council permits retailers to apply for a summer garden.
In writing the law, the Council can select the start date of when specific privileges become
available and the choice not to do so implies that the privilege is intended to be available as soon
as practicable.

Moreover, regarding potential impact on neighboring properties, a recent court case related to
cannabis smoke puts medical cannabis businesses on notice that their impact on neighboring
properties may subject them to injunction and liability and it is their responsibility to ensure that
they do not create a private nuisance. Josefa Ippolito -Shepherd v. Angella Farserotu, Case No.
2020 CA 004616 B, 28-34 (D.C. Super. Ct. Jun. 5, 2023). As a result, medical cannabis businesses
6

already have a legal obligation to ensure that smoke and smells from their business do not invade
separately owned indoor private space.

The Board does not agree that the requirement that windows and doors of the residence remain
closed should be eliminated because the requirement ensures that the odor or smoke nuisance is
pervasive and not a one-time or infrequent occurrence and that the resident has taken reasonable
means to secure their property from outdoor odors. Finally, unlike safe -use treatment facilities,
the legislation did not propose a specific standard regarding summer garden smoke emanating
into private outdoor space; as a result, the Board is limiting its regulation of odor, smells, and
smoke emanating from summer gardens to the nuisance standard set by the Ippolito-Shepard case,
as the appropriateness standard is generally influenced by nuisance law.

As to banning smoking entirely, as suggested by ANC 3B, the Board is not convinced that such an
across-the-board requirement is necessary. The Board notes that an ANC can argue that smoking
should be banned in a specific area during a protest and such a restriction could appear in a
settlement agreement, as noted in § 5445.11(c) . The ANC can also further argue for additional
restrictions and conditions related to odor, smoke, and smells, as noted in § 5421.5(d).

The Board is also not persuaded that additional technical requirements related to odor control
and smoke emanation need to be expounded in the regulations where D.C. Official Code § 7 -
1671.06c(c)(3) provides a clear standard for medical cannabis businesses to adhere to and the
failure to comply with this standard could subject a licensee to penalties, loss of privileges, and
conditions placed on the license. The Board also finds limiting the issuance of safe-use treatment
facility and summer garden privileges to a few licensees would be unfair to licensees. Also, any
delay to the issuance of such privileges is harmful to the interests of patients who need access to
a location to consume medical cannabis necessary for their treatment or condition. Additionally,
summer garden endorsement applications are subject to a 45-day public comment period with
notice provided to all ANCs in an affected ward where additional conditions or requirements can
be agreed upon with the ANC in a settlement agreement.

Finally, it should be further noted that implementing technical standards could result in a conflict
of law and authority between ABCA, the Department of Buildings, the Department of Health, and
the Department of Energy and Environment. Therefore, if technical requirements are warranted,
the Board prefers such requirements be undertaken by the appropriate agency that oversees the
specific discipline governed by the suggested technical requirement.

Advisory Neighborhood Commission (ANC) Commissioner Chander Jayaraman and other
commentators suggested that the renewal period for retailers not coincide with the renewal of on-
premises and tavern retail alcohol licenses. ANC Commissioner Jeffrey Rueckgauer requested
that the renewal period be two years rather than three years. Jen Brunenkant also asked how
existing licensees will be treated under the new renewal schedule.

Response: The rules have been amended to address ANC Commissioner Jayaraman’s concern by
not having the renewal period for medical cannabis retailers coincide with the on-premises
renewal period of alcohol retailers. The Board does not agree that the license renewal period
should be reduced to two years because two years is an insufficient period to assess the impact of
7

a licensee on the community and will be too burdensome for licensees, ANCs, and the agency. The
three-year time frame is also consistent with alcohol license renewals. Finally, existing licensees
will be subject to the new renewal calendar based on their license class so that all licenses of the
same class are renewed at the same time, similar to how alcohol licenses are renewed.

ANC Commissioner Gwendolyn Lohse, Rabbi James Kahn, and other commentators expressed
concerns about the maximum number of medical cannabis businesses that may be permitted. The
I-71 Committee and other commentators further expressed concerns about the potential maximum
number of licenses and the supply of medical cannabis available to businesses.

Response: The Board notes that the overconcentration of medical cannabis businesses and other
negative impacts are addressed through distance limitations between retailers, schools, recreation
centers, and protests against problematic licensees, which may consider overconcentration (22-C
DCMR § 5421.3). The set-aside requirement acts as a limit on the total number of licenses. Unlike
alcohol applications, medical cannabis applications may not be filed at any time but rather only
when the Board elects to schedule an open application period. As a result, there are adequate
tools in place in the law and regulations to address concerns regarding overconcentration.
Moreover, the same rules allowing the limitation of licenses may be activated if supply issues are
having a detrimental impact on patients. Finally, the Board finds that setting a limit on retail
licensees may discourage cultivation center applicants from applying because potential cultivator
applicants may deem the market too small to support their business.

ANC Commissioner Gwendolyn Lohse raised questions about how ABCA will verify ownership.

Response: This comment did not specify a specific regulation or concern regarding identifying or
verifying ownership that the regulations failed to address but rather raises questions about
operational issues. The application process is designed to elicit and confirm the ownership of the
applicant and the failure to disclose all required information regarding the ownership could result
in the denial or revocation of the license, as well as other penalties. The current application
process is based upon the same proce ss u sed for alcohol licenses and no specific concerns
regarding that process to elicit appropriate information about the ownership have been brought
to the Board’s attention to date . It should also be noted that all information submitted by
applicants may be subject to verification and investigation. I f there is a specific question
regarding ownership verification, such as a specific fact scenario, then such questions should be
addressed to ABCA or the Board for guidance or an advisory opinion.

If a third party has a concern regarding a specific ownership’s compliance, then that complaint
may be forwarded to ABCA’s Enforcement Division or the Board for investigation and review.
Finally, false statements regarding ownership made in the application may be punishable under
the criminal law. See, e.g., D.C. Code § 22-2405 (False Statements).

ANC Commissioner Gwendolyn Lohse and ANC Commissioner Jeffrey Rueckgauer suggest that
a licensed medical cannabis business may have a negative impact on traffic and parking due to
courier activities and therefore the Board should require a District Department of Transportation
(“DDOT”)-approved traffic control plan.

8

Response: Commentators did not establish that this requirement is necessary or that DDOT is
even mandated or willing to undertake such a requirement in the context of the medical cannabis
industry. If commentators are interested in having DDOT engage in traffic control related to pick
up and deliveries, then those comments and requests should be addressed to DDOT. Finally, the
Board notes that alcohol retailers and other businesses engage in similar pickup and delivery
activities related to food and beverage sales; yet, the Board is not aware of similar plan s being
requested or utilized for those types of businesses. Therefore, there is insufficient evidence in the
record that such a plan is warranted at this time.

ANC Commissioner Gwendolyn Lohse requested that the agency develop a verification process
related to out -of-state cannabis purchases by minors due to the risk of fraudulent parental
permission and to delay this part of the program.

Response: The Board agrees with the commentator that it is critical that medical cannabis
businesses avoid providing medical cannabis to unapproved minors. Medical cannabis facilities
cannot facilitate the purchase of cannabis by minors except under limited, statutorily approved
circumstances and with sufficient safeguards to ensure that the medical cannabis was duly
recommended by an authorized practitioner and with knowledge and permission of a parent or
guardian. The Board is not aware of any case of a minor forging their parent or guardian’s
approval to obtain access to the District or another state’s medical cannabis program.
Furthermore, any patient application filed with the agency is saved and ABCA can contact any
minor’s parents or legal guardians to confirm their approval and signatures, conduct its own
investigation of an application, and report the issue to law enforcement and child welfare
authorities for further investigation.

In addition, it should be noted that even though minors may participate in the program (1) minors
are not eligible for self-certification pursuant to D.C. Official Code § 7- 1671.02(c)(1)(A), which
is limited to persons 21 years of age and older; and (2) a minor may only register in the District’s
medical cannabis program if approved by their parent or guardian and with the recommendation
of an authorized practitioner in accordance with D.C. Official Code § 71671.02(e)(1)-(2) and 22-
C DCMR §§ 504.2 and 504.3. Finally, the Board emphasizes that it remains committed to ensuring
that licensed medical cannabis businesses do not distribute medical cannabis to unapproved
minors and that licensees that violate these rules may face severe sanctions.

Antoine Pritchett, II, indicated that rules related to adulterated cannabis should be amended to
remediate adulterated product and that testing occur before the product is in its finished state. He
also suggested that the Board look to the remediation rules adopted by Maryland.

Response: This comment is addressed by the Board’s adoption of testing and remediation rules in
the Notice of Emergency and Proposed Rules adopted by the Board and published in the District
of Columbia Register at 71 DCR 16357.

Antoine Pritchett, II, indicated concerns regarding the disclosure of fertilizers and nutrients to
testing facilities, which could threaten the cultivation centers intellectual property and recipes for
plant growth. Instead, Mr. Pritchett suggested adopting the nutrient management plan used by the
State of Maryland.
9

Response: Current law requires that testing labs test for the presence and concentration of
fertilizers and other nutrients; therefore, the regulations need to obtain this result.

Antoine Pritchett, II, indicated that leaf tissue sampling is too expensive and unnecessary.

Response: 22-C DCMR § 6510.2 does not require a “leaf tissue sample” and also permits other
tests that elicit the necessary information; therefore, licensees may elect a different testing method
if one is cheaper than a leaf tissue sample.

Antoine Pritchett, II, indicated the regulations permit a cultivation center to “only include the very
best and top colas for testing” which may skew the results.

Response: 22-C DCMR § 6503.1 requires that products be divided into “homogenous batches”;
therefore, if the actual product selected for testing is not sufficiently homogenous to the other
products in the batch, then this may be deemed a violation or an improper test.

Antoine Pritchett, II, suggested that the industry standard for measuring residual solvents should
be measured in parts per million (PPM) not milligrams per gram (mg per g).

Response: The microgram per gram standard for measuring residual solvents is used in
California, which renders the regulations in accord with one of the largest cannabis markets in
the United States on the issue of measuring residual solvents. ABCA will continue to study this
issue and may in the future develop alternative testing measures as practices develop. Mr.
Pritchett did not provide sufficient evidence that the proposed standard in his comment represents
the industry standard. Nevertheless, the Board is willing to consider such evidence if provided.

Antoine Pritchett, II and other commentators indicated that the proposed regulations need to
consider that Colorado’s cannabis limits are based on daily limits and not monthly limits like the
District. Antoine Pritchett, II, expressed concern that the regulations will encourage patients to
buy more edibles and disadvantage cultivation centers that primarily sell dried flower. Many
commentators expressed concern that the limit on concentrates and maximum THC limit was too
low to satisfy patient demand and need as part of managing treatment plans for various conditions.
Jen Brunenkant suggested that any problems regarding persons under 21 accessing concentrated
cannabis products could be addressed by requiring a practitioner recommendation.

Response: The rulemaking has been amended to address this concern regarding the use of
Colorado's cannabis purchase limits. The Board is willing to review the purchase limits in the
future if the purchase limits are having a negative impact on patients or the industry. The Board
will continue to study practices in other states and to review the concerns of patients, regulators,
and the medical community regarding this issue.

The Board agrees with public comments that the amount of medical cannabis concentrate that can
be possessed and consumed needs to be increased to reflect patient needs over a 30-day period
and that the prior limits contained in the first rulemaking did not consider that Colorado’s limits,
including limits in its medical cannabis program, are daily limits and not monthly limits. The
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Board also changed the total amount of medical cannabis products that may be purchased or
possessed in any form based upon the limits of Colorado’s medical cannabis program. The Board
notes that the medical cannabis concentrate limits for persons under 21 has been modified to take
into account that Colorado’s limits are daily limits and not monthly limits. The Board further
intends to leave in the medical cannabis concentrate limits for persons under 21 as the Board is
persuaded by the reasoning relied upon by Colorado in enacting the limitation to address the
health, safety and welfare of persons under 21.

Antoine Pritchett, II, expressed concern regarding the burden the submission of plans puts on
applicants and licensees.

Response: In the prior and current version of the rules, the Board has eliminated the requirement
to file various plans, which were part of the prior competitive application process, except for
security plans. In particular, the Board has eliminated the previously required staffing plan,
product safety and labeling plan, business plan, educational material plan, environmental plan,
cultivation plan, and the laboratory testing plan. The Board further notes that similar to the
District’s alcohol system, licensees will be permitted to change security plans by submitting them
to the Board to replace any existing plan on file.

Antoine Pritchett, II, expressed concern about whether his business is eligible for social equity
status.

Response: The Board cannot comment on whether a specific business is eligible for social equity
status as part of the rulemaking process. Nevertheless, an existing licensee is welcome to apply
to convert their existing license into a social equity license if they qualify for such status.

Antoine Pritchett, II, suggested that the Board should permit “tamper evident” packaging rather
than “tamper proof” packaging, which is cheaper for licensees.

Response: The revised rulemaking has been amended to allow for licensees to utilize either
“tamper proof” or “tamper evident” packaging that is difficult for children under 5 years of age
to open. The Board notes that tamper evident packaging is permitted in other jurisdictions such as
California and Maine. Cal. Bus. & Prof. Code § 26120; Me. Rev. Stat. tit. 22, § 2423-F.

Antoine Pritchett, II, and other commentators support the creation of a social equity advisory panel.
Kinner & McGowan PLLC and Linda Greene suggested creating a subcommittee on the Advisory
Committee comprised of medical cannabis licensees and industry stakeholders before November
1, 2023.

Response: There are adequate alternative means of providing advice and guidance to the agency
and the Board. The Board notes that any person or group may provide A proposed legislation,
rules, and other policy changes to the Board for consideration on its weekly agenda.

Rabbi James Kahn and Linda Greene support implementing temporary card changes earlier than
the proposed October 2, 2023, date.

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Response: The rulemaking was amended to implement the temporary card changes for non-
residents with an earlier date of Monday , September 25, 2023, during a prior emergency. The
current rules maintain this change.

Stephanie Kahn requested that the Board consider a workaround when ABCA is not open to
address problems registering new non-resident patients.

Response: The rulemaking significantly addresses this concern by creating non-resident cards that
are 90, 180, and 365 days in le ngth. Specifically, issues that have arisen for patients regularly
attempting to renew a 30-day non-resident card will be reduced as a result of patients being able
to obtain non-resident patient cards that are valid for up to 1 year.

Former Councilmember Yvette Alexander, on behalf of the D.C. Cannabis Trade Association,
requested a reduction in fees for temporary patient cards. Other commentators also supported such
a change.

Response: The rules reduce the fee for a 30- day temporary non-resident card from $30 to $20.
The rules also create a new less expensive 3-day card that is available for $10.

The D.C. Cannabis Trade Association and other commentators advocated for ABCA to conduct a
study as to the anticipated supply and demand of medical cannabis in order to inform the licensing
process.

Response: The proposed study falls outside the scope of the present rulemaking, but commentators
are welcome to submit suggested information and data that the Board should collect and consider
in making licensing and other policy decisions.

The D.C. Cannabis Trade Association recommended that internet retailers be limited to businesses
with brick-and-mortar locations.

Response: Additionally requiring internet retailers to operate a brick-and-mortar location would
require a legislative change as it appears contrary to the Council’s decision to create separate
license classes for retailer and internet retailer businesses and the statute prohibits an internet
retailer from operating an establishment open to the public. D.C. Official Code § 7-1671.06(a)(4).

The D.C. Cannabis Trade Association requested the elimination of the sliding scale discount report
required by the regulations. Norbert Pickett, Linda Greene, and Jen Brunenkant requested the
elimination of the sliding scale discount.

Response: The Board agrees to eliminate the sliding scale reporting requirement. Further
legislation would be required to eliminate the sliding scale discount program which is required by
statute; however, the Board understands that it is having a harmful impact on licensees serving
low-income neighborhoods.

Robin Walker Salas asked the Board to support providing additional education resources for
patients.
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Response: Production of such materials falls outside the scope of the rulemaking to implement the
legislation enacted by the Council, but commentators are welcome to suggest topics, data, and
information that should be generated or included in educational materials provided to patients or
posted on ABCA’s website or presented at community events for consideration.

ANC Commissioner Jeffrey Rueckgauer asked whether the 50 percent social equity set aside
requirement applied to the system as a whole or to specific areas.

Response: The 50 percent set aside requirement applies to each of the specific retailer, internet
retailer, courier, cultivation center, and manufacturer license categories. The 50 percent set aside
requirement does not apply to the overall number of medical cannabis business licenses issued as
a whole nor is it location dependent.

ANC Commissioner Jeffrey Rueckgauer requested that safe-use treatment facilities be required to
have someone on staff certified to provide medical aid present.

Response: The Board considered the request to have staff present with certified medical training
in medical cannabis consumption facilities; however, the Board is not aware of any other
jurisdiction having such a requirement or evidence that such a costly requirement is necessary for
the health, safety, and welfare of patients.

ANC Commissioner Jeffrey Rueckgauer requested that the smoking of cannabis products be
prohibited within 25 feet of the property.

Response: The Board considered the request to create a 25 foot no smoking requirement around
medical cannabis facilities; however, the Board does not have the authority to issue or enforce
rules governing the behavior of non- licensees in public space. It should be further noted that
public consumption of cannabis is already prohibited by law. D.C. Code § 48-911.01.

Barbara Biddle requested that the Board clarify the legality of hemp- derived food products and
industrial hemp products and liberalize rules related to hemp derived products. She further
suggested that the Board create licenses for cannabidiol (CBD) only businesses.

Response: Modifying the status of hemp derived products and cannabidiol (CBD) requires
additional legislation modifying the legal definition of cannabis under District law and cannot be
addressed by rulemaking. The Board agrees that this area of the law could benefit from
clarification.

Terrance White, Linda Greene, Grace Hyde and other commentators asked that the Board
liberalize its advertising and signage rules.

Response: The commentators have not clearly articulated any specific issue with current medical
cannabis advertising and signage rules. The Board requires additional feedback from
stakeholders as to any issues and concerns that they may have.

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Jen Brunenkant asked whether the revision to § 503.5 “implies that the internet retailer or retailer
does not need to retain a copy of the ABCA issued non-resident card and their government-issued
ID.”

Response: The amendment to Title 7 creates three categories of patients: (1) a District resident;
(2) a non-District resident registered in another state; and (3) a non-resident cardholder. Section
503.5 addresses the internet retailer and retailer’s document retention requirement regarding a
qualifying patient enrolled in another state’s medical cannabis program; therefore, the patient
may not have and is not required to have an ABCA issued card under that specific scenario, as
they will be able to present their own state-issued documents.

Jen Brunenkant asked to exempt THC syringes sold in 250 mg, 500 mg, and 2,500 mg sizes
similarly to how capsules and tinctures are exempted in § 5608.7.

Response: The Board has concerns regarding high THC products. As noted by the National
Institute on Drug Abuse (NIDA), high THC products “deliver extremely large amounts of THC to
the body, and their use has sent some people to the emergency room.” National Institute on Drug
Abuse, “Cannabis (Marijuana) DrugFacts,” available at https://nida.nih.gov/publications/
drugfacts/cannabis-marijuana (last visited Jul. 28, 2023). Furthermore, according to NIDA, high
THC products carry a risk of mental health issue s, including hallucinations, delusions, and
psychosis. Id. These products carry further risks to new and inexperienced patients because if
taken in edible form they may “consume more to feel the effects faster, leading to dangerous
results.” Id. Finally, “Higher THC levels may also mean a greater risk for addiction.” Id.

Nevertheless, in the case of non- injectable syringes, which is generally taken orally, the Board
will include them in the exemption for capsules and tinctures for two reasons. First, there is no
evidence at this time that persons under 21 years of age are abusing this specific category of
products or that this specific type of product is leading to harmful outcomes in other jurisdictions
or the District. And second, where it has been shown that these products have been on the market
for several years without objection from the Department of Health, the Board finds it appropriate
to “grandfather” or carve out an exemption to the regulation’s THC limits for this class of
products.

Jen Brunenkant suggested that § 504.2 add the word “foreign” to permit “international patients”
to participate in the medical cannabis program.

Response: This change is not needed as the term “ non-resident cardholder” as defined in D.C.
Code § 7-1671.01(13B) now includes the term “foreign country” and “foreign territory.”

Jen Brunenkant asked whether § 1001.4 requires the printing out of records if stored electronically.

Response: If a licensee elects to solely use electronic records there is no obligation to create
physical records. Electronic records may be transferred digitally or provided through the
submission of a digital storage device if required to be submitted to ABCA.

Jen Brunenkant commented that internet and retailer licenses should be limited to one per person
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to promote ownership diversity.

Response: The combined limit in the proposed rules not allowing a licensee to hold more than 3
retailer and internet retailer licenses is consistent with D.C. Code § 7- 1671.06(e)(1)(D), which
contains the very same restriction.

Jen Brunenkant asked that the spousal conflict of interest rule found at § 5424 be eliminated in
order to prevent spousal control of licenses as a way to collude to avoid the impact of the conflict-
of-interest rules.

Response: Section 5424 is adapted from Title 23 of the D.C. Official Code. The Board generally
opposes the adoption of rules and requirements that may violate the policy behind the D.C. Human
Rights Act. Therefore, the Board opposes prohibiting both spouses from holding separate licenses
because such a prohibition is inconsistent with District of Columbia policy as expressed by the
D.C. Human’s Right Acts prohibition on discrimination based on family relationships and marital
status. D.C. Official Code § 2-1501.01 (“Every individual shall have an equal opportunity to
participate fully in the economic, cultural and intellectual life of the District and to have an equal
opportunity to participate in all aspects of life . . . .”); D.C. Official Code § 2-1402.11. Section
5424 creates clear guidelines for situations when both spouses own separate licenses in order to
ensure compliance with existing law, and that without this section there would be no additional
requirements..

Jen Brunenkant commented that delivery drivers should be permitted to deliver to patients curbside
at their residence.

Response: Section 5624.7 allows for deliveries of medical cannabis to occur anywhere on the
resident’s property but not on public property, such as the sidewalk or curb. Current law requires
delivery to the qualifying patient’s address and not “on District government . . . property.” D.C.
Code § 7-1671.06E(a).

Jen Brunenkant expressed concern that the regulations do not indicate the legal responsibility of a
retailer or internet retailer when using a courier.

Response: Retailers and internet retailers may be liable for the violations of a courier when it is
shown the retailer engaged in a violation of a specific statute or regulation as part of the delivery
transaction. Questions regarding specific scenarios that require clarification should be addressed
to ABCA or the Board. The Board notes that in assessing the liability under the statute the Board
will consider how the statutory language assigns responsibility and may consider other general
legal principles if relevant such as vicarious liability or respondeat superior in administrative
enforcement actions on a fact-specific basis, but in general, the licensee is responsible for the acts
of its agents. This is especially true in a regulated industry where the Board’s powers to ensure
compliance are strongest over licensees.

Jen Brunenkant raised concerns regarding the curbside delivery camera requirement.

Response: The Board has eliminated the requirement formerly in § 5703.4(e) for curbside sales to
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be within view of the retailer’s security camera system because the requirement is of limited utility
when off-premise delivery is permitted without video recording being required, the sales are still
tracked through METRC, and there is a low risk of diversion where illegal cannabis is generally
cheaper than product sold through a licensed medical cannabis retailer.

Jen Brunenkant raised concerns regarding the regulation’s allowance for the use of a summary
suspension in the case of an assault on a government official in or around the establishment.

Response: The requirement in § 6203.2 mirrors a similar and long-standing authority in Title 25
of the D.C. Official Code governing the operation of the alcohol industry. The requirement is
necessary because an assault on a government official raises questions about the operation of and
the security measures in place at the medical cannabis facility . Furthermore, such a suspension
may be warranted to permit an appropriate investigation of the incident. The Board notes that
this type of suspension is short term and is subject to the right to an almost immediate hearing and
decision on the suspension. Further, this type of authority is also necessary where the on-premises
consumption of medical cannabis is now authorized by the additional safe -use treatment facility
and summer garden endorsements.

Lauren Berlekemp asked that the Board consider allowing patients to engage in testing at testing
labs. She further advocated for the creation of a public -private partnership to establish a testing
laboratory.

Response: Recent legislation passed by the Council allows for patient and caregiver testing at
testing labs and this version of the rulemaking addresses this new privilege enacted by D.C.
Official Code § 7 -1671.05(11A)(A). P ublic investment or partnership with a testing laboratory
likely would require the enactment of legislation authorizing such activity and appropriate funding
that falls outside the scope of the Board’s authority.

Phyto Cultivation requested that licensees should be permitted to provide their own training in lieu
of providing a Board-certified trainer due to the expense.

Response: Nothing in the current regulations prevents a licensee from creating their own program
for their own employees, having it certified by the Board, and then conducting their own in-house
training and certification under the program.

Phyto Cultivation requested that the Board adjust the definition of waste to allow for the disposal
of green waste.

Response: The matter of waste disposal requires additional study because waste disposal rules
are administered by a separate District Government agency and the transportation of medical
cannabis waste, even if no THC is present, may create interstate commerce and federal law issues
that need to be examined before any rule change to medical cannabis waste disposal can be
implemented.

Linda Greene requested that the Board eliminate the sales tax on medical cannabis.

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Response: The elimination of the 6% medical cannabis sales tax is outside the authority of the
Board and requires a statutory change.

Michael Bobo suggested that caregivers be permitted to assist an unlimited number of patients.

Response: The Board agrees that this limit does not serve the interests of patients, and the Board
has removed the previous limit of five (5) patients per caregiver.

Linda Greene, Camille Tindal, and others took issue with current mandatory training requirements
and suggested that the mandatory certified training of all employees be eliminated.

Response: The Board agrees with this change in part. The rules have been amended to only require
managers to obtain mandatory training once every t hree-years from a Board -approved certified
provider. Medical cannabis licensees are responsible for ensuring that their directors, officers,
members, incorporators, agents, and employees have received training on District law, medical
cannabis use, security and theft prevention once every three years; however, this training is not
required to be from a Board-approved certified provider. These changes will help to reduce costs
on the medical cannabis industry because the mandatory training can be provided in- house.
Managers are still being required to obtain training from a Board approved certified provider
once every three years because this position requires an additional level of knowledge to ensure
compliance with the medical cannabis laws and regulations and mirrors the requirement for
alcohol licensees.

FINAL RULEMAKING ACTION

The final rulemaking substantially adopts the proposed rules included in the Notice of Sixth
Emergency and Proposed Rulemaking without making any changes. For the purposes of clarity,
in this version of the rules, the Board provides the entire revised text of the amended regulations
in Chapters 64 and 65 of the final rulemaking.

On MONTH DAY, 2025, the Board voted XXX ( X) to YYY (Y) to adopt this proposed final
rulemaking for transmittal to the Council for its review and approval pursuant to D.C. Official
Code § 7-1671.13(b).

On MONTH DAY, 2025, the Mayor transmitted the proposed final rules to the Council for its
review and approval pursuant to the Medical Cannabis Technical Rulemaking Approval
Resolution of 2025 (P.R. 26-XXX). In accordance with D.C. Official Code § 7- 1671.13(b), “If
the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution,
within th[e] 30-day review period [excluding Saturdays, Sundays, legal holidays, a nd Council
recesses, after the Mayor submits the proposed final rules to the Council], the proposed rules shall
be deemed approved.”

[The Council not having taken action to approve or disapprove the proposed final rules before the
end of the 30-day review period, the proposed final rules were deemed approved by the Council
on MONTH DAY, 2025. / The Council voted to approve the Medical Cannabis Technical
Rulemaking Approval Resolution of 2025 on ------ ----, 2025.] As such, the rules are now ripe for
17

the Board to take final action. Therefore, on MONTH DAY, 2025, the Board voted XXX (X) to
YYY (Y) to adopt the rules as final.

These final rules shall take effect five (5) days after this Notice of Final Rulemaking is published
in the District of Columbia Register, and the final rules shall supersede the emergency rules that
were previously adopted by the Board and published in the District of Columbia Register on -----
-----, ---, at -- DCR -----, .

The rules are as follows:

Subtitle C, MEDICAL MARIJUANA, of Title 22, HEALTH, of the District of Columbia
Municipal Regulations, is amended as follows:

Strike the phrase “Alcoholic Beverage Regulation Administration” wherever it appears and insert
the phrase “Alcoholic Beverage and Cannabis Administration” in its place.

Strike the phrase “Alcoholic Beverage Control Board” wherever it appears and insert the phrase
“Alcoholic Beverage and Cannabis Board” in its place.

Strike the phrase “ABRA” wherever it appears and insert the phrase “ABCA” in its place.

Strike the word “marijuana” wherever it appears and insert the word “cannabis” in its place.

Strike the phrases “dispensary, cultivation center, or testing laboratory”; “cultivation center,
dispensary, or testing laboratory”; “cultivation center, or dispensary or testing laboratory”;
“cultivation centers, dispensaries, and testing laboratories”; “ cultivation center, dispensary, or
testing laboratory”; “ registered cultivation center, dispensary, or testing laboratory”; “cultivation
center or dispensary”; “dispensary, cultivation center or testing laboratory”; “registered cultivation
center or dispensary” wherever they appear and insert the phrase “medical cannabis business” or
“a medical cannabis business” in their places and as appropriate.

Strike the words “dispensary” or “a dispensary” where they appear and insert the phrases “internet
retailer or retailer” or “an internet retailer or retailer” in their respective places.

Strike the phrase “his or her” wherever it appears and insert the word “their” in its place.

The heading is amended to read as follows:

Subtitle C, MEDICAL CANNABIS

Chapter 1, DEPARTMENT OF HEALTH GENERAL PROVISIONS

Section 100, APPLICABILITY, is amended as follows:

Subsections 100.3 and 100.4 are repealed.

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A new section 101, SIGNATURE REQUIREMENTS, is added to read as follows:

101 SIGNATURE REQUIREMENTS

101.1 Where the Act or this subtitle requires a signature, the requirement shall be satisfied
by a wet ink signature, e-signature, digital signature, clickwrap signature, or any
other mark demonstrating an intent to sign unless a specific type of signature is
specifically required by the Act or this subtitle.

Chapter 2, CONDITIONS OF REGISTRATION, is amended as follows:

Section 200, GENERAL PROVISIONS, is amended as follows:

Subsection 200.4 is amended to read as follows:

200.4 The applications for a patient or caregiver registration shall specifically recite,
verbatim, each of the following notices:

(a) Limitation of Liability -- To the extent provided by Section 12 of the Act
(D.C. Official Code § 7 -1671.11), the District of Columbia shall not be
liable to the registrant, its employees, agents, business invitees, licensees,
customers, clients, family members or guests for any damage, injury,
accident, loss, compensation or claim, based on, arising out of, or resulting
from a person’s participation in the District of Columbia’s medical cannabis
program, including: any fire, robbery, theft, mysterious disappearance or
any other casualty; or injury arising from the use of medical cannabis
obtained through the program. This Limitation of Liability provision shall
survive expiration or the earlier termination of this registration if such
registration is granted; and

(b) Federal Prosecution -- The United States Congress has determined that
cannabis is a controlled substance and has placed cannabis in Schedule I of
the Controlled Substance Act. Growing, distributing, and possessing
cannabis in any capacity, other than as a part of a federally authorized
research program, is a violation of federal laws. The District of Columbia’s
law authorizing the District’s medical cannabis program will not excuse any
person from any violation of the federal laws governing cannabis or
authorize any person to violate federal laws.

Subsection 200.11(a) is amended to read as follows:

(a) Within forty-eight (48) hours after discovery, provide verbal notification
to the Board or the Board’s designee;

Chapter 3, USE OF MEDICAL MARIJUANA, is amended as follows:

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The heading is amended to read as follows:

Chapter 3, USE OF MEDICAL CANNABIS

Section 300, USE BY QUALIFYING PATIENT, TRANSPORTATION BY CAREGIVER,
AND LIMITATIONS ON MEDICAL MARIJUANA, is amended to read as follows:

300 MEDICAL USE OF CANNABIS

300.1 A qualifying patient shall only purchase, possess, and administer medical cannabis,
or use paraphernalia, for treatment of a qualifying medical or dental condition or
the side effects of a qualifying medical treatment after:

(a) Obtaining a signed, written recommendation from an authorized
practitioner within the last two (2) years in accordance with the Act,
except for individuals twenty-one (21) years of age and older, who shall
be permitted to self-certify on a form provided by ABCA that they are
utilizing cannabis for medical purposes as part of the registration process,
and registering with ABCA; or

(b) Enrolling in another jurisdiction’s medical cannabis program.

300.2 A qualifying patient or caregiver shall only purchase, possess, dispense, use,
administer, or assist in the administration of medical cannabis, medical cannabis
products, and paraphernalia obtained from an internet retailer or retailer licensed
with the Board. A qualifying patient or caregiver may purchase medical cannabis,
medical cannabis products, and paraphernalia at any internet retailer or retailer that
is licensed with the Board.

300.3 A qualifying patient or caregiver shall only transport medical cannabis and medical
cannabis products in a container or sealed package bearing the label received from
the internet retailer or retailer.

300.4 A qualifying patient or caregiver shall not use or administer medical cannabis or
medical cannabis products at a medical cannabis business, except that a qualifying
patient or caregiver may use or administer medical cannabis at a Board -approved
safe-use treatment facility, summer garden, or educational activity that occurs at a
licensed retailer.

300.5 Medical cannabis shall only be administered by or to a qualifying patient at:

(a) The qualifying patient’s residence, if permitted by the property owner;

(b) If permitted by the landlord, the residence of an individual who has given
permission to the qualifying patient to administer medical cannabis at their
residence;
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(c) A medical treatment facility when receiving medical care for a qualifying
medical or dental condition or a qualifying medical or dental treatment, if
permitted by the medical treatment facility;

(d) A Board -approved safe -use treatment facility, summer garden, or
educational activity that occurs at a licensed retailer; or

(e) To the extent consistent with federal law, a school where the qualifying
patient is enrolled, if the school has a policy in place for allowing the
administration of medication at school and medical cannabis is
administered in a non-smokeable form.

300.6 A qualifying patient who is a minor shall only purchase, possess, use, and
administer medical cannabis, medical cannabis products, and paraphernalia after
receiving: (1) a recommendation from an authorized practitioner and registering
with ABCA and (2) a signed, written statement from the minor’s parent or legal
guardian that is submitted with the minor’s ABCA registration. The signed, written
statement shall affirm that the parent or legal guardian:

(a) Understands the qualifying medical or dental condition or qualifying
medical or dental treatment of the minor;

(b) Understands the potential benefits and adverse effects of the use of medical
cannabis in general, and specifically, in the case of the minor;

(c) Consents to the use of medical cannabis for the minor’s qualifying medical
or dental condition or qualifying medical or dental treatment;

(d) Consents to, or designates another adult to, serve as the caregiver for the
minor qualifying patient; and

(e) Consents that the caregiver shall control the acquisition, possession, dosage,
and frequency of use of medical cannabis by the minor qualifying patient.

300.7 Nothing in the Act or this subtitle shall be construed as permitting a qualifying
patient to:

(a) Undertake any task under the influence of medical cannabis when doing so
would constitute negligence or professional malpractice; or

(b) Operate, navigate, or be in actual physical control of any motor vehicle,
scooter, bicycle, e-bike, aircraft, or motorboat while under the influence of
medical cannabis.

300.8 No qualifying patient or caregiver shall use butane or other explosive gases to
21

extract or separate resin from cannabis, or tetrahydrocannabinol from cannabis, or
in any other manner.

Section 301, BARRING NOTICES, is renumbered as Section 302.

