Code of the District of Columbia

Chapter 3. Requirements To Qualify For License.

Subchapter I. Applicant Qualifications.

§ 25–301. General qualifications for all applicants.

(a) Before issuing, transferring to a new owner, or renewing a license, the Board shall determine that the applicant meets all of the following criteria:

(1) The applicant is of good character and generally fit for the responsibilities of licensure.

(2) The applicant is at least 21 years of age.

(3)(A) Except as provided in subparagraph (B) of this paragraph, the applicant has not been convicted of a felony in the 10 years before filing the application.

(B) An applicant for a solicitor's license or manager's license has not been convicted of a felony in the 5 years before filing the application.

(4) The applicant has not been convicted of any misdemeanor bearing on fitness for licensure in the 5 years before filing the application.

(5) Except in the case of an application for a solicitor’s or manager’s license, the applicant is the true and actual owner of the establishment for which the license is sought, and he or she 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.

(6) The licensed establishment will be managed by the applicant in person or by a Board-licensed manager.

(7) The applicant has complied with all the requirements of this title and regulations issued under this title.

(a-1) To determine whether an applicant for a new license meets the criteria of subsection (a)(1) of this section, the Board shall examine records, covering the last 10 years from the date of application, maintained by ABCA regarding prior violations of the District’s alcohol laws and regulations by the applicant or establishments owned or controlled by the applicant.

(b) Notwithstanding § 47-2861(1)(B), the Board shall not issue a license or permit to an applicant if the applicant has failed to file required District tax returns or owes more than $ 100 in outstanding debt to the District as a result of the items specified in § 47-2862(a)(1) through (9), subject to the exceptions specified in § 47-2862(b).

(c) To determine whether an applicant for a new retailer or wholesaler license meets the criteria of subsection (a)(3) and (4) of this section, the Board may obtain criminal history records of criminal convictions maintained by the Federal Bureau of Investigation and the Metropolitan Police Department. The Board shall:

(1) Inform the applicant that a criminal background check will be conducted;

(2) Obtain written approval from the applicant to conduct a criminal background check;

(3) Coordinate with the Metropolitan Police Department to obtain a set of qualified fingerprints from the applicant; and

(4) Obtain any additional identifying information from the applicant that is required for the Metropolitan Police Department and the Federal Bureau of Investigation to complete a criminal background check.

(c-1) The Board, in its discretion, may approve an application for a solicitor's license or manager's license for an applicant who has been convicted of a felony within 5 years of applying for the solicitor's or manager's license if the Board determines that the offense does not have a bearing on the applicant's fitness for licensure.

(d) The Board shall coordinate with the Metropolitan Police Department to adopt procedures necessary to facilitate the objectives of subsections (c) and (c-1) of this section.

(e) The fingerprint card shall not be maintained by the Board or by the Metropolitan Police Department and shall be returned to the applicant after the completion of the criminal background check.

(f) Once notified, the Board shall seal, set aside, expunge, and otherwise maintain any record received pursuant to this section so that the record is in compliance with any order issued by the Superior Court of the District of Columbia pursuant to a sealing, set aside, or expungement statute, including Chapter 8 of Title 16 and Chapter 9 of Title 24. Once notified, the Board shall also seal, set aside, expunge, and otherwise maintain any record received pursuant to this section so that the record is in compliance with any court order or official government request or statement from the jurisdiction that is the source of that record.

(g) The Board shall maintain the confidentiality of any information returned from the Metropolitan Police Department and the Federal Bureau of Investigation and use such information only for the purpose of determining whether the applicant satisfies the criteria set forth in subsection (a)(3) and (4) of this section.

§ 25–302. Special qualifications for wholesaler’s or retailer’s licenses.

