§ 7–1671.06b. Unlicensed establishment compliance.

*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) Unlicensed establishments that submit a complete application with ABCA during the 90-calendar day open application period for a cultivation center, retailer, or internet retailer shall not be subject to compliance with this chapter while their retailer or internet retailer application is pending review with the ABC Board; except, that nothing in this subsection shall prohibit ABCA from issuing cease and desist orders to an applicant if the applicant is found to be selling cannabis products that may be especially appealing to children or is using packaging or advertisements that might be especially appealing to children.

(b)(1) A decision by the ABC Board to approve a cultivation center, retailer, or internet retailer license for an unlicensed establishment shall be made in writing at least 15 days prior to the issuance of the license. The notice shall state that the unlicensed establishment shall cease any unlicensed activity once its license is issued by ABCA.

(2)(A) An unlicensed establishment that is approved for a cultivation center, retailer, or internet retailer license shall obtain issuance of its license by the later date of either September 30, 2024, or within 180 days of Board approval or have its Board approval rescinded.

(B)(i) An unlicensed establishment that temporarily discontinues operations after Board approval that is not involved in unlicensed activity may request that the Board extend the deadline set forth in subparagraph (A) of this paragraph by one additional 180-day period to allow the applicant to take steps to resume business operations at the applicant's proposed location.

(ii) The Board shall approve the applicant's extension request; provided; that the applicant can demonstrate to the Board that the applicant is making reasonable progress to resume business operations at the proposed location.

(C) Notwithstanding paragraph A of this subsection, a cultivation center, retailer, or internet retailer applicant shall cease any unlicensed activity once its license is issued by ABCA.

(3)(A) A decision by the ABC Board to deny an unlicensed establishment's application for a retailer or internet retailer license shall be made in writing to the applicant and shall state the reasons for the denial.

(B)(i) Within 15 days of receipt of the ABC Board's written denial decision, the applicant may submit, in writing, an appeal to the ABC Board to reconsider the denial decision. With the written appeal, the applicant may include any relevant documentation or evidence that contests findings of fact or conclusions of law in the ABC Board's written denial decision.

(ii) If an applicant submits an appeal, the ABC Board shall hold a hearing and render a decision within 30 days.

(C) If the applicant does not appeal the written denial decision, or after the ABC Board renders a decision on an appeal, the ABC Board shall notify the unlicensed establishment that it must close within 30 days after receipt of the denial or be subject to penalties pursuant to § 47-2844(a-2)(1B).

(c) The ABC Board may deny an unlicensed establishment's application for a cultivation center, retailer, or internet retailer license that does not provide the ABC Board with documents necessary to complete the application within 30 days of the ABC Board's request.

(d)(1) An unlicensed establishment that is issued a cultivation center, retailer, or internet retailer license shall be required to open within 120 days of being issued the retailer or internet retailer license.

(2) The ABC Board shall cancel a retailer or internet retailer license issued to an unlicensed establishment that does not open within 120 days.

(e) An unlicensed establishment shall not display signage or imagery advertising relating to:

(1) The prices of cannabis or cannabis product in the window;

(2) Cannabis or a cannabis product on the exterior of any window or on the exterior or interior of any door; or

(3) Cannabis or a cannabis product on the exterior or visible from the exterior of the unlicensed establishment or elsewhere in the District.