A new section 301, MEDICAL CANNABIS POSSESSION AND PURCHASE LIMITS, is
added to read as follows:

301 MEDICAL CANNABIS POSSESSION AND PURCHASE LIMITS

301.1 The maximum amount of medical cannabis or medical cannabis products a
qualifying patient or caregiver may possess at any time or purchase from a licensed
internet retailer or retailer within a 30 -day period, whether individually or in
combination, is:

(a) Eight (8) ounces of dried medical cannabis; or

(b) Two hundred and forty (240) grams of medical cannabis concentrate for a
patient twenty-one (21) years old of age or older, or sixty (60) grams of
medical cannabis concentrate for a patient between eighteen (18) and
twenty (20) years old; or

(c) Medical cannabis products in any form containing a combined total of six
hundred thousand milligrams (600,000 mg) of THC.

Chapter 5, QUALIFYING PATIENTS, is amended as follows:

Section 500, QUALIFICATION FOR PATIENT REGISTRATION, is amended as follows:

Subsection 500.1(c) is amended to read as follows:

(c) Have a signed recommendation from an authorized practitioner , or if
twenty-one (21) years of age or older, self -certify on a form provided by
ABCA, for the use of medical cannabis meeting the requirements of this
chapter; and

Section 501, RESIDENCY, is amended as follows:

Subsection 501.2(b) is amended to read as follows:

(b) At least one (1) of the following items:

(1) A valid unexpired lease or rental agreement in the name of the
applicant on a District of Columbia residential property;

(2) A pay stub issued less than forty- five (45) days prior to the
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application date which shows evidence of the applicant’s
withholding of District income tax;

(3) Current official documentation of financial assistance received by
the applicant from the District Government including, but not
limited to Temporary Assistance for Needy Families (TANF),
Medicaid, the State Child Health Insurance Program (SCHIP),
Supplemental Security Income (SSI), housing assistance, or other
governmental programs;

(4) A current motor vehicle registration in the name of the applicant
evidencing District residency;

(5) A valid unexpired District motor vehicle operator’s permit or other
official non-driver identification in the name of the applicant;

(6) Bank statements, utility bills, and telephone bills, including cell
phone bills from a period within the two (2) months immediately
preceding the application date in the name of the applicant on a
District of Columbia residential address; or

(7) Any other document that, in the judgment of the Board,
demonstrates that the applicant is a current resident.

Section 502, QUALIFYING PATIENTS APPLICATION, is amended as follows:

Subsection 502.1(e) is amended to read as follows:

(e) Either a signed and dated authorized practitioner’s recommendation for the
use of medical cannabis meeting the requirements of this chapter, that is
dated not more than two (2) years prior to the application date, or a signed
ABCA self-certification form;

Section 503, NONRESIDENT QUALIFYING PATIENTS, is amended as follows:

Subsection 503.1 is amended to read as follows:

503.1 Before dispensing medical cannabis to a nonresident qualifying patient, a registered
internet retailer or retailer shall:

(a) Verify the nonresident qualifying patient’s identity through comparison of
their unexpired government-issued identification card and either their
temporary medical cannabis patient card issued by ABCA or a valid,
unexpired nonresident patient card or state-issued or U.S. territory-issued
document from the jurisdiction that the patient resides; and

23

(b) Confirm through the real -time electronic records system that the
nonresident qualifying patient has not reached the allowable medical
cannabis purchase limits for the thirty (30)-day period.

Subsection 503.2 is amended to read as follows:

503.2 An internet retailer or retailer shall not dispense medical cannabis to a nonresident
qualifying patient that does not hold either a temporary medical cannabis patient
card issued by ABCA or a valid unexpired nonresident patient card or state-issued
or U.S. territory-issued document from the jurisdiction that the patient resides.

Subsection 503.3 is repealed.

Subsection 503.4 is amended to read as follows:
503.4 A licensed internet retailer or retailer shall not dispense medical cannabis to a
nonresident qualifying patient if ABCA determines that there is a shortage of
medical cannabis, or the real-time electronic records system is inactive.

Subsection 503.5 is amended to read as follows:

503.5 In the case of purchase by a nonresident qualifying patient that does not hold a
temporary medical cannabis patient card issued by ABCA, the internet retailer or
retailer shall retain a copy of both the nonresident patient card or state-issued or
U.S. territory-issued document, and a copy of the government-issued identification
card.

New subsections 503.7 and 503.8 are added to read as follows:

503.7 Notwithstanding § 503.1(a) and § 503.2, an internet retailer or retailer may satisfy
§ 503.1(a) and § 503.2 and dispense medical cannabis and medical cannabis
products to a nonresident patient by verifying the nonresident patient’s identity
through a comparison of:

(a) An unexpired government-issued identification card of the patient;

(b) If required by the issuing jurisdiction, proof of residency in the other
jurisdiction, along with any other document necessary to prove enrollment
in the other jurisdiction’s program; and

(c) A written certification form issued by the patient’s state or jurisdiction of
residence that has been completed by an authorized practitioner provided
the state or jurisdiction’s written certification form contains:

(1) The name, address, and telephone number of the practitioner;

(2) The name of the qualifying patient presenting the written
24

certification form;

(3) The date the certification form was issued by the practitioner;

(4) The signature or electronic signature of the practitioner; and

(5) Confirmation that the authorized practitioner has determined that
medical cannabis is appropriate for the treatment of a qualifying
medical or dental condition or a side effect of a qualifying medical
or dental treatment, that is consistent with the standard of care in
that jurisdiction.

503.8 In the case of purchase by a nonresident qualifying patient utilizing a written
certification form issued by another state or jurisdiction that has been completed by
an authorized practitioner, the internet retailer or retailer shall use the number on
the unexpired government issued identification card as the non- resident’s patient
number.

New sections 504 and 505 are added to read as follows:

504 TEMPORARY NON-RESIDENT MEDICAL CANNABIS PATIENT CARD

504.1 A non- resident qualifying patient visiting the District of Columbia may apply to
ABCA to receive a temporary non -resident medical cannabis patient card that is
either 3 days, 30 days, 90 days, 180 days or 365 days in length.

504.2 To apply for a temporary non-resident medical cannabis patient card, an applicant
shall submit a complete application to ABCA on the required forms, which shall
include:

(a) The applicant’s full legal name and date of birth;

(b) One (1) recent passport-type photograph of the applicant’s face measuring
two inches by two inches (2 in. x 2 in.), which clearly expose the area from
the top of the forehead to the bottom of the chin;

(c) One (1) clear photocopy of a photo ID issued by a U.S. state, U.S. territory,
the District of Columbia , or a foreign government- , such as a driver’s
license or passport, as proof of identity;

(d) A signed and dated written authorized practitioner’s recommendation for
the use of medical cannabis meeting the requirements of this chapter, that
is dated not more than two (2) years prior to the application date, except for
individuals twenty-one (21) years of age and older, who shall be permitted
to self-certify on a form provided by ABCA that they are utilizing cannabis
for medical purposes as part of their application;
25

(e) Designation of the individual who will serve as the patient’s caregiver, if
applicable; and

(f) Payment of the required application fee.

504.3 An applicant applying for a temporary non-resident medical cannabis patient card
who is a minor shall further provide that the application is completed by the parent
or legal guardian of the minor, and includes

(a) All of the information required by S ection 504.2; and

(b) A signed written statement from the minor’s parent or legal guardian
attesting to the information set forth in § 300.6.

504.4 A minor shall not be issued a temporary non-resident medical cannabis patient card
until a registered caregiver is designated on the application and the caregiver has
been issued a medical cannabis caregiver registration card from ABCA.

504.5 After the expiration of a temporary non-resident medical cannabis patient card, the
nonresident cardholder may apply to ABCA to be issued another temporary non-
resident identification card.

505 SELF-CERTIFICATION FORM

505.1 The ABCA Self-Certification Form shall require the following information:

(a) Name;

(b) Address;

(c) Date of Birth;

(d) Age; and

(e) W hether the applicant has any condition for which treatment with medical
cannabis would be beneficial, as determined by an authorized practitioner ,
or is undertaking a qualifying medical or dental treatment.

505.2 The ABCA Self-Certification Form shall require the qualifying patient to make the
certifications required by D.C. Official Code §§ 7–1671.02(c) and 7-1671.05(b)(3).

505.3 Any qualifying patient registration card containing a self-certification form that was
issued to a person under the age of twenty-one (21) or who has otherwise falsified
information contained in the self-certification form shall be revoked.

26

505.4 If the Board has cause to believe that a self-certification form is false or otherwise
filed in violation of this t itle or this subtitle, the Board may require the qualifying
patient to demonstrate through the submission of evidence that the self-certification
is valid.

505.5 A qualifying patient required to submit proof of their self -certification shall have
15 calendar days unless extended by the Board to file appropriate documentation
of their condition or treatment. If the qualifying patient fails to respond, then the
Board may immediately revoke their registration.

Chapter 6, CAREGIVERS, is amended as follows:

Section 601, CAREGIVER QUALIFICATIONS, is amended as follows:

Subsections 601.1(c) and 601.1(d) are amended to read as follows:

(c) Not previously had its registration revoked by the Board to serve as a
caregiver; and

(d) Be at least eighteen (18) years of age.

Subsection 601.1(e) is repealed.

Section 602, CAREGIVER APPLICATION, is amended as follows:

Subsection 602.1(b) is amended by striking the phrase “Two recent passport type photographs”
and inserting the phrase “One (1) recent passport-type photograph” in its place.

Subsections 602.1(c) and 602.1(d) are amended to read as follows:

(c) One (1) clear photocopy of a photo ID issued by a U.S. state, U.S. territory,
the District of Columbia, or a foreign government-, such as a driver’s
license or passport, as proof of identity; and

(d) The caregiver’s residential address, which shall not be a post office box
number.

Subsection 602.1(e) is repealed.

Subsection 602.1(f) is repealed.

Subsection 602.2 is repealed.

Section 603, MARIJUANA OBTAINED FROM DESIGNATED DISPENSARY, is amended
as follows:

27

The heading is amended to read as follows:

603 MEDICAL CANNABIS OBTAINED FROM INTERNET RETAILER OR
RETAILER

Subsection 603.1(b) is amended to read as follows:

(b) Purchase medical cannabis from unlicensed sources; or

CHAPTER 7, REGISTRATION CARDS, is amended as follows:

Section 700, ISSUANCE OF REGISTRATION CARDS, is amended as follows:

Subsection 700.2 is amended to read as follows:

700.2 A registration identification card issued pursuant to this chapter shall expire two (2)
years after the date of issuance and may be renewed in accordance with the renewal
provisions under this chapter. Upon receipt of a complete application, ABCA shall
issue the applicant a temporary patient registration card that shall be valid for thirty
(30) days.

Section 701, CONTENTS OF REGISTRATION CARDS, is amended to read as follows:

Subsection 701.1(f) is amended to read as follows:

(f) The District of Columbia medical license number of the recommending
physician, if the qualifying patient is a minor.

Subsection 701.2(f) is amended to read as follows:

(f) The District of Columbia medical license number of the recommending
physician, if the qualifying patient is a minor.

Section 702, RENEWAL OF REGISTRATION CARDS, is amended as follows:

Subsection 702.1(a)(3) is amended to read as follows:

(3) A signed and dated written recommendation from an authorized
practitioner for the use of medical cannabis meeting the
requirements of this chapter, that is dated not more than two (2)
years prior to the application date or, for patients twenty-one (21)
years of age and older, a signed ABCA self-certification form; and

Subsection 702.2(c) is amended to read as follows:

(c) A signed and dated written recommendation from an authorized practitioner
28

for the use of medical cannabis meeting the requirements of this chapter,
that is dated not more than two (2) years prior to the application date or, for
patients twenty-one ( 21) years of age and older, a signed ABCA self -
certification form;

Chapter 8, RECOMMENDING AUTHORIZED PRACTITIONERS, is amended as follows:

The heading is amended to read as follows:

Chapter 8 AUTHORIZED PRACTITIONERS

Section 801, FORM OF RECOMMENDATION, is amended follows:

Section 801.1(h) is amended to read as follows:

(h) The authorized practitioner’s signature and date.

Section 801.1.(i) is amended to read as follows:

(i) The qualifying patient's signed consent for the release of medical or dental
information related to the patient's qualifying medical or dental condition
or treatment.

Section 803, NO OFFICE AT A DISPENSARY, CULTIVATION CENTER, OR TESTING
LABORATORY, is amended as follows:

The heading is amended to read as follows:

803 PROHIBITED OFFICE LOCATIONS

Chapter 10, ENFORCEMENT ACTIONS, is amended as follows:

The heading is amended to read as follows:

Chapter 10 ENFORCEMENT

Section 1000, COMPLAINTS AGAINST PATIENTS, CAREGIVERS OR
RECOMMENDING AUTHORIZED PHYSICIANS, is amended to read as follows:

1000 ENFORCEMENT AUTHORITY

1000.1 The Board and ABCA shall have the authority to enforce the provisions of the Act
and this subtitle with respect to licensees, any premises where an application
pursuant to the Act has been filed, and unlicensed establishments.

1000.2 ABCA investigators may issue citations for civil violations of the Act and this
29

subtitle that are set forth in the schedule of civil penalties.

1000.3 A citation for any violation for which the penalty includes the suspension of a
license shall be issued under the direct authority of the Board as a result of an
investigation carried out by ABCA investigators.

1000.4 Violations committed by an unlicensed person selling cannabis in violation of the
provisions of the Act and the regulations may be referred by the Board to the Office
of the Attorney General for investigation and prosecution.

1000.5 ABCA investigators may request and check the identification of a patient or
caregiver inside of or attempting to enter a licensed medical cannabis facility.
ABCA investigators may seize evidence that substantiates a violation under the Act
and the regulations, which may include seizing cannabis and cannabis products sold
to unregistered minors and unauthorized persons and fake identification documents
used by minors and other unauthorized persons to register or be licensed with
ABCA.

1000.6 ABCA investigators may seize a medical cannabis license or registration from an
establishment or individual if:

(a) The license has been suspended, revoked, or cancelled by the Board;

(b) The license has expired;

(c) The license has been tampered with, altered, belongs to another person, or
otherwise used in a fraudulent manner;

(d) The medical cannabis facility is no longer in existence; or

(e) The medical cannabis facility has been closed by another District
government agency.

1000.7 ABCA investigators are authorized to conduct announced and unannounced, as
well as undercover, inspections and investigations of all licensees and any premises
where an application for licensure has been filed.

Section 1001, [REPEALED], is amended to read as follows:

1001 EXAMINATION OF PREMISES AND BOOKS AND RECORDS

1001.1 An applicant for a license, and each licensee, shall allow an ABCA investigator or
any member of ABCA’s enforcement division a full opportunity to examine, at any
time during business hours:

(a) The premises where medical cannabis or medical cannabis products are
30

cultivated, manufactured, kept, sold, delivered, tested, or consumed for
which an application for a license or endorsement has been made or for
which a license or endorsement has been issued; and

(b) The books and records of the business for which an application for a license
has been made or for which a license has been issued. This shall include
the license holder’s confidential records, including those related to
qualifying patients, nonresident qualifying patients, caregivers, and
authorized practitioners.

1001.2 ABCA investigators shall examine the premises and books and records of each
licensed medical cannabis facility in the District at least once each year. The
investigators shall make reasonable efforts to ensure that the licensee will know in
advance the date of the inspection.

1001.3 All books and records required to be maintained by a licensee shall be maintained
at the licensed premises unless a separate location in the District is approved by the
Board.

1001.4 Notwithstanding § 1001.3, a medical cannabis facility may store its books and
records electronically; provided that they provide the ABCA investigator, or
another employee of ABCA’s enforcement division with access to the electronic
records during normal business hours and produce the physical books and records
within forty-eight (48) hours of notice of an inspection.

Section 1002, REVOCATION, SUSPENSION, OR FINES – GENERAL PROVISIONS, is
amended to read as follows:

1002 NOTICE OF INVESTIGATIVE REPORTS

1002.1 ABCA shall provide a licensee with an ABCA investigative report that may result
in a show -cause civil enforcement hearing by ABCA within 90 days of the date
upon which the incident occurred.

1002.2 The requirement in subsection § 1002.1 of this section shall be stayed if the report
is referred to another federal, state, or District agency for investigation and such
investigation remains pending.

1002.3 A licensee that has not received an investigative report in compliance with § 1002.1
may petition the Board to obtain a copy of the document.

Section 1003, NOTICE OF CONTEMPLATED ACTION AND HEARING, is amended to
read as follows:

1003 AUTHORIZATION TO ISSUE FINES, SUSPEND, AND REVOKE
LICENSES
31

1003.1 The Board may fine, as set forth in the schedule of civil penalties, and suspend or
revoke the license of, any licensee during the license period if the licensee violates
any provision of the Act or this subtitle.

Section 1004, NOTICE OF SUMMARY SUSPENSION OR REVOCATION ACTION AND
HEARING, is amended to read as follows:

1004 GENERAL VIOLATIONS

1004.1 It shall be a violation when:

(a) The licensee violates any of the provisions of the Act or this subtitle;

(b) The licensee fails to superintend in person, or through a manager approved
by the Board, the facility for which the license was issued;

(c) The licensee interferes or fails to cooperate with an ABCA investigation;

(d) The licensee fails to follow its settlement agreement;

(e) The licensee fails to follow its security plan or other plan submitted as part
of its license application;

(f) The licensee fails to follow a Board order or condition;

(g) The licensee fails to follow the terms of its license approved by the Board;

(h) The licensee purposely or knowingly destroys evidence of a crime;

(i) The licensee directly or indirectly gives, offers, or promises anything of
value to an ABCA investigator, or offers or promises any ABCA
investigator to give anything of value to any other person or entity, with the
intent to:

(1) Influence any official act or investigation;

(2) Influence an ABCA investigator to commit or aid in committing,
collude in, or allow any fraud on the Board; or

(3) Induce an ABCA investigator to do or omit to do any act in violation
of the lawful duty of the ABCA investigator; or

(j) The licensee knowingly tampers with evidence. For purposes of this
paragraph, the term “tampers with evidence” means any action that
destroys, alters, conceals, or falsifies any sort of evidence.
32

New sections 1005, 1006, 1007, 1008, 1009, and 1010 are added to read as follows:

1005 UNLAWFUL AND DISORDERLY PURPOSE VIOLATION

1005.1 It shall be a violation for the licensee to allow the licensed establishment to be used
for any unlawful purpose contrary to District law.

1005.2 A single incident of criminal assault as defined in Chapter 4 of Title 22 of the D.C.
Official Code, criminal sexual abuse as defined in Chapter 30 of Title 22 of the
D.C. Official Code, or crime of violence as defined in D.C. Official Code § 23-
1331(4) shall be sufficient to prove a violation of subsection 1005.1 of this section;
provided, that the licensee has engaged in a method of operation that is conducive
to unlawful or disorderly conduct.

1005.3 A violation of 1005.1 shall not require the showing of a criminal conviction but
only substantial evidence that the criminal conduct occurred.

1006 [ RESERVED]

1007 PROHIBITION ON UNAUTHORIZED SALES

1007.1 A licensee shall not deliver, dispense, give, sell, or serve medical cannabis, medical
cannabis products, or paraphernalia to the following persons at the time of
purchase:

(a) A person who is not a registered qualifying patient, caregiver, or otherwise
authorized to purchase medical cannabis, medical cannabis products, or
paraphernalia; or

(b) A minor unless the person holds a valid and unexpired medical cannabis
patient card issued by ABCA or another jurisdiction and is accompanied by
a parent or legal guardian.

1007.2 No licensee shall permit the possession or consumption of medical cannabis or
medical cannabis products by a minor at the licensed facility unless the minor:

(a) is a qualifying patient at a Board- approved safe -use treatment facility,
summer garden, or educational activity;

(b) Holds a valid and unexpired medical cannabis patient card issued by ABCA
or another jurisdiction; and

(c) Is accompanied by a parent or legal guardian.

1007.3 Any stayed suspension days imposed by the Board shall activate and be served by
33

the licensee upon a finding by the Board that the licensee has committed another
violation of this section within one year of the date that the violation that resulted
in the stayed suspension was adjudicated.

1007.4 It shall be an affirmative defense to a charge under this section that the licensee or
the licensee’s agent was shown and inspected a fake or fraudulent identification
document from the patient of such quality, and that lacked any of the indicia of a
fake or fraudulent identification document, that a reasonable person would believe
that it was valid. For the purposes of this subsection, if at the time of inspection,
any of the following were present, the presumption shall be that a reasonable person
would not believe that the identification document shown by the patient or the
patient’s caregiver was valid:

(a) The identification was visibly damaged;

(b) The identification lacked the physical materials or features of the valid
identification being imitated;

(c) The photograph contained in the identification that was shown did not
match the bearer;

(d) The identification is displayed past the printed expiration date; or

(e) The licensee or their agent knew or had reason to know the person who self-
certified to obtain a patient registration card from ABCA was under the age
of twenty-one (21).

1008 ILLEGAL CONSUMPTION

1008.1 A licensee that does not hold a safe-use treatment facility endorsement, summer
garden, or an education tasting endorsement shall not allow any person to consume,
inhale, or otherwise use medical cannabis or medical cannabis products on the
premises or possess medical cannabis or medical cannabis products on the premises
in an open or unsealed container.

1009 OPEN CONTAINERS

1009.1 No licensee shall knowingly permit a person to leave the premises with an open or
unsealed container of medical cannabis or medical cannabis products.

1010 MANDATORY REVOCATION

1010.1 The Board shall revoke the license of a licensee as a result of any of the following
events during the period for which the license was issued:

(a) The licensee has been convicted of multiple violations of the terms of the
34

Act or this title in accordance with 22-C DCMR § 6301.1(e);

(b) The licensee has knowingly permitted, in the licensed establishment:

(1) The illegal sale, or negotiations for sale, or the use, of any controlled
substance identified in the Controlled Substances Act; or

(2) The possession, other than for personal use, or sale, or negotiations
for sale, of drug paraphernalia in violation of the Controlled
Substances Act or the Drug Paraphernalia Act of 1982, effective
September 17, 1982 (D.C. Law 4-149; D.C. Official Code § 48-1101
et seq.), except for medical cannabis, medical cannabis products,
and medical cannabis paraphernalia;

(c) The licensee has been convicted of a felony after the issuance of the license
if the felony constitutes a crime of violence, a gun offense, tax evasion,
fraud, or credit card fraud; or

(d) The licensee has been convicted of assaulting an ABCA investigator or
other District government official while the investigator or other official
was conducting an investigation or performing other governmental
functions.

1010.2 For the purposes of this section:

(a) The term “personal use” means the possession of drug paraphernalia in
circumstances where there is no evidence of an intent to distribute or
manufacture a controlled substance; and

(b) Successive sales or negotiations for sale shall be deemed evidence of
knowing permission.
Chapter 12, INVESTIGATIONS AND INSPECTIONS, is amended to read as follows:

Chapter 12 RESERVED

Chapter 13, FEES, is amended as follows:

Section 1300, REGISTRATION, RENEWAL, AND REPLACEMENT FEES, is amended to
read as follows:

1300 PATIENT AND CAREGIVER REGISTRATION FEES

1300.1 The registration, renewal , and replacement fees for a two (2) year patient or
caregiver registration or other patient card are as follows:

(a) Initial registration fee for a qualifying patient - $0.00;
35

(b) Initial registration fee for a caregiver - $0.00;

(c) Renewal fee for a qualifying patient - $0.00;

(d) Renewal fee for a caregiver - $0.00;

(e) Replacement card fee - $10.00;

(f) The fee for a physical patient or caregiver registration card beginning on
August 11, 2023 - $10.00;

(g) The fee for a 30-day temporary non-resident medical cannabis patient card
shall be $30.00 until September 24, 2023;

(h) Beginning on September 25 , 2023, the fees for a temporary non- resident
medical cannabis patient card fee are as follows:

(1) Temporary non-resident medical cannabis patient card fee (3 days)
- $10.00;

(2) Temporary non-resident medical cannabis patient card fee (30 days)
- $20.00;

(3) Temporary non-resident medical cannabis patient card fee (90 days)
- $50.00;

(4) Temporary non- resident medical cannabis patient card fee (180
days) - $75.00; and

(5) Temporary non- resident medical cannabis patient card fee (365
days) - $100.00.

1300.2 Notwithstanding the initial or renewal application fees for a qualifying patient set
forth in § 1300.1(a)-(d), a qualifying patient who files an initial or renewal
application by August 10, 2023, shall receive a two-year registration card at no cost.

1300.3 Beginning on August 11, 2023, ABCA shall only issue a qualifying patient or
caregiver a digital registration card. On or after August 11, 2023, a qualifying
patient or caregiver may request a physical card from ABCA for a fee of $10.00.

1300.4 A qualifying patient who establishes pursuant to § 1300.5 that their income level is
equal to or less than two hundred percent (200%) of the federal poverty level, shall
be entitled to purchase medical cannabis directly, or through a caregiver, on a
sliding scale from a licensed internet retailer or retailer in the District of Columbia
if the qualifying patient satisfies the Board of the following:
36

(a) That the individual is a current Medicaid or DC Alliance recipient or
eligible for Medicaid or to participate in the DC Alliance program; or

(b) Documentation verifying that the individual’s total gross income and other
financial resources , including child support payments, alimony and rent
payments received, and any other income received on a regular basis, is
equal to or less than two hundred percent (200%) of the federal poverty
level, as defined by the U.S. Department of Health and Human Services ;
and

(c) The Board is otherwise satisfied that the qualifying patient lacks sufficient
income and existing financial resources to obtain a sufficient supply of
medical cannabis.

1300.5 To verify income for the purposes of § 1300.4(b) , an individual shall submit an
affidavit providing the following, if applicable:

(a) Earning statements received within the previous thirty (30) days;

(b) District of Columbia or Federal tax filings for the most recent tax year;

(c) For newly employed applicants, a verifiable copy of an offer of employment
that states the amount of salary to be paid;

(d) A copy of a social security or worker’s compensation benefit statement;

(e) Proof of child support or alimony received;

(f) Proof of any other unearned income or assets, including but not limited to,
stocks, bonds, annuities, private pension and retirement accounts; and

(g) Any other item(s) of proof deemed by the Board, the Director or the
Director’s agent reasonably calculated to demonstrate a person’s income.

1300.6 An individual shall submit the required verifying information set forth in § 1300.5
for each renewal or request for a replacement card in order to continue to purchase
medical cannabis from a licensed internet retailer or retailer on a sliding scale.

A new section 1301, PAYMENT OF MEDICAL CANNABIS FACILITY ANNUAL FEES,
is added to read as follows:

1301 PAYMENT OF MEDICAL CANNABIS FACILITY ANNUAL FEES

1301.1 Medical cannabis facility license fees shall be paid annually. The fee for the first
year shall be paid within sixty ( 60) calendar days of Board approval but prior to
37

license issuance. The renewal fee shall be paid on or before the anniversary date of
issuance of the license.

1301.2 The applicant shall pay the annual license fee for the first year to the D.C. Treasurer.
The applicant’s duplicate receipt shall accompany the annual license fee payment.

1301.3 A licensee’s failure to timely remit the annual license fee shall be cause for the
Board to suspend a previously approved or issued license until the licensee pays
the fee and any late fees imposed by the Board for late payment not to exceed the
annual cost of the license. If a licensee is delinquent thirty ( 30) days or more on
payment of the annual license fee, the Board shall give notice to the licensee of its
intent to cancel the license. The licensee shall have fourteen ( 14) days to respond
to the notice in writing. If the Board thereafter determines that the failure to pay
the annual fee and late fee is not for good cause, the Board shall cancel the license.

1301.4 Nothing in this section shall preclude a medical cannabis business from paying in
advance the second or third-year annual license fee.

A new section 1302, APPLICATION FEES, is added to read as follows:

1302 APPLICATION FEES

1302.1 The application filing fees for standard medical cannabis business applicants are as
follows:

(a) Retailer, Internet Retailer, Cultivation Center - $8,000;

(b) Manufacturer, Courier - $4,000;

(c) Testing Laboratory - $0;

(d) Transfer to New Location - $5,000;

(e) Facility Capacity or Physical Plant Change - $2,000;

(f) Transfer of Ownership Change - $2,000;

(g) Change of Director, Officer, Member, Incorporator, or Agent - $100; and

(h) Corporate or Trade Name Change - $100.

1302.2 The application filing fees for social equity medical cannabis business and
substantial change applicants are as follows:

(a) Retailer, Internet Retailer, Cultivation Center - $2,000;

38

(b) Manufacturer, Courier - $1,000;

(c) Testing Laboratory - $0;

(d) Transfer to New Location - $5,000;

(e) Facility Capacity or Physical Plant Change - $2,000;

(f) Transfer of Ownership Change to Another Social Equity Applicant - $625;

(g) Change of Director, Officer, Member, Incorporator, or Agent - $100; and

(h) Corporate or Trade Name Change - $25.

1302.3 The application filing fees for both standard and social equity applicants for a
retailer endorsement or permit are as follows:

(a) Retailer Delivery Endorsement, Summer Garden Endorsement - $ 300;

(b) Safe-Use Treatment Facility Endorsement - $1,000;

(c) Education Tasting Endorsement - $130; and

(i) Certified Training Provider Permit - $100.
1302.4 The application fees for conditional licenses are as follows:

(a) For a standard applicant for a cultivation center, manufacturer, retailer,
internet retailer, or courier, the applicant shall pay an application fee of $800
and an additional $1,200 fee if approved;

(b) For a social equity applicant for a cultivation center, manufacturer, retailer,
internet retailer, or courier, the applicant shall pay an application fee of $200
and an additional $300 fee if approved;

(c) For either a standard or social equity applicant for a testing laboratory, the
applicant shall pay an application fee of $0;

(d) For a standard applicant for a testing laboratory, the applicant shall pay a $0
fee if approved; and

(e) For a social equity applicant for a testing laboratory, the applicant shall pay
a $0 fee if approved.

A new section 1303, LICENSE AND ENDORSEMENT FEES, is added to read as follows:

1303 LICENSE AND ENDORSEMENT FEES
39

1303.1 The annual license fees for standard cultivation center, manufacturer, internet
retailer, retailer, courier, and testing laboratory licensees are as follows:

(a) Cultivation Center Tier 1 -$11,000;

(b) Cultivation Center Tier 2 -$16,000;

(c) Cultivation Center Tier 3 -$21,000;

(d) Cultivation Center Tier 4 -$26,000;

(e) Cultivation Center Tier 5 -$31,000;

(f) Cultivation Center Tier 6 -$36,000;

(g) Manufacturer -$4,000;

(h) Manufacturer and Extraction -$8,000;

(i) Retailer -$16,000;

(j) Internet Retailer License -$16,000;

(k) Courier – $8,000; and

(l) Testing Laboratory License -$7,500.

1303.2 The annual license fees for social equity cultivation center, manufacturer, internet
retailer, retailer, courier, and testing laboratory licensees for the first three (3) years
of operation shall be as follows:

(a) Cultivation Center Tier 1 -$2,750;

(b) Cultivation Center Tier 2 -$4,000;

(c) Cultivation Center Tier 3 -$5,250;

(d) Cultivation Center Tier 4 -$6,500;

(e) Cultivation Center Tier 5 -$7,750;

(f) Cultivation Center Tier 6 -$9,000;

(g) Manufacturer -$1,000;

40

(h) Manufacturer and Extraction -$2,000;

(i) Retailer -$4,000;

(j) Internet Retailer License -$4,000;

(k) Courier – $2,000; and

(l) Testing Laboratory License -$1,875.

1303.3 The annual endorsement and permit fees for both standard and social equity
licensees are as follows:

(a) Retailer Delivery -$300;

(b) Summer Garden - $300;

(c) Education Tasting - $130;

(d) Safe-Use Treatment Facility - $2,000; and

(e) Medical Cannabis Certification Training Permit - $300.

1303.4 The fee for a duplicate, replacement, or lost license, permit, or endorsement shall
be $25.

1303.5 The fee for a returned or declined check shall be $100.

1303.6 Late fees for failing to timely renew a license shall be $50 per day, up to a maximum
of the fee for the relevant license.

A new section 1304, DETERMINING CULTIVATION CENTER TIER, is added to read as
follows:

1304 DETERMINING CULTIVATION CENTER TIER

1304.1 A cultivation center shall be deemed to qualify for a specific Tier for the purposes
of assessing fees based upon the following criteria:

(a) Tier 1 - Mature cannabis plant grow canopy area greater than 0 square feet
but no more than 10,000 square feet;

(b) Tier 2 - Mature cannabis plant grow canopy area greater than 10,000 square
feet but no more than 25,000 square feet;

41

(c) Tier 3 - Mature cannabis plant grow canopy area greater than 25,000 square
feet but no more than 50,000 square feet;

(d) Tier 4 - Mature cannabis plant grow canopy area greater than 50,000 square
feet but no more than 75,000 square feet;

(e) Tier 5 - Mature cannabis plant grow canopy area greater than 75,000 square
feet but no more than 100,000 square feet; and

(f) Tier 6 - Mature cannabis plant grow canopy area greater than 100,000
square feet.

1304.2 The size of the mature cannabis plant grow canopy area shall be assessed at the
greatest size at any point or time during the licensing period for the entire license
period.

1304.3 A cultivation center that permits the mature cannabis plant grow area to grow in
size sufficient to qualify under a higher Tier shall pay the fee for the new Tier
immediately upon reaching the new Tier or within thirty (30) days written notice
provided by ABCA. A cultivation center that fails to pay the required fee shall be
subject to the suspension of its license until the appropriate Tier fee is paid.

1304.4 A cultivation center shall not be able to obtain a refund should the mature cannabis
plant growth area be reduced sufficiently to qualify for a lower Tier.

1304.5 The mature cannabis plant grow canopy area shall include all plant grow areas in
the facility whether adjoined or in separate locations.

A new section 1305, CANOPY MEASUREMENT, is added to read as follows:

1305 CANOPY MEASUREMENT

1305.1 In order to measure the cannabis grow canopy area to determine the appropriate
Tier, the measurement shall be calculated in square feet and measured using clearly
identifiable boundaries of all areas(s) that will contain flowering or vegetative
plants larger than eight (8) inches tall and eight (8) inches wide at any point in time,
including all of the space(s) within the boundaries.

1305.2 A canopy may be noncontiguous, but each separate area included in the
total canopy calculations shall be separated by an identifiable boundary which
includes: interior walls, shelves, greenhouse walls, hoop house walls, garden
benches, hedge rows, fencing, garden beds, or garden plots. If flowering or
vegetative plants larger than eight (8) inches tall and eight (8) inches wide are being
cultivated using a shelving system, the surface area of each level shall be included
in the total canopy calculation.

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A new section 1306, DETERMINING MANUFACTURER CATEGORY, is added to read
as follows:

1306 DETERMINING MANUFACTURER CATEGORY

1306.1 There shall be two types of manufacturing license categories :

(a) A Type 1 manufacturing license shall authorize the production of all
medical cannabis products except for those authorized by a Type 2
manufacturing license; and

(b) A Type 2 manufacturing and extraction license shall be required if the
medical cannabis facility intends to manufacture medical cannabis products
utilizing hazardous materials, flammable and combustible liquids,
compressed gases, cryogenic fluids, or extraction equipment that requires
an operational permit from the Office of the Fire Marshal, Fire Prevention
Division, DC Fire and Emergency Medical Services Department (Office of
the Fire Marshal). A listing of when an operational permit is required from
the Office of the Fire Marshal is set forth in Sections F-107.10.1 through F-
107.10.43 of the D.C. Fire Prevention Code (2008).