In the case of an application for a wholesaler’s license or for a retailer’s license of any class, except a temporary license, before issuing, transferring to a new owner, or renewing a license, the Board shall further determine that:

(1) No manufacturer, wholesaler, or shareholder holding 25% or more of the common stock of, or equity interest in, a manufacturer or wholesaler, or officer of a manufacturer or wholesaler corporation, or partner or member of a partnership or limited liability company owning 25% or more of its equity interest, has such a substantial interest, direct or indirect, in the applicant’s business or establishment that the applicant would be influenced to purchase alcoholic beverages from the manufacturer or wholesaler; and

(2) The business for which the license is sought has not been, and will not be, conducted with money, equipment, furniture, fixtures, or property (A) rented from, (B) loaned from, (C) given by, or (D) sold for less than fair market value, upon a conditional sale agreement, or a chattel trust from, a manufacturer, wholesaler, shareholder holding 25% or more of the common stock of, or equity interest in, a manufacturer or wholesaler, or officer of a manufacturer or wholesaler corporation, or partner or member of a partnership or limited liability company owning 25% or more of its equity interest.

§ 25–303. Restrictions on holding a conflicting interest.

(a) Before issuing, transferring to a new owner, or renewing a license, the Board shall determine that the applicant is not disqualified because of a conflicting interest in another license, as follows:

(1) No licensee under a wholesaler’s license shall hold a license of any other class or kind.

(1A) No holder of a manufacturer's license shall hold a license of any other kind; provided, that a licensee under a manufacturer's license shall be permitted to hold another manufacturer's license of the same or a different class.

(2) No licensee under an on-premises retailer’s license, class C or D, shall hold any other license except an on-premises retailer’s license, class C or D, a pub crawl license, as defined by regulation, or a caterer's license.

(2A) Notwithstanding paragraph (2) of this subsection, a licensee under an on-premises retailer license, class CR, DR, CT, or DT, may hold an interest in one off-premises retailer license, class A, B, AI, or BI, and a third-party alcohol delivery license.

(3) No licensee under an off-premises retailer’s license, class A or B, shall hold an interest in any other license; except, that an off-premises retailer licensee, class A or B, may hold an interest in one on-premises retailer license class CR, DR, CT, or DT.

(4) No licensee under an off-premises retailer license, class AI or BI, shall hold an interest in any other license; except, that an off-premises retailer licensee, class AI or BI, or a full-service grocery store class B or 25% grocery store class A may hold an interest in a third-party alcohol delivery license and one on-premises retailer license, class CR, DR, CT, or DT, and up to 5 off-premises retailer licenses, Class AI or BI.

(5) No licensee under an on-premises retailer license, an off-premises retailer license, or a manufacturer license shall hold a direct or indirect interest in a third-party alcohol delivery license; except, that an on-premises retailer licensee class CR, DR, CT, or DT, an off-premises retailer licensee class AI, BI, or full-service grocery store class B or 25% grocery store class A may hold a direct or indirect interest in a third-party alcohol delivery license.

(b) The Board shall not reject, solely on the basis of this section, the application of a franchisee who controls, or will control, the entire interest in the receipts, profits, inventory, purchases, pricing, and sales of beverages under the license, if the franchisee held a license, or had an application for a license pending, on June 22, 1982.

(c) The requirements of this section shall not apply to an applicant for an off-premises retailer’s license, class B, for the sale of alcoholic beverages in an establishment if:

(1) The primary business and purpose is the sale of a full range of fresh, canned, and frozen food items, and the sale of alcoholic beverages is incidental to the primary purpose;

(2) The sale of alcoholic beverages constitutes no more than 15% of the total volume of gross receipts on an annual basis;

(3) The establishment is located in a C-1, C-2, C-3, C-4, or C-5 zone or, if located within the Southeast Federal Center, in the SEFC/C-R zone;

(4) [Repealed].

(5) The opinion of the ANC, if any, has been given great weight; and

(6) The applicant does not hold a manufacturer’s or wholesaler’s license.

(c-1) Notwithstanding subsection (a) of this section, the holder of an off-premises retailer's license, class B, that qualifies as a full-service grocery store pursuant to subsection (c) of this section shall be authorized to apply for an on-premises retailer's license, class CR, DR, CT, or DT.

