The grace period during which DC’s unlicensed cannabis establishments must obtain proper licensure without facing enforcement actions is soon ending. By March 31, unlicensed cannabis establishments that have applied for a retailer or internet retailer license must have their licenses issued and must “be in operation.” If these conditions are not met, the DC Alcoholic Beverage and Cannabis Administration (ABCA) may rescind its approval of applications or may summarily deny unapproved applications.
The ABCA has issued guidance on what it means to “be in operation.” ABCA states that an establishment must be able to sell cannabis and cannabis products obtained from DC-licensed cultivation centers or manufacturers to registered cannabis patients. An establishment’s employees must be registered in METRC, which is a third-party regulatory compliance provider that partners with several state agencies, including those in DC, Maryland, and Virginia. Finally, establishments must pass both a certified alarm test conducted by the Office of Unified Communications and a final inspection conducted by the ABCA and must also provide any outstanding documentation prior to issuance of a final license.
On April 1, the ABCA intends to commence enforcement against “any remaining unlicensed establishments that applied during the statutory unlicensed establishment open application period” that continue to sell cannabis products. Enforcement may include seizure of cannabis products and closure of an establishment. Businesses closed by the ABCA are provided five business days to request an administrative hearing, after which the ABCA must issue a written decision within five business days after the hearing is held.
References:
§ 7–1671.06b. Unlicensed establishment compliance. | D.C. Law Library