Chapter 14, MEDICAL MARIJUANA ADVISORY COMMITTEE, is amended as follows:

The header is amended to read as follows:

Chapter 14, MEDICAL CANNABIS ADVISORY COMMITTEE

Section 1400, COMPOSITION OF ADVISORY COMMITTEE, is amended as follows:

Section 1400.5 is amended to read as follows:

1400.5 Each member of the Committee shall serve at the pleasure of the Mayor, the
appointing agency director, or City Administrator. Public members of the
Committee shall serve a maximum term of three (3) years from the date of
appointment and may be reappointed.

Section 1401, DUTIES AND RESPONSIBILITIES OF THE ADVISORY COMMITTEE, is
amended as follows:

Subsection 1401.1 is replaced in its entirety to read as follows:

1401.1 The Advisory Committee shall convene as needed to monitor best practices in other
states, monitor scientific research on the use of medical cannabis, monitor the
effectiveness of the District’s medical cannabis program, the adequacy of the
medical cannabis supply in the District of Columbia, and make recommendations
to the Mayor, the Council, the Board, or consult with other agencies.
43

A new CHAPTER 19, INQUIRIES TO THE BOARD, is added to read as follows:

CHAPTER 19 INQUIRIES TO THE BOARD.

1900 COMPLAINTS

1900.1 The Board shall receive, at any time during the license period, complaints from any
person, or an affected ANC, alleging a violation by a licensee of the terms of its
license or an unlicensed person.

1900.2 Complaints shall be in writing and set forth enough information to allow the Board
or its staff to investigate the matter.

1900.3 In addition to written complaints identifying the complainant, any person may make
an anonymous complaint in writing to the Board or orally to any ABCA
investigator.

1900.4 Anonymous complaints shall be investigated to the best of the Board’s ability but
may result in no action being taken if an anonymous complainant fails to provide
the Board or the ABCA investigator with sufficient information.

1900.5 All written complaints under this section that identify the complainant by name and
address shall be responded to by the Board or its staff within ninety ( 90) days of
receipt of the complaint. The response shall advise the complainant of the action
that the Board or its staff has taken on the matter or provide a copy of the
establishment’s investigative history.

1900.6 The Board shall maintain records documenting complaints received and the action
taken in response to the complaint.

1900.7 In the case where a complainant has not received a timely response, the complainant
may petition the Board to release a copy of the target licensee’s investigative history
for review.

1901 LETTERS OF INFORMATION

1901.1 Any person, group, licensee, or business organization may make a written request
to the Board for general information concerning staff procedures, Board
procedures, the Act, this title, or any other matter of a general nature affecting the
licensing of medical cannabis in the District of Columbia.

1901.2 The Board shall respond to all such letters in writing and may refer the writer
directly to a member of the ABCA Staff, to a specific section of the Act or this title,
or to other District of Columbia government officials. The response may also
suggest that the writer retain the services of an attorney to properly advise the
44

individual as to how to proceed in a particular matter. If the writer’s inquiry is so
broad, inexact, or vague that the Board is unable to respond, the Board shall so
advise the writer and may request that the writer provide additional information.

1901.3 Any statement contained in the Board’s letters of information provides only general
guidance to the writer and shall not be binding on the writer or binding on the Board
if the Board is later presented with a more particularized factual situation. Further,
the Board’s responses shall not provide any basis for appeal to any court in the
District of Columbia.

1902 ADVISORY OPINIONS

1902.1 Any ANC, person, group, licensee , or business organization may make a written
request to the Board for an advisory opinion when:

(a) The requestor is confronted with a situation involving the Act or this title
which requires, or may require, the individual to take action; and

(b) The legality or propriety of the action to be taken is not clear from the plain
text of the Act or this title.

1902.2 Any request for an advisory opinion shall set forth sufficient information to allow
the Board to understand the issues involved and to frame a response. The requestor
shall also state which section of the Act or section of this title the requestor wishes
the Board to interpret or clarify, with respect to the stated set of facts.

1902.3 If the requestor presents insufficient facts in any request for an advisory opinion,
the Board may, in its discretion, issue a letter of information; engage in fact-finding
through investigation or a discretionary hearing; request the requestor to provide
by letter more facts or details in support of their request; or decline to issue an
advisory opinion.

1902.4 The decision to issue or not issue an advisory opinion shall be solely in the
discretion of the Board.

1902.5 If issued, an advisory opinion is not binding upon the requestor but shall constitute
guidance to the requestor as to how the Board may interpret the Act or this title on
a particular matter, the facts of which are consistent with those raised by the
requestor. Where the requestor is also a licensee, the Board may issue a show -
cause notice pursuant to § 6204 of this title in the instance where the facts raised by
the requestor provide the Board with reasonable cause to believe that the licensee
should be fined, suspended, or revoked.

1902.6 If the requestor disagrees with the Board’s advisory opinion in any respect, the
individual may, within twenty (20) calendar days after issuance of the opinion,
petition the Board in writing to reconsider its opinion, setting forth in detail the
45

reasons and legal argument which support the requestor’s points of disagreement,
or may request the Board to issue a declaratory order, pursuant to § 1903. Advisory
opinions shall not be deemed a final order of the Board.

1902.7 All advisory opinions of the Board shall be mad e available to the public on the
agency’s website.

1903 DECLARATORY ORDERS

1903.1 Any ANC, person, group, licensee, or business organization may make a written
request to the Board to issue a declaratory order in accordance with the DC APA
regarding the applicability of the Act, this subtitle or any other statute or regulation
enforceable by the Board, to terminate a controversy other than a contested case or
to remove uncertainty regarding a specific factual situation. If the request for a
declaratory order involves an existing settlement agreement, the Board, in its
discretion, may decline to issue an order or require a party to provide notice of the
request to the other signatories to an existing settlement agreement and permit the
other parties to intervene in the matter.

1903.2 Any request for a declaratory order shall:

(a) Set forth a particular and specific set of facts; and

(b) State in detail the reasons for uncertainty as to the applicability of the Act,
this title or other statutes enforceable by the Board or state in detail why a
controversy exists.

1903.3 Any declaratory order issued by the Board shall state the Board’s Findings of Fact
and Conclusions of Law. If the circumstances so warrant, the declaratory order
may include an order by the Board to the requestor to cease and desist any practice
or activity which is violative of applicable statutes or this title.

1903.4 All facts asserted in a request for a declaratory order shall be supported by sworn
affidavit of the requestor. If the Board determines that further facts are necessary,
it shall request the requestor to provide those facts by written affidavit or may
receive those facts by stipulation at a non-contested case fact-finding hearing.

1903.5 Any requestor m ay appeal the order by petitioning the Board, in writing, within
twenty (20) calendar days after issuance of the declaratory order, to reconsider its
order by setting forth, in detail, either newly discovered facts or legal arguments
that show one (1) or more errors of law in the Board’s order.

1903.6 All declaratory orders of the Board determined to be in the public interest in
accordance with section 9 of the DC APA (D.C. Official Code § 2 -508), shall be
published in the District of Columbia Register and shall be available for public
inspection and copying at a reasonable charge at the offices of the Board.
46

Chapter 50, REGISTRATION, LICENSING, AND ENFORCEMENT OF CULTIVATION
CENTERS, DISPENSARIES, AND TESTING LABORATORIES, is amended as follows:

The heading is amended to read as follows:

Chapter 50 LICENSED MEDICAL CANNABIS BUSINESSES

Section 5000, MEASURING DISTANCES, is amended as follows:

Section 5000.1 is amended to read as follows:

5000.1 In establishing the distance between one (1) or more places, (such as the actual
distance of a medical cannabis business from a school or recreation center, as
defined in the Act), the distance shall be measured linearly by the Board and shall
be the shortest distance between the property lines of the places.

Section 5002, PERMISSIBLE ACTIVITIES AND LIMITATIONS ON CULTIVATION
CENTERS, DISPENSARIES, AND TESTING LABORATORIES, is repealed.

Section 5003, LOCATION AND OWNERSHIP, is renumbered s ection 5002, and its
subsections are renumbered accordingly.

CHAPTER 51, REGISTRATION AND PERMIT CATEGORIES, is amended as follows:

Section 5100.1, REGISTRATION PERIODS, shall be amended to read as follows:

5100.1 Each license issued by the Board shall be valid for three (3) years unless otherwise
stated in this title, except in the following circumstances:

Section 5101, RENEWAL PERIODS, is replaced in its entirety and amended to read as
follows:

5101.1 The three (3) year renewal period for each medical cannabis facility license listed
below shall occur sequentially every three (3) years starting with the following
dates:

License Classification Licensure Period Ending Year
Courier Jan. 1 to Dec. 31 2024
Cultivation Center Jan. 1 to Dec. 31 2025
Internet Retailer Jan. 1 to Dec. 31 2023
Manufacturer Jan. 1 to Dec. 31 2025
Retailer Jan. 1 to Dec. 31 2023
Testing Laboratory Jan. 1 to Dec. 31 2024

Section 5103, REGISTRATION AND PERMIT FEES, is amended as follows:
47

Subsections 5103.2 through 5103.9, 5103.12 through 5103.13, and 5103.15 through 5103.21
are repealed and the remaining subsections are renumbered accordingly.

Section 5105, MEDICAL MARIJUANA CERTIFICATION PROVIDER PERMIT, is
amended as follows:

The header is amended to read as follows:

5105 MEDICAL CANNABIS CERTIFICATION PROVIDER PERMIT

Subsection 5105.2 is amended by striking the phrase "Department" and inserting the phrase
"Board" in its place.

Subsection 5105.3(a) is amended by striking the phrase "Department" and inserting the
phrase "Board" in its place.

Subsection 5105.5 is amended by striking the phrase "Department" and inserting the phrase
"Board" in its place.

Subsection 5105.7 is added to read as follows:

5105.7 When a person completes the approved education training program provided by a
medical cannabis certification provider, the provider shall issue the person a
medical cannabis training certificate. The certificate shall be valid for three (3)
years and may be reissued to the holder upon completion of the training necessary
to qualify for the initial certificate.

Section 5106, MANAGER CERTIFICATION, is amended as follows:

The header is amended to read as follows:

5106 MANAGER LICENSE

Sections 5106.1 and 5106.2 are amended to read as follows:

5106.1 A manager’s license shall authorize the licensee to manage a licensed medical
cannabis business.

5106.2 The holder of a manager’s license may be employed by one or more licensed
medical cannabis facilities without further investigation, subject to compliance by
the licensed business. A manager’s license issued to a manager may be utilized by
the manager at any licensed medical cannabis facility.

Section 5107, NOTICE TO ADVISORY COMMISSIONS, is amended to read as follows:

48

5107 [RESERVED]

Section 5108, POSTED NOTICE TO THE PUBLIC, is amended to read as follows:

5108 [RESERVED]

Section 5109, COMMENTS FROM ANCS LOCATED IN THE AFFECTED WARD, is
amended to read as follows:

5109 [RESERVED]

Chapter 52, REGISTRATION LIMITATIONS, is amended as follows:

Section 5200, LIMITATION ON THE NUMBER OF DISPENSARIES, CULTIVATION
CENTERS, AND TESTING LABORATORIES, is repealed.

Section 5201, REGISTRATION APPLICATIONS NEAR SCHOOLS AND RECREATION
CENTERS, is renumbered as section 5200 and amended to read as follows:

5200 DISTANCE REQUIREMENTS

5200.1 A medical cannabis business, except for a courier license, shall not locate within
three hundred feet (300 ft.) of a preschool, primary or secondary school, or
recreation center unless the main entrance to the preschool, primary , or secondary
school, or recreation center, or the nearest property line of the school or recreation
center, is actually on or occupies ground zoned commercial or industrial according
to the official atlases of the Zoning Commission of the District of Columbia.

5200.2 No new retailer license shall be issued for a location that is within four hundred feet
(400 ft.) of another retailer.

5200.3 An academy or other facility providing educational services operated by the
Department of Youth Rehabilitation Services or the D.C. Department of
Corrections at a residential facility subject to mandatory detention at the facility
shall not be deemed to be a school.

Chapter 54, REGISTRATION APPLICATIONS, is amended as follows:

Section 5400, GENERAL QUALIFICATIONS FOR ALL APPLICANTS, is amended as
follows:

The heading is amended to read as follows:

5400 QUALIFICATIONS FOR LICENSURE

Subsection 5400.1(c) is amended to read as follows:
49

(c) The applicant has not had a felony conviction for a crime of violence as
defined in D.C. Official Code § 23- 1331(4), a gun offense, tax evasion,
fraud, or credit card fraud within the three ( 3) years preceding the date the
application is filed with ABCA unless the applicant demonstrates
rehabilitation and fitness for licensure in accordance with section 7 of the
Act (D.C. Official Code § 7-1671.06);

A new subsection 5400.3 is added to read as follows:

5400.3 In addition to the requirements of § 5400.1, an applicant for a licensed medical
cannabis facility shall demonstrate to the satisfaction of the Board that the applicant
is the true and actual owner of the facility for which the license is sought and the
individual intends to carry on the business for himself or herself and not as the agent
of any other individual, partnership, association, limited liability company, or
corporation not identified in the application.

Section 5401, OPEN APPLICATION PERIOD AND REQUIRED LETTER OF INTENT,
is amended as follows:

The heading is amended to read as follows:

5401 OPEN APPLICATION PERIOD

Subsections 5401.1 through 5401.4 are amended to read as follows:

5401.1 Applications for a new medical cannabis business license shall only be accepted by
the Board during an open application period as specified by the Board by publishing
a Notice in the District of Columbia Register. The period selected by the Board
shall not be extended.

5401.2 An application for a new testing laboratory may be filed with the Board at any time.

5401.3 At the start of each open application period for a new cultivation center,
manufacturer, internet retailer, retailer, or courier license the Board shall publish a
notice in the District of Columbia Register setting forth the process for submission
of the applications, which shall include:

(a) The opening and ending dates for the submission of applications for a new
cultivation center, manufacturer, internet retailer, retailer, or courier license;

(b) The address and email address to submit an application to the Board; and

(c) The process for obtaining application materials from the Board.

5401.4 The Notice required in § 5401.3 of this chapter shall appear, at a minimum, in the
50

District of Columbia Register and on ABCA’s website.

Section 5402, SELECTION PROCESS, is amended to read as follows:

5402 APPLICATION REQUIREMENTS

5402.1 A person applying for issuance, transfer to a new owner, or renewal of a license,
endorsement, or permit, or for approval of substantial changes in operation,
including a transfer to a new location related to a licensed medical cannabis facility,
shall file with the Board an application in the form prescribed by the Board.

5402.2 The application shall contain the information set forth in this chapter and any
additional information that the Board may require.

5402.3 A separate application shall be filed for each medical cannabis facility for which a
license is sought.

5402.4 The Board may require an applicant to submit additional documents and
information needed to properly process an application.

5402.5 The Board shall not accept as filed, and shall take no action upon, any application
that is not complete.

5402.6 An applicant for a medical cannabis business may amend or correct its license
application at any time prior to Board approval.

5402.7 Any changes to an applicant’s listed contact information, including mailing
address, e-mail address, and telephone number, and other information as required
by this chapter and provided on its license application that has been submitted to or
approved by the Board shall be reported to ABCA within thirty (30) calendar days
of the change. The failure to comply with this subsection after a written warning
has been issued concerning the licensee’s timely compliance shall be deemed a
violation if not corrected within fifteen (15) days of receipt of the warning.

Section 5403, SELECTION CRITERIA, is amended to read as follows:

5403 APPLICATION CONTENTS

5403.1 The application of a person or entity applying for a medical cannabis business
license shall include:

(a) In the case of a partnership or limited liability company applicant, the names
and addresses of each member of the partnership or limited liability
company and their ownership shares;

51

(b) In the case of a corporation, the legal name of the corporation, the proposed
trade name of the business, place of incorporation, principal place of
business, and the names and addresses of each of the corporation’s principal
officers, directors, and shareholders holding, directly or beneficially, one
percent (1%) or more of its common stock;

(c) Whether the corporation is for-profit or non-profit;

(d) The name, address, telephone number, and e-mail address of the owners of
the medical cannabis facility for which the license is sought;

(e) The address of the premises where the license is sought;

(f) The name and e- mail address of either an owner of the medical cannabis
facility or the owner’s designee, for purposes of receiving communications
from ABCA, including correspondence, hearing notices and other types of
service of process, and Board orders;

(g) The type of license, endorsements, and other permits sought through
submission of the application;

(h) The proximity of the facility to the nearest public or private, elementary,
middle, charter, junior high, or high school and recreation center, and the
name of the school and recreation center;

(i) Proposed hours of operation of the facility; hours of sale of medical
cannabis and medical cannabis products; summer garden hours; and safe -
use treatment facility hours if applicable;

(j) The size and design of the facility, which shall include the number of
occupants permitted both inside and on any safe -use treatment facility or
summer garden;

(k) The location of all restricted access areas closed to the public;

(l) An affidavit that complies with § 47-2863;

(m) Documents or other written statements or evidence establishing to the
satisfaction of the Board that the person applying for the license,
endorsement, or permit meets all of the qualifications set forth in the Act
and this subtitle;

(n) The size and design of the facility;

(o) A lease or deed for the proposed location;

52

(p) A zoning certificate authorizing the proposed business activity or a
certificate of occupancy for the proposed location;

(q) A food manufacturing permit and other permits from the Department of
Health, if required;

(r) An operational permit from the Office of the Fire Marshal, if required.

(s) A certificate of good standing for the corporation;

(t) A site plan showing the entire structure of the medical cannabis facility,
including the street(s), parking lot(s), other tenants within the facility, any
other entities in facilities that physically border the applicant; and the area
designated for trash disposal; and

(u) The medical cannabis facility applicant acknowledgment attestation form.

5403.2 An applicant for a medical cannabis business license shall file a security plan with
their application.

5403.3 If protested by an affected Advisory Neighborhood Commission, the applicant for
a cultivation center, manufacturer, internet retailer, or retailer license shall also
provide information at the Board protest hearing related to the appropriateness of
the facility regarding:

(a) The facility’s impact on peace, order, and quiet, including measures to
prevent noise disturbances and litter, and measures to foster public safety;

(b) The facility’s impact on residential parking and vehicular and pedestrian
safety, including the availability of parking at or near the establishment and
the proximity of the business to public transportation and shared
transportation services (e.g., Metro, bus, bike share station); and

(c) The facility’s impact on real property values, including measures to prevent
blight and maintain its building and efforts to prevent odor nuisances from
impacting neighboring properties, and whether the property was subject to
any building code violations while under the ownership or control of the
applicant, and whether the violations indicated have been resolved.

5403.4 An applicant for any license shall advise the Board, in the application, as to the
source of funds used to acquire or develop the business for which the license is
sought.

Section 5404, APPLICATION FORMAT AND CONTENTS, is amended to read as follows:

5404 APPLICATION FOR A SUBSTANTIAL CHANGE
53

5404.1 A licensee shall obtain the approval of the Board by filing an application for a
substantial change , if not initially approved as part of the licensee’s initial
application, prior to:

(1) Changing or expanding its location;

(2) I ncreasing the facility’s plant capacity or physical plant count to another
tier, if a cultivation center;

(3) Adding a safe -use treatment facility or summer garden;

(4) Extracting medical cannabis if not previously permitted or authorized;

(5) Increasing the hours of operation, delivery, or the hours of sale, service, or
consumption of cannabis at the premises, the safe-use treatment facility, or
the summer garden; or

(6) Increasing the physical occupancy or capacity of the premises, the safe-use
treatment facility, or the summer garden or allowing or permitting more
persons than permitted by the Board.

Section 5405, DISPENSARY REGISTRATION APPLICATION REQUIREMENTS, is
amended to read as follows:

5405 ABANDONMENT OF APPLICATION

5405.1 The Board may deem an application abandoned or withdrawn if an applicant fails
to provide any additional documents within thirty (30) days of a request from
ABCA or the Board for additional or required information.

5405.2 An applicant may seek an extension of time to submit documents needed to process
the application upon a showing of good cause. An extension granted by the Board
shall not exceed thirty (30) days.

Section 5406, CULTIVATION CENTER REGISTRATION REQUIREMENTS, is amended
to read as follows:

5406 APPLICATION CERTIFICATION AND SIGNATURE

5406.1 An individual applicant, all of the general partners of an applicant partnership, all
of the members of a limited liability company, or the president or vice-president of
an applicant corporation shall sign a statement with an original signature, which
may be a signature by wet ink, an electronic signature, or a copy thereof, certifying
that the application is complete and accurate, and agreeing to all certifications
required by the Board.
54

5406.2 The medical cannabis facility application of a person or entity applying for a
medical cannabis business license shall state each of the following notices:

(a) Limitation of Liability -- To the extent provided by s ection 12 of the Act
(D.C. Official Code § 7 -1671.11), the District of Columbia shall not be
liable to the registrant, its employees, agents, business invitees, licensees,
customers, clients, family members or guests for any damage, injury,
accident, loss, compensation, or claim, based on, arising out of, or resulting
from a person’s participation in the District of Columbia’s medical cannabis
program, including but not limited to the following: any fire, robbery, theft,
mysterious disappearance, or any other casualty; or injury arising from the
use of medical cannabis obtained through the program. This Limitation of
Liability provision shall survive expiration or the earlier termination of this
registration if such registration is granted; and

(b) Federal Prosecution - The United States Congress has determined that
cannabis is a controlled substance and has placed cannabis in Schedule I of
the Controlled Substance Act. Growing, distributing, and possessing
cannabis in any capacity, other than as a part of a federally authorized
research program, is a violation of federal laws. The District of Columbia’s
law authorizing the District’s medical cannabis program will not excuse any
licensee from any violation of the federal laws governing cannabis or
authorize any licensee to violate federal laws.

(c) Knowledge of Law – The applicant swears or affirms that the ownership is
sufficiently familiar with the District of Columbia’s medical cannabis laws
to superintend a medical cannabis business and has the ability to ensure the
business complies with the law.

(d) True and Actual Owner- The applicant is the true and actual owner of the
business for which the license is sought and that he or she intends to carry
on the business for himself or herself and not as the agent of any other
individual, partnership, association, or corporation not identified in the
application; and that the licensed establishment will be managed by the
applicant in person or by a manager approved by the Board.

5406.3 As part of the application process, every applicant for a licensed medical cannabis
business shall sign a written statement attesting to the following:

(a) The applicant acknowledges receipt and advisement of the notices set forth
in § 5406.2 of this subtitle;

(b) The applicant agrees to and accepts the limitation of liability against the
District, and the requirement to indemnify, hold harmless, and defend the
District, as set forth in § 5406.2 of this subtitle;
55

(c) The applicant assumes any and all risk or liability that may result under
District of Columbia or federal laws arising from the possession, use,
cultivation, administration, dispensing, or testing of medical cannabis;

(d) The applicant understands that the medical cannabis laws and enforcement
thereof by the District of Columbia and the Federal government are subject
to change at any time; and

(e) The applicant chooses to sign this attestation willingly and without
reservation and is fully aware of its meaning and effect.

5406.4 The making of a false statement, whether made with or without the knowledge or
consent of the applicant, shall, in the reasonable discretion of the Board based on
the materiality and willfulness of the false statement, constitute sufficient cause for
denial of the application or revocation of the license.

5406.5 A person shall not knowingly submit an altered document or application to the
Board for the purpose of deceiving the Board. The submission of an altered
document intended to deceive the Board, may, at the reasonable discretion of the
Board, constitute sufficient cause for denial of the application or revocation of the
license.

Section 5407, CULTIVATION CENTER, DISPENSARY, AND TESTING LABORATORY
REGISTRATION ISSUANCE, is amended to read as follows:

5407 BOARD AUTHORITY TO ISSUE LICENSES

5407.1 The Board may issue medical cannabis facility licenses to persons who meet the
requirements set forth in the Act and the regulations.

5407.2 All medical cannabis facility licenses issued under this title, unless otherwise stated,
shall be valid for a term of three (3) years and may be renewed upon completion of
the procedures set forth in the Act and this title and payment of the required fees.

5407.3 A license to sell medical cannabis, medical cannabis products, and paraphernalia in
the District can be granted only by the Board upon completion of the application
and review process as contained in the Act and this title.

5407.4 Unless otherwise stated in the Act or this title, each license or permit shall
particularly describe the place where the rights of the license are to be exercised.

5407.5 The Board, in issuing licenses, may require that certain conditions be met if it
determines that the inclusion of the conditions will be in the best interest of the
locality, section, or portion of the District where the licensed facility is to be
located. The Board, in setting the conditions, shall state, in writing, the rationale
56

for the determination.

Section 5408, DIRECTOR, OFFICER, MEMBER, INCORPORATOR, AND AGENT
REGISTRATION REQUIREMENTS, is amended as follows:

Subsection 5408.1(b) is amended to read as follows:

5408.1(b) An individual who has been approved by the Board as a director, officer, member,
incorporator, or agent shall not be required to register as an employee or manager .
However, nothing in this subsection shall obviate the requirement in subsection
5604.1 that in the absence of an owner, a licensed medical cannabis business is
required to have a Board -approved manager present at the licensed establishment
during the hours that the licensed medical cannabis business is open.

Section 5409, EMPLOYEE REGISTRATION REQUIREMENTS, is amended as follows:

Subsection 5409.1(a) is amended by striking the phrase “registration qualifications; and”
and inserting the phrase “registration qualifications.”

Subsection 5409.1(b) is repealed.

Section 5410, MANAGER’S REGISTRATION REQUIREMENTS, is amended as follows:

Section 5410, MANAGER’S REGISTRATION REQUIREMENTS, is amended as follows:

The section heading is amended to read as follows:

5410 MANAGER LICENSE REQUIREMENTS.

Subsection 5410.3 is amended to read as follows:

5410.3 An owner of a medical cannabis business may request that the Board issue a
temporary license card to a manager valid for forty-five (45) days.

Section 5411, CRIMINAL BACKGROUND CHECKS, is amended to read as follows:

5411 CRIMINAL BACKGROUND CHECKS

5411.1 Each applicant for a medical cannabis business license, except for an applicant for
an agent, employee, or manager registration, shall be required to undergo a criminal
background check prior to being registered or licensed. In the case of an applicant
for a non- profit or for -profit corporation, a criminal background check shall be
conducted on all of its directors, officers, members, and incorporators.

5411.2 Except for social equity applicants, ABCA shall not require the submission of a
criminal background check for a director, officer, member, or incorporator until the
57

agency deems the applicant otherwise qualified for licensure and its license
application accepted by the agency.

5411.3 Consistent with D.C. Official Code § 7- 1671.06(u)(2)(A), ABCA’s determination
that an applicant is qualified, or its license or registration application should be
accepted does not overrule the Board’s authority to deem the applicant qualified or
unqualified, hold a qualifications hearing, or to otherwise deem the applicant unfit
for licensure.

Section 5412, REGISTRATION PROHIBITED IN RESIDENTIAL USE DISTRICT, is
amended to read as follows:

5412 LICENSE PROHIBITED IN RESIDENTIAL USE DISTRICT

5412.1 No license shall be issued to a medical cannabis business located in a residential-
use district as defined in the Zoning Regulations and shown in the official atlases
of the Zoning Commission for the District.

Section 5413, RESTRICTIONS ON OWNERSHIP AND HOLDING A CONFLICT OF
INTEREST, is amended to read as follows:

5413 RESTRICTIONS ON OWNERSHIP AND HOLDING A CONFLICTING
INTEREST

5413. 1 The holder of a testing laboratory license shall not hold, own, control or have any
beneficial or other financial interest in a cultivation center, manufacturer, internet
retailer, retailer, or courier license.

5413.2 The holder of a courier license shall not hold, own, control or have any beneficial
or other financial interest in a cultivation center, manufacturer, internet retailer,
retailer, or testing laboratory license.

5413.3 The holder of a cultivation center license shall not hold, own, control , or have any
beneficial or other financial interest in more than two (2) cultivation center licenses.

5413.4 The holder of a retailer or internet retailer license shall not hold, own, control , or
have any beneficial or other financial interest in a combined number of more than
three (3) internet retailer and retailer licenses.

5413.5 The holder of a cultivation center license shall not hold, own, control or have any
beneficial or other financial interest in more than one retailer license.

5413.6 The holder of an internet retailer license shall not hold, own, control or have any
beneficial or financial interest in a cultivation center license.

5413.7 The Board may fine as set forth in the schedule of civil penalties, suspend, and
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revoke the license of a person that obtains ownership or control of a license,
whether in whole or in part, in violation of this section or permit the person to place
the license in safekeeping for a period not to exceed one hundred and eighty (180)
days to facilitate the sale, transfer, divestment or other action necessary to comply
with this section.

5413.8 It shall be a violation for a licensee to obtain an interest prohibited by this section.

Section 5414, RENEWAL PROCESS, is amended to read as follows:

5414 RENEWAL APPLICATION

5414.1 An applicant for license renewal shall self -certify the accuracy of its application,
including any changes in ownership or other documents and submissions
constituting a part of the application for its initial license or, if appropriate, at the
time of ap plication by the medical cannabis facility for a substantial change in
operation.

5414.2 Each license for a medical cannabis business issued by the Board shall be valid for
three (3) years, except in the following circumstances:

(a) When suspended or revoked; or

(b) When the license takes effect on a date in between the dates established by
the Board for the regular renewal licensing period, in which case the license
shall be valid only until the end of the license period.

Section 5415, [REPEALED], is amended to read as follows:

5415 SECURITY PLAN

5415.1 All medical cannabis businesses shall be required to file with their initial
application and maintain a written and compliant security plan with the Board.

5415.2 A compliant security plan shall fully provide or describe the following:

(a) A statement on the type of security training provided for, and completed by,
establishment personnel, which shall include conflict resolution, handling
robberies and violent incidents, and medical emergencies;

(b) Procedures for handling violent incidents, other emergencies, and calling
the Metropolitan Police Department;

(c) The type of security or alarm system and outdoor lighting to be used by the
applicant;

59

(d) A site and floor plan detailing:

(1) All entrances and exits to the facility;

(2) The location of any windows, skylights, roof hatches, and outdoor
lighting;

(3) The number and location of security cameras used by the business
and their field of view;

(4) The location of all alarm inputs (door contacts, motion detectors,
duress/hold up devices) and alarm sirens;

(5) The location of the digital video recorder and alarm control panel;

(6) Restricted and public areas; and

(7) The structure the facility is housed in, including nearby street(s),
parking lots and other tenants that are within or border the facility;

(e) Security measures taken by the applicant to prevent individuals from
entering the limited access area portion of the premises;

(f) Procedures for using and maintaining an incident log;

(g) Procedures for preserving a crime scene;

(h) The closing procedures after the cessation of business each day, including
steps to properly store cannabis in a secure area and to prevent theft; and

(i) Procedures to prevent theft, robbery, or the diversion of medical cannabis
in compliance with District law.

5415.3 A licensee shall provide either in -person or virtual training regarding its security
plan to all employees and security within thirty (30) days of hire and at least once
per year thereafter.

5415.4 A licensee may amend or replace an existing security plan on file with the Board
by filing a new security plan that is compliant with this section.

5415.5 A licensee provided written notice that its submitted plan is deficient under this
regulation shall file a corrected security plan within fifteen (15) days of receiving
notice.

Section 5416, [REPEALED], is amended to read as follows:

60

5416 CONDITIONAL LICENSE

5416.1 A conditional license application may be filed by both standard and social equity
applicants for a cultivation center, manufacturer, internet retailer, retailer, or courier
license that do not currently have a proposed location. A conditional license
application may only be filed with the Board during an open application period
noticed in the District of Columbia Register and on the ABCA website.

5416.2 An applicant for a conditional license shall indicate the type of license facility
applied for in the application and request conditional status.

5416.3 If approved, the holder of a conditional license has one (1) year from the date of
Board approval to submit to ABCA:

(1) A lease or similar documentation;

(2) A security plan;

(3) A certificate of occupancy for the proposed location;

(4) A permanent medical cannabis facility license application;

(5) Any remaining or additional licensing or endorsement fees owed to ABCA;
and

(6) Any other documentation requested by the Board.

5416.4 The Board shall deem the conditional license expired and cancel the license if all
the documents listed in §§ 5403 and 5416.3 are not provided within one (1) year
from the date of Board approval.

5416.5 A conditional license application is not required to undergo a forty- five (45)-
calendar day public comment period. Approved conditional license applicants are
required to undergo a forty-five (45)-calendar day public comment period after their
permanent medical cannabis facility application is filed with ABCA.

5416.6 A conditional license does not permit the holder to distribute, purchase, possess,
cultivate, manufacture, or sell medical cannabis or medical cannabis products.

5416.7 A one (1)-year conditional license cannot be sold or transferred to a new owner.

5416.8 The holder of a conditional license is required to have their facility operational
within one (1)-year of Board approval.

5416.9 The one (1)-year conditional license period shall not be extended.

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5416.10 A conditional license approved by the Board shall count toward the requirement
that at least fifty percent (50%) of all new cultivation center, manufacturer, internet
retailer, retailer, and courier licenses be set aside for social equity applicants.

Section 5417, [REPEALED], is amended to read as follows:

5417 SOCIAL EQUITY APPLICANT STATUS

5417.1 At least fifty percent (50%) of all new cultivation center, manufacturer, internet
retailer, retailer, and courier licenses shall be set aside for social equity applicants.
Only social equity applicants and medical cannabis certified business enterprises
are eligible to receive equity, grants, and loans from the medical cannabis social
equity fund.

5417.2 A social equity applicant is entitled to a seventy -five percent (75%) fee reduction
on application and licensing fees associated with receiving a medical cannabis
facility license for the first three years. The seventy-five (75%) fee reduction for
social equity applicants does not apply to endorsement fees, including the
application fees.

5417.3 To qualify as a social equity applicant, an applicant must satisfy two (2) or more of
the following criteria:

(a) Has at least one (1) owner who is a District resident, individually or
collectively owns at least fifty percent (50%) of the business, and is a
returning citizen;

(b) Has at least one (1) owner who is a District resident, individually or
collectively owns at least fifty percent (50%) of the business, and is married
to or in a civil union, has a child, or is the child of a person or has a non-
parent legal guardian, or a grandparent or a sibling who is or has been
arrested, convicted, or incarcerated in the District or any other jurisdiction
for a cannabis or drug-related offense; or

(c) Has at least one (1) owner who is a District resident, individually or
collectively owns at least fifty percent (50%) of the business and has an
income that does not exceed one hundred and fifty percent (150%) of the
median family income as set forth by the United States Department of
Housing and Urban Development, adjusted for household size, at the time
the applicant submits the application.

5417.4 In order to qualify for a social equity applicant status, an applicant shall file with
its application a Social Equity Declaration Form.

5417.5 A complete application from a social equity applicant shall also provide or describe
the following for each owner:
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(a) The two (2) or more criteria that qualify the applicant for social equity status
in accordance with § 5417.3;

(b) An affidavit, which shall be referred to as the Social Equity Applicant
Attestation Form, attesting to:

(1) The number of owners who meet the criteria for a social equity
applicant;

(2) The ownership interests, incomes, and net worth of any owners;

(3) The location of all managerial employees in the principal office;

(4) The residency of owners, employees, and contractors; and

(5) The locations of the assets and the percentages of the assets in each
location.

(c) Proof of District residency for each owner claiming social equity applicant
status, which shall include two (2) of the following:

(1) Proof of payment of D.C. personal income tax during the last tax
period;

(2) A current tax withholding statement which contains the applicant’s
name;

(3) Current official documentation of financial assistance from the
District (such as Temporary Assistance for Needy Families or
housing assistance);

(4) Valid, unexpired D.C. driver’s license or non-driver’s identification;

(5) Valid, unexpired vehicle registration;

(6) Valid, unexpired lease and rent receipts for a period within two (2)
months immediately preceding consideration of residency; or

(7) Utility bills with paid receipts or cancelled checks from a period
within the two (2) months immediately preceding the filing of the
application.

(d) If claiming social equity applicant status based upon returning citizen status,
each owner claiming this status shall provide with their application law
63

enforcement or court documents demonstrating proof of arrest, conviction,
or incarceration for a drug-related offense;

(e) If claiming social equity applicant status based upon the incarceration of an
immediate family member due to cannabis or drug- related offense, each
owner claiming this status, shall:

(1) Identify the immediate family member that qualifies the applicant;

(2) Identify the nature of the qualifying relationship, including whether
the relation is based on a marriage or civil union, and whether the
applicant is the parent of a qualifying child or the child of a
qualifying parent or non-parent legal guardian, or has a qualifying
grandparent or sibling;

(3) Provide documents proving the relationship (e.g., birth certificate,
marriage certificate, proof of legal guardianship);

(4) Provide law enforcement or court documents demonstrating arrest,
incarceration, or conviction; and

(5) Provide law enforcement or court documents demonstrating that the
arrest, conviction, or incarceration of the qualifying relative was due
to a cannabis or drug-related offense.

(f) If claiming social equity applicant status based on income, for each owner
claiming this status, the applicant shall provide proof of income and
household size, which shall include:

(1) Documentation establishing proof of income tax filing or
withholding in the District of Columbia from the tax year prior to
the date of the application; or

(2) If the documentation described in subparagraph (1) is not possible
to obtain, a notarized statement of net income anticipated to be
received with the next twelve (12) months, based on the previous
twelve (12) months and explanation of the reason for failing to
obtain one of the documents listed in subparagraph (1) of this
paragraph.

Section 5418, LIMITATION ON SUCCESSIVE APPLICATIONS AFTER DENIAL, is
amended to read as follows:

5418 LIMITATION ON SUCCESSIVE APPLICATIONS AFTER DENIAL

5418.1 The Board shall not consider an application for the same class of license, permit,
64

endorsement, or substantial change by the same applicant if the Board has denied a
previously filed application within five (5) years.

5418.2 Notwithstanding subsection 5418.1, if an application is withdrawn for good cause,
as determined by the Board, and prior to the protest status hearing, or if a previously
filed application for the same license class, permit, endorsement, or substantial
change was denied by the Board on purely technical or procedural grounds, a
successive application by such applicant may be considered.

New sections 5420, 5421, 5422, 5423, 5424, 5425, 5426, 5427, 5428, 5429, 5430, 5431, 5432,
5433, 5434, 5435, 5436, 5437, 5438, 5439, 5440, 5441, 5442, 5443, 5444, 5445, 5446, 5447, 5448,
5449, and 5450 are added to read as follows:

5420 MEDICAL CANNABIS CERTIFIED BUSINESS ENTERPRISE
AFFIDAVIT

5420.1 The applicant shall attest by completing the Annual Personal Net Income
Attestation Form that the annual personal net income of each owner of the
enterprise applying for a medical cannabis business license does not exceed
$349,999.

5421 APPROPRIATENESS REQUIREMENT

5421.1 To qualify for issuance, renewal of a license, transfer of a license to a new
location, or an application for the approval of a substantial change in operation as
determined by the Board, an applicant shall demonstrate to the satisfaction of the
Board that the medical cannabis establishment is appropriate for the locality,
section, or portion of the District where it is to be located.

5421.2 In determining the appropriateness of a medical cannabis establishment, the Board
shall consider all relevant evidence of record, including:

(a) The effect of the establishment on real property values;

(b) The effect of the establishment on peace, order, and quiet; and

(c) The effect of the establishment upon residential parking needs and vehicular
and pedestrian safety;

5421.3 In determining the appropriateness of a medical cannabis establishment for initial
issuance of a license or a transfer of a license to a new location, the Board shall also
consider the following as they relate to the appropriateness factors described in §
5421.2:

(a) The proximity of the establishment to schools, recreation centers, day care
centers, public libraries, or other similar facilities;
65

(b) The effect of the establishment on the operation and clientele of schools,
recreation centers, day care centers, public libraries, or other similar
facilities; and

(c) Whether issuance of the license would create or contribute to an
overconcentration of licensed medical cannabis establishments of the same
type.

5421.4 The requirements of this section shall only apply to applicants for a cultivation
center, manufacturer, internet retailer, or retailer license.

5421.5 For purposes of establishing the appropriateness of the medical cannabis
establishment, the applicant shall present to the Board such evidence and argument
as would lead a reasonable person to conclude the following:

(a) The establishment will not interfere with the peace, order, and quiet of the
relevant area, considering such elements as noise, rowdiness, loitering,
litter, and criminal activity;

(b) The establishment will not have an adverse impact on residential parking
needs, considering available public and private parking and any
arrangements made to secure such parking for the clientele of the
establishment;

(c) The flow of traffic to be generated by the establishment will be of such
pattern and volume as to neither increase the likelihood of vehicular
accidents nor put pedestrians at an unreasonable risk of harm from vehicles;
and

(d) The establishment will not have an adverse impact on real property values
in the locality, section, or portion of the District of Columbia where it is to
be located, considering such elements as blight, the presence of graffiti, the
history of building violations and vacancy status under the applicant, and
the physical impact of the property on neighboring properties, including
odors and noise.

5421.6 Whenever an applicant has initially presented evidence to show that the
establishment is appropriate, any protestant opposing the license shall present to
the Board such evidence and argument as would establish the inappropriateness of
the establishment, and as would overcome, to the satisfaction of a reasonable
person, the evidence and argument presented by the applicant.

5422 PRESUMPTION OF APPROPRIATENESS

5422.1 If notice in accordance with the Act and this chapter is provided and no valid
66

objection regarding appropriateness is filed by a protestant, the application shall be
presumed to be appropriate for the locality, section, or portion of the District where
it is located.

5423 DENIAL FOR VIOLATIONS OF THE LAW

5423.1 The Board may deny a license to an applicant if the preponderance of the evidence
shows that the applicant has permitted conduct at the medical cannabis
establishment that is in violation of the Act or this chapter.

5424 SPOUSAL INTEREST IN LICENSE

5424.1 The spouse of a license holder may apply for a separate medical cannabis business
license if the individual can establish that the conflict-of- interest provisions found
at 22-C DCMR § 5413 will not be violated. Specifically, in applying for a license
the spouse not holding a medical cannabis business license must submit a signed
and notarized affidavit which states that:

(a) The applicant has no present or future ownership, except for an executory
interest or property distributed in accordance with Title 16 of the D.C.
Official Code or similar marriage or domestic partnership separation,
annulment, or divorce law in another jurisdiction, in any other licensed
medical cannabis business that the applicant is prohibited from owning
under the Act;

(b) The applicant’s spouse will have no ownership interest in the license being
sought by the applicant;

(c) The applicant or another corporation (in which the spouse is not an officer,
shareholder or member) is solely liable for the business rather than the
spouse or spouse’s business;

(d) The applicant’s spouse will not have any operational control over the
establishment and will not serve in a management capacity for the
establishment or apply for a manager’s license for that establishment; and

(e) The applicant will not transfer any medical cannabis inventory to, or receive
any medical cannabis inventory from, their spouse’s licensed establishment.

5424.2 The applicant shall provide documentation, upon request of the Board, necessary
to validate the applicant’s sworn affidavit. Failure to submit the necessary
documentation within ten (10) business days of the Board’s request may result in
the suspension or revocation of the applicant’s license unless an extension is
granted by the Board.

5425 NOTICE BY BOARD
67

5425.1 Upon the receipt of an application filed by a cultivation center, manufacturer,
internet retailer, or retailer, excluding conditional license applications, for the
issuance or renewal of a license, for a substantial change in operation as determined
by the Board, for the transfer of a license to a new location, or for a unilateral
petition to amend or terminate a settlement agreement, the Board shall give notice
of the application to the following parties:

(a) The Councilmember of the ward where the establishment is or will be
located; and

(b) All ANCs in the ward where the establishment is or will be located.

5425.2 The notice shall contain the legal name and trade name of the applicant, the street
address of the establishment for which the license is sought, the type of license
sought, and a description of the nature of the operation the applicant has proposed
or the proposed change in operation.

5425.3 The notice shall state that ANCs objecting to approval of the application are entitled
to be heard before the granting of the application and shall inform the recipient of
the final day of the protest period and the date, time, and place of the roll call
hearing in accordance with this chapter.

5425.4 The Board shall give notice by electronic mail on or before the first day of the forty-
five (45)-day comment period to:

(a) The ANC office established pursuant to D.C. Official Code § 1-1309.13(e),
with a copy to each ANC member in the affected ward;

(b) The ANC chairperson in the affected ward; and

(c) The ANC member in whose single-member district the establishment is or
will be located.

5425.5 The Board shall publish the notices required under this section in the District of
Columbia Register.

5426 LICENSEE NOTICE REQUIREMENT

5426.1 A cultivation center, manufacturer, or retailer applicant that is required to undergo
a forty-five (45)-day public comment period under the Act or this chapter shall post
two (2) notices, furnished by ABCA, of the application in conspicuous places on
the outside of the establishment for the duration of the protest period.

5426.2 The notices shall state:

68

(a) The information required by § 5425;

(b) The final day of the protest period;

(c) The date, time, and place of the roll call hearing;

(d) The telephone number and mailing address of ABCA; and

(e) That any person willfully removing, obliterating, or defacing the notices
shall be guilty of a violation of this chapter.

5426.3 An applicant who fails to maintain the posted notices continuously during the
protest period shall be guilty of a violation of this chapter.

5426.4 If the Board determines that the notices posted at an applicant’s establishment have
not remained visible to the public for the duration of the forty-five (45)-day protest
period, the Board shall require the reposting of the notices and shall reschedule the
roll call hearing for a date at least forty-five (45) days after the originally scheduled
hearing, unless the applicant has fully performed all other notice requirements and
the Board determines that it is in the best interest of the parties to proceed at an
earlier date.

5426.5 An applicant for an internet retailer license shall not be required to post the two (2)
notices required by this section; provided, that the notice shall be posted on the
applicant’s website for the entire forty-five (45)-day public comment period.

5426.6 An applicant for a new or renewal license or for the transfer of a license to a new
location shall take a picture of the posted placards within two (2) calendar days of
the date the placards were posted, and upon request of the Board provide a copy of
the picture, or pictures, of the posted notices that includes the date and time that the
pictures were taken.

5427 STANDING TO FILE PROTEST

5427.1 An ANC located within 600 feet of the applicant’s proposed location may protest
the issuance or renewal of a license, or the transfer of a license to a new location
involving a cultivation center, manufacturer, retailer, or internet retailer.

5428 FILING A PROTEST

5428.1 Any affected ANC objecting to the approval of an application shall notify the Board
in writing of its intention to object and the grounds for the objection within the
protest period. The initial protest letter filed by the ANC shall state all
appropriateness grounds that the ANC intends to raise, and any other legal issue
related to the application.

69

5428.2 Protests submitted by the ANC shall be signed by the Chairperson, the Vice -
Chairperson or any other person authorized to sign a protest by the ANC’s bylaws,
or a resolution adopted by the ANC.

5428.3 The protest shall state the name and position of the designated representative who
shall receive correspondence from the Board on behalf of the ANC.

5429 ANC COMMENTS

5429.1 An affected ANC shall notify the Board in writing of its recommendations, if any,
and serve a copy upon the applicant or licensee, not less than seven (7) calendar
days before the date of the protest hearing. The Board shall give great weight to the
ANC recommendations as required by S ection 13 of the Advisory Neighborhood
Commissions Act of 1975, effective March 26, 1976 (D.C. Law 1-58; D.C. Official
Code § 1-309.10). The applicant or licensee may file a written objection or respond
to the comments at the protest hearing.

5430 EXTENDING THE LICENSURE PERIOD

5430.1 Licenses that have been made the subject of protest hearings shall be extended as
provided by this section.

5430.2 If the Board has not issued a decision on the matter, and the license has expired, the
license shall continue in effect until such time as the Board has rendered a final
decision.

5430.3 In the case of protested applications for a transfer to a new location, the license
shall continue in effect only for purposes of the original location, and operations at
the new location shall be prohibited until the Board has rendered a final decision.

5431 APPLICATION REVIEW

5431.1 Upon receipt of a complete new, renewal, or transfer to new location application
filed by a cultivation center, manufacturer, internet retailer, or internet retailer,
excluding conditional license applications, the Board shall schedule a roll call
hearing on the application. The roll ca ll hearing shall not take place until after the
close of the forty-five (45)-day protest period.

5431.2 Before any license is issued or renewed, the Board shall ensure that proper notice
has been provided to the public and that an ANC located in the same ward as the
applicant has been given at least forty-five (45) days in which to protest the license
and that a roll call hearing has been conducted.

5431.3 If no protest has been received by the Board from an affected ANC during the
protest period, the Board shall consider the application within ten (10) days after
the end of the protest period.
70

5431.4 If a protest has been received by the Board during the protest period, the Board
shall take the following actions:

(a) The Board shall schedule a protest hearing, to be held within one hundred
and twenty (120) days of the end of the protest period, for new license
applications to receive testimony and other evidence regarding the
application.

(b) The parties shall be informed of their obligation to attend a mediation for
the purpose of discussing and resolving, if possible, the objections raised by
the protestants.

(c) The parties shall be informed of their rights and responsibilities with respect
to reaching a settlement.

5431.5 The Board shall issue a decision in accordance with the Act and this chapter.

5432 ROLL CALL HEARING

5432.1 The roll call hearing shall be a non-adversarial proceeding conducted by the Board
or the Board’s agent, in which a list of applications for a new or renewed license,
transfer to new location, or a substantial change in operation, and the protestants
thereto, shall be read to the public.

5432.2 For the purposes of this subsection, the term “Board’s agent” means an employee
at or above the Grade 12 level in the Office of the General Counsel within ABCA,
excluding the ABCA General Counsel, who shall have the authority to:

(a) Regulate the course of the hearing;

(b) Request the persons appearing at the hearing to identify themselves, and to
provide contact information, including e-mail addresses;

(c) Request or accept written documentation from the parties, including letters
of representation;

(d) Identify the parties with standing and the filed protest issues;

(e) Schedule mediation;

(f) Adjourn a hearing and establish the date when the hearing will be continued;
and

(g) Take any other action considered necessary by the Board.

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5432.3 Each applicant and each protestant shall attend the roll call hearing in person or
appear through a designated representative.

5432.4 The ANC may designate any member or every member of its Commission, or a
non-member of the Commission, to participate in the protest process, hearings, and
negotiating settlement agreements.

5432.5 Failure to appear in person or through a designated representative at the roll call
hearing may result in denial of the license application or dismissal of a protest,
unless, in the discretion of the Board, good cause is shown for the failure to appear.
Examples of good cause for failure to appear may include:

(a) Sudden, severe illness or accident;

(b) Death or sudden illness in the immediate family, such as spouse, partner
children, parents, siblings;

(c) Incarceration; or

(d) Severe inclement weather.

5432.6 A recommendation by the Board’s agent to dismiss a license application or dismiss
a protest for failure to attend the roll call hearing shall be forwarded to the Board
for issuance of a written order.

5432.7 At the roll call hearing, the Board’s agent shall have the authority to:

(a) Regulate the course of the hearing;

(b) Request the persons appearing at the hearing to identify themselves, and
provide contact information including email addresses;

(c) Request or accept written documentation from the parties including letters
of representation;

(d) Identify the parties with standing and the filed protest issues, if undisputed;

(e) Approve a joint request from the parties to schedule mediation;

(f) Adjourn a hearing and establish the date when the hearing will be continued;
and

(g) Take any other action authorized by, or necessary under, this section.

5432.8 At the roll call hearing the parties shall be required, on a form prescribed by the
Board, to provide their name, address, email address, and telephone numbers, as
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well as the same information for any attorney or non- attorney representative
representing the parties. The parties shall also indicate on the form their consent to
service by electronic means to their email address or to the email address of their
attorney or representative.

5432.9 Upon the scheduling of the roll call hearing, all parties shall be prohibited from
participating in any ex parte communication with the Board’s agent relevant to the
merits of the proceeding. This shall include any oral or written communication not
in the public hearing record with respect to which reasonable prior notice is not
given to all parties to the proceeding.

5432.10 The roll call hearing shall be open to the public and transcribed by a certified court
reporter.

5433 PROTEST STATUS HEARING

5433.1 The protest status hearing is a proceeding held by the Board at which the parties
may address any unresolved legal issues from the roll call hearing, including
whether a protestant granted conditional standing has subsequently met the
standard for full standing, or address motions or pleadings previously filed with the
Board.

5433.2 At the protest status hearing, the parties also inform the Board of their progress in
reaching a settlement agreement. The Board in its discretion may set another status
hearing if the Board determines that the parties are close to reaching a settlement
agreement or that mediation might be helpful.

5433.3 Failure to appear at the protest status hearing either in person or through a
designated representative may result in denial of the license application or dismissal
of a protest, unless, in the discretion of the Board, good cause is shown for the
failure to appear. Examples of good cause for failure to appear include, but are not
limited to:

(a) Sudden, severe illness or accident;

(b) Death or sudden illness in the immediate family, such as spouse, partner,
children, parents, or siblings;

(c) Incarceration; or

(d) Severe inclement weather.

5433.4 The protest status hearing shall be open to the public and transcribed by a certified
court reporter.

5434 PARTY DISMISSAL
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5434.1 If an applicant or a protestant is dismissed and not reinstated by the Board for good
cause after failing to appear at a roll call hearing, status hearing, or protest hearing,
the Board may deny the license application, dismiss the protest, or take both actions
if appropriate.

5434.2 If an applicant’s request to renew its license is dismissed and not reinstated by the
Board for good cause, the applicant shall be permitted to submit a second renewal
application upon the filing of an application fee of one thousand dollars ($1,000).

5434.3 The re-filed second renewal application shall be submitted to ABCA within ten (10)
calendar days of receipt of the Board’s order dismissing the license application or
not reinstating the license application in the event that a request for reinstatement
was filed by the applicant. In the event that the applicant fails to resubmit its second
renewal application within ten (10) calendar days, the Board shall issue a cease-
and-desist order to the applicant notifying the business to immediately cease the
sale, distribution, manufacturing, or delivery of medical cannabis, medical cannabis
products, and paraphernalia upon expiration of the non- renewed license for the
prior licensing period.

5434.4 If a second renewal application is re-filed by an applicant within ten (10) calendar
days, any protestant that appeared at the roll call hearing or status hearing where
the applicant was dismissed for failure to appear shall not be required to refile a
previously submitted valid protest letter.

5434.5 If an applicant’s re -filed second renewal application is dismissed for failure to
appear at a hearing and not reinstated by the Board for good cause, the license
renewal application shall be denied. The applicant shall be required to file a new
license application, and the Board shall not accept a third license renewal
application from the applicant.

5434.6 If an applicant’s request to terminate or amend its settlement agreement is
dismissed and not reinstated by the Board for good cause, the applicant shall not be
permitted to file a subsequent request to terminate or amend its settlement
agreement until the next three-year renewal period.

5435 ESTABLISHMENT OF GEOGRAPHIC BOUNDARIES IN A PROTEST

5435.1 Upon recognition by the Board of a properly filed protest at a roll call hearing, the
geographic boundary of the protest shall be deemed the “section.” The applicant
may select another geographic area permitted by this section. The applicant shall
submit the alternative proposed boundaries to the Board and the protestants no later
than ten (10) calendar days after the roll call hearing.

5435.2 Any protestant may object to the area and boundaries proposed by an applicant by
filing a written objection with the Board no later than thirty (30) calendar days after
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receipt of the applicant’s proposed boundaries. The objection shall also be served
on the applicant in accordance with the Act and this title. The objection shall state
in detail the following:

(a) The reasons for objecting to the boundaries proposed by the applicant;

(b) The boundaries proposed by the protestant; and

(c) The reasons why the protestant’s boundaries should be adopted by the
Board.

5435.3 The applicant may file a reply to the protestant’s objection within seven (7) days of
receipt of the objection.

5435.4 Any protestant or applicant who makes a submission to the Board may forward
written argument or documentary evidence to the Board in support of the
boundaries he or she proposes.

5435.5 The Board shall determine, on a case-by-case basis, the size of the area relevant for
the appropriateness review. In making this determination, the Board shall consider
the overall characteristics of the area, including population, density, and general
commercial and residential activities.

5435.6 For the purpose of determining the appropriateness of a license, the geographic
areas to be considered by the Board shall be measured pursuant to § 101.1 and shall
be as follows:

(a) A “locality,” which shall be the immediate neighborhood of the
establishment and whose boundary shall be at a distance of six hundred feet
(600 ft.) from the establishment;

(b) A “section,” whose boundary shall be at an area larger than the immediate
neighborhood and whose boundary shall be at a distance of twelve hundred
feet (1,200 ft.) from the establishment; and

(c) A “portion,” whose boundary shall be at an area larger than a “section” and
whose boundary shall be at a distance of eighteen hundred feet (1,800
ft.) from the establishment.

5435.7 In determining the area to be considered, the Board shall consider the overall
characteristics of the alternative areas, including the following:

(a) The population and density of the areas surrounding the establishment;

(b) The general commercial and residential activities in the areas surrounding
the establishment;
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(c) Geographical factors, such as parks, rail lines, major thoroughfares, bodies
of water, cemeteries, and unimproved or unused property, which may tend
to define physically an area to be considered; and

(d) Historical patterns of commercial or residential activity leading to an
identification of a given area as a distinct, generally recognized
neighborhood, or larger area.

5435.8 The Board shall make a final decision on the boundaries without a hearing and
based on the submissions received from the applicant and the protestant.

5435.9 The Board’s final decision shall be made and announced at the first status hearing
for the application at issue unless no geographic boundary selection is made by the
parties.

5435.10 In establishing a geographic boundary, including the designations of locality,
section, or portion set forth in the Act or this chapter, the Board shall measure the
specified distance in an arc from each corner of the building on which the licensed
establishment is located, connecting the arcs by tangent lines.

5436 DECISIONS OF THE BOARD

5436.1 No application shall be approved until the Board has determined that the applicant
has complied with the Act and this title or, in the case of a renewal, has fulfilled the
license requirements. The Board shall make findings of fact with respect to each
requirement, including the appropriateness standards set forth in the Act and the
regulations.

5436.2 For the purposes of this section, the record shall close thirty (30) days after a hearing
is concluded to allow the parties to submit proposed findings of fact and
conclusions of law and any other document submissions requested by the Board.

5436.3 Within ninety (90) days after the close of the record, the Board shall issue its written
decision accompanied by findings of fact and conclusions of law.

5437 PROTEST PARTIES

5437.1 The parties to the protest hearing shall be the applicant and the protestants as
identified at the roll call hearing.

5437.2 If there is more than one protestant, the Board, in its discretion, may request that
multiple protestants confer among themselves and designate one person to conduct
the protestants’ case. In the case where the protestants fail to agree, the Board may
select the protestant presentation order and limit the presentation time of one or
more parties to ensure that the applicant and protestants have similar presentation
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times.

5438 MEDIATION

5438.1 A mediation among the parties shall be held to discuss and resolve, if possible, the
objections raised by the protestants. If the parties fail to reach a settlement
agreement on one or more of the protest issues, they shall so inform the Board at
the scheduled protest status hearing or the protest hearing and the Board shall
proceed with a protest hearing as to all unresolved issues.

5438.2 Mediation, which may be arranged at a roll call hearing or any other time, shall be
set on a mutually convenient date before the scheduled protest status hearing or the
protest hearing.

5438.3 At the request of all parties, and if a mediation would be unlikely to succeed, the
Board may waive the parties’ obligation to attend a mediation.

5439 PROTEST HEARINGS

5439.1 The parties to a protest hearing shall be the applicant or licensee and the protestants.

5439.2 At the protest hearing, an applicant or licensee may give a brief opening statement
summarizing the evidence and testimony they intend to present regarding the
appropriateness of the application or license at issue. Thereafter, the protestant may
give a brief opening statement summarizing the evidence they intend to present to
rebut or overcome the evidence and argument presented by the applicant or
licensee.

5439.3 At the conclusion of the opening statements, the Board shall call its own witnesses,
if any, who shall testify to the results of their investigation into the appropriateness
of the establishment.

5439.4 At the conclusion of testimony by the Board’s witnesses, if any, the applicant shall
call its witnesses to give testimony and present evidence regarding the
appropriateness of the establishment.

5439.5 At the conclusion of testimony by the applicant’s witnesses, the protestant shall call
witnesses to give testimony and present evidence.

5439.6 All witnesses shall testify under oath and shall be subject to questioning by the
Board and to cross-examination by the opposing party.

5439.7 In any case where there is more than one (1) protestant, the Board, in its discretion,
may request that the protestants designate one (1) person to conduct the protestant’s
case, to give opening and closing statements, and to examine and cross -examine
witnesses.
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5439.8 The Board may, on a motion from either party or on its own motion, limit the
number of persons who may testify on behalf of the applicant, licensee, or
protestant if the Board determines the testimony would be redundant.

5440 SETTLEMENT AGREEMENTS

5440.1 The applicant and one or more ANCs that have protested, or would have standing
to protest, an application pursuant to the Act or this title may, at any time, negotiate
a settlement and enter into a written settlement agreement setting forth the terms of
the settlement.

5440.2 The signatories to the agreement shall submit the agreement to the Board for
approval. A settlement agreement, amendment to a settlement agreement, or
cancellation of a settlement agreement shall not be effective until the Board issues
a written Order approving the proposed settlement.

5440.3 All provisions of a settlement agreement approved by the Board shall be
enforceable by ABCA or the Board unless prohibited by the Act or this chapter.

5440.4 A settlement agreement not approved by the Board shall not be enforced by ABCA
or the Board.

5440.5 Unless a shorter term is agreed upon by the parties, a settlement agreement shall
run for the term of a license, including renewal periods, unless it is terminated or
amended in writing by the parties and the termination or amendment is approved
by the Board.

5440.6 The terms of a settlement agreement submitted by the parties shall be consistent
with District of Columbia law, typed, and in compliance with the Act and this title.

5440.7 A settlement agreement submitted to the Board shall include the form provided by
the Board that shall be deemed part of the agreement and at a minimum:

(a) Identify all parties to the agreement;

(b) Contain the contact information for all parties; and

(c) Contain the signatures of all parties.

5440.8 When the parties file an additional settlement agreement or amendment to an
existing settlement agreement, the Board may, before considering the agreement or
amendment, require the parties to cancel all prior agreements and consolidate all
intended settlement terms into one comprehensive document before approval.

5441 SUCCESSOR ANC
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5441.1 After the approval of a settlement agreement between the licensee and an ANC or
the filing of a protest, if the District legally changes the boundaries of ANCs and
the licensed location is located in a new ANC’s jurisdiction, the new ANC shall, to
the extent consistent with governing law, be deemed the successor-in-interest and
replace the original ANC as a party to the agreement and the protest.

5442 AUTOMATIC TERMINATION

5442.1 A settlement agreement shall be terminated by the Board upon petition of the
applicant if the applicant shows that the Board has approved a transfer of the license
to a new location at least twelve hundred feet (1,200 ft.) away from the prior
location after the initial approval of the agreement. The licensee may request a
declaratory order terminating the settlement agreement if its settlement agreement
qualifies for termination under this section.

5443 BOARD REVIEW OF SETTLEMENT AGREEMENTS

5443.1 If the Board determines that the settlement agreement complies with all applicable
laws and regulations and the applicant otherwise qualifies for licensure, it may, in
its discretion, approve the license application, conditioned upon the licensee’s
compliance with the terms of the settlement agreement. The Board shall
incorporate the text of the settlement agreement in its order and the settlement
agreement shall be enforceable by the Board.

5443.2 The Board may reject any settlement agreement that is not in accordance with the
law, not in the public interest, or otherwise not in the interest of ABCA to enforce.

5443.3 The Board may reject a settlement agreement that does not represent the entire
agreement of the parties or when any or all of the terms of the settlement agreement:

(a) Violate the Act or this title, the Constitution, the D.C. Human Rights Act,
or any other law or regulation;

(b) Are not in the public interest;

(c) Are not in the agency’s interest to enforce because it is overly burdensome,
unenforceable, or overrides the prosecutorial or other discretion provided to
the Board or the District;

(d) Are incomplete, not final, or vague; or

(e) Require the licensee or the District to exercise control over third parties
outside the premises.

5443.4 The parties may submit a settlement agreement at any time, except that, on the date
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of the protest hearing or after the close of the record, the parties may only file a
settlement agreement with the permission of the Board.

5443.5 If the Board determines that a settlement agreement submitted by the parties does
not comply with all applicable laws and regulations, the Board may condition
approval of the settlement agreement on the parties’ acceptance of modifications of
the agreement proposed by the Board. If the parties reject the modifications
proposed by the Board, they may submit a new settlement agreement for Board
review that complies with applicable laws and regulations, or the Board may order
the parties to proceed to a Protest Hearing.

5443.6 The Board shall issue an Order rejecting the settlement agreement if the parties to
a settlement agreement reject the modifications proposed by the Board and fail to
submit a new settlement agreement, or fail to respond to the Board’s modifications,
within thirty (30) days of receiving notice of the modifications.

5443.7 If the Board issues an Order denying the settlement agreement and a protest has
been filed against the application, the matter will be scheduled for a Protest
Hearing.

5444 UNILATERAL AMENDMENT OR TERMINATION

5444.1 The Board may accept an application to amend or terminate a settlement agreement
by fewer than all parties in the following circumstances:

(A) During the license’s renewal period; and

(B) After four (4) years from the date of the Board’s decision initially approving
the settlement agreement.

5444.2 Notice of an application under § 5444.1 to amend or terminate a settlement
agreement shall be given both to the parties of the agreement and to the public at
the time of the applicant’s renewal application according to the renewal procedures
required under the Act and this chapter.

5444.3 The Board may approve a request by fewer than all parties to amend or terminate a
settlement agreement for good cause shown if it makes each of the following
findings based upon sworn evidence:

(a) The applicant seeking the amendment or termination has made a diligent
effort to locate all other parties to the settlement agreement; or if non-
applicant parties are located, the applicant has made a good faith attempt to
negotiate a mutually acceptable amendment or termination of the settlement
agreement;

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(b) The need for an amendment or termination is either caused by
circumstances beyond the control of the applicant or is due to a change in
the neighborhood where the applicant’s establishment is located; and

(c) The amendment or termination will not have an adverse impact on the
neighborhood where the establishment is located.

5444.4 To fulfill the good -faith attempt criteria of this section, the applicant shall file a
sworn affidavit with the Board at the time that an application to amend or terminate
a settlement agreement by fewer than all parties is filed stating that either:

(a) A meeting occurred between the parties which did not result in agreement;
or

(b) The non-applicant parties refused to meet with the applicant.

5444.5 For the purposes of this section, the term “license’s renewal period” means the sixty
(60)-day period before the expiration date of a license.

5444.6 Upon the filing of a valid petition for termination or amendment, any signatory
party that has not filed a valid protest against the petition shall automatically be
removed from the agreement.

5445 ENFORCEABLE SETTLEMENT AGREEMENT PROVISIONS

5445.1 A settlement agreement enforceable by the Board under this chapter may, to the
extent consistent with the Act, include:

(a) Provisions allowing or prohibiting background or recorded music or other
amplified sounds, restricting the location of music and sound equipment,
and the hours that recorded or background music may be provided;

(b) Provisions requiring specific methods to mitigate sound or noise
disturbances, including, but not limited to, specific architectural features;
requiring doors and windows to remain closed except in the case of ingress
and egress; sound barriers and other sound proofing elements; the use of
sound limiters and other equipment; and the placement of sound equipment;

(c) Provisions requiring cleanliness, odor , smoke, litter, and trash control on
the premises and in the immediate area surrounding the premises, including,
but not limited to, the frequency the immediate area is cleaned; trash
removal times; efforts to limit rat and vermin infestation, the use of odor
control technology, the establishment of non-smoking areas, and trash and
recycling management;

(d) Provisions requiring specific parking arrangements;
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(e) Provisions requiring the use of validated or valet parking so long as the
required valet service is properly approved and has all licenses, permits, and
other approvals required by law;

(f) Requirements that the applicant or existing licensee use and maintain an
incident log and that the incident log be made available to ABCA and the
Board, upon request;

(g) Provisions requiring the filing and compliance with a security plan in
accordance with the Act and this title;

(h) Notice to cure provisions;

(i) Provisions restricting the indoor and outdoor hours of operation, and hours
of medical cannabis sales and delivery;

(j) Provisions prohibiting or restricting the utilization of floors and outdoor
areas, or the occupancy of all or a portion of the premises;

(k) Provisions requiring the use security cameras, minimum identification
checking procedures, minimum security personnel staffing, the use of
various doors as exits and entrances except in the case of an emergency,
restricting the consumption of cannabis and cannabis products, and other
safety and security policies and procedures unless otherwise required by law
or the Board;

(l) Provisions requiring minimum training for managers and staff;

(m) Provisions requiring the posting of signage or information on the
establishment’s website; and

(n) Provisions that mandate that the establishment comply with existing District
law and all licenses, permits, and other privileges granted by the District.

5446 UNENFORCEABLE SETTLEMENT AGREEMENT PROVISIONS

5446.1 The Board shall not enforce the following if included in a settlement agreement
covered by this chapter:

(a) Provisions that require approval from a signatory or third party to file an
application or request with the Board;

(b) Provisions that require additional or specific notice to a signatory or third
party outside of the notice required by law;

82

(c) Provisions that restrict the sale or transfer of the business to new or different
owners or require or restrict a change in the type of license;

(d) Provisions that prohibit the act of filing of an application or request with the
District. This section does not prevent the settlement agreement from
allowing, restricting, or prohibiting various activities of the business;

(e) Provisions that mandate the purchase, service, or sale of specific types of
food, non-alcoholic beverages, and medical cannabis; mandate the type of
cuisine; mandate the use of brands or types of medical cannabis and other
products; or mandate any or all prices set by the business;

(f) Provisions restricting customers based on age, gender, national origin,
status as a student, or other criteria prohibited by the D.C. Human Rights
Act (D.C. Official Code § 2-1401.01 et seq.);

(g) Provisions requiring the use of specific businesses; require the joining of
any group; or requiring the hiring of any specific person or local individuals;

(h) Provisions that create additional administrative procedures in addition to
those required by ABCA or the District, alter the penalties of existing laws,
or otherwise restrict prosecutorial or Board discretion;

(i) Provisions that require the licensee or their agents to attend ANC or
community meetings, events, or otherwise require them to appear or
communicate with the signatories or third parties;

(j) Provisions that require the establishment to provide money, buy specific
goods or services, or provide financial or other benefits to the community
or its agents; provide discounts, free goods and service; or offer specific
promotions;

(k) Provisions requiring the provision of contracts, incident logs, and other
documents to the signatories or third parties except to ABCA or the Board;

(l) Provisions that require a minimum or maximum level of food, non-
alcoholic beverage, or cannabis sales to the public, individuals, qualified
patients, or other persons authorized to purchase goods and services from
the establishment or require the purchase of specific products by qualified
patients, caregivers, or other customers.

(m) Provisions that require future negotiation or create probationary periods that
may alter the terms of the license, the settlement agreement, or the operation
of the business after approval of the agreement; and

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(n) Provisions that create a plant limit or restrict the products that may
manufactured, dispensed, or sold by the licensee.

5446.2 A settlement agreement provision that requires a violation of District law shall not
be enforced, even if the law did not exist at the time the agreement was approved.

5446.3 If a settlement agreement provision is deemed unenforceable after approval of the
agreement, it shall be presumed that the parties intended for the remainder of the
agreement to remain enforceable.

5447 DISCOVERY OF LICENSEE DOCUMENTS

5447.1 An ANC granted standing as a protestant during the pendency of the protest may
request from ABCA a copy of a contract to which a licensee is a party, an incident
log kept by a licensee, or similar document, if obtained by ABCA, except for patient
and caregiver records, financial information, or any other document that in the
determination of the Board merits privacy protection.

5448 QUALIFICATIONS HEARING

5448.1 The Board may hold a qualifications hearing before issuing, transferring, or
renewing a license, registration, or permit to determine whether the applicant,
licensee, registrant, or permittee meets the criteria set forth in the Act and this
subtitle even if not raised as part of a protest.

5448.2 A qualifications hearing shall be conducted as a contested case pursuant to the DC
APA.

5448.3 The Board shall give notice to the applicant, licensee, or permittee, by personal
service or certified mail, requiring the person to appear before the Board within 15
calendar days after receipt of the notice to provide evidence establishing that the
person meets the criterion set forth in the Act and this title.

5448.4 The hearing notice required by § 5448.3 of this section shall include:

(a) The criterion about which the Board is requesting information;

(b) The evidence to be considered by the Board at the hearing, including
documentation, exhibits, investigative reports, or electronic or digitally
stored information; and

(c) The conditions, if any, that the Board is considering imposing on the
applicant.

5448.5 If after notice has been provided, as required by § 5448.3 of the section, the
applicant refuses or otherwise fails to appear at the hearing , the Board may hold
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the hearing ex parte.

5448.6 The Board shall deny the issuance, transfer, or renewal of a license, registration, or
permit application if it determines that the applicant does not meet the criteria set
forth in the Act or this title.

5448.7 In issuing or renewing a license, registration, or permit, or approving a transfer, the
Board may require that certain conditions be met, consistent with the requirements
set forth in the Act or this title.

5449 UNLICENSED ESTABLISHMENT APPLICATION

5449.1 An unlicensed establishment described in Section 7a of the Act (D.C. Official Code
§ 7-1671.06a) applying for a cultivation center, internet retailer, or retailer license
shall provide the information required by Section 7a of the Act (D.C. Official Code
§ 7-1671.06a) in order to be eligible to file a license application for a cultivation
center, internet retailer, or retailer license.

5449.2 In order to satisfy section 7a(a)(2)(B) of the Act (D.C. Official Code § 7-
1671.06a(a)(2)(B)), an applicant for an unlicensed establishment applying for a
cultivation center shall provide an architectural map of the facility indicating where
medical cannabis will be grown, processed, and packaged and attest that the
proposed facility will have sufficient power and heating and ventilation systems to
support medical cannabis growing activity.

5449.3 Once an unlicensed establishment files an application, no amendment to the
selected location for the license may be accepted until the license is issued.

A new section 5450, RESERVED, is added to read as follows:

5450 RESERVED

Chapter 55, REGISTRATION CHANGES, is amended as follows:

Section 5501, INDIVIDUAL OWNERSHIP, PARTNERSHIP, LIMITED LIABILITY
COMPANY OR PARTNERSHIP, AND CORPORATE CHANGES, is amended to read as
follows:

5501 INDIVIDUAL OWNERSHIP, PARTNERSHIP, LIMITED LIABILITY
COMPANY OR PARTNERSHIP, AND CORPORATE CHANGES

5501.1 For a corporation that holds a medical cannabis business license, if there is a change
in corporate officers or directors, or other persons, owning or controlling one
percent (1%) or more, but less than fifty percent (50%), of that corporation’s
common stock, the corporation shall submit to the Board, within fifteen (15)
calendar days of the change, the minutes or other instrument giving the names and
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addresses of any new officer, director, or person owning or controlling any
percentage of the stock.

5501.2 For a partnership or limited liability company that holds a medical cannabis
business license, if there is a change in the ownership of the partnership or limited
liability company of one percent (1%) or more, but less than fifty percent (50%), of
the total ownership interest of the business, the partnership or limited liability
company shall submit to the Board in a timely manner, but no later than fifteen (15)
calendar days after the change has occurred, the instruments reflecting the change
in ownership interests.

5501.3 Within fifteen (15) calendar days of the changes set forth in § 5501.1 and § 5501.2,
the individual owner, partnership, limited liability company or partnership, or
corporation shall submit to the Board any relevant data pertaining to the personal
and business history of any new officer, director, stockholder, member, general or
limited partner, or other person that the Board may require, and each new person
shall apply for a license as required under this subtitle.

5501.4 Each individual seeking to own or control interest of at least one percent (1%) in a
partnership, limited liability company, or corporation shall pass a criminal
background check and pay the applicable registration fee as required by the Act and
this subtitle.

5501.5 The proposed transferee(s) shall not operate the licensed medical cannabis business
until they have received a license issued by the Board.

Section 5502, TRANSFER OF EQUAL OR MAJORITY OWNERSHIP OR CONTROL, is
amended to read as follows:

5502 TRANSFER OF EQUAL OR MAJORITY OWNERSHIP OR CONTROL

5502.1 At least thirty (30) days before executing an agreement that will result in the
transfer of ownership or control of fifty percent (50%) or more of the ownership
interest or common stock of an entity that holds a licensed medical cannabis
business, the current licensee shall submit to the Board an application for a transfer
of equal or majority ownership or control.

5502.2 A licensee shall not complete the sale or transfer of fifty percent (50%) or more of
its ownership or control of an entity that holds a licensed medical cannabis business
until the licensee has received written approval from the Board of the sale or
transfer.

5502.3 If a licensee transfers ownership or control of fifty percent (50%) or more of its
ownership or control of an entity that holds a licensed medical cannabis business
without Board approval, the license shall automatically be deemed void and shall
be surrendered to the Board upon demand.
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5502.4 The Board shall not approve an application for a transfer of fifty percent (50%) or
more of its ownership or control of a licensed medical cannabis business until a
complete application providing the following information is filed:

(a) The legal name or trade name of the business and a copy of the trade name
registration, if applicable;

(b) The name, address, date of birth, and social security number of the
individual owner, partners, limited liability company or partnership
member, principal officers, directors, or shareholders (no P.O. Boxes will
be accepted);

(c) The Certificate of Good Standing for the partnership, limited liability
company or partnership, or corporation, issued within thirty (30) days of the
date of submission of the application;

(d) A Basic Business Registration with a General Business registration
endorsement;

(e) A certificate of occupancy for the premises issued in the name of the new
owner, if applicable;

(f) Evidence that the transferee has entered into a bona fide agreement with the
owner of the building to lease, purchase, or occupy the premises;

(g) A signed and notarized Acknowledgment and Attestation form;

(h) Information on the source of funds used to acquire the ownership or control
interests of the business;

(i) A copy of both the Bill of Sale and the Purchase and Sale Agreement
between the licensee and the transferee, if such documents exist; and

(j) A notarized and signed copy of the Transfer of License Affidavit Form.

5502.5 The proposed transferee(s) shall pass a criminal background check as required by
the Act and the regulations.
5502.6 The proposed transferee(s) shall not operate the licensed medical cannabis business
until they have received a license issued by the Board.

Chapter 56, GENERAL OPERATING REQUIREMENTS, is amended as follows:

Section 5601, POSTING OF IDENTIFICATION REQUIREMENT BY DISPENSARY, is
amended to read as follows:

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5601 POSTING OF IDENTIFICATION REQUIREMENT BY RETAILER AND
INTERNET RETAILER

5601.1 The notice required to be posted by the retailer shall state that no person shall be
sold medical cannabis who does not produce both:

(a) A valid registration card issued by the Board or valid out of state
documentation demonstrating enrollment in another jurisdiction’s medical
cannabis program; and

(b) A valid government issued photo identification document displaying proof
of age that matches the name on the registration card.

5601.2 An internet retailer shall be required to post the information required by § 5601.1
on its website.

Section 5602, HOURS OF OPERATION, SALE, SERVICE, AND DELIVERY, is amended
as follows:

Subsection 5602.1 is amended to read as follows:

5602.1 A retailer may operate and sell medical cannabis, and a retailer with a retail delivery
endorsement may deliver medical cannabis, on any day and at any time except
between the hours of 11:00 p.m. and 7:00 a.m.

Subsection 5602.2 is amended to read as follows:

5602.2 A licensed courier, cultivation center, internet retailer, manufacturer, and testing
laboratory shall not be open to the public.

Subsection 5602.3 is amended to read as follows:

5602.3 A manufacturer may operate its business twenty-four (24) hours a day.

Subsection 5602.8 is renumbered subsection 5602.9.

Subsection 5602.9 is renumbered subsection 5602.10.

A new subsection 5602.8 is added to read as follows:

5602.8 A courier and internet retailer may operate, sell, and deliver medical cannabis on
any day and at any time except between the hours of 11:00 p.m. and 7:00 a.m.

A new subsection 5602.11 is added to read as follows:

5602.11 A medical cannabis business may maintain its websites, mobile applications, and
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third-party listings active after its Board-approved hours and receive internet orders
for medical cannabis so long as no medical cannabis is dispensed or delivered to a
qualifying patient, caregiver, or courier until its Board-approved hours permit the
business to open.

Section 5604, MANAGER’S REGISTRATION, is amended to read as follows:
5604 MANAGER’S APPLICATION

5604.1 In the absence of an owner, a licensed medical cannabis business shall have a
Board-approved manager present at the licensed premises during the hours that the
licensed medical cannabis business is open.

5604.2 An applicant for a manager’s license shall submit:

(a) An application to the Board on the prescribed form;

(b) A copy of their certificate showing completion of a medical cannabis
training and education program from a Board-approved medical cannabis
certification provider; and

(c) The required fee.

5604.3 If a licensed medical cannabis business has designated one or more persons to
manage the licensed business, each manager shall be the holder of a valid
manager’s license which shall be renewable each year.

5604.4 A manager’s license shall remain valid until surrendered, expired, suspended, or
revoked.

5604.5 An applicant for a manager’s license shall be subject to the requirements of the Act
and this title.

5604.6 A licensed medical cannabis business may file a written request with the Board that
an applicant for a manager’s license who has not completed a medical cannabis
training and education certification program be issued a temporary manager’s
license and shall attest that the applicant for the manager’s license will complete
the medical cannabis and cannabis training within thirty (30) calendar days of
receipt of the temporary manager’s license.

5604.7 The written request for a temporary manager’s license shall set forth the name of
the licensed establishment, the trade name, the address of the establishment, the
name of the applicant for the manager’s license, and the reason why the issuance
of the temporary manager’s license is necessary.

5604.8 The temporary manager’s license issued pursuant to § 5604.8 shall cease after thirty
(30) days or upon the approval or denial of the manager’s license application.
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5604.9 A manager’s license shall expire one (1) year from issuance.

Section 5606, NOTICE OF CRIMINAL CONVICTION OF DIRECTOR, OFFICER,
MEMBER, INCORPORATOR, AGENT OR EMPLOYEE, is amended to read as follows:

5606 NOTICE OF CRIMINAL CONVICTION OF DIRECTOR, OFFICER,
MEMBER, INCORPORATOR, AGENT OR EMPLOYEE

5606.1 If a licensed medical cannabis business discovers that any director, officer,
member, incorporator, agent, or employee has at any time during their employment
been convicted of a felony, it shall notify the Board within seven (7) days of that
discovery.

Subsection 5606.2 is repealed.

Section 5607, LABELING AND PACKAGING OF MEDICAL CANNABIS, is amended as
follows:

Subsection 5607.1(f) is repealed.

Subsection 5607.13 is amended to read as follows:

5607.13 The cultivation center or manufacturer shall place medical cannabis or medical
cannabis products in either tamper-evident or tamper -proof packaging so long as
such packaging is difficult for children under five (5) years of age to open prior to
transporting the products to the internet retailer or retailer.

Subsection 5607.17 is amended to read as follows:

5607.17 An internet retailer, retailer, cultivation center, and manufacturer shall submit its
labeling to the Board for approval and record.

Section 5608, INGESTIBLE ITEMS, is amended to read as follows:

5608.1 No medical cannabis business shall produce any cannabis product in an edible form,
or other form which is intended to be eaten, drunk, or otherwise consumed orally,
unless it has:

(a) Prepared the product at a cultivation center facility that meets all
requirements of a retail food establishment, including any Department of
Health licensing and certification requirements;

(b) Complied with all District of Columbia health regulations relating to the
production, preparation, and sale of prepared food items in accordance with
Title 25 DCMR, Subtitle A (Food and Food Operations); and
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(c) Obtained all licenses, permits, endorsements, or other permissions required
by law, including any Hazard Analysis and Critical Control Points
(HACCP) plan required by law, before producing any ingestible products.

5608.2 A medical cannabis business shall not create, process, sell or transfer a cannabis
item that:

(a) That by its shape, design or flavor is likely to appeal to minors, including:

(1) Products that are modeled after non- cannabis products primarily
consumed by and marketed to children; or

(2) Products in the shape of an animal, vehicle, person, fruit, or
character;

(b) That is made by applying cannabinoid concentrates or extracts to
commercially available candy or snack food items;

(c) That contains dimethyl sulfoxide (DMSO);

(d) That contains more than 200 mg of THC per package;

(e) That contains more than 20mg of THC per serving size or piece; or

(f) That requires cooking or baking by the consumer.

5608.3 In addition to the requirements of § 5608.2, c hocolate cannabis-infused products
shall comply with the following requirements:

(a) Each serving size piece shall be individually wrapped; and

(b) Each serving size piece shall be affixed with a stamp or the imprinted letters
“THC.”

5608.4 The sale of an ingestible item containing either a serving size piece of more than
20 mg of THC or more than 200 mg of THC per package shall be permitted as
follows:

(a) Notwithstanding the THC limits set forth in subsections 5608.2, a medical
cannabis business may apply to the Board to manufacture, sell, and transfer
to other medical cannabis businesses as permitted by law ingestible items
that may be sold only to qualifying patients with a written recommendation
from an authorized practitioner, and that contain:

(1) Serving size pieces with a maximum of 50 mg of THC; and
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(2) No more than 500 mg of THC per package.

(b) It shall be a violation of this title for a medical cannabis business to sell
ingestible items containing more than 20 mg of THC per serving size piece
or 200 mg of THC per package to a qualifying patient that does not possess
a valid written recommendation from an authorized practitioner.

(c) The serving size and per package THC limits set forth in paragraph (a) of
this subsection shall not apply to the sale of:

(1) Ingestible capsules;

(2) Tinctures; and

(3) Non-injectable syringes no larger than 5,000 mg.

(d) A qualifying patient with a valid non-resident patient card issued by another
state or jurisdiction that does not permit patient self -certification shall be
deemed as possessing a written recommendation from an authorized
practitioner and shall be eligible to purchase ingestible items consistent with
the limits set forth in paragraphs (a)(1) and (a)(2).

Section 5611, EDUCATIONAL CLASSES AND DEMONSTRATIONS, is amended to read
as follows:
5611 EDUCATIONAL CLASSES AND DEMONSTRATIONS

5611.1 A retailer may offer educational classes and demonstrations to qualifying patients,
caregivers, and non-resident qualifying patients upon issuance of an education
tasting endorsement.

5611.2 Educational classes and demonstrations permitted to be offered on-site shall include
cooking and how-to classes and demonstrations, including how to utilize cannabis
paraphernalia, how to cook foods with medical cannabis, and other medical
cannabis preparation techniques.

5611.3 A retailer shall only offer educational classes and demonstrations on the retailer’s
registered premises.

5611.4 A retailer may permit a qualifying patient, caregiver, or non- resident qualifying
patient to smell or touch medical cannabis products provided medical cannabis is
not administered or consumed on the registered premises and the medical cannabis
has not been sold or otherwise given away.

5611.5 An educational activity that includes the smoking, administering, or consumption
of medical cannabis shall be prohibited.
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5611.6 A retailer shall ensure that containers of medical cannabis to be utilized for
educational activities are labeled as such and may not be sold.

5611.7 A retailer shall ensure that medical cannabis containers to be utilized for
educational purposes remain in its secure storage area during non-operating hours.

5611.8 A retailer shall not allow a qualifying patient, caregiver, or non-resident qualifying
patient to leave the premises with medical cannabis that was made available or
offered as part of the educational activity.

5611.9 A retailer shall destroy and dispose of medical cannabis utilized during the
educational activity consistent with the requirements of this subtitle. This
subsection shall include all medical cannabis that is physically touched or handled
by patients, caregivers, or staff as part of the educational activity.

5611.10 A retailer with an educational tasting endorsement may offer educational activities
on the registered premises between the hours of 7:00 a.m. and 11:00 p.m., daily.

5611.11 A retailer shall be permitted to charge a qualifying patient, caregiver, or non-
resident qualifying patient an additional fee to attend or participate in the
educational class or demonstration.

Section 5612, PRODUCTION OF VALID PHOTO IDENTIFICATION REQUIRED, is
amended to read as follows:

5612 PRODUCTION OF VALID IDENTIFICATION REQUIRED

5612.1 An internet retailer or retailer shall refuse to sell or deliver medical cannabis to any
person who fails to produce a valid medical cannabis patient card issued by ABCA
or a nonresident patient card or state -issued document and a valid government
issued photo identification document displaying proof of age that matches the name
on the patient card.

5612.2 A licensee shall take steps reasonably necessary to ascertain whether any person to
whom the licensee sells, delivers, or serves medical cannabis is a qualifying patient
registered or authorized to purchase or possess medical cannabis, and that the sale
otherwise complies with the medical cannabis quantity and sale limits provided by
the Act and this title.

5612.3 Any person who supplies a valid and unexpired medical cannabis patient card or
medical cannabis caregiver card showing their legal age to be the legal age and
authorization to obtain medical cannabis and all other documents required by the
Act and this title , if required, shall be deemed authorized to obtain medical
cannabis.

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5612.4 The provisions of this section notwithstanding, no licensee shall discriminate on
any basis prohibited by the Human Rights Act of 1977, effective December 13,
1977 (D.C. Law 2-38; D.C. Official Code § 2-1401.01 et seq.).

5612.5 It shall be an affirmative defense to a violation of § 5612.1 that the licensee or their
agent was shown and inspected a fake or fraudulent identification document of such
quality that a reasonable person would believe that it was valid unless:

(a) The identification was visibly damaged;

(b) The identification lacked the physical materials or features of the valid
identification being imitated;

(c) The photograph contained in the identification that was shown did not
match the bearer;

(d) The identification is displayed past the printed expiration date; or

(e) The licensee or their agent knew the person was not authorized or ineligible
to obtain medical cannabis.

Section 5614, CO-LOCATION AND INTEGRATION, is amended as follows:

Subsection 5614.2 is amended to read as follows:

5614.2 Separately licensed medical cannabis businesses may be located in the same
building or space but shall maintain separate books and records and a separate
secure space. A medical cannabis business may share space or the same address if
the licensed medical cannabis businesses demonstrate to the satisfaction of the
Board that the medical cannabis businesses will have their own separate secure
space, maintain separate inventory, records, and financial accounts, and otherwise
operate in accordance with the Act and this title.

Subsection 5614.4 is repealed.

Section 5615, SEED-TO-SALE TRACKING SYSTEM, is amended to read as follows:

5615 SEED-TO-SALE TRACKING

5615.1 A medical cannabis business shall purchase access to the METRC real -time
electronic records system.

5615.2 All information required by this section shall be entered into the real-time electronic
records system designated in § 5615.1.

5615.3 All information entered into the METRC real-time electronic records system shall
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be true, complete, and a real -time electronic record of the event, information, or
occurrence recorded in the system.

5615.4 All information required to be entered into the real -time electronic records system
shall be entered immediately at the time of the transaction, event, or occurrence, or
the information becomes available to the licensee or its agents.

5615.5 A courier, internet retailer, or retailer shall enter the following information into the
real-time electronic records system:

(a) All transactions where the licensee distributed or sold medical cannabis to
a qualifying patient, nonresident qualifying patient, or caregiver, including,

(1) The quantity of medical cannabis distributed, delivered, or
dispensed;

(2) Whether the transaction was fulfilled at the store, by curbside
delivery, or delivery at another location;

(3) The amount of money or other consideration provided by the
purchaser; and

(4) The name and address of the purchaser;

(b) The quantity of medical cannabis or medical cannabis products at the
facility; and

(c) The destruction or disposal of cultivated, processed, or acquired medical
cannabis, the method used, the reason for its destruction or disposal, and
proof of disposal.

5615.6 A cultivation center and manufacturer shall enter the following information into the
real-time electronic records system:

(a) The date of each distribution, transportation, or sale of medical cannabis to
an internet retailer, manufacturer, retailer, or testing laboratory;

(b) The name, address, and license number of the internet retailer,
manufacturer, or retailer;

(c) The quantity of medical cannabis and paraphernalia distributed, transported,
or sold to the internet retailer, manufacturer, or retailer;

(d) The price charged and the amount received for the medical cannabis or
medical cannabis products distributed, transported, or sold to the internet
retailer, manufacturer, or retailer;
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(e) The type, brand, and quantity of medical cannabis or medical cannabis
products maintained at the cultivation center on a daily basis;

(f) The number of plants being grown at the cultivation center on a daily basis;

(g) The type, brand name, and quantity of medical cannabis or medical cannabis
products produced on a daily basis;

(h) The results of the testing laboratory analysis for five (5) years from the date
of the test; and

(i) The destruction or disposal of cultivated, processed, or acquired medical
cannabis or medical cannabis products, the method used, the reason for its
destruction or disposal, and proof of disposal.

5615.7 It is an affirmative defense to a violation of § 5615.6(h) that the medical cannabis
or medical cannabis product was not subject to a testing requirement due to the
absence of testing laboratory licenses in the District of Columbia or that all testing
laboratories were in safekeeping, not in operation, or out of business for a period of
more than fourteen (14) days.

Section 5616, SIGN REQUIREMENTS, is amended as follows:

Subsection 5616.1 is amended to read as follows:

5616.1 A retailer shall post at its building entrance in a conspicuous place, a sign from the
Board that states the following:

(a) Minors are precluded from entering the premises unless they are a
qualifying patient and are in the presence of a parent or guardian; and

(b) Smoking, ingesting, or consuming cannabis on the premises is prohibited.

5616.2 A retailer with a Board -approved safe-use treatment facility, summer garden, or
education tasting endorsement shall not be required to post the language contained
in § 5616.1(b).

Subsection 5616.4 is amended to read as follows:

5616.4 An internet retailer or retailer shall conspicuously post a sign on the premises
accessible to the public; make a booklet or other document readily available to the
public; or on its website post information or a document containing the current retail
prices of all items available for sale.

Section 5620, MANUFACTURING STANDARDS, is amended to read as follows:
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5620 MANUFACTURING STANDARDS

5620.1 In the course of producing and growing medical cannabis, a cultivation center or
manufacturer is forbidden from using any of the following substances or
techniques:

(a) Synthetic pesticides (for example defoliants and desiccants, fungicides,
insecticides and rodenticides), or wood preservatives (such as arsenate);

(b) Fertilizer or composted plant and animal material that contains a substance
prohibited by this section;

(c) Sewage sludge, in any form, as a soil amendment;

(d) Synthetic growth regulators;

(e) Synthetic allopathic veterinary drugs, including antibiotics and
parasiticides;

(f) Synthetic processing substances, aids and ingredients, and food additives
and processing aids including sulphates, nitrates and nitrites;

(g) Equipment, packaging materials and storage containers, or bins that contain
synthetic fungicide, preservative or fumigant; or

(h) Any pesticide, fungicide, fertilizer, rodenticide, or drug banned by the
Department of Agriculture or Food and Drug Administration.

5620.2 The prohibition on “synthetic growth regulators” shall not preclude the use of
artificial lighting or lighting equipment.

5620.3 A cultivation center or manufacturer shall obtain written approval from the Board
before engaging in the use of butane or other explosive gases to extract or separate
resin or tetrahydrocannabinol from cannabis or to produce or process any form of
cannabis concentrates or cannabis-infused product.

5620.4 In reviewing a request for the use of butane or other explosive gases, the Board may
consult with subject matter experts in the field, the Fire and Emergency Medical
Services Department, and the Department of Energy and Environment as to the
safety and sufficiency of the cultivation center’s proposal.

5620.5 Pesticides may be legally used on medical cannabis by cultivation centers under the
following criteria:

(a) Any pesticide used in the cultivation of medical cannabis must be registered
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with the Department of Energy and Environment (DOEE);

(b) The use of any pesticide used in the cultivation of medical cannabis must
comply with the regulations promulgated by the DOEE; and

(c) Any pesticide registered with the DOEE may be used in accordance with its
label or labeling directions for the cultivation of medical cannabis in the
District of Columbia provided, that f or products registered by the
Environmental Protection Agency under Section 3 of the Federal
Insecticide, Fungicide, and Rodenticide Act:

(1) All active ingredients of the pesticide product are exempt from the
requirements of a tolerance, as established under 40 CFR Part 180,
Subparts D and E;

(2) The pesticide product label allows use on the intended site of
application;

(3) The pesticide product label expressly allows use on crops or plants
intended for human consumption; and

(4) The active ingredients of the pesticide product are allowed for use
on tobacco by the Environmental Protection Agency.

Section 5621, TRANSPORT OF MEDICAL CANNABIS, amended to read as follows:

5621 TRANSPORT OF MEDICAL CANNABIS

5621.1 A licensed medical cannabis business shall obtain from the Board a transporter
license to transport medical cannabis within the District of Columbia to another
licensed medical cannabis business if permitted by law. An original transporter
license shall be required for each vehicle being designated by the licensed medical
cannabis business or its contracted agent to be authorized to deliver medical
cannabis to another licensed medical cannabis business.

5621.2 A licensed medical cannabis business, or its contracted agent, shall not transport
medical cannabis within the District of Columbia without an original transporter
license. A licensed medical cannabis business shall permit only an employee,
director, officer, member, incorporator, or agent registered with the Board or its
contracted agent to transport medical cannabis to another licensed medical cannabis
business.

5621.3 Upon demand by an ABCA investigator, the registered person in charge of the
transportation or its contracted agent shall exhibit to the ABCA investigator an
original transporter license.

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Section 5622, INVENTORY, is amended to read as follows:

5622 INVENTORY

5622.1 Each licensed medical cannabis business shall be required to develop, implement,
and maintain, on its registered premises, a written real-time inventory control plan,
which shall:

(a) Establish inventory controls and procedures it will use to conduct inventory
reviews and verify the business’s cultivated, stored, useable and unusable
cannabis and cannabis products that are in its possession; and

(b) Include its procedures for storing cannabis and cannabis products and
preventing theft and diversion.

5622.2 Each licensed medical cannabis business shall be responsible for inputting and
maintaining in METRC an accurate inventory in real time of all cannabis and
cannabis products in the possession of the licensed medical cannabis business. This
inventory shall include all cannabis and cannabis products available for cultivation,
finished usable cannabis and cannabis products available for sale, immature and
mature plants, and unusable cannabis and cannabis products at the registered
premises.

5622.3 In entering inventory into METRC, pursuant to § 5615, a licensed medical cannabis
business shall include damaged, defective, expired, or adulterated cannabis or
cannabis products awaiting disposal, including the name, the quantity, and the
reasons for which the licensed medical cannabis business is maintaining the
cannabis or cannabis products.

5622.4 In tracking its cannabis and cannabis products inventory, a licensed medical
cannabis business shall:

(a) Update cannabis and cannabis product inventories on at least a daily basis;

(b) Conduct a monthly inventory audit of cultivated, stored, useable and
unusable cannabis and cannabis products; and

(c) Conduct a comprehensive annual inventory audit at least once a year.

5622.5 The record of an inventory audit conducted pursuant to § 5622.4(b) or (c) shall
include, at a minimum, the date of the audit, a summary of the audit findings, and
the name, signature, and title of the person(s) who conducted the audit.

5622.6 A licensed medical cannabis business that becomes aware of a reportable loss,
discrepancies identified during an audit, diversion, or theft whether or not the
cannabis or cannabis products are subsequently recovered, or the responsible
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parties are identified, shall notify the Board within twenty-four (24) hours.
5622.7 For the purpose of this section, the phrase “unusable cannabis and cannabis
products” means the seeds and roots of the cannabis plant, as well as any products
derived therefrom.

A new section 5623, MANUFACTURING RESTRICTIONS AT CULTIVATION
CENTERS, is added to read as follows:

5623 MANUFACTURING RESTRICTIONS AT CULTIVATION CENTERS

5623.1 A cultivation center that does not hold a manufacturer’s license may distribute and
produce medical cannabis in the form of pre-rolls and bulk fresh or dried cannabis
flower and other cannabis plant material.

5623.2 A cultivation center that does not possess a manufacturer’s license shall not produce
concentrates, edibles, infused edibles, lozenges, vaping products, tinctures,
topicals, or any other product except those listed in 5623.1.

5623.3 A cultivation center that does not possess a manufacturer’s license shall not extract
THC, CBD, or other chemicals from cannabis plants.

A new section 5624, RETAILER DELIVERY ENDORSEMENT, is added to read as follows:

5624 RETAILER DELIVERY ENDORSEMENT

5624.1 A retailer may apply for a retailer delivery endorsement, which shall authorize
curbside pickup and off-site delivery of medical cannabis, medical cannabis
products, and paraphernalia to qualifying patients and their caregivers.

5624.2 An internet retailer shall not be required to obtain a delivery endorsement to deliver
medical cannabis, medical cannabis products, and paraphernalia off-site to
qualifying patients and their caregivers.
5624.3 Medical cannabis that cannot be delivered shall be returned to the internet retailer
or retailer. A retailer or internet retailer that uses the services of a licensed courier
must accept returns during their hours of operation from the licensed courier if the
courier determines that the patient’s or caregiver’s order is undeliverable.

5624.4 The internet retailer’s or retailer’s delivery driver(s) shall wear an employee badge
when making deliveries.

5624.5 The internet retailer or retailer shall implement a mechanism or process for patients
and caregivers to submit copies of their registration cards and identification cards
to the internet retailer or retailer for verification prior to delivery, and the internet
retailer or retailer shall maintain a copy of both as part of the internet retailer’s or
retailer’s recordkeeping requirements;

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5624.6 The qualifying patient or caregiver ordering the medical cannabis and medical
cannabis products shall be physically present at the residence or the commercial
building in the District where medical cannabis and medical cannabis products can
be lawfully delivered. For purposes of this paragraph, “physically present at the
residence” includes the residence’s porch, driveway, or yard. The phrase does not
include any place that is not included within the residence’s property line, including
the sidewalk or the curb.

5624.7 An internet retailer or retailer may make deliveries up to seven (7) days a week,
but shall only make deliveries between the hours of 7:00 a.m. and 11:00 p.m.

5624.8 The internet retailer or retailer shall implement a mechanism or recordkeeping
process for patients and caregivers to document receipt of medical cannabis
deliveries and shall maintain the records as part of the internet retailer and retailer’s
recordkeeping requirements.

5624.9 An internet retailer or retailer delivery driver shall only travel from the internet
retailer and retailer to the driver’s assigned delivery address(es) and return to the
internet retailer and retailer.

5624.10 The internet retailer or retailer shall record each delivery in the METRC delivery
manifest system in real-time and maintain a copy of the record as part of the internet
retailer and retailer’s recordkeeping requirements.

5624.11 The internet retailer or retailer shall provide a copy of its delivery manifest to the
Board or ABCA investigators immediately upon request.

5624.12 An internet retailer or retailer may use the services of a courier.

5624.13 An internet retailer or retailer shall only store medical cannabis at its licensed
location unless stored at a courier’s licensed premise in accordance with the time
restrictions provided by the Act and this title.

A new section 5625, SAFE-USE TREATMENT FACILITY, is added to read as follows:

5625 SAFE-USE TREATMENT FACILITY

5625.1 The holder of a retailer’ license shall be eligible to apply for a Safe-Use Treatment
Facility endorsement.

5625.2 An application for a Safe -Use Treatment Facility endorsement shall be filed as a
substantial change.

5625.3 An applicant for a Safe-Use Treatment Facility shall provide an architectural map
of the premises that identifies:

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(a) The area to be covered by the endorsement;

(b) The location of all security cameras;

(c) All access doors and walls of the Safe-Use Treatment Facility;

(d) The location of the ventilation system and pollution or odor control unit;

(e) The smoke-free area for employees to monitor the facility; and

(f) All of the information required by section 7c(e)(2) of the Act (D.C. Official
Code § 7-1671.06c(e)(2)).

5625.4 The holder of a Safe -Use Treatment Facility endorsement shall not permit odor,
smoke, or by-products from the combustion of cannabis to be detectable by sense
of smell in a separate residence or commercial property, whether located on the
same lot or a separate lot, if emanating from the interior of the licensed premises.

5625.5 A Safe-Use Treatment Facility shall not offer disc jockeys, live bands and any other
form of entertainment as provided by D.C. Official Code § 25-101(19A) and (21A).
A Safe- Use Treatment Facility may offer prerecorded and background music,
movies, television, radio, and other media that does not qualify as entertainment in
accordance with D.C. Official Code § 25-101(19A) and (21A).

5625.6 Security cameras installed in the Safe-Use Treatment Facility shall record all areas
where patients are permitted, except for the interior of bathrooms, and shall be
operated in accordance with the rules governing security cameras as described in
the Act and this title.

5625.7 No qualifying patient shall possess more medical cannabis than permitted by the
medical cannabis quantity limit provided by the Act or this chapter.

A new section 5626, SUMMER GARDEN ENDORSEMENT, is added to read as follows:

5626 SUMMER GARDEN ENDORSEMENT

5626.1 An applicant for or the holder of a retailer’s license shall be eligible to apply for a
Summer Garden if also issued Safe-Use Treatment Facility endorsement.

5626.2 An application for a Summer Garden endorsement shall be filed with the initial
application for licensure or as a substantial change.

5626.3 An applicant for a Summer Garden shall provide an architectural map of the
premises that identifies:

(a) The area to be covered by the endorsement;
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(b) The location of all security cameras;

(c) All access doors and walls of the Summer Garden; and

(d) All of the information required by section 7c of the Act (D.C. Official Code
§ 7-1671.06c(e)(2)).

5626.4 The holder of a Summer Garden endorsement shall not permit odor, smoke, or by-
products from the combustion of cannabis to be detectable by sense of smell in the
interior of a separate premise with its windows or doors closed.

5626.5 A Summer Garden may offer recorded and background music but shall not offer
disc jockeys, live bands or any other form of entertainment or live performance as
provided by D.C. Official Code §§ 25-101(19A) and 25-101(21A).

5626.6 Security cameras installed in the Summer Garden area shall record all areas where
patients are permitted, except for the interior of bathrooms, and shall be operated
in accordance with the rules governing security cameras as described in the Act and
this title.

5626.7 No qualifying patient shall possess more medical cannabis than permitted by the
medical cannabis quantity limit provided by the Act or this chapter.

A new section 5627, MANDATORY TRAINING, is added to read as follows:

5627 MANDATORY TRAINING

5627.1 All directors, officers, members, incorporators, agents, employees, and managers
shall receive training on the topics required by § 5105 at least once every three (3)
years. The licensee shall maintain a written log or record on the licensed premises
that must be made available to ABCA or the Board upon request for a period of at
least four (4) years showing:

(a) The trainer or presenter;

(b) The date(s) and time(s) of the training;

(c) A list of the directors, officers, members, incorporators, agents, employees,
and managers that attended the training; and

(d) The manner in which the training was provided (in- person class, online,
etc.).

5627.2 No director, officer, member, incorporator, agent, or employee shall be required to
obtain a medical cannabis training certificate from a Board -approved certified
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medical cannabis training provider in order to comply with § 5627.1. This
subsection shall not apply to managers.

5627.3 A director, officer, member, incorporator, agent , or employee shall be initially
trained on the topics required by § 5105 within thirty (30) calendar days of being
registered with ABCA as either a director, officer, member, incorporator, agent or
employee. This subsection shall not apply to managers.

A new section 5628, MANAGEMENT AGREEMENT, is added to read as follows:

5628.1 A licensee or applicant who enters into a management agreement with a third-party
for the management of a medical cannabis business shall provide the Board with a
copy of the agreement within thirty (30) calendar days of execution.

5628.2 Notice of cancellation or termination of a management agreement shall be provided
in writing to the Board within thirty (30) calendar days of the cancellation or
termination.

Chapter 57, PROHIBITED AND RESTRICTED ACTIVITIES, is amended as follows:

Section 5700, SALE AND PURCHASE OF MEDICAL MARIJUANA BY DISPENSARIES,
is amended to read as follows:

5700 SALE, PURCHASE, AND POSSESSION OF MEDICAL CANNABIS

5700.1 A licensed internet retailer or retailer shall not receive or purchase medical cannabis
from a source other than a cultivation center or manufacturer licensed in the District
of Columbia.

5700.2 It is a violation for the retailer to allow a person to possess, use, or consume any
cannabis or cannabis products not sold or distributed by a licensed internet retailer
or retailer.

Subsection 5700.3 is repealed.

Section 5703, DELIVERY OF MEDICAL MARIJUANA, is amended as follows:

The heading is amended to read as follows:

5703 DELIVERY OF MEDICAL CANNABIS

Subsection 5703.3 is amended to read as follows:

5703.3 A licensed internet retailer, retailer, or courier shall only be permitted to deliver
medical cannabis, medical cannabis products, and paraphernalia to a qualifying
patient or caregiver registered in the Program or to a non-resident qualifying patient
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if the internet retailer, retailer, or courier complies with the following requirements:

(a) The internet retailer, retailer, or courier shall register its delivery vehicles
with the Board by completing a Board- issued application form and
providing all required information, which shall include each vehicle’s
license plate number, vehicle identification number (VIN), and its make,
model and color;

(b) There shall be no limit on the number of delivery vehicles that an internet
retailer, retailer, or courier may register with the Board;

(c) A delivery vehicle shall not be marked with any signage, symbols, images,
or advertisement identifying the vehicle as associated with medical
cannabis;

(d) A delivery vehicle shall have a functioning global positioning system (GPS)
to ensure that the most direct delivery route is followed;

(e) A delivery driver shall be an employee of the internet retailer or retailer or
an employee or independent contractor of the courier;

(f) The internet retailer, retailer, or courier shall register the name and medical
cannabis employee registration number of each delivery driver with the
Board;

(g) Each delivery driver of an internet retailer, retailer, or courier shall have an
active District of Columbia medical cannabis employee registration;

(h) Each delivery driver of an internet retailer, retailer, or courier shall have
their ABCA issued registration card on their person when making
deliveries;

(i) The internet retailer, retailer, or courier shall implement a mechanism or
process for patients and caregivers to submit copies of their registration
cards and identification cards, or relevant information contained therein, to
the internet retailer, retailer, or courier for verification prior to delivery, and
the internet retailer, retailer, or courier shall maintain a copy of both as part
of the internet retailer, retailer’s or courier’s recordkeeping requirements;

(j) Prior to delivery, the internet retailer, retailer, or courier shall:

(1) Verify that the patient, or the patient and caregiver, is actively
enrolled in the District’s medical cannabis program or is a non-
resident qualifying patient, by checking their medical cannabis
registration card and comparing it to their records in order to ensure
that the information matches;
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(2) Verify that the delivery address is a residence or a commercial
building address in the District that is not on federal or District
government property or public or private school grounds;

(3) Maintain a copy of the Program or out -of-state or U.S. territory
registration card and a copy of the valid government -issued
identification card;

(4) Verify that the patient’s requested amount does not exceed the legal
medical cannabis possession and sale limits, as set by section 7(o)(1)
of the Act (D.C. Official Code § 7-1671.06(o)(1)), 22-C DCMR §
301, and 22-C DCMR § 5709; and

(5) Receive and only accept an order by electronic or other means from
a qualifying patient or the qualifying patient’s caregiver or a non-
resident qualifying patient.

(k) The internet retailer, retailer, or courier shall only make deliveries to
residential or commercial building addresses located within the District that
are not on federal or District government property or public or private
school grounds, except as provided in section 6a(c) of the Act (D.C. Official
Code § 7- 1671.05a(c)), to qualifying patients and caregivers registered in
the District medical cannabis program or to non-resident qualifying patients
as set forth in § 5703.2 when the patient or caregiver is physically present;

(l) The patient or caregiver ordering the medical cannabis shall be physically
present at the residence or the commercial building in the District where
medical cannabis can be lawfully delivered. For purposes of this paragraph,
"physically present at the residence" includes the residence’s porch,
driveway, or yard. The phrase does not include any place that is not
included within the residence’s property line, including the sidewalk or the
curb;

(m) The internet retailer, retailer, or courier may make deliveries up to seven
(7) days a week, but shall only make deliveries between the hours of 7:00
a.m. and 11:00 p.m.;

(n) The internet retailer, retailer, or courier shall implement a mechanism or
recordkeeping process for patients and caregivers to document receipt of
medical cannabis deliveries and shall maintain the records as part of the
internet retailer or retailer’s recordkeeping requirements. If, in an
enforcement action pursuant to Chapter 10 or Chapter 62 of this subtitle, a
patient or caregiver disputes receiving the medical cannabis and the internet
retailer or retailer does not have documentation proving the delivery
occurred, the Board shall apply a rebuttable presumption that the delivery
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did not occur;

(o) An internet retailer, retailer, or courier delivery driver shall only travel from
the internet retailer, retailer or courier to the driver’s assigned delivery
address(es) and return to the internet retailer, retailer, or courier;

(p) The internet retailer, retailer, or courier shall record each delivery in the
METRC delivery manifest system in real-time and maintain a copy of the
record as part of the internet retailer or retailer’s recordkeeping
requirements; and

(q) The internet retailer, retailer, or courier shall provide a copy of its delivery
manifest to the Board or ABCA investigators immediately upon request.

Subsection 5703.4 is amended to read as follows:

5703.4 A retailer may dispense medical cannabis through curbside pickup or at -the-door
pickup to a qualifying patient or caregiver or non- resident qualifying patient only
if the retailer holds a retailer delivery endorsement and complies with the following
requirements:

(a) The retailer shall only be permitted to dispense medical cannabis through
curbside pickup or at-the-door pickup to a qualifying patient or caregiver
registered in the Program, or to a patient enrolled in another state’s medical
cannabis program who is recognized by the Board, as evidenced by a state-
issued medical cannabis patient card and with a government -issued
identification card. A retailer that dispenses medical cannabis to individuals
who possess cards issued by unauthorized entities on the Internet or states
that are not yet recognized by the Board shall be subject to disciplinary
action up to and including revocation of registration;

(b) The retailer shall implement a mechanism or process for a patient or a
District registered caregiver to submit a copy of the patient or registered
caregiver’s, medical cannabis registration card and the patient or registered
caregiver’s, government -issued identification card to the retailer for
verification prior to dispensing. The retailer shall maintain a copy of both
as part of the retailer’s recordkeeping requirements;

(c) Prior to dispensing, the retailer shall:

(1) Verify that the patient, or patient and registered caregiver, is actively
registered in the District’s medical cannabis program, or that the
non-resident patient is actively enrolled in another state’s medical
cannabis program;

(2) Maintain a copy of the medical cannabis program or out of state or
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U.S. territory registration card and a copy of the government-issued
identification card; and

(3) Verify that the patient’s requested amount does not exceed the legal
medical cannabis possession and sale limits, as set by section 7(o)(1)
of the Act (D.C. Official Code § 7-1671.06(o)(1)), 22-C DCMR §
301, and 22-C DCMR § 5709.

(d) The retailer shall implement procedures to ensure that curbside pickup or
at-the-door pickup is completed quickly and efficiently; and

(e) The retailer shall implement a mechanism or recordkeeping process for
patients to document receipt of curbside pickup or at-the-door pickup and
shall maintain the records as part of the retailer’s recordkeeping
requirements.

5703.5 At the retailer’s discretion, the retailer may require electronic payment before
scheduling a delivery, curbside pickup, or at-the-door pickup; may limit deliveries,
curbside pickup, and or at-the-door pickup to electronic payment only.

5703.6 A cultivation center shall not be permitted to deliver medical cannabis to any
premises other than the specific licensed premises of the internet retailer or retailer
where the medical cannabis is to be sold for resale to qualifying patients and
caregivers.

Section 5706, TIE-IN PURCHASES PROHIBITED, is amended to read as follows:

5706 TIE-IN PURCHASES PROHIBITED

5706.1 A cultivation center or manufacturer shall not require, directly or indirectly, a
licensee to purchase any type of medical cannabis, medical cannabis product,
paraphernalia, or other commodity in order to purchase any other medical cannabis
product.

5706.2 An internet retailer or retailer shall not require, directly or indirectly, a qualifying
patient or caregiver to purchase any type of medical cannabis, medical cannabis
product, paraphernalia, or other commodity in order to purchase any other medical
cannabis product.

Section 5707, MINIMUM AGE AND ENTRY REQUIREMENTS, is amended as follows:

Subsection 5707.8 is amended to read as follows:

5707.8 In the event of an emergency, a licensed medical cannabis business shall be
permitted to provide an outside contractor with access to a limited or restricted
access area for the sole purpose of making repairs when not open to the public. The
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licensed medical cannabis business shall be required to log in and out the outside
contractor and retain with the log a photocopy of the outside contractor’s
government issued identification.

Section 5709, MEDICAL CANNABIS AND PARAPHERNALIA RESTRICTIONS, is
amended to read as follows:

5709 MEDICAL CANNABIS SALE, DISTRIBUTION, AND DISPENSING
RESTRICTIONS

5709.1 A courier, internet retailer, or retailer shall not provide a qualifying patient or
caregiver more than the legal medical cannabis possession limit, as set by section
7(o)(1) of the Act (D.C. Official Code § 7-1671.06(o)(1)) and 22-C DCMR § 301.

5709.2 The maximum amount of medical cannabis an internet retailer or retailer, whether
individually or in combination, may distribute, dispense, or sell to a qualifying
patient directly or through their caregiver, in a 30-day period, is:

(a) Eight (8) ounces of dried medical cannabis; or

(b) Two hundred and forty (240) grams of medical cannabis concentrate for a
patient 21 years old of age or older, or sixty (60) grams of medical cannabis
concentrate for a patient between 18 and 20 years old; or

(c) Medical cannabis products in any form containing a combined total of
600,000 mg of THC.

5709.3 The maximum amount limits set forth in paragraphs (b) and (c) of this subsection
shall take effect on October 2, 2023.

5709.4 It shall be an affirmative defense to a violation of 5709.2 that the District’s
electronic inventory tracking system did not indicate at the time of sale that the
patient had reached their 30-day quantity limit at the time the transaction occurred.

5709.5 An internet retailer or retailer shall dispense medical cannabis and distribute
paraphernalia only to a qualifying patient or caregiver.

Chapter 59, RECORDS AND REPORTS, is amended as follows:

Section 5900, CULTIVATION CENTER BOOKS AND RECORDS, is amended to read as
follows:

5900 CULTIVATION CENTER AND MANUFACTURER BOOKS AND
RECORDS

5900.1 Each licensed cultivation center or manufacturer shall keep and maintain upon the
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licensed premises true, complete, legible, and current books and records, including
the following:

(a) The date of each sale to a licensee;

(b) The name, address, and license number of the licensee;

(c) The quantity of medical cannabis and paraphernalia sold to the licensee;

(d) The price charged, and the amount received for the medical cannabis from
the licensee;

(e) The quantity and form of medical cannabis maintained by the business;

(f) The number of plants being grown at the cultivation center on a daily basis;
and

(g) The results of the testing laboratory analysis for five (5) years from the date
of the test.

5900.2 These books and records, excluding the requirement in paragraph (g) of this
subsection, shall be maintained by the cultivation center or manufacturer for a
period of four (4) years.

Section 5901, CULTIVATION CENTER INVOICES, is amended as follows:

The heading is amended to read as follows:

5901 CULTIVATION CENTER AND MANUFACTURER INVOICES

Subsection 5901.1 is amended to read as follows:

5901.1 With each sale of medical cannabis, the cultivation center and manufacturer shall
cause to be made in duplicate an invoice of the sale showing the following
information:

(a) The date of each sale to a licensee;

(b) The name, address, and license number of the licensee;

(c) The form and quantity of medical cannabis and paraphernalia in each sale;

(d) The price of each item in each sale with the total price; and

(e) A true, accurate, legible, and complete statement of the terms and conditions
on which the sale is made.
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Section 5902, DISPENSARY BOOKS AND RECORDS, is amended to read as follows:

5902 COURIER AND RETAILER BOOKS AND RECORDS

5902.1 Each courier, internet retailer, and retailer shall keep and maintain upon the licensed
premises, true, complete, and current books and records which include invoices that
adequately and fully reflect all purchases and sales of medical cannabis made to
and by the licensee.

5902.2 Records shall include and distinctly show the following information:

(a) The quantity, form, and price of medical cannabis and paraphernalia
purchased from a licensee;

(b) The date and time of delivery of each purchase from a licensee;

(c) The date and time of each sale to a qualifying patient or caregiver;

(d) The quantity, form, and price of medical cannabis distributed or dispensed
to the qualifying patient or caregiver;

(e) The consideration given by the qualifying patient or caregiver for the
medical cannabis;

(f) The name, address, and card number of the qualifying patient or caregiver
of the medical cannabis;

(g) The name, initials, or employee identification number of the person who
dispensed or sold the medical cannabis; and

(h) The quantity of medical cannabis still available for sale at the licensed
establishment.

Section 5903, CULTIVATION CENTER REPORTS, is amended to read as follows:

5903 CULTIVATION CENTER AND MANUFACTURER REPORTS

5903.1 Cultivation center and manufacturer licensees shall, on or before the thirtieth (30th)
day of July and January, furnish to the Board on a form to be prescribed by the
Board a statement under oath showing the following information:

(a) The quantity of medical cannabis or medical cannabis product
manufactured during the preceding six (6) months;

(b) The quantity of each medical cannabis or medical cannabis product sold
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during the preceding six (6) months;

(c) The quantity of paraphernalia manufactured during the preceding six (6)
months;

(d) The quantity and price of paraphernalia sold during the preceding six (6)
months;

(e) The amount of medical cannabis or medical cannabis products destroyed or
disposed of during the preceding six (6) months;

(f) Certification from MPD that medical cannabis that was cultivated or the
medical cannabis products were relinquished for destruction or disposal;

(g) The total expenditures for manufacturing medical cannabis or medical
cannabis products during the preceding six (6) months;

(h) The total amount of sales of medical cannabis or medical cannabis products
during the preceding six (6) months;

(i) The licensee’s gross revenue based upon its medical cannabis or medical
cannabis product sales during the preceding six (6) months;

(j) The amount of sales tax reported to OTR during the preceding six (6)
months;

(k) The quantity of medical cannabis or medical cannabis products still
available for sale at the establishment on the date the report is filed with the
Board;

(l) The name, address, home telephone number, and date of birth of each
current employee; and

(m) An affidavit executed by an individual licensee, partner of an applicant
partnership, or the appropriate officer of an applicant corporation, attesting
to the truth of the submitted report.

Section 5904, DISPENSARY REPORTS, is amended to read as follows:

5904 COURIER AND RETAILER REPORTS

5904.1 On or before the thirtieth (30th) day of July and January, a courier, internet retailer
or retailer licensee shall furnish to the Board on a form to be prescribed by the
Board a statement under oath showing the following information:

(a) The quantity and price of medical cannabis or medical cannabis products
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distributed or dispensed to qualifying patients and caregivers during the
preceding six (6) months;

(b) The licensee’s total expenditures for distributing or dispensing medical
cannabis or medical cannabis products during the preceding six (6) months;

(c) The licensee’s total amount of receipts for the sale of medical cannabis or
medical cannabis products;

(d) The quantity of paraphernalia sold by the licensee during the preceding six
(6) months;

(e) The licensee’s gross revenue based upon its medical cannabis, medical
cannabis products, and paraphernalia sales during the preceding six (6)
months;

(f) The amount of sales tax reported by the licensee to OTR during the
preceding six (6) months;

(g) The amount of medical cannabis or medical cannabis products that were
destroyed or disposed of during the preceding six (6) months;

(h) Certification from MPD that the medical cannabis or medical cannabis
products described in paragraph (g) were relinquished for destruction or
disposal;

(i) The quantity of medical cannabis or medical cannabis products still
available for sale at the licensee on the date the report is filed with the
Board;

(j) The name, address, home telephone number, and date of birth of each
current employee; and

(k) An affidavit executed by an individual registrant, partner of an applicant
partnership, or the appropriate officer of an applicant corporation, attesting
to the truth of the submitted report.

Section 5906, RETENTION AND INSPECTION OF BOOKS AND RECORDS, is amended
to read as follows:

5906 RETENTION AND INSPECTION OF BOOKS AND RECORDS

5906.1 The books and records referred to in this chapter, including the original and
duplicate invoices, shall be open to inspection by the Board, ABCA’s Enforcement
Division, or any other District agency that may have jurisdiction over the
establishment, including OTR, Department of Licensing and Consumer Protection,
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the Department of Buildings, and D.C. Fire and Emergency Medical Services
Department, during the establishment’s approved hours of operation.

5906.2 A licensed medical cannabis business shall keep and maintain all books and records
referred to in this chapter on the licensed premises for a period of four (4) years
after the latest transaction recorded in those books and records.

Section 5907, REPORTING DIRECTOR, OFFICER, MEMBER, INCORPORATOR,
AGENT, EMPLOYEE, AND MANAGER CHANGES, is amended to read as follows:

5907 REPORTING CORPORATE OFFICER, MANAGER, AND OTHER
LICENSED STAFF CHANGES

5907.1 A licensed medical cannabis business shall notify the Board within ten (10) days
after a registered director, officer, member, incorporator, agent, employee, or
manager ceases to work at, volunteer at, manage, or own the operation. The
director, officer, member, incorporator, agent, employee, or manager shall
surrender their identification card to the Board within ten (10) days of ceasing to
work at, manage, own, or otherwise be associated with the operation.

Chapter 60, BOARD APPROVAL PROCEDURES, is repealed.

Chapter 61, MANDATORY REVOCATION AND MANDATORY SUSPENSION, is
amended as follows:

Section 6100, MANDATORY REVOCATION OR SUSPENSION OF REGISTRATION, is
amended to read as follows:

6100 RESERVED

Chapter 62, ENFORCEMENT PROCEEDINGS AND HEARINGS, is amended as follows:

Section 6200, COMPLAINTS AGAINST DISPENSARIES, CULTIVATION CENTERS,
AND AFFILIATED EMPLOYEES OR OFFICERS, is amended to read as follows:

6200 RESERVED

Section 6201, REVOCATION, SUSPENSION, OR FINES - GENERAL PROVISIONS, is
amended as follows:

The heading is amended to read as follows:

6201 REVOCATION AND SUSPENSION – GENERAL PROVISIONS

A new subsection 6201.6 is amended to read as follows:

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6201.6 Upon revocation, the remaining medical cannabis stock of the license whose license
has been revoked shall be disposed of only with the approval of the Board.

Subsections 6201.7 and 6201.8 are repealed.

Section 6202, NOTICE OF CONTEMPLATED ACTION AND HEARING, is amended to
read as follows:

6202 RESERVED

Section 6203, NOTICE OF SUMMARY SUSPENSION OR SUMMARY REVOCATION
ACTION AND HEARING, is amended to read as follows:

6203 SUMMARY SUSPENSION OR REVOCATION

6203.1 If the Board determines, after investigation, that the operations of a licensee present
an imminent danger to the health and safety of the public, the Board may summarily
revoke, suspend, or restrict, without a prior hearing, the license to sell, manufacture,
distribute, or deliver medical cannabis, medical cannabis products or paraphernalia
in the District.

6203.2 The Board, after investigation, may also summarily revoke, suspend, or restrict the
license of a licensee when the preponderance of the evidence shows that the
establishment has been:

(a) The scene of a criminal assault as defined in Chapter 4 of Title 22 of the
D.C. Official Code, or a crime of violence, as defined in D.C. Official Code
§ 23-1331(4), against a police officer, government inspector or investigator,
or other governmental official, who was acting in their official capacity,
when such assault occurred by patrons who were within 1,000 feet of the
establishment;

(b) In violation of the District of Columbia Controlled Substances Act or the
Drug Paraphernalia Act of 1982, effective September 17, 1982 (D.C. Law
4-149; D.C. Official Code § 48-1101 et seq.); or

(c) The scene of an assault or crime of violence, as defined in D.C. Official
Code § 23-1331(4), against a patient or caregiver by the ownership,
management, employees, or agents of a licensed medical cannabis business.

6203.3 The notice of summary suspension or revocation shall contain the following:

(a) A statement setting forth the reasons for the action and any proposed action,
including a specification of any specific violation complained of;

(b) Reference to any particular section of the Act or this subtitle allegedly
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violated;

(c) A date of both a show cause status and evidentiary show cause hearing as
well as the contact information for the assigned Office of Attorney General
attorney, if known;

(d) A statement that the Board may proceed ex parte if the registrant does not
appear for the show cause hearing.

(e) A statement that operations must cease immediately, with the exception of
necessary tending requirements by cultivation centers;

(f) A statement that the licensed medical cannabis business must submit to an
immediate inventory of all medical cannabis items on the premises by
ABCA investigators;

(g) A statement that the licensed medical cannabis business must surrender all
registration cards and permits associated with the licensed medical cannabis
business to the Board within twenty-four (24) hours of receiving the
summary suspension notice;

(h) A statement setting forth the reasons for the summary action, including a
specification of any specific violation complained of;

(i) A statement that the registrant may request an immediate hearing before the
Board for the purpose of determining whether the suspension shall continue
in accordance with § 6203.5; and that

(j) A statement that a person aggrieved by a final summary action may file an
appeal with the District of Columbia Court of Appeals in accordance with
the District of Columbia Administrative Procedure Act, effective October
21, 1968 (82 Stat.1204; D.C. Official Code § 2-501 et seq.).

6203.4 If the Board orders the suspension or revocation of a license, the Board shall post
two (2) notices in conspicuous places at or near the main street entrance of the
outside of the establishment. The posted notice shall state that the license has been
suspended, the period of the suspension, and that the suspension is ordered because
of an alleged violation of the Act or of the regulations promulgated under the Act.
Any licensee willfully removing, obliterating, or defacing the notice shall be guilty
of a violation of this chapter.

6203.5 A licensee may request a hearing within three (3) business days after service of
notice of a summary revocation, suspension, fine, or restriction of license. The
Board shall hold a hearing within two (2) business days of receipt of a timely
request and shall issue a decision within three (3) business days after the hearing.

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6203.6 In rendering a decision on a summary suspension hearing, the Board may suspend
or restrict the license of the licensee. Additionally, after issuing a decision, the
Board may hold additional proceedings to review, amend, or vacate the Board’s
Order, to ensure compliance with any conditions and to monitor the licensee's
operations.

6203.7 A request for a hearing under this chapter shall include the following:

(a) A statement of the facts relevant to the review of the action;

(b) A statement of the arguments that the respondent considers relevant to the
review of the action; and

(c) Any other evidence considered relevant.

6203.8 If the registrant fails to request a hearing within the time and in the manner specified
in the notice, the summary suspension shall become final and shall continue unless
duly reversed by the Board.

6203.9 A person aggrieved by a final summary action may file an appeal in accordance
with the procedures set forth in the DC APA.

6203.10 The decision rendered by the Board following a hearing conducted pursuant to this
section shall be the final order in the matter. Either party may seek review of the
Board’s decision with the District of Columbia Court of Appeals in accordance with
the DC APA.

Section 6205, NOTICE TO DISTRICT AGENCIES, is amended to read as follows:

6205 NOTICE TO DISTRICT AGENCIES

6205.1 The Board shall provide written notice to MPD of any decision that results in the
suspension or revocation of a license held by licensed medical cannabis business.

Section 6206, NOTICE OF SUSPENSION OR REVOCATION TO PUBLIC, is amended as
follows:

Subsection 6206.1 is amended to read as follows:

6206.1 If a license held by a licensed medical cannabis business is revoked or suspended,
the Board shall post two (2) notices in conspicuous places at or near the main street
entrance of the outside of the establishment.

Section 6207, EXAMINATION OF PREMISES AND BOOKS AND RECORDS, is repealed.

A new section 6210, CEASE AND DESIST, is added to read as follows:
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6210 CEASE AND DESIST

6210.1 The Board, in its discretion, may issue a cease- and-desist order immediately
suspending a license, following the process described in § 6210.2, when one (1) of
the following has occurred:

(a) The licensee has been issued a notice of summary suspension by the
Department of Health;

(b) The licensee’s basic business license has expired;

(c) The licensee’s certificate of occupancy has been revoked or expired;

(d) The licensee’s sales tax certificate has been suspended or revoked by the
OTR;

(e) The corporation, limited liability company, partnership, or other entity
owning the license is no longer in good standing to operate in the District;

(f) The licensee has failed to pay a Board -ordered fine or a citation by the
payment deadline; or

(g) Payment has been made to ABCA with a check returned unpaid.

6210.2 The Board shall give written notice to the licensee of its intent to issue a cease-and-
desist order. The licensee shall have fourteen (14) calendar days to respond to the
notice. If the Board thereafter determines that one of the circumstances described
in § 6210.1 has occurred, and that the licensee’s failure to address the issues set
forth in § 6210.1 is not for good cause, the Board shall issue the cease-and-desist
order.

A new section 6211, CANCELLATION DUE TO EVICTION, is added to read as follows:

6211 CANCELLATION DUE TO EVICTION

6211.1 If the Board, after an investigation, but before a hearing, has cause to believe that a
licensee has been evicted from the premises or has otherwise vacated the premises
and an application for safekeeping or transfer to a new location or person has not
been submitted, the Board shall issue an order cancelling the license after providing
the licensee with written notice of the basis for the cancellation and 30 days to
submit:

(a) A written request to the Board to hold a hearing or decision on the papers;
and

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(b) Evidence disputing the basis for the cancellation.

6211.2 The Board, in its reasonable discretion, may adjudicate the cancellation appeal on
the papers without holding a hearing if there is no dispute regarding any material
facts.

A new section 6212, REQUEST FOR HEARING ON CITATION, is added to read as
follows:

6212 REQUEST FOR HEARING ON CITATION

6212.1 A licensee may challenge the issuance of a citation issued by an ABCA Investigator
by requesting a show cause hearing before the Board either in writing or on a form
provided by ABCA. The written request for a show cause hearing must be received
by ABCA within thirty (30) days from the date that the citation was issued to the
establishment.

A new section 6213, OFFER-IN-COMPROMISE, is added to read as follows:

6213 OFFER-IN-COMPROMISE

6213.1 The Board may, in its discretion, accept from the licensee and the Office of the
Attorney General for the District of Columbia an offer-in-compromise to resolve
the charges brought by the District of Columbia against the licensee.

6213.2 An offer-in-compromise may be presented to the Board at the show cause status
hearing or show cause hearing.

6213.3 The offer-in-compromise shall be consistent with the range of fines set forth in this
title.

6213.4 An offer-in-compromise and settlement may be tendered to the Board at any time
prior to the issuance of a decision by the Board on the contested matter.

6213.5 An offer submitted by the parties and accepted by the Board shall constitute a
waiver of appeal and judicial review and other hearing rights granted by this title,
the regulations, and the D.C. Administrative Procedure Act.

Chapter 63, SLIDING SCALE PROGRAM, is renumbered as Chapter 98 and the s ections
and subsections are renumbered as appropriate.

A new chapter 63, PENALTIES, is added to read as follows:

CHAPTER 63 PENALTIES

6300 ABCA CIVIL PENALTY SCHEDULE
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6300.1 [Reserved for Civil Penalty Chart]

6300.2 The penalties contained under this section shall become effective after the
completion of the Council review described in D.C. Official Code § 7-1671.08(e),
and then five (5) days after publication in the District of Columbia Register.

6300.3 None of the descriptions contained in the civil penalty schedule shall be construed
to expand, limit, or define any specific violation.

6300.4 Whether violations are classified as primary tier or secondary tier shall be
determined with reference to the ABCA civil penalty schedule in effect when the
violation was committed.

6301 PRIMARY TIER VIOLATIONS

6301.1 The Board may fine a licensee for a primary tier violation after a show cause
hearing as follows:

(a) For the first primary tier violation, the fine shall be $ 1,000-$ 2,000;

(b) For the second primary tier violation within two (2) years, the fine shall be
$ 2,000-$ 4,000;

(c) For the third primary tier violation in three (3) years, the fine shall be $
4,000-$ 6,000;

(d) For the fourth primary tier violation in four (4) years, the license shall be
revoked or fined no less than $30,000 and suspended for thirty (30)
consecutive days; and

(e) For the fifth primary tier violation in four (4) years, the license shall be
revoked.

6302 SECONDARY TIER VIOLATIONS

6302.1 The Board may fine a licensee for a secondary tier violation at a show cause hearing
as follows:

(a) For the first secondary tier violation, $250-$500;

(b) For the second secondary tier violation within two (2) years, $500-$750;

(c) For the third secondary tier violation within three (3) years, $750- $1,000;
and

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(d) A licensee found in violation of a secondary tier violation for the fourth time
within four (4) years shall be penalized according to a first primary tier
violation ($1,000-2,000). Every subsequent secondary tier offense within
five (5) years of the first violation shall be fined according to the schedule
for primary tier violations.

6303 CITATIONS

6303.1 ABCA investigators may issue citations for primary tier, secondary tier, and other
violations of the Act and this title.

6303.2 If the licensee admits guilt for a violation listed in a citation, the licensee shall only
pay the minimum fine for the offense based on the type and level of the offense, as
indicated in §§ 6301 and 6302.

6304 WARNINGS

6304.1 An ABCA investigator may issue an administrative written warning before the
issuance of a citation for a violation.

6304.2 In not less than ten (10) business days following the issuance of an administrative
written warning, an ABCA investigator shall conduct a subsequent inspection of
the licensed premises to ensure that the licensee has taken corrective action for the
violation found for which the administrative written warning was issued. If
corrections to violations that resulted in the issuance of the administrative written
warning are not completed at the time of the subsequent inspection, the ABCA
investigator shall issue the licensee a citation or refer the matter to the ABC Board
if:

(a) Other violations that are not entitled to a warning are observed; or

(b) The licensee already has three or more secondary tier violations.

6304.3 A licensee entitled to a mandatory administrative written warning for a first
violation shall not be entitled to a mandatory administrative written warning for a
second or subsequent violation of the same offense committed within four (4) years
of issuance of the first mandatory administrative written warning.

6305 VIOLATION HISTORY COMPUTATION

6305.1 This section applies to all instances that require a computation of a person’s or
licensee’s violation history.

6305.2 The review period for computing the number of a licensee’s prior primary and
secondary tier violations commences on the date of violation in the instant case and
runs backward for the number of years specified in this section.
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6305.3 The computation of violation history shall only include prior adjudicated cases
whose dates of adjudication fall within the applicable review period for the instant
case.

6305.4 The date of adjudication for computation purposes shall be the date:

(a) The citation was paid;

(b) A final written order finding liability has been issued by the Board;

(c) A staff settlement was paid; or

(d) The date an offer-in compromise was accepted by the Board.

6305.5 The computation shall not include:

(a) Any violation that has not been adjudicated as of the date of the violation in
the instant case; or

(b) Any adjudicated case whose date of adjudication falls outside of the review
period.

6305.6 A licensee shall be found liable for a second , third, or additional level primary or
secondary tier violation, whichever is applicable, if one (1) of the prior violation s
of the same tier was adjudicated within look back period from the date of violation
in the instant case.

6305.7 Each date upon which a violation is committed shall constitute a separate violation.

6305.8 When a violation requires multiple instances, a continuous course of conduct, or
other ongoing acts to sustain a charge, the date of the violation shall be the last date
on which any act related to the violation occurred.

6305.9 If multiple secondary tier violations are committed on the same date, they will be
counted as one (1) violation for purposes of computing a licensee’s violation
history.

6305.10 If the Board suspends a respondent’s license but stays the suspension:

(a) The stay shall commence on the date of adjudication and conclude on the
one (1)-year anniversary of that date; and

(b) The stay shall be revoked and the suspension imposed upon adjudication of
any subsequent violation within the stay period.

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6305.11 Written warnings, either issued by the Board or by citation, are not counted as
violations for computation purposes.

6306 COLLECTION OF FINES

6306.1 Any fines collected by the Board shall be paid immediately, unless otherwise
ordered by the Board, to the D.C. Treasurer.

Chapter 64, TESTING LABORATORIES, is amended as follows:

Sections 6401 and 6402 are amended to read as follows:

6401 GENERAL PROVISIONS

6401.1 A testing laboratory shall not be owned or operated, in whole or in part, by a
director, officer, member, incorporator, agent, or employee of a cultivation center,
manufacturer, internet retailer, retailer, or testing laboratory.
6401.2 No owner, member, manager, employee, or agent of a testing laboratory shall have
an ownership interest in, or a direct or indirect financial interest in any other
licensed medical cannabis business except for one (1) or more testing laboratories.
6401.3 A testing laboratory shall not handle, test, or analyze medical cannabis or medical
cannabis products in the District of Columbia unless the laboratory has been issued
a medical cannabis license.

6401.5 Medical cannabis or medical cannabis products shall be sold only after a
representative sample has been tested by a registered testing laboratory and the test
results have been uploaded to the District of Columbia’s electronic tracking system,
which verify the medical cannabis sample has received passing results.

6401.6 A testing laboratory shall not cultivate, process, manufacture, distribute, provide,
or sell medical cannabis or medical cannabis products in any form.

6401.7 A testing laboratory shall not permit the consumption of medical cannabis or
medical cannabis products in any form on the premises.

6401.8 A testing laboratory shall not share a facility with a licensed medical cannabis
business but may operate in the same building so long as it has its own separate
space.

6401.9 A testing laboratory shall not falsify, change, modify, or otherwise alter in any way
the results of quantitative or other analyses performed on samples or the
corresponding certificates of analysis.

6401.10 A testing laboratory shall not employ any sampling methods that do not ensure that
a random sample is collected for analysis, or that could provide results that are not
representative of a batch or lot from which a sample is taken.
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6401.11 A testing laboratory shall not prepare samples in such a manner as to provide results
that are not representative of a batch or lot from which a sample is taken.

6401.12 A testing laboratory shall not store medical cannabis or medical cannabis products
in quantities greater than that which is necessary to perform required analysis.

6401.13 A testing laboratory shall not transport medical cannabis or medical cannabis
products in quantities greater than that which is necessary to perform required
analysis.

6401.14 A testing laboratory shall not perform analysis on any medical cannabis or medical
cannabis products that has not been obtained from a licensed medical cannabis
business.

6401.15 A testing laboratory shall not perform analysis on any medical cannabis or medical
cannabis product that has not been identified in the real-time electronic records
system.

6401.16 A testing laboratory shall not endorse, advertise, or make claims on behalf of any
cultivation center, dispensary, brand or strain of medical cannabis, or brand or type
of medical cannabis product.

6402 TESTING LABORATORY LICENSE APPLICATION

6402.1 In addition to the requirements contained in the Act and other provisions of this title,
an application for a testing laboratory license shall also contain the following:

(a) A laboratory testing plan that demonstrates the applicant’s knowledge,
experience, training, and applicable certifications in laboratory testing
techniques, and ability to provide and ensure quality assurance, quality
control, proficiency testing, analytical processes, chain of custody, sample
retention, space, recordkeeping, results reporting, and corrective action
protocols and a timeline for obtaining accreditation, if applicable;

(b) A notarized written statement from the applicant that he or she has read the
Act and this subtitle and has knowledge of the District and federal laws and
regulations relating to medical cannabis; and

(c) Information regarding whether the applicant has qualified as a medical
cannabis certified business enterprise or social equity applicant or is eligible
to qualify as a medical cannabis certified business enterprise or social equity
applicant.

Sections 6407, 6409, and 6410 are repealed.

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A new chapter 65, CANNABIS TESTING, is added:

New sections 6500 to 6510 are added to read as follows:

6500 MEDICAL CANNABIS TESTING REQUIREMENT

6500.1 Upon the issuance of a testing laboratory license, ABCA shall provide notice in the
District of Columbia Register that a testing lab has become operational and that the
testing requirement is in effect.

6500.2 Once notice of the issuance of a testing lab is issued in the District of Columbia
Register, no medical cannabis or medical cannabis product shall be sold or
distributed to an internet retailer, manufacturer, retailer, qualifying patient or
caregiver until it has been tested and determined to be unadulterated as provided by
this title.

6500.3 No licensee shall distribute, sell, or transfer adulterated medical cannabis to another
licensee or person unless the product is being sent to a testing laboratory for the
purposes of testing in compliance with the Act and this subtitle, for the purposes of
disposal or destruction, complying with a court order, law enforcement
investigation, or order of the Board.

6500.4 Section 6503 through 6600 shall not apply to t he testing of medical cannabis
samples provided by qualifying patients in accordance with the Act.

6500.5 Section 6503 through 6600 shall not apply to the testing of medical cannabis
samples from cultivation centers and manufacturers for the purposes of quality
assurance, research, and development in accordance with the Act so long as such
samples are not dispensed, distributed, or sold to internet retailers, retailers, or the
public.

6501 STANDARD OPERATING PROCEDURE REQUIREMENTS

6501.1 A testing laboratory shall have a written manual of standard operating procedures,
with detailed instructions for performing each testing method the testing laboratory
uses and the minimum standards for each test. The written manual of standard
operating procedures must be available to each employee at the testing laboratory at
all times.

6501.2 A testing laboratory shall establish, maintain, implement, and comply with the
policies and procedures contained in its manual of standard operating procedures. At
a minimum, a facility's standard operating procedures shall include policies and
procedures that:

(a) Designate areas in the facility that are compartmentalized based on function,
including any areas to which access is restricted, and including areas that
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segregate samples awaiting analysis from those samples being analyzed or
prepared for analysis, to prevent cross-contamination;

(b) Provide best practices for safe, secure, and proper testing of medical
cannabis;

(c) Establish training and safety policies and procedures to ensure that any person
involved in analytical testing of medical cannabis:

(1) Has been fully trained in the safe operation and maintenance of any
and all instrumentation that will be used in the testing of medical
cannabis, with supporting documentation of the training;

(2) Has been fully trained in the safe use, handling, and storage of any
and all chemicals that will be used in the testing of medical cannabis,
in accordance with OSHA protocols, with supporting documentation
of the training;

(3) Has direct access to applicable safety data sheets and labels; and

(4) Has been fully trained regarding compliance with the District’s laws
and regulations;

(d) Ensure the chain of custody for all medical cannabis will be documented in
the inventory tracking system;

(e) Ensure the facility will be maintained with adequate lighting, ventilation,
temperature, sanitation, equipment, and security for the testing of medical
cannabis, including requiring that the testing laboratory shall:

(1) Keep the facility free of debris, dust, rodents, insects, birds, and
animals of any kind, and any other potential contaminants;

(2) Use chemicals, cleaning solutions, and other sanitizing agents
generally accepted for laboratory use, and store them in a manner that
protects against contamination;

(3) Maintain a cleaning and equipment maintenance log at the facility,
including any preventive and routine maintenance plans and
corresponding records, and whether the maintenance is performed by
laboratory staff or by service contract with third-parties or the original
equipment manufacturer;

(4) Routinely calibrate its scales, balances, or other weight and/or mass
measuring devices using “National Institute of Standards and
Technology” (NIST)-traceable reference weights, at least once each
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calendar year; and

(5) Standardize all analytical test instrumentation using reference
materials traceable to reference material producers accredited to
ISO/IEC 17034 “General Requirements for the Competence of
Reference Material Producers” or the national metrology institute
(NMI), where available;

(f) Address the analysis, storage, sample inventory tracking, and transportation
of plant material, medical cannabis extract, and medical cannabis products;
and

(g) Address the following:

(1) Sample Collection;

(2) Sample preparation for each matrix that will be tested;

(3) Reagent, solution, and reference standard preparation;

(4) Instrument setup, if applicable;

(5) Standardization of volumetric reagent solutions, if applicable;

(6) Data acquisition;

(7) Calculation of results;

(8) Identification criteria;

(9) Quality control frequency;

(10) Quality control acceptance criteria; and

(11) Corrective action protocol.

6501.3 The Laboratory Director shall approve, sign, and date each standard operating
procedure and each revision to any standard operating procedure.

6501.4 A testing laboratory shall establish and maintain procedures to document a clear and
unbroken chain of custody at all stages from sampling to destruction, which shall
include:

(a) Documenting each person handling the original samples, aliquots, and
extracts;

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(b) Documenting any transfer of samples, aliquots, and extracts to another testing
facility for additional testing or transfer at the request of the cannabis
cultivation facility that provided the testing sample;

(c) Maintaining a current list of authorized persons and restricting entry to the
cannabis testing facility to those authorized persons;

(d) Securing the cannabis testing facility during non-working hours;

(e) Using a secured area to log in and aliquot samples; and

(f) Documenting the disposal of samples, aliquots, and extracts.

6501.5 A testing laboratory shall establish and maintain sample requirement procedures that
include:

(a) Issuing instructions for the minimum sample requirements and storage
requirements;

(b) Documenting the condition of the external package and integrity seals
utilized to prevent contamination of or tampering with the sample;

(c) Documenting the condition and amount of sample provided at the time the
sample is received at the cannabis testing facility;

(d) Securing short-term and long-term storage areas when not in use; and

(e) Ensuring samples are stored appropriately.

6501.6 A testing laboratory shall document the chain of custody of each sample in the
Board’s medical cannabis inventory tracking system.

6502 TESTING REQUIREMENTS AND METHODOLOGIES

6502.1 Each testing laboratory shall:

(a) Follow the most current version of the “Cannabis Inflorescence: Standards
of Identity, Analysis, and Quality Control ” monograph published by the
American Herbal Pharmacopoeia;

(b) Follow the most current version of “Recommendations for Regulators --
Cannabis Operations ” published by the American Herbal Products
Association;

(c) Follow most current version of the “Guidelines for Laboratories
Performing Microbiological and Chemical Analyses of Food, Dietary
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Supplements, and Pharmaceuticals – An Aid to the Interpretation of ISO/IEC
17025:2005 (2015”) published by AOAC International;

(d) Adopt and follow most current version of the minimum good laboratory
practices which must, at a minimum, satisfy the “OECD Series on Principles
of Good Laboratory Practice (GLP) and Compliance Monitoring” published
by the Organization for Economic Co-operation and Development;

(e) Maintain internal standard operating procedures; and

(f) Maintain a quality control and quality assurance program.

6502.2 A testing laboratory shall use, when available, testing methods that have undergone
validation by the “Official Methods of Analysis of AOAC International,” the
Performance Tested Methods Program of the Research Institute of AOAC
International, the “Bacteriological Analytical Manual” of the Food and Drug
Administration, the International Organization for Standardization, the United States
Pharmacopeia, the “Microbiology Laboratory Guidebook” of the Food Safety and
Inspection Service of the United States Department of Agriculture or an equivalent
third-party validation study approved by the Board.

6502.3 A testing laboratory shall test and analyze a statistically representative sample from
each batch of medical marijuana or medical marijuana products for, at minimum:

(a) Moisture content;

(b) Water activity;

(c) Cannabinoid potency, including, at minimum, the levels of the following:

(1) Delta-9-tetrahydrocannabinolic acid (THCA);

(2) Delta-9-tetrahydrocannabinol (THC);

(3) Cannabidiolic acid (CBDA);

(4) Cannabidiol (CBD); and

(5) Cannabinol (CBN);

(d) Foreign matter contamination;

(e) Microbial contamination;

(f) Mycotoxin contamination;

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(g) Heavy metal contamination, including, at minimum, arsenic, cadmium, lead,
and mercury;

(h) Pesticide and fertilizer residue,

(i) Residual solvents;

(j) Cannabinoid and Terpene Profile;

(k) Product Assessment (for edible products);

(l) Homogeneity (for edible products); and

(m) Any other items requested by or approved by the Board.

6502.4 All samples shall be personally selected and collected by the testing laboratory
personnel on site at the cultivation center.

6502.5 The samples personally selected and collected by the testing laboratory shall include,
at a minimum:

(a) One (1) testable sample of the final product of flower, from each harvest
for every strain of medical marijuana grown by the cultivation center;

(b) One (1) testable sample of the final product of flower stored and packaged
at the dispensary; and

(c) One (1) testable sample of each type of product produced from each batch
of medical marijuana, such as but not limited to, the following:

(1) Tincture;

(2) Topical;

(3) Shatter;

(4) Oils;

(5) Edibles;

(6) Wax;

(7) Kief; and

(8) Hash.

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6502.6 A testing laboratory shall timely upload into the tracking system the test results for
each batch of medical marijuana or medical marijuana product tested.

6502.7 The testing laboratory may retest or reanalyze the sample or a different sample from
the same batch by following its standard operating procedures to confirm or refute
the original result, upon request by the cultivation center or upon request by the Board
at the cultivation center's expense.

6502.8 A testing laboratory shall implement an acceptable method of testing, such as, but
not limited to:

(a) Gas Chromatography;

(b) Gas Chromatography Mass Spectrometry;

(c) Immunoassays;

(d) Thin Layer Chromatography;

(e) High Performance Liquid Chromatography; and

(f) Liquid Chromatography Mass Spectroscopy.

6502.9 A testing laboratory using Gas Chromatography shall perform and maintain records
of the following, which shall be readily available to the staff operating the equipment:

(a) Document the conditions of the gas chromatograph, including the detector
response;

(b) Perform and document preventive maintenance as required by the
manufacturer;

(c) Document the performance of new columns before use;

(d) Use an internal standard for each qualitative and quantitative analysis that has
similar chemical and physical properties to that of the compound identified;

(e) Establish criteria of acceptability for variances between different aliquots and
different columns; and

(f) Document the monitoring of the response (area or peak height) of the internal
standard to ensure consistency overtime of the analytical system.

6502.10 A testing laboratory using Gas Chromatography Mass Spectrometry shall perform
and maintain records of the following, which shall be readily available to the staff
operating the equipment:
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(a) Perform and document preventive maintenance as required by the
manufacturer;

(b) Document the changes of septa as specified in the standard operating
procedure;

(c) Document liners being cleaned or replaced as specified in the standard
operating procedure;

(d) Maintain records of mass spectrometer tuning;

(e) Establish written criteria for an acceptable mass spectrometer tune;

(f) Document corrective actions if a mass spectrometer tune is unacceptable;

(g) Monitor analytic analyses to check for contamination and carry-over;

(h) Use selected ion monitoring within each run to assure that the laboratory
compares ion ratios and retention times between calibrators, controls and
samples for identification of an analyte;

(i) Use an internal standard for qualitative and quantitative analysis that has
similar chemical and physical properties to that of the compound identified
and is isotopically labeled when available or appropriate for the assay;

(j) Document the monitoring of the response (area or peak height) for the
internal standard to ensure consistency overtime of the analytical system;

(k) Define the criteria for designating qualitative results as positive;

(l) Ensure that when a library is used to qualitatively match an analyte, the
relative retention time and mass spectra from a known standard or control
shall be run on the same system before reporting the results; and

(m) Evaluate the performance of the instrument after routine and preventive
maintenance (such as clipping or replacing the column or cleaning the source)
prior to analyzing subject samples.

6502.11 A testing laboratory using Immunoassays shall perform and maintain records of the
following, which shall be readily available to the staff operating the equipment:

(a) Perform and document preventive maintenance as required by the
manufacturer;

(b) Validate any changes or modifications to a manufacturer's approved assays
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or testing methods when the sample being tested is not included in the list of
samples approved for assaying or testing by the manufacturer; and

(c) Define acceptable separation or measurement units (absorbance intensity or
counts per minute) for each assay, which shall be consistent with the
manufacturer's instructions.

6502.12 A testing laboratory using Thin Layer Chromatography shall perform and maintain
records of the following, which shall be readily available to the staff operating the
equipment:

(a) Apply unextracted standards to each thin layer chromatographic plate;

(b) Include in its standard operating procedures the preparation of mixed solvent
systems, spray reagents and designation of their lifetimes;

(c) Include in its standard operating procedures the storage of unused thin layer
chromatographic plates;

(d) Evaluate, establish, and document acceptable performance for new thin layer
chromatographic plates before placing them into service;

(e) Verify that the spotting technique used precludes the possibility of
contamination and carry-over;

(f) Measure all appropriate Rf values for qualitative identification purposes;

(g) Use and record sequential color reactions, when applicable;

(h) Maintain a copy of the developer TLC plates for each bath of samples
analyzed; and

(i) Analyze an appropriate matrix blank with each batch of samples analyzed.

6502.13 A testing laboratory using High Performance Liquid Chromatography shall perform
and maintain records of the following, which shall be readily available to the staff
operating the equipment:

(a) Perform and document preventive maintenance as required by the
manufacturer;

(b) Monitor and document the performance of the HPLC instrument each day of
testing;

(c) Document the performance of new columns before use;

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(d) Create standard operating procedures for acceptability when eluting solvents
are recycled;

(e) Use an internal standard for each qualitative and quantitative analysis that has
similar chemical and physical properties to that of the compound identified
when available or appropriate for the assay; and

(f) Document the monitoring of the response (area or peak height) of the internal
standard to ensure consistency overtime of the analytical system.

6502.14 A testing laboratory using Liquid Chromatography Mass Spectroscopy shall perform
and maintain records of the following, which shall be readily available to the staff
operating the equipment:

(a) Perform and document preventive maintenance as required by the
manufacturer;

(b) Maintain records of mass spectrometer tuning;

(c) Document corrective actions if a mass spectrometer tune is unacceptable;

(d) Use an internal standard with each qualitative and quantitative analysis that
has similar chemical and physical properties to that of the compound
identified and is isotopically labeled when available or appropriate for the
assay;

(e) Document the monitoring of the response (area or peak height) of the internal
standard to ensure consistency overtime of the analytical system;

(f) Compare two transitions and retention times between calibrators, controls
and samples within each run;

(g) Document and maintain records when changes in source, source conditions,
eluent, or column are made to the instrument; and

(h) Evaluate the performance of the instrument when changes in source, source
conditions, eluent, or to a column are made prior to reporting test results.

6502.15 A testing laboratory shall determine if the following pesticides are within the
acceptable limit using the following chart:

Table A. Insecticide Critical
Limits in Parts Per Million
(PPM)
Insectide Critical
Limit
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Acetamiprid 0.2
Abamectin 0.5
Aldicarb 0.4
Bifenazate 0.2
Carbofuran 0.2
Chlorantraniliprole 0.2
Chlorpyrifos 0.2
Cyfluthrin 1.0
DDVP
(Dichlorvos)
0.1
Diazinon 0.2
Dimethoate 0.2
Fenpyroximate 0.5
Fipronil 0.4
Flonicamid 1.0
Imidacloprid 0.4
Malathion 0.2
Methiocarb 0.2
Methomyl 0.4
Naled 0.5
Oxamyl 1.0
Permethrin 0.5
Phosmet 0.2
Piperonyl butoxide 1.0
Pyrethrins 1.0
Spinosad 0.2
Spiromesifen 0.2
Spirotetramat 0.2
Thiacloprid 0.2
Thiamethoxam 0.2

6502.16 A testing laboratory shall determine if the following plant growth regulators are
within the acceptable limit using the following chart:

Table B. Plant Growth
Regulator Critical Limits in
Parts Per Million (PPM)
Plant Growth
Regulator
Critical
Limit
Ancymidol 0.2
Carbaryl 0.2
Daminozide (Alar) 0.1
Ethephon 1.0
Flurprimidol 0.2
Paclobutrazol 0.4
135

6502.17 A testing laboratory shall determine if the following fungicides are within the
acceptable limit using the following chart:

Table C. Fungicide Critical
Limits in Parts Per Million
(PPM)
Fungicide Critical
Limit
Azoxystrobin 0.2
Bifenthrin 0.2
Boscalid 0.4
Fludioxonil 0.4
Imazalil 0.2
Kresoxim-methyl 0.4
Metalaxyl 0.2
Myclobutanil 0.2
Propiconazole 0.4
Trifloxystrobin 0.2

6502.18 A testing laboratory shall determine if the following acaricides are within the
acceptable limit using the following chart:

Table D. Acaricide Critical
Limits in Parts Per Million
(PPM)
Acaricide Critical
Limit
Clofentezine 0.2
Etoxazole 0.2

6502.19 A testing laboratory shall determine if the following ovicide is within the acceptable
limit using the following chart:

Table E. Ovicide Critical
Limits in Parts Per Million
(PPM)
Ovicide Critical
Limit
Hexythiazox 1.0

6502.20 [REPEALED].

6502.21 A testing laboratory shall determine if the following microbial impurities are within
the acceptable limit using the following chart:

136

Table G. Microbiological
Impurity Critical Limits in
Colony Forming Units (CFU/g)
Microbiological
Impurity
Critical
Limit
E. coli < 100
Salmonella spp. 0
Total Aerobic
Microbial Count
100,000
Total Yeast and
Mold Count
100,000

6502.22 A testing laboratory shall determine if the following heavy metals are within the
acceptable limit using the following chart:

Table H. Heavy Metal Critical
Limits in Parts Per Million
(PPM)
Heavy Metal Critical
Limit
Arsenic 0.4
Barium 60.0
Cadmium 0.4
Chromium 0.6
Lead < 1.0
Mercury 0.2
Selenium 26.0
Silver 1.4

6502.23 A testing laboratory shall determine if the Water Activity (Aw) of a sample is within
an acceptable limit. For purposes of this section, the A w of a sample shall be
acceptable if it is below 0.65Aw.

6502.24 A testing laboratory shall determine if an edible is a potentially hazardous food by
using the following charts:

Table I. Interaction of pH and Aw for control of spores in food heat-treated
to destroy Vegetative cells and subsequently packaged

Aw values

pH values

4.6 or less

> 4.6 – 5.6

> 5.6

≤0.92

Non-PHF*/non-
TCS food**

Non-PHF/non-
TCS food

Non-PHF/non-
TCS food
137

> 0.92 - .95

Non-PHF/non-
TCS food

Non-PHF/non-
TCS food

PA***

> 0.95

Non-PHF/non-
TCS food

PA

PA

* PHF means Potentially Hazardous Food
** TCS Food means Time/Temperature Control for Safety Food
*** PA means Product Assessment required

Table J. Interaction of pH and Aw for control of vegetative cells and spores in food
not heat-treated but not packaged

Aw values

pH values

< 4.2

4.2 – 4.6

> 4.6 – 5.0
-

> 5.0

< 0.88

non-PHF*/non-
TCS food**

non-PHF/
non-TCS food

non-PHF/
non- TCS food

non-PHF/
non –TCS
food

0.88 – 0.90

non-PHF/
non-TCS food

non-PHF/
non-TCS food

non-PHF/
non-TCS food

PA***

> 0.90 – 0.92

non-PHF/non-
TCS food

non-PHF/
non-TCS food

PA

PA

> 0.92

non-PHF/non-
TCS food

PA

PA

PA
* PHF means Potentially Hazardous Food
** TCS Food means Time/Temperature Control for Safety Food
*** PA means Product Assessment required

6503 CREATION OF BATCHES

6503.1 A cultivation center or manufacturer shall divide medical cannabis or medical
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cannabis products into homogenous batches not to exceed 50 pounds, and as
directed by a testing laboratory.

6503.2 A cultivation center or manufacturer shall divide medical cannabis and medical
cannabis products into homogenous batches as directed by a testing laboratory, and
in accordance with the following size limitations:

(a) Medical cannabis or medical cannabis product batches containing
concentrated medical cannabis may not exceed 50 pounds (22.7 kilograms);
and

(b) Medical cannabis product batches containing medical cannabis extract or
products that are infused with medical cannabis or medical cannabis extract
may not exceed 70,000 unpackaged retail servings.

6503.3 A cultivation center or manufacturer shall assign a unique batch identifier to the
cannabis or cannabis products, and when cannabis is harvested or trimmed,

(a) Medical cannabis flower shall be assigned to a batch containing a single
strain from a single harvest date; and

(c) Medical cannabis trim may be assigned to a batch containing multiple
strains and from multiple trimming dates.

6503.4 A batch may be divided into multiple containers.

6503.5 If medical cannabis or medical cannabis product yield is in excess of the batch size
limitations, the yield must be divided into separate batches in accordance with this
section in order to be sampled.

6503.6 All medical cannabis and medical cannabis products in each batch must be uniform
throughout except for cannabis leaf trim.

6504 SAMPLE REQUIREMENTS FOR MEDICAL CANNABIS

6504.1 With the exception of pre -rolled medical cannabis, all cannabis and cannabis
products must be in final form ready to be packaged upon receipt of passing results
for all required tests to be sampled.

6504.2 A cultivation center or manufacturer may not alter the medical cannabis or medical
cannabis product batch after sampling has occurred.

6504.3 The testing laboratory or their agent shall sample the amount of cannabis and
cannabis products in increments in accordance with the tables below:

Cannabis Flower and Trim
139

Batch Size Range
(lbs)

Batch Size Range
(kg)

Minimum Sample
Amount (g)

Sample Increments
Representing Total
Minimum Sample
Amount

0-1.00

0 - 0.453592

2.50

5

1.01-10.00

0.4581283 -
4.53592

4.00

8

10.01-20.00

4.5404596 -
9.07185

7.50

15

20.01-40.00

9.0763833 -
18.1437

11.0

22

40.01-50.00

18.148231 -
22.6796

16.50

33

6504.4 If a testing laboratory or their agent requires a sample amount that exceeds the
minimum sample amount for medical cannabis batch size range as specified in the
table above, the testing laboratory or their agent must use sample increments of 0.5
grams.

Cannabis Products - Concentrated Cannabis

Batch Size Range
(lbs)

Batch Size Range
(kg)

Minimum Sample
Amount (g)

Sample Increments
Representing Total
Minimum Sample
Amount

0-1.00

0 - 0.453592

1.25

5

1.01-2.00 0.4581283 - 2.00 8
140

0.907185

2.01-5.00

0.9117207 -
2.26796

3.75

15

5.01-15.00

2.272498 - 6.80389

5.50

22

15.01-50.00

6.8084215 -
22.6796

8.25

33

6504.5 If a testing laboratory or their agent requires a sample amount that exceeds the
minimum sample amount for the batch size range of medical cannabis or medical
cannabis product containing concentrated medical cannabis, as specified in the
table above, the testing laboratory or their agent must use sample increments of
0.25 grams.

Cannabis Products - Cannabis Infused Products

Batch Size
Range
(Unpackage
d Servings)

Minimum
Sample
Amount
(Unpackage
d Servings)

Minimum
Number of
units for
Sampling a
5-Serving
Unit

Minimum
Number of
units for
Sampling a
10-Serving
Unit

Minimum
Number of
units for
Sampling a
20-Serving
Unit

Minimum
Number of
units for
Sampling a
100-Serving
Unit

0-100

5

2

2

2

2

100-1,000

8

2

2

2

2

1,000-5,000

15

3

2

2

2

5,000-
10,000

22

5

3

2

2

10,000- 33 7 4 2 2
141

50,000

50,000-
70,000

43

9

5

3

3

6504.6 A serving unit is a single quantity of all pre-packaged total servings for one product
package of medical cannabis infused product intended for sale.

6504.7 The cultivation center or manufacturer must determine the size of a serving for each
medical cannabis infused product, and the number of servings in the medical
cannabis or medical cannabis product batch. If the minimum required number of
sample servings does not align with the anticipated final form of the product, the
testing laboratory or their agent must increase sample increments to ensure products
are sampled in final form.

6504.8 If a testing laboratory or their agent requires a sample amount that exceeds the
minimum sample amount for the batch size range of medical cannabis or medical
cannabis product containing infused medical cannabis, as specified in the table
above, the testing laboratory or their agent must use sample increments of one
serving.

6505 PACKAGING OF SAMPLES FOR TESTING

6505.1 All samples of cannabis or cannabis products must be transferred to a testing facility
in sealed, child -resistant, and tamper -evident containers that are supplied by a
testing facility or that meet criteria specified by a testing facility.

6506 TESTING FOR RESIDUAL SOLVENTS

6506.1 Cultivation centers and manufacturers shall test all products for residual solvents
and processing chemicals in accordance with this section before distributing,
selling, or otherwise transferring the product to an internet retailer, manufacturer,
or retailer.

6506.2 The testing laboratory shall analyze at minimum 0.25 grams of the representative
sample of cannabis product or pre-rolls to determine whether residual solvents or
processing chemicals are present.

6506.3 The testing laboratory shall report the result of the residual solvents and processing
chemicals testing in unit micrograms per gram (μg/g) in the testing results and
indicate “pass” or “fail” in the result report.

6506.4 The sample shall be deemed to have passed the residual solvents and processing
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chemicals testing if the presence of any residual solvent or processing chemical
listed in the following tables in Category I and Category II does not exceed the
indicated critical limit, except that:

(1) The critical limit for ethanol does not apply to cannabis products that are
tinctures; and

(2) The critical limit for ethanol or isopropyl alcohol does not apply to cannabis
products that are topical cannabis products.

Category I Residual Solvent or
Processing Chemical

CAS No.

Cannabis Product or Pre -Roll
Critical Limit (μg/g)

1.
1,2-Dichloroethane

107-06-2

1.0

Benzene

71-43-2

1.0

Chloroform

67-66-3

1.0

Ethylene oxide

75-21-8

1.0

Methylene chloride

75-09-2

1.0

Trichloroethylene

79-01-6

1.0

Category II Residual Solvent or
Processing Chemical

CAS No.

Cannabis Product or Pre -roll
Action Level (μg/g)

2.
Acetone

67-64-1

5000

Acetonitrile

75-05-8

410

143

Butane

106-97-8

5000

Ethanol

64-17-5

5000

Ethyl acetate

141-78-6

5000

Ethyl ether

60-29-7

5000

Heptane

142-82-5

5000

Hexane

110-54-3

290

Isopropyl alcohol

67-63-0

5000

Methanol

67-56-1

3000

Pentane

109-66-0

5000

Propane

74-98-6

5000

Toluene

108-88-3

890

Total xylenes (ortho-, meta-,
para-)

1330-20-7

2170

6506.5 If the sample fails residual solvents and processing chemicals testing, the batch
from which the sample was collected fails residual solvents and processing
chemicals testing and shall be deemed adulterated.

6507 TESTING FOR MYCOTOXIN

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6507.1 Cultivation centers and manufacturers shall test all products for mycotoxin in
accordance with this section before distributing, selling, or otherwise transferring
the product to an internet retailer, manufacturer, or retailer.

6507.2 The testing laboratory shall analyze at minimum 0.5 grams of the representative
sample of medical cannabis and medical cannabis products to determine whether
mycotoxins are present.

6507.3 The testing laboratory shall report the result of the mycotoxins in unit micrograms
per gram (μg/g) in the testing results and indicate “pass” or “fail” in the result
report.

6507.4 The sample shall be deemed to have passed mycotoxin testing if both the following
conditions are met:

(a) Total of aflatoxin B1, B2, G1, and G2 does not exceed 20 μg/kg of
substance; and

(b) Ochratoxin A does not exceed 20 μg/kg of substance.

6507.5 If the sample fails mycotoxin testing, the batch from which the sample was
collected fails mycotoxin testing and shall be deemed adulterated.

6508 TESTING FOR FOREIGN MATERIAL

6508.1 Cultivation centers and manufacturers shall test all products for mold, mildew,
pests, and other foreign materials in accordance with this section before
distributing, selling, or otherwise transferring the product to an internet retailer,
manufacturer, or retailer.

6508.2 The testing laboratory shall analyze the representative sample of medical cannabis
and medical cannabis products to determine whether mold, mildew, pests and other
foreign material is present.

6508.3 The licensed laboratory shall report the result of the foreign material test by
indicating “pass” or “fail” in the result report.

6509.4 The testing laboratory shall perform foreign material testing required by this section
on the total representative sample prior to sample homogenization.

6508.5 When the testing laboratory performs foreign material testing, the laboratory shall,
at minimum, do all of the following:

(a) Examine both the exterior and interior of the dried flower sample, and

(b) Examine the exterior of the cannabis product sample.
145

6508.6 The sample shall be deemed to have passed the foreign material testing if the
presence of foreign material does not exceed:

(a) 1/4 of the total sample area covered by sand, soil, cinders, or dirt;

(b) 1/4 of the total sample area covered by mold or mildew;

(c) 1 insect fragment, 1 hair, or 1 count mammalian excreta per 3.0 grams; or

(d) 1/4 of the total sample area covered by an imbedded foreign material.

6508.7 If the sample fails foreign material testing, the batch from which the sample was
collected fails foreign material testing and shall be deemed adulterated.

6509 TESTING FOR FERTILIZER AND NUTRIENTS

6509.1 Cultivation centers and manufacturers shall test all products for the presence and
concentration of fertilizer and nutrients in accordance with this section before
distributing, selling, or otherwise transferring the product to an internet retailer,
manufacturer, or retailer.

6509.2 A leaf tissue sample or other test designed to elicit the presence and concentration
of the following nutrients in the sampled medical cannabis or medical cannabis
product:

(a) Nitrogen (N);

(b) Phosphorus (P);

(c) Potassium (K);

(d) Calcium (Ca);

(e) Magnesium (Mg);

(f) Sulfur (S);

(g) Boron (B);

(h) Copper (Cu);

(i) Iron (Fe);

(j) Manganese (Mn);

146

(k) Zinc (Zn);

(l) Molybdenum (Mo);

(m) Sodium (Na); and

(n) Chloride (Cl).

6509.3 The cultivation center and manufacturer shall be required to disclose to the testing
laboratory all fertilizers and nutrients used during the growing or production of the
medical cannabis or medical cannabis product being tested.

6509.4 The testing laboratory shall further test for the presence of all fertilizers and
nutrients disclosed by the cultivation center and manufacturer in accordance with
the testing labs standard operating procedures.

6510 RESULT REPORTING

6510.1 A testing laboratory shall issue results for each sample tested which shall address the
following:

(a) Whether the chemical profile of the medical cannabis sample conforms to the
accepted variety for the following compounds:

(1) Delta-9-tetrahydrocannabinol (THC);

(2) Delta-9-tetrahydrocannabinolic acid (THCA);

(3) Cannabidiol (CBD);

(4) Cannabidiolic acid (CBDA);

(5) The terpenes described in the most current version of the cannabis
inflorescence monograph published by the American Herbal
Pharmacopeia (AHP);

(6) Cannabigerol (CBG); and

(7) Cannabinol (CBN);

(b) That the presence of the following contaminants do not exceed the levels as
provided in § 6409 of this subtitle;

(1) Heavy metals; and

(2) Pesticide residue;
147

(c) The presence of microbial impurities, including but not limited to:

(1) The total aerobic microbial count (TAMC);

(2) The total combined yeast and molds count (TYMC);

(3) Pseudomonas aeruginosa (P. aeruginosa);

(4) Aspergillus spp;

(5) Staphylococcus aureus (S. aureus);

(6) Aflatoxin B1, B2, G1 and G2; and

(7) Ochratoxin A;

(d) Whether the batch is within specification for the characteristics of:

(1) Odor;

(2) Appearance;

(3) Fineness; and

(4) Moisture content.

6510.2 The testing laboratory shall enter results into the Board’s electronic tracking system
within twenty-four (24) hours from the date of the test.

6510.3 The level of contaminants in medical cannabis and medical cannabis products shall
not exceed the standards provided in this subtitle, and if any of the standards are
exceeded, the cultivation center shall not sell or otherwise transfer any portion of the
batch of medical cannabis or medical cannabis products to a dispensary.

6510.4 In the event the testing laboratory results determine that the sample does not meet the
standards required in this subtitle, the cultivation center may seek approval from the
Board to reprocess the batch and/or harvest. If written approval is granted by the
Board, the cultivation center may:

(a) Reprocess the batch and/or harvest according to their SOPs; and

(b) Have the reprocessed product tested by the same testing laboratory.

6510.5 Upon receiving notification in the tracking system that the batch failed to pass testing,
a cultivation center shall immediately quarantine the non-conforming batch until any
148

reprocessing and testing is performed; or until the batch is destroyed by MPD.

6510.6 For purposes of this section, quarantine means that the batch shall be separated from
all other inventory and the quarantine status shall be indicated in the tracking system.
The quarantine shall be lifted only by the Board in writing, and only upon receipt of
test results in the inventory tracking system documenting that the batch conforms to
the required testing standards.

6510.7 The testing laboratory shall notify the Board of results that do not meet the standards
and specifications set forth in this subtitle within twenty-four (24) hours of
completion of analysis.

6510.8 A cultivation center shall release a batch and/or harvest for sale only if the results
from the laboratory testing facility have determined that the sample has met the
standards and specifications set forth in this subtitle.

A new chapter 66, ADULTERATED CANNABIS, is added:

A new section 6600 is added to read as follows:

6600 PROHIBITION ON DISTRIBUTING ADULTERATED PRODUCTS

6600.1 Medical cannabis and medical cannabis products that exceed, fail, or violate any of
the testing standards, testing limits, or testing levels provided by the Act or this
chapter shall be deemed adulterated and unfit for use or consumption.

6600.2 If a sample taken from a batch exceeds, fails, or violates any of the testing standards,
testing limits, or testing levels set by this chapter, the batch from which the sample
was collected shall also be deemed adulterated.

6600.3 A cultivation center or manufacturer shall not sell, distribute, or otherwise transfer
any portion of the batch of medical cannabis or medical cannabis products that
qualify as adulterated and unfit for use or consumption in accordance with this
section to an internet retailer, manufacturer, or retailer.

6600.4 A internet retailer or retailer shall not sell, distribute, or otherwise transfer any
portion of the batch of medical cannabis or medical cannabis products deemed
adulterated and unfit for consumption in accordance with this section to any person.

A new chapter 67, COURIERS, is added:

A new section 6700, COURIERS, is added to read as follows:

6700 COURIERS

6700.1 A courier shall not obtain medical cannabis or medical cannabis product except
149

when:

(a) Fulfilling an order submitted by a qualifying patient or caregiver, on behalf
of a licensed internet retailer or retailer; or

(b) Obtaining medical cannabis in their personal capacity, in a manner
consistent with the Act and this subtitle, for their own personal use and
consumption.

6700.2 A courier may store and prepare medical cannabis or medical cannabis product
obtained from a licensed internet retailer or retailer for delivery at its licensed
location but shall not hold the product for more than 24 hours.

6700.3 Medical cannabis and medical cannabis products that cannot be delivered shall be
returned to the internet retailer or retailer. An internet retailer or retailer that uses
the services of a courier must accept returns by the courier when in operation.

6700.4 A courier may make deliveries up to seven (7) days a week, but shall only make
deliveries between the hours of 9:00 a.m. and 9:00 p.m.

6700.5 A courier delivery driver shall only travel from the internet retailer and retailer to
the driver’s assigned delivery address(es) and return to the internet retailer, retailer,
or courier.

6700.6 The courier shall record each delivery in the METRC delivery manifest system in
real-time and maintain a copy of the record as part of the internet retailer and
retailer’s recordkeeping requirements.

6700.7 The courier shall provide a copy of its delivery manifest to the Board or ABCA
investigators immediately upon request.

A new chapter 96, MORATORIUMS, is added:

A new section 9600, ESTABLISHMENT OF MORATORIUM is added to read as follows:

9600 ESTABLISHMENT OF MORATORIUM

9600.1 If the Board reasonably determines that it is in the public interest to do so based on
the standards set forth in the Act, the Board may, by rule:

(a) Limit the number of medical cannabis business licenses of any class to be
issued; or

(b) Declare a moratorium on the issuance of licenses of any class in any ward,
single-member district, or ANC.

150

9600.2 An ANC may request the Board to issue regulations establishing a moratorium.

9600.3 A moratorium issued by the Board in accordance with this section shall have a
prospective effect and shall not apply to existing licenses.

9600.4 A moratorium shall be effective for five (5) years from the date of final rulemaking,
or for a lesser period as determined by the Board.

9600.5 If the Board acts on a moratorium request, a moratorium request for the same area,
or an area covering substantially the same area, shall not be considered for two (2)
years from the date of the Board’s action.

A new section 9601, MORATORIUM PROCEDURES, is added to read as follows:

9601 MORATORIUM PROCEDURES

9601.1 The moratorium request shall be made to the Board in writing, providing:

(a) The identity of the ANC;

(b) The resolution containing the official ANC vote and statement approving of
the moratorium request filed with the Board;

(c) The area of the District to be covered by the moratorium;

(d) The class or classes of licenses to be covered by the moratorium;

(e) A detailed statement of the reasons that the moratorium is appropriate under
at least two (2) of the appropriateness standards set forth in the Act and this
chapter; and

(g) A statement identifying whether the moratorium shall be either a ward,
ANC, or single-member district.

9601.2 A moratorium may be sought for a single class of license or for any combination of
the classes of licenses except for those licenses exempted by § 9600.6.

9601.3 No moratorium request to limit the number of licenses to be issued, the number of
licenses issued for any single class, or the issuance of amended licenses for any
single class that constitute a substantial change shall be considered by the Board
unless all the requirements of subsection § 9601.1 have been met and the following
conditions are satisfied:

(a) If the requested moratorium area is a single- member district, there shall
exist in the area at least three (3) licensed establishments of the same class
or six (6) licensed establishments of any class or combination of classes;
151

(b) If the requested moratorium area is an ANC, there shall exist in the area at
least six (6) establishments of the same class or twelve (12) establishments
of any class or combination of classes; or

(c) If the requested moratorium area is the Ward, there shall exist in the area at
least nine (9) establishments of the same class or eighteen (18)
establishments of any class or combination of classes.

A new section 9602, MORATORIUM NOTICE, is added to read as follows:

9602 MORATORIUM NOTICE

9602.1 If a moratorium request meets all the requirements set forth in this chapter, the
Board shall provide notice to the public according to the same procedures as
required by § 5425.

A new section 9603, MORATORIUM HEARING, is added to read as follows:

9603 MORATORIUM HEARING

9603.1 The Board shall hold a public hearing to review a proposed moratorium. The public
hearing shall be a rulemaking hearing under section 6 of the DC APA and not in
the nature of a contested case under section 10 of the DC APA.

9603.2 At the public hearing, any interested person may appear to give oral or written
testimony in support of, or in opposition to, the moratorium request.

9603.3 In addition to receiving testimony from the public, the Board shall request formal
comments from the following persons or agencies:

(1) The Councilmembers within whose wards the requested moratorium area is
located;

(2) The ANCs within whose boundaries the requested moratorium area is
located and any other ANC abutting the proposed moratorium area;

(3) The Assistant City Administrator for Economic Development, or their
designee;

(4) The Office of Planning, or its successor agency; and

(5) The District Commander of the Metropolitan Police Department in which
the requested moratorium zone is located.

9603.4 In deciding on a moratorium request, the Board shall consider the extent to which
152

the testimony and comments show that the requested moratorium is appropriate
under at least two (2) of the appropriateness standards set forth in the Act and this
title.

9603.5 The Board may grant the moratorium request:

(1) In whole or in part;

(2) By enlarging or decreasing the moratorium area; or

(3) By limiting the moratorium to no more than one class of license.

9603.6 The Board may deny the moratorium request in its entirety.

9603.7 The decision of the Board shall be final and shall be issued in writing, including
each member’s vote.

A new chapter 97, HEARING PROCEDURES, is added to read as follows:

A new section 9700, HEARING PROCEDURES - APPLICABILITY, is added to read as
follows:

9700 HEARING PROCEDURES - APPLICABILITY

9700.1 This chapter shall apply to all hearings held before the Board, including:

(a) Roll call hearings or status hearings regarding the issuance, transfer, or
renewal of a license, or the making of substantial changes to a licensee’s
business operations under authority of the Act;

(b) Protest hearings regarding the issuance, transfer or renewal of a license, or
the making of substantial changes to a licensee’s business operations under
authority of the Act;

(c) Fact finding hearings on any matter governed by the Act regarding an
applicant for a license or a licensee; and

(d) Show cause hearings, summary suspension hearings , or summary
revocation hearings regarding the revocation or suspension of a license
issued under the Act.

9700.2 The Board may, for good cause shown and in the interest of justice or to prevent
hardship, waive any provision of this chapter which is not required by the Act in
any proceeding after duly advising the parties of its intention to do so.

9700.3 The following hearings held before the Board shall be conducted in the same
153

manner as hearings conducted pursuant to D.C. Official Code § 2-509:

(a) Protest hearings;

(b) Show cause hearings;

(c) Summary suspension or summary revocation hearings;

(d) Cease and desist hearings;

(e) Contested fact finding hearings in which the Board may suspend or revoke
one’s license or issue an order or interpretation that may impact the rights
of a licensee or applicant; and

(g) Qualifications hearings.

9700.4 The following hearings held before the Board shall be deemed discretionary
hearings:

(a) Uncontested fact-finding hearings, including the request to extend a license
safekeeping; and

(b) Rulemaking hearings.

9700.5 The provisions of this chapter are intended to be consistent with the DC APA (D.C.
Official Code § 2-501 et seq.). If there is any conflict between this chapter and the
DC APA, the DC APA shall govern.

9700.6 To the extent that there is any conflict within this chapter, provisions of specific
application shall supersede those of general application.

A new section 9701, CONTINUANCES, is added to read as follows:

9701 CONTINUANCES

9701.1 A hearing may be continued for good cause.

9701.2 A written motion for a continuance shall be filed with the Board at least six (6)
calendar days before the scheduled hearing date and served upon all parties at least
six (6) calendar days before the hearing. To be granted, the motion shall, in the
opinion of the Board, set forth good and sufficient cause for continuance or
demonstrate that an emergency exists.

9701.3 A continuance shall not waive the requirements governing the time in which to file
objections, petitions, or other pleadings.

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9701.4 The Board may, on motion of any party or on its own motion, continue a hearing
to permit an ANC to vote on a material issue in the hearing, upon a determination
that the interests of justice will be served by the granting of the continuance to any
party, or for administrative convenience.

9701.5 The Board may waive the provisions of this section if all parties agree to a
continuance, to prevent hardship, in the interest of justice, or for administrative
convenience.

9701.6 An attorney who knows or should know of a scheduling conflict shall immediately,
but no later than two (2) days before the scheduled hearing, file a motion for
continuance with the Board, with copies submitted to the opposing party or parties.
A scheduling conflict with another tribunal may be considered good cause for
continuing the proceeding.

A new section 9702, WITNESSES, is added to read as follows:

9702 WITNESSES

9702.1 A party shall have the right to call and examine witnesses.

9702.2 Except as provided in § 9702.3, at any proceeding before the Board in a contested
case, the Board may hear as witnesses all persons residing within and outside the
neighborhood who desire to be heard.

9702.3 The Board may exclude any irrelevant or unduly repetitious evidence or testimony.

A new section 9703, RULE ON WITNESSES, is added to read as follows:

9703 RULE ON WITNESSES

9703.1 At the request of a party, or on its own motion, the Board shall order witnesses
excluded so that they will not hear the testimony of other witnesses.

9703.2 The following persons shall not be excluded from hearings before the Board:

(a) The applicant or the licensee;

(b) The designated representative for a party to a proceeding; or

(c) Any person whose presence is shown by a party to be essential to the
presentation of their case.

A new section 9704, EXAMINATION OF WITNESSES, is added to read as follows:

9704 EXAMINATION OF WITNESSES
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9704.1 In any proceeding before the Board, each party shall have the right to present in
person or by counsel or designated representative, the party’s case or defense,
including oral and documentary evidence, to submit rebuttal evidence, and to cross-
examine witnesses, unless the matter at issue has been dismissed by the Board.

9704.2 In a protest hearing in which there is more than one (1) protest, and the Board has
required the protestants to designate one (1) person to conduct the protestant’s case,
the designated individual shall present the protestant’s case, give the opening and
closing statements, and examine and cross -examine witnesses on behalf of the
protestants.

9704.3 Any member of the Board may question any witness at any time during or after
examination or cross-examination, subject to objection by a party.

9704.4 Any oral or documentary evidence may be received, but the Board shall exclude
irrelevant, immaterial, or unduly repetitious evidence.

9704.5 The Board may impose a time limitation on oral arguments and witness testimony
as it deems appropriate.

9704.6 The Board shall afford all parties the opportunity to present oral argument unless
limited in accordance with § 9704.2.

A new section 9705, PARTIES, INTERVENTION, AND RIGHT TO BE HEARD, is added
to read as follows:

9705 PARTIES, INTERVENTION, AND RIGHT TO BE HEARD

9705.1 The parties to a show cause hearing shall be the following:

(a) The respondent, licensee, permittee, or applicant; and

(b) The District of Columbia.

9705.2 The parties to a protest hearing shall be the applicant and the protestants and their
designated representatives, if any.

9705.3 The parties to a fact -finding hearing shall be the licensee, permittee, or applicant
for a license, and such other persons whose appearance the Board deems necessary
and who are designated by the Board as parties.

9705.4 The Board may, in its discretion, permit interested persons other than parties, as
defined in this chapter, to intervene in a proceeding for such general or limited
purpose as the Board may specify.

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9705.5 A person permitted to intervene under this section shall comply with all conditions
fixed by the Board and shall not be considered a party to the proceedings.

A new section 9706, COMPUTATION OF TIME FOR FILINGS, is added to read as follows:

9706 COMPUTATION OF TIME FOR FILINGS

9706.1 Whenever a party to a proceeding under this chapter has the right or is required to
perform some act within a specified time period after the service of notice upon the
party, and the notice is served upon that party by mail, three (3) days shall be added
to the prescribed period.

9706.2 Except as otherwise provided by law, any time period prescribed by this chapter
may, for good cause shown, be extended by the Board with notice to all parties.

9706.3 For purposes of computing time that is stated in days or a longer unit of time,
exclude the day of the event that triggers the computation of time.

9706.4 For purposes of computing time that is stated in days or a longer unit of time, every
day, including intermediate Saturdays, Sundays and legal holidays is counted.
Count the last day of the period, but if the last day is a Saturday, Sunday or legal
holiday, the period continues to run until the end of the next day that is not a
Saturday, Sunday or legal holiday.

9706.5 For purposes of computing time that is stated in hours, begin counting every hour
immediately at the conclusion of the event that triggers the period, including hours
during intermediate Saturdays, Sundays and legal holidays. If the time period would
end on a Saturday, Sunday, or legal holiday, the time period continues to run until
the same time on the next day that is not a Saturday, Sunday, or legal holiday.

9706.6 Unless a different time is set by a statute, regulation or Board order, the last day of
a specified time period is at midnight for electronic filing, and at the close of
business on the last day for filing by any other means.

A new section 9707, SERVICE OF PAPERS, is added to read as follows:

9707 SERVICE OF PAPERS

9707.1 Any papers filed with the Board or on opposing parties in a contested case shall be
served by personal delivery, first class U.S. mail, registered or certified mail, or by
electronic mail. Proof of service shall be shown as required by the regulations.

9707.2 Any papers required to be served upon a party may be served upon the party or
the party’s designated representative.

9707.3 When a party has appeared through a representative, who has filed a written notice
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of appearance service shall be made upon the representative of record.

9707.4 Service upon a party or the party’s designated representative may be made in the
following manner:

(a) By personal delivery;

(b) By use of a process server;

(c) By registered or certified mail;

(d) By electronic mail; or

(e) As otherwise authorized by law.

9707.5 Service upon a party shall be completed upon any of the following acts:

(a) Handing the paper to the person to be served;

(b) Leaving the paper at the licensed premises with the owner, manager, or
other employee of the establishment;

(c) Leaving the paper at the party’s usual place of residence with some
individual of suitable age and discretion residing therein;

(d) Deposit of the paper in the U.S. Mail, by registered or certified mail,
properly stamped and addressed;

(e) By electronic mail at the e-mail address on file with ABCA;

(f) Deposit of the paper in the U.S. Mail, by first class mail, properly stamped
and addressed, by an attorney of record; or

(g) By an action in conformity with an order of the Board in any proceeding.

9707.6 Proof of service shall state the name and address of the person served, the manner
of service, and the date of service.

9707.7 Proof of service shall be shown by one of the following:

(a) Written acknowledgement of the person served or that person’s
representative;

(b) The certificate of the person making the service;

(c) A return receipt, if served by registered or certified mail; or
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9707.8 Service shall also be deemed proper upon a showing that the party actually received
delivery of the notice or paper, irrespective of the delivery method.

A new section 9708, APPEARANCE AND REPRESENTATION, is added to read as follows:

9708 APPEARANCE AND REPRESENTATION

9708.1 An individual may represent himself or herself in any proceeding before the Board.

9708.2 An attorney may represent any party before the Board by submitting a Notice of
Appearance or completing ABCA’s Attorney/Representative Designation Form to
the Board.

9708.3 In addition to this chapter, the District of Columbia Rules of Professional Conduct
shall govern the conduct of all attorneys appearing before the Board.

9708.4 An authorized officer, director, partner, or employee may represent a corporation,
partnership, limited partnership, or other legal entity before the Board. Parties
appearing before the Board pursuant to this section may be required to demonstrate
that authority.

9708.5 Any party appearing before the Board in any proceeding may bring an interpreter
of their choice.

9708.6 If it appears to the Board that the facts or issues in a matter before it are so intricate
or involved that, in the interests of justice, of conserving time, or of facilitating
preparation of an adequate record, a party ought to be represented by an attor ney,
the Board may urge the party to obtain counsel and shall allow the party a
reasonable time, not to exceed fourteen (14) calendar days, to do so, as long as the
rights of the other parties to the hearing are not substantially and adversely affected.

9708.7 Any person authorized to appear pursuant to this section may sign any paper
required or permitted by the Act, this chapter, or any other statute or regulation to
be filed with the Board.

A new section 9709, NOTICE OF APPEARANCE , is added to read as follows:

9709 NOTICE OF APPEARANCE

9709.1 A non- lawyer representative shall submit a signed statement containing that
person’s name, address, e -mail address, telephone number, and the nature of the
representation, or ABCA’s Attorney/Representative Designation Form prior to
appearing before the Board.

9709.2 The written statement or the Attorney/Representative Designation Form required
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by this chapter shall be made a part of the Board’s record of the proceeding and
shall be served on all parties to the proceeding.

9709.3 Any attorney appearing as counsel in any proceeding shall submit a Notice of
Appearance containing their name, e-mail address, office address, office telephone
number, D.C. Bar number, and nature of the representation or ABCA’s
Attorney/Representative Designation Form to the Board.

9709.4 In the case of law students who appear before the Board under the direction of an
accredited law school clinical program, the supervising attorney shall register with
the Board.

A new section 9710, SCHEDULING AND CONDUCT OF HEARINGS: GENERAL
PROVISIONS, is added to read as follows:

9710 SCHEDULING AND CONDUCT OF HEARINGS: GENERAL
PROVISIONS

9710.1 The Board shall not schedule any hearing until the applicant has submitted, in
writing to the Board, all information and documents required by the Act and the
regulations.

9710.2 Before a person may be heard to object to approval of an application, the person
shall have notified the Board and the applicant or licensee, by any of the means
listed in § 5433, of their intent to object, and of the grounds for the objection, prior
to the end of the protest period.

9710.3 Decorum and good order shall be maintained at all times during hearings, and the
Board may exclude or order the removal from the hearing room of any person who
refuses to comply with a reasonable order of the Board.

9710.4 The Chairperson of the Board shall preside over all proceedings conducted by the
Board under the authority of the Act and this chapter.

9710.5 The Chairperson of the Board shall conduct all proceedings in accordance with the
provisions of this chapter, the Act, and the District of Columbia Administrative
Procedures Act.

9710.6 The Chairperson of the Board shall have the authority to:

(a) Open and close a meeting or hearing;

(b) Administer oaths and affirmations;

(c) Regulate the course of the hearing and the conduct of the parties and their
representative; and
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(d) Take any other action in accordance with the above provisions in
furtherance of a fair and orderly hearing.

9710.7 In the event the Chairperson is unable or unavailable to preside over a hearing or
meeting, the Chairperson may designate a member of the Board to act as the
presiding officer in the Chairperson’s absence.

A new section 9711, EVIDENCE: GENERAL RULES, is added to read as follows:

9711 EVIDENCE: GENERAL RULES

9711.1 Any party objecting to the admission of evidence shall state the grounds relied upon
for the objection.

9711.2 Formal exceptions to the rulings of the Board made during the course of a hearing
shall not be required.

9711.3 The parties may, by stipulation in writing filed with the Board, or in the record at a
hearing, agree upon any facts relevant to a proceeding, or upon the substance of the
testimony which would be given by a witness.

9711.4 The Board, in its discretion, may require additional evidence on any matter covered
by stipulation.

A new section 9712, BURDEN OF PROOF, is added to read as follows:

9712 BURDEN OF PROOF

9712.1 In all protest hearings before the Board, the applicant shall have the burden of proof
to show by substantial evidence in the record that the licensing action meets the
appropriate standards in accordance with this title.

9712.2 In all show cause proceedings before the Board, the District of Columbia shall have
the burden of proof to show by substantial evidence in the record that the
respondent has committed a violation of the Act or this chapter.

A new section 9713, OPENING AND CLOSING STATEMENTS, is added to read as follows:

9713 OPENING AND CLOSING STATEMENTS

9713.1 In all protest hearings before the Board, the applicant shall open and close the case
insofar as presentation of evidence and argument are concerned.

9713.2 In all show cause proceedings before the Board, the District of Columbia shall open
and close the case insofar as presentation of evidence and argument are concerned.
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A new section 9714, OFFERS OF PROOF, is added to read as follows:

9714 OFFERS OF PROOF

9714.1 Any offer of proof made in connection with an objection to any ruling of the Board
which rejects or excludes proffered oral testimony shall consist of a statement for
the record of the substance of the evidence which the party contends would be
established by the testimony.

9714.2 If the excluded evidence is documentary, a copy of the written evidence shall be
marked for identification and shall constitute the offer of proof.

9714.3 The document shall be retained by the Board as part of the record for purposes of
an appeal.

A new section 9715, DOCUMENTARY EVIDENCE, is added to read as follows:

9715 DOCUMENTARY EVIDENCE

9715.1 Documentary evidence offered at any hearing before the Board shall, if received by
the Board, be retained by the Board.

9715.2 Any party who intends to offer documentary evidence at a hearing shall, seven (7)
calendar days prior to the hearing, disclose the evidence to the opposing party.
Absent good cause, failure to disclose documentary evidence seven (7) calendar
days prior to the hearing may result in the Board excluding the evidence.

9715.3 The Board may, in its discretion, permit the withdrawal of original documents
received into evidence and the substitution of certified copies in lieu of the
originals.

9715.4 When relevant and material matters offered into evidence are contained in a book
or other document which also contains other matters not material or relevant, the
person offering the evidence shall plainly designate the matters offered, and the
immaterial and irrelevant parts shall be excluded and segregated insofar as
practicable.

9715.5 All exhibits that a party intends to introduce at a hearing must be identified on and
attached to an exhibit form. Parties shall include the exhibit form, including copies
of the exhibits, with the Protest Information Form.

9715.6 Exhibits reasonably anticipated to be used for impeachment need not be included
on or attached to the exhibit form.

9715.7 If a document is readily available to the general public, a party need only provide a
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complete citation to the source of the document and how the document may be
accessed.

9715.8 The Board may exclude at the hearing any exhibit(s) not disclosed on the exhibit
form if the Board finds that the opposing party has been prejudiced by the failure
to disclose or if there has been a knowing failure to disclose.

9715.9 The Board shall have the discretion to receive documentary evidence from the
parties not already listed or attached to the exhibit form upon a finding of good
cause.

9715.10 The investigative report and attachments shall be part of the Board’s record, and it
shall not be necessary for the parties to formally move for admission of the
investigative report or portions of it into the evidentiary record.

9715.11 The exhibit form and any attachments shall be served on all parties and the Board’s
Office of General Counsel seven (7) days prior to the hearing.

9715.12 If a PowerPoint presentation or similar presentation is used by the parties, a paper
copy of the exhibit shall be filed with the Board.

A new section 9716, RECORDS IN PROCEEDINGS, is added to read as follows:

9716 RECORDS IN PROCEEDINGS

9716.1 When any part of the record in any other proceeding before the Board, a criminal
or civil action, or a proceeding before any administrative agency is offered in
evidence, a certified true copy of that part of that record shall be presented to the
Board as an exhibit, except in the following instances:

(a) It is described in a manner which makes it readily identifiable, and the
offeror agrees to supply copies at a later time as required by the Board;

(b) There is a stipulation on the record that it may be incorporated by reference
and the Board directs the incorporation; or

(c) It is described in a manner which makes it readily identifiable in the files of
the Board.

A new section 9717, MOTIONS, is added to read as follows:

9717 MOTIONS

9717.1 Any party to a protest may seek relief from the Board against an opposing party by
filing a motion with the Board. Unless otherwise specified, motions shall conform
to the following requirements:
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(a) Be in writing;

(b) Served upon the other parties to the protest by electronic mail or the first -
class U.S. Postal Service; and

(c) Filed with the Board.

9717.2 Any party may file a response in opposition to a motion within seven (7) calendar
days after service of the motion. In the case of motions for continuances which have
been filed by a party on the sixth (6th) calendar day before a scheduled hearing,
responses shall either be made in writing and served by personal delivery on all
parties prior to the hearing or shall be made orally on the date of the hearing.

9717.3 A response to a motion shall not include a motion for other affirmative relief against
the moving party.

9717.4 If a party filing an opposition submits a motion for other affirmative relief, it shall
be done by separate pleading.

9717.5 A reply may be filed within three (3) calendar days after service of a response in
opposition to a motion, but the reply shall not re -argue propositions presented in
the motion, nor present matters which are not strictly in reply to the opposition.

9717.6 A request for reinstatement of the license application or the protest must be filed
with the Board within ten (10) days after receipt of the order after dismissal for
failure to appear . In reviewing the request for reinstatement of the license
application or the protest, the Board shall consider whether, in the discretion of the
Board, the party has shown good cause for their failure to appear in accordance
with § 5432.5.

9717.7 No further pleading shall be filed except by leave of the Board.

A new section 9718, POST-HEARING SUBMISSIONS, is added to read as follows:

9718 POST-HEARING SUBMISSIONS

9718.1 No document or other information shall be accepted for the record after the close
of a hearing except as follows:

(a) Unless accompanied by a Motion to Re -open the Record demonstrating
good cause and the lack of prejudice to any party;

(b) Until all parties are afforded due notice and an opportunity to rebut the
information; or

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(c) Upon official notice of a material fact not appearing in the evidence in the
record in accordance with section 10(b) of the District of Columbia
Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1207;
D.C. Official Code § 2-509(b)).

9718.2 The Board shall afford parties an opportunity to file Proposed Findings of Fact and
Conclusions of Law within thirty (30) calendar days after receipt of the transcript
from the hearing. The Board may, in its discretion, grant an extension to file
Proposed Findings of Fact and Conclusions of Law for good cause. An extension
granted by the Board shall not exceed twenty (20) calendar days after the initial
deadline.

9718.5 A copy of the Proposed Findings of Fact and Conclusions of Law shall be served
on each party.

9718.6 Proposed Findings of Fact and Conclusions of Law shall be limited to the record
and shall not include new legal issues that were not raised during the hearing.

A new section 9719, DECISIONS OF THE BOARD, is added to read as follows:

9719 DECISIONS OF THE BOARD

9719.1 Unless otherwise required, within ninety (90) calendar days after the close of the
record, the Board shall render its written decision accompanied by Findings of Fact
and Conclusions of Law.

9719.2 Findings of Fact and Conclusions of Law shall consist of a concise statement of the
Board’s conclusions on each contested issue of fact and shall be based solely upon
evidence contained in the record and facts of which the Board properly took judicial
notice.

9719.3 Findings of Fact and Conclusions of Law shall be supported by and in accordance
with reliable, probative, and substantial evidence.

9719.5 All written decisions of the Board shall be available for public inspection and
copying at a reasonable cost.

A new section 9720, RECONSIDERATION, REHEARING, REARGUMENT, AND STAY,
is added to read as follows:

9720 RECONSIDERATION, REHEARING, REARGUMENT, AND STAY

9720.1 A motion for reconsideration, rehearing, reargument, or stay of a decision or order
of the Board shall be filed with the Board, and a copy shall be served on each party
and intervenor.

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9720.2 A motion for reconsideration shall state briefly the matters of record alleged to have
been erroneously decided, the grounds relied upon, and the relief sought.

9720.3 If a motion is based in whole or in part on a new matter, that new matter shall be
set forth in the motion stating that the petition could not by due diligence have
known or discovered the new matter prior to the date the case was presented to the
Board for a decision.

9720.4 The Board may, in its discretion, permit or require oral argument upon a motion
filed under this section.

A new section 9721, EX PARTE COMMUNICATIONS, is added to read as follows:

9721 EX PARTE COMMUNICATIONS

9721.1 If a proceeding is a contested case within the meaning of the DC APA (D.C. Official
Code § 2-502(8)), the following restrictions shall apply:

(a) A person shall not make or knowingly cause to be made to a member of the
Board an ex parte communication relevant to the merits of the proceeding;
and

(b) No member of the Board shall make or cause to be made to any interested
persons outside the Board an ex parte communication relevant to the merits
of the proceeding.

9721.2 The prohibitions set forth in this section shall apply upon the filing of a protest
against an application for an original, transfer, substantial change or renewal
license, or upon the issuance of notice to appear for a show cause hearing.

9721.3 For purpose of this section, “ex parte communication” does not include an inquiry
regarding the Board’s procedure or practice, or a request for a status report on a
matter, proceeding, or notice of a meeting or hearing.

A new section 9722, TRANSCRIPTS OF HEARINGS, is added to read as follows:

9722 TRANSCRIPTS OF HEARINGS

9722.1 Hearings shall be recorded and transcribed under the direction of the Board.

9722.2 Changes in the official transcript may be made only in cases of material error.

9722.3 A motion to correct the transcript shall be filed with the Board within ten (10)
calendar days of the date the transcript is available to the movant. Copies of the
motion shall be served on all parties.

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9722.4 If no objections to the motion are filed within five (5) days after service of the
motion, the Board may correct the transcript.

9722.5 The Board shall have final authority to dispose of all motions for correction of the
record.

A new section 9723, POST HEARING MOTIONS, is added to read as follows:

9723 POST HEARING MOTIONS

9723.1 A petition for reconsideration, rehearing, reargument, or stay of a decision or order
of the Board may be filed by a party within ten (10) days after the date of receipt
of the Board’s final order.

9723.2 The filing of a post hearing motion shall not stay the final order unless the stay is
specifically ordered by the Board.

9723.3 A stay of a decision shall be granted only upon good cause, which shall consist of
unusual or exceptional circumstances.

A new section 9724, WAIVER, is added to read as follows:

9724 WAIVER

9724.1 The Board may, for good cause shown and in the interests of justice or to prevent
hardship, waive any of the provisions contained in this chapter in any proceeding
after duly advising the parties of its intention to do so.

A new chapter 98, SLIDING SCALE PROGRAM, is added to read as follows:

9800 SLIDING SCALE PROGRAM

9800.1 An internet retailer or retailer shall make available discounted cannabis on a sliding
scale to qualifying patients determined eligible pursuant to § 1300.4 of this title.
The term “make available” in this section means that a licensee violates this section
if a qualified patient eligible for discounted medical cannabis requests the discount
and is denied by the licensee.

9800.2 A qualifying patient who establishes their qualifications under § 1300.4 of this
subtitle, shall be entitled to purchase medical cannabis directly, or through a
caregiver, on a sliding scale from an internet retailer or retailer in the District of
Columbia.

9800.3 An internet retailer or retailer shall sell medical cannabis to a qualifying patient,
who is registered to purchase medical cannabis on a sliding scale, and possesses a
registration card denoting such, at a discount of not less than twenty (20%) of its
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regular retail price.

9800.6 It shall be an affirmative defense to a violation of § 9800.1 that the sale or
dispensing of medical cannabis or medical cannabis products to the qualified
patient denied a sliding scale discount would be in violation of the law (e.g.,
intoxicated, failed to present adequate identification).

Chapter 99, DEFINITIONS, is amended as follows:

Section 9900, DEFINITIONS, is amended as follows:

Subsection 9900.1 is amended by adding the following definitions in alphabetical order:

Adulterated – Describes medical cannabis or a medical cannabis product that exceeds, fails, or
violates any of the testing standards, testing limits, or testing levels of various substances set by
the Act or this title.

Applicant – means, as the context requires, the individual applicant, each member of an applicant
partnership or limited liability company, or each of the principal officers, directors, and
shareholders of an applicant corporation, or, if other than an individual, the applicant entity.

DC APA – means the District of Columbia Administrative Procedure Act, approved October 21,
1968 (82 Stat. 1207; D.C. Official Code § 2-501 et seq.).

Gun offense – means

(a) A conviction for the sale, purchase, transfer, receipt, acquisition, possession, use,
manufacture, carrying, transportation, registration, or licensing of a firearm under
Chapter 45 of Title 22, or an attempt or conspiracy to commit any of the foregoing
offenses;

(b) A conviction for violating D.C. Official Code § 7- 2502.01, § 7- 2504.01, § 7-
2505.01, § 7-2506.01, or § 7-2509.06, or an attempt or conspiracy to commit any
of those offenses;

(c) A conviction for a firearms-related violation of the provisions in D.C. Official Code
§ 22-402 (assault with a dangerous weapon), § 22-2603.02 (unlawful possession of
contraband), or § 22-2803(b) (carjacking); or

(d) Violations in other jurisdictions of any offense with an element that involves the
violations listed in subparagraphs (a) – (c) of this paragraph.

Fraud – means a conviction for violation of sections 121 through 127h of the District of Columbia
Theft and White Collar Crimes Act of 1982, effective December 1, 1982 (D.C. Official Code §
22-3221 – 22- 3227.08) or any conviction in another jurisdiction with an element that involves
these violations.
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Locality - means the area within 600 feet of an establishment.

Management agreement - means an operational agreement between the licensee and a third-party
allowing the third party to manage the establishment on behalf of the licensee for a fee.

Medical Cannabis Business – a licensed courier, cultivation center, internet retailer,
manufacturer, retailer, testing laboratory, or any other business operating pursuant to a license
authorized by the Act and this title. This term does not refer to personal licenses such as those for
qualified patients, caregivers, authorized practitioners, managers, employees, and agents.

METRC – means the electronic track and trace platform provided by the Marijuana Enforcement
Tracking Reporting Compliance (METRC) company.

Non-Resident Cardholder – a non-resident of the District of Columbia that is deemed a qualified
patient once issued a medical cannabis patient card from ABCA so long as the card is valid and
unexpired. This term does not include a nonresident qualifying patient who is registered in another
jurisdiction’s medical cannabis program.

Overconcentration - means the existence of multiple licensed establishments in a single locality,
section, or portion of the District of Columbia that adversely impacts that locality, section, or
portion of the District of Columbia, taking into account the appropriateness standards.

Portion - means the area within 1,800 feet of an establishment.

Real-time electronic records system – means the electronic database designated by ABCA for
use by the medical cannabis industry to track in real -time the planting, harvesting, processing,
distribution, and sale of cannabis. The electronic database designated by ABCA is METRC.

Section - means the area within 1,200 feet of an establishment unless the context indicates that the
term “section” was not used to refer to a physical area.

In Subsection 9900.1 the following definitions are amended to read as follows:

ABCA – Alcoholic Beverage and Cannabis Administration

Board – Alcoholic Beverage and Cannabis Board

Director -- means the Director of the Alcoholic Beverage and Cannabis Administration or their
designee or designees.

Drug-related offense – means any offense that involves the possession, distribution, manufacture,
cultivation, sale, transfer, or the attempt or conspiracy to possess, distribute, manufacture,
cultivate, sell or transfer cannabis or any substance the possession of which is prohibited by the
Controlled Substances Act, Title 21 of the United States Code (Controlled Substance Act), or any
equivalent state or foreign government law creating criminal penalties for the sale, distribution,
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possession, or use of illegal drugs or narcotics.

Medical Cannabis - means cannabis cultivated, manufactured, possessed, distributed, dispensed,
obtained, or administered in accordance with the Act and this title and all types of products
containing medical cannabis such as infused beverages, concentrates, dried leaf, edibles, kief, oils,
tinctures, and pre-rolls.

Qualifying patient - a resident of the District who has a qualifying medical or dental condition or
is undergoing a qualifying medical or dental treatment, a non- resident cardholder, or a patient
enrolled in another jurisdiction’s medical cannabis program; provided, that a patient from another
jurisdiction shall not be a qualifying patient if the Board determines that there is a shortage of
medical cannabis or the real-time electronic records system referenced in the Act is inactive.

Tamper Evident – means a container or packaging having an indicator or barrier to entry which,
if breached or missing, can reasonably be expected to provide visible evidence to consumers that
tampering has occurred. If a breached or missing indicator or barrier would not, in and of itself,
provide consumers with such evidence, the packaging may still qualify as tamper -evident if, in
conjunction with such device, a printed statement is prominently displayed on the product label to
alert the consumer of the original presence of the indicator or barrier.

Tamper Proof – means a container or packaging that, once sealed, clearly shows whether it has
been opened.

In Subsection 9900.1, the definition for Dispensary, and Medical Marijuana, Panel, and
Pesticide are repealed.