(c-2)(1) Notwithstanding subsection (a) of this section, the holder of an off-premises retailer license, class A or B, shall be permitted to apply for one 25% grocery store class A retailer license for a grocery store that is newly constructed with a certificate of occupancy issued after January 1, 2021, that meets the requirements of § 25-333(f) and is located in Ward 7, Ward 8, Ward 5 if located in a Qualified Supermarket Tax Incentive Area, as defined in § 47-3801, or Ward 6 if located in an area bounded by a line beginning at the intersection of 1st Street, S.W., and M Street, S.W., continuing east along M Street, S.W., to South Capitol Street, S.W., then continuing south along South Capitol Street, S.W., to the Anacostia River, then continuing along the northern bank of the Anacostia River to 2nd Street, S.W., then continuing north along 2nd Street, S.W., to the intersection of 2nd Street, S.W., and Canal Street, S.W., then continuing northeast along Canal Street, S.W., to the intersection of Canal Street, S.W., and N Street, S.W., then continuing east along N Street, S.W., to the intersection of N Street, S.W., and 1st Street, S.W., then continuing north along 1st Street, S.W., to the intersection of 1st Street, S.W., and M Street, S.W..

(2) After 12 months of operation in Ward 7, Ward 8, Ward 5 if located in a Qualified Supermarket Tax Incentive Area, as defined in § 47-3801, or Ward 6 if located in an area bounded by a line beginning at the intersection of 1st Street, S.W., and M Street, S.W., continuing east along M Street, S.W., to South Capitol Street, S.W., then continuing south along South Capitol Street, S.W., to the Anacostia River, then continuing along the northern bank of the Anacostia River to 2nd Street, S.W., then continuing north along 2nd Street, S.W., to the intersection of 2nd Street, S.W., and Canal Street, S.W., then continuing northeast along Canal Street, S.W., to the intersection of Canal Street, S.W., and N Street, S.W., then continuing east along N Street, S.W., to the intersection of N Street, S.W., and 1st Street, S.W., then continuing north along 1stStreet, S.W., to the intersection of 1st Street, S.W., and M Street, S.W., the holder of a 25% grocery store class A retailer license pursuant to paragraph (1) of this subsection shall be permitted to apply for one additional 25% grocery store class A retailer license for a grocery store that is newly constructed with a certificate of occupancy issued after January 1, 2021, that meets the requirements of § 25-333(f) at a location in Wards 1 through 6.

(3) For the purposes of this subsection, the election ward boundaries in effect from January 1, 2012, through December 31, 2021, apply to each ward referenced in this subsection.

(d)(1) A manufacturer, or its affiliate, licensed under this title, may hold an interest in a limited partnership providing financial assistance to a general partner wholesaler as described in paragraph (2) of this subsection, but shall only exercise such control of the limited partnership business as is permitted by this chapter. The limited partner shall not have or exercise managerial control or decision-making authority with respect to daily operations of the limited partnership. Upon a default by the general partner wholesaler, the limited partner shall not acquire or assume additional control, ownership, or financial interest in the limited partnership. The manufacturer, or its affiliate licensed in the District shall not have a financial or ownership interest in the general partner wholesaler.

(2) The only financial assistance allowed pursuant to paragraph (1) of this subsection shall be the initial financial assistance to the limited partnership to acquire a licensed beer wholesaler. In that arrangement for financial assistance, the wholesaler license issued under this title shall be issued in the name of the general partner wholesaler on behalf of the limited partnership, and shall not be issued in the name of the limited partnership nor in the name of the manufacturer, or its affiliate.

(3) The limited partnership providing the financial assistance described in this section shall not exist for more than 10 years from the date of its creation, and shall not be recreated, renewed, or extended beyond that date.

(4) This section shall not amend or otherwise alter this title, except for the limited purpose of allowing a manufacturer, or its affiliate, which is licensed in the District, to provide financial assistance to a limited partnership for the exclusive purpose of acquiring a licensed beer wholesaler. A manufacturer or its affiliate shall not require the wholesaler to use the financial assistance as described above.

(e) Nothing in this section shall prohibit a wholesaler or other licensee under this title from obtaining, perfecting, or enforcing a security interest under Article 9 of Subtitle I of Title 28 in any personal property or fixtures of a retailer or other licensee, including inventory and accounts and other rights to payment.

(f) The requirements of this section shall not apply to an applicant for an off-premises retailer's license, class B, for the sale of alcoholic beverages in an establishment if the:

(1) Establishment will be located inside of a hotel and will have no direct public access to the street or the outside of the hotel's building;

(2) Other license held by the applicant is an on-premises retailer's license, class CH, DH, CR, DR, CT, or DT, that is also located within the same hotel as the establishment's proposed location, or an off-premises retailer's license, class B, that is located within another hotel and has no direct public access to the street or the outside of the hotel's building.

(3) Establishment's sale of alcoholic beverages constitutes no more than 25% of the total volume of gross receipts on an annual basis; and

(4) Opinion of the ANC, if any, has been given great weight.

Subchapter II. Qualification of Establishment.

§ 25–311. General provisions — Qualification of establishment.

(a) Unless expressly stated otherwise in this chapter, the applicant shall bear the burden of proving to the satisfaction of the Board that the establishment for which the license is sought is appropriate for the locality, section, or portion of the District where it is to be located; provided, that if proper notice has been given under subchapter II of Chapter 4, and no objection to the appropriateness of the establishment is filed with the Board, the establishment shall be presumed to be appropriate for the locality, section, or portion of the District where it is located.

(b) Before evaluating the appropriateness of the establishment for which the license is sought, the Board shall ensure that the applicant has complied fully with the notification requirements set forth in § 25-422 [repealed].

(c) No license, except a solicitor’s license, shall be issued to an applicant unless the applicant has a valid certificate of occupancy for the premises in which the establishment is located and has all other licenses and permits required by law or regulation for its business.

(d) If a temporary license is sought for an outdoor event or a private residential home used for non-commercial purposes, the applicant shall not be required to provide a valid certificate of occupancy.

(e) The definition of full-service grocery store as set forth in [§ 25-101(22A)] shall apply to license applications being considered by the Board for approval that were submitted on or after January 14, 2013.

§ 25–312. Defining size of area relevant to determination of appropriateness.

(a) The Board shall determine, on a case-by-case basis, whether the locality, section, or portion proposed by the applicant is a competent measure for determining the appropriateness of the establishment and, if not, shall identify the proper boundaries of the locality, section, or portion for evaluating the application. In making this determination, the Board shall consider the overall characteristics of the area, including population, density, and general commercial and residential activities.

(b) In establishing any geographic boundaries required by this title, the Board shall measure the specified distance in an arc from each corner of the lot or parcel on which the establishment is located, connecting the arcs by tangent lines.

(c) If the Board is required to state the distance between one or more places, (such as the actual distance of one licensed establishment from another or the actual distance of a licensed establishment from a school), the distance shall be measured linearly and shall be the shortest distance between the property lines of the places.

(d) If a boundary line measured by the Board touches upon any portion of a parcel or lot, the parcel or lot shall be within the area being identified by the Board.

(e) In submitting evidence of appropriateness, the applicant shall propose the boundaries of the locality, section, or portion to be considered.

(f) Any person may submit written objections to the boundaries proposed by the applicant or a written proposal listing alternative boundaries for consideration by the Board.

§ 25–313. Appropriateness standard.

(a) 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 under § 25-404, an applicant shall demonstrate to the satisfaction of the Board that the establishment is appropriate for the locality, section, or portion of the District where it is to be located.

(b) In determining the appropriateness of an establishment, the Board shall consider all relevant evidence of record, including:

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

(2) The effect of the establishment on peace, order, and quiet, including the noise and litter provisions set forth in §§ 25-725 and 25-726;

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

(4) In the case of a license renewal, the provisions of this subsection and § 25-315.

(c)(1) The requirements of this section shall not apply to applicants for a solicitor's license, temporary license, festival license, pub crawl license, or farmer's market license.

(2) Applicants for a caterer’s license shall apply according to the procedures under Chapter 20 of the District of Columbia Municipal Regulations.

(d) No license shall be issued for an outlet, property, establishment, or business which sells motor vehicle gasoline or which holds a Motor Vehicle Sales, Service, and Repair endorsement under § 47-2851.03(c)(9) [now § 47-2851.03(a)(9)] or an Environmental Materials endorsement under § 47-2851.03(c)(4) [now § 47-2851.03(a)(4)] to its master [basic] business license.

§ 25–314. Additional considerations for new license application or transfer of license to a new location.

(a) In determining the appropriateness of an establishment for initial issuance of a license or a transfer of a license to a new location, the Board shall also consider the following:

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

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

(3) Whether school-age children using facilities in proximity to the establishment will be unduly attracted to the establishment while present at, or going to or from, the school, recreation center, day care center, public library, or similar facility at issue.

(4) Whether issuance of the license would create or contribute to an overconcentration of licensed establishments which is likely to affect adversely the locality, section, or portion in which the establishment is located.

(b)(1) No license shall be issued for any establishment within 400 feet of a public, private, or parochial primary, elementary, or high school; college or university; or recreation area operated by the District of Columbia Department of Parks and Recreation, except as provided in paragraphs (2) through (11) of this subsection.

(2) The 400-foot restriction shall not apply to a restaurant, hotel, club, caterer's, bed and breakfast, or temporary license.

(3)(A) The 400-foot restriction shall not apply if there exists within 400 feet a currently-functioning establishment holding a license of the same class at the time that the new application is submitted.

(B) The exception to the 400-foot restriction in subparagraph (A) of this paragraph shall not apply if the currently operating establishment holding a license of the same class is exempt from the 400-foot restriction under paragraph (8) of this subsection.

(4) The 400-foot restriction shall not apply if:

(A) The applicant applies for an off-premises retailer's license, class B, that meets the definition of a full-service grocery store, as defined in § 25-101(22A);

(B) The sale of alcoholic beverages constitutes no more than 15% of the total volume of gross receipts on an annual basis;

(C) The establishment is not 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 of Columbia, or if located within the Southeast Federal Center, in the SEFC-1 zone;

(D) The opinion of the ANC, if any, in which the establishment is located has been given great weight; and

(E) The applicant does not hold a manufacturer's or wholesaler's license.

(5) The 400-foot restriction shall not apply where the main entrance to the college, university, or recreation area, or the nearest property line of the school is actually on or occupies ground zoned commercial or industrial according to the official atlases of the Zoning Commission of the District of Columbia.

(6) The 400-foot restriction shall not apply to an application for a retailer's license, class IA or IB.

(7) The 400-foot restriction shall not apply to an applicant for a retailer's license, class B, if the applicant's establishment will be located inside of a hotel and will have no direct public access to the street or the outside of the hotel's building.

(8) The 400-foot restriction shall not apply to an application for an on-premises retailer's license, class CT, DT, CX, or DX, or an off-premises retailer's license, class A or B, located in the Mixed Use-12 Zone, Square 473 according to the official atlases of the Zoning Commission of the District of Columbia.

(9) The 400-foot restriction shall not apply to an application for an on-premises retailer's license, CR, DR, CH, DH, CT, DT, CX, or DX, where the establishment will be located entirely on a college or university campus and will not have direct public access to the street or the outside of the college's or university's main entrance.

(10) The 400-foot restriction shall not apply to an applicant for a class change of an off-premises retailer's license, class A or B; provided, that:

(A) The licensed establishment is not located in a residential-use district as defined by the zoning regulations and shown in the official atlases of the Zoning Commission for the District of Columbia; and

(B) Another off-premises retailer's license of the same class is not located within 400 feet of the applicant.

(11) The 400-foot restriction shall not apply if:

(A) The applicant applies for an off-premises retailer's license, Class B;

(B) The applicant qualifies as a corner store and has been approved by the Board of Zoning Adjustment for a special exception under Chapter 11-U2 of Title 11 of the DCMR (11-U DCMR § 254);

(C) The applicant's establishment is located in ANC 1B;

(D) The sales area of the applicant's establishment that is devoted to the sale of alcohol for off-site consumption constitutes no more than 15% of the gross floor area of the ground floor of the corner store;

(E) The applicant's sale of alcoholic beverages constitutes no more than 15% of the total volume of gross receipts on an annual basis;

(F) The applicant's establishment is located in a Great Streets Corridor; and

(G) The opinion of the ANC, if any, has been given great weight.".

(12) The 400-foot restriction shall not apply to an establishment operating under a 25% grocery store class A retailer license issued pursuant to § 25-303(c-2).

(c) In the case of applications for nightclub or tavern licenses, the Board shall consider whether the proximity of the establishment to a residence district, as identified in the zoning regulations of the District and shown in the official atlases of the Zoning Commission for the District, would generate a substantial adverse impact on the residents of the District.

§ 25–315. Additional considerations for renewal of licenses.

(a) If proper notice has been given, as provided in subchapter II of Chapter 4, and no objection to the appropriateness of the establishment is filed, the establishment shall be presumed to be appropriate for the locality, section, or portion of the District where it is located.

(b)(1) The Board shall consider the licensee’s record of compliance with this title and the regulations promulgated under this title and any conditions placed on the license during the period of licensure, including the terms of a settlement agreement.

(2) The Board shall prepare a check sheet documenting the licensee’s compliance. This check sheet shall be available to the public for review.

(c) If an application for license renewal is made the subject of contested proceedings and the license expires before the Board’s decision on the renewal application, the Board may extend the expiration date during the pendency of the decision on the renewal application.

§ 25–316. Additional considerations for transfer of licensed establishment to new owner.

(a) In determining the appropriateness of the transfer of a licensed establishment to a new owner, the Board shall consider only the applicant’s qualifications as set forth in § 25-301.

(b) The Board shall not allow the transfer of the license of an establishment to a person against whom there is pending in the courts or before the Board a charge of keeping a disorderly house or of violating this title or the laws against gambling in the District.

(c) When the transferred license comes due for renewal, the Board shall evaluate the appropriateness of the application for renewal according to the standards set forth in §§ 25-313 and 25-315.

(d) If the transfer of ownership, as defined in § 25-405, includes a proposed substantial change in the operation of the establishment, the Board shall evaluate this transfer of ownership in accordance with § 25-404.

§ 25–317. Transfer of licensed establishment to new location.

(a) The Board shall consider an application to transfer a license to a new location according to the same standards and procedures as an application for an initial license and shall not presume appropriateness if a protest to the application is filed as set forth in Chapter 6.

(b)(1) Notwithstanding the requirements set forth in § 25-446(d), an applicant filing an application to transfer to a new location may petition the Board in writing to not have provisions of an existing settlement agreement applied at the new location.

(2) The Board shall consider the petition; provided, that the Board shall deem the request to be a substantial change subject to the notice requirements set forth in §§ 25-421 and 25-423.

(3) The burden shall be on the applicant to demonstrate to the satisfaction of the Board that the request will not adversely affect the locality, section, or portion of the District where the establishment is to be located under the appropriateness standards set forth in § 25-313 and that none of the provisions of the existing settlement agreement, or the agreement in its entirety, are applicable to the new location.

(4) The Board may amend, terminate, or maintain the existing settlement agreement at the new location.

Subchapter III. Denial of License.

§ 25–331. Quotas — Off-premises retail licenses.

(a) The number of off-premises retailer’s licenses, class A, shall be no more than 250.

(b) The number of off-premises retailer’s licenses, class B, shall be no more than 275.

(c) The quotas set forth in this section shall have a prospective effect.

(d) The quotas set forth in subsection (b) of this section shall not prohibit the issuance of a license for an off-premises retailer's license, class B, for the sale of alcoholic beverages in an establishment if:

(1) The applicant applies for an off-premises retailer's license, class B, that meets the definition of a full-service grocery store, as defined in § 25-101(22A));

(2) The sale of alcoholic beverages constitutes no more than 15% of the total volume of gross receipts on an annual basis;

(3) The establishment is not 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 of Columbia, or if located within the Southeast Federal Center, in the SEFC-1 zone; and

(4) The opinion of the ANC, if any, in which the establishment is located has been given great weight.

(e) Off-premises retailer's licenses, class AI or 25% grocery store class A, shall not be counted toward the quota set forth in subsection (a) of this section.

(f) Off-premises retailer's licenses, class BI, shall not be counted toward the quota set forth in subsection (b) of this section.

(g) The quotas set forth in subsection (a) and subsection (b) of this section shall not prohibit the issuance of a license for an off-premises retailer's license, class AI or BI.

§ 25–332. Moratorium on class B licenses.

(a)(1) The Board may issue new off-premises retailer's class B licenses if the Board finds that the number of retailer's class B licenses is less than the quota set forth in [§ 25-331(b)].

(2) No more than one retailer’s license, class B, issued under this subsection shall be issued to the same applicant or to an individual with an ownership interest in another license issued under this subsection.

(3) The issuance of new retailer’s licenses, class B, under this subsection shall be audited by ABCA and subