§ 7–1671.06a. Unlicensed establishments transition.

*NOTE: This section includes amendments by emergency legislation that will expire on May 22, 2024. To view the text of this section after the expiration of all emergency and temporary legislation, click this link: Permanent Version.*

*NOTE: This section includes amendments by temporary legislation that will expire on November 21, 2024. To view the text of this section after the expiration of all emergency and temporary legislation affecting this section, click this link: Permanent Version.*

(a)(1) No earlier than 180 calendar days after March 22, 2023, ABCA shall make additional cultivation center, retailer, and internet retailer licenses available to unlicensed establishments for a 90-calendar day open application period.

(2) To be eligible to apply for a cultivation center license during the 90-calendar day open application period, an unlicensed establishment shall demonstrate to the satisfaction of ABCA that the unlicensed establishment:

(A) Is not located:

(i) Within a residential district; or

(ii) Within 300 feet of a preschool, primary or secondary school, or recreation center;

(B) Facility at which cultivation will take place is suitable for the cultivation of cannabis, including being sufficient in size, power allocation, air exchange and air flow;

(D) Has a valid certificate of occupancy issued prior to the date on which the application is submitted;

(E) Has been in operation since December 31, 2022 at the latest; and

(F) Can demonstrate that business taxes were paid to the District of Columbia for each year following the issuance of a certificate of occupancy or business license, if applicable.

(3) To be eligible to apply for a retailer license during the 90-calendar day open application period, an unlicensed establishment shall demonstrate to the satisfaction of ABCA that the unlicensed establishment:

(A) Is not located:

(i) Within a residential district;

(ii) Within 300 feet of a preschool, primary or secondary school, or recreation center; or

(iii) Within 400 feet of an existing retailer;

(B) Has a valid, active business license issued on or before December 31, 2022;

(D) Has been in operation since December 31, 2022, at the latest; and

(E) Can demonstrate that business taxes were paid to the District of Columbia for each year following the issuance of a certificate of occupancy or business license, if applicable.

(4) To be eligible to apply for an internet retailer license during the 90-calendar day open application period, an unlicensed establishment shall demonstrate to the satisfaction of ABCA that the unlicensed establishment:

(A) Is not open to the public and not located:

(i) Within a residential district; or

(ii) Within 300 feet of a preschool, primary or secondary school, or recreation center;

(B) Has a valid, active business license issued on or before December 31, 2022;

(D) Has been in operation since December 31, 2022, at the latest; and

(E) Can demonstrate that business taxes were paid to the District of Columbia for each year following the issuance of a certificate of occupancy or business license, if applicable.

(b) An unlicensed establishment may relocate its operations to a compliant location prior to the filing of an application under this section but shall not relocate its business to an address different from the address provided in the application for purposes of complying with the location requirements of this section.

(c) For purposes of this section, the 300-foot restrictions shall not apply where 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.

(d)(1) In determining whether a retailer application filed by an unlicensed establishment is eligible to be approved, the ABC Board shall ensure that the retailer application will not be located within 400 feet of a previously submitted retailer application filed by another applicant during the 90-calendar day open application period.

(2) Consistent with this subsection, ABCA shall proceed forward with the application filed by the unlicensed establishment that is first in time. If that application is subsequently denied, ABCA shall proceed with the application that is second in time, third in time, et cetera, until an application is approved.

(e)(1) Cultivation Center, Retailer, and Internet Retailer licenses issued under this section shall count toward the 50% set aside requirement for social equity applicants set forth in § 7-1671.06(h).

(2) Straw ownership for purposes of meeting the ownership requirement of this subsection is prohibited. A person or business who is found to have willfully asserted straw ownership shall have the person's or business's license revoked and be subject to a civil penalty of not more than $30,000.

(f) Unregistered establishments shall not apply for a conditional license in order to meet the requirements of this subsection during the 90-calendar day open application period.

(g) ABCA shall post a list of unlicensed establishments that applied for a retailer or internet retailer license during the 90-calendar day open application period to its website and provide a copy of the list to the Director of the Department of Licensing and Consumer Protection.

(h)(1) The ABC Board shall provide notice of complete and eligible cultivation center, retailer, and internet retailer license applications received from unlicensed establishments to the Ward Councilmember, and any Advisory Neighborhood Commission within 600 feet of where the establishment is or will be located ("affected ANC"), for a 45-calendar day public comment period. The ABC Board may extend the public comment period required by this paragraph by an additional 30-calendar days in response to a written request submitted by either an affected ANC or the applicant.

(2) An affected ANC may protest the issuance of the license.

(3) The ABC Board shall hold a contested case protest hearing within 120 days of receiving a timely protest from an affected ANC pursuant to paragraph (2) of this subsection.

(4) The provisions of this subsection shall apply to all applications submitted to ABCA after January 25, 2024.

(i) The grounds for a protest filed by an affected Advisory Neighborhood Commission shall relate to the impact of the unlicensed establishment on:

(1) Peace, order, and quiet of the relevant area;

(2) Residential parking needs and vehicular and pedestrian safety; and

(3) Real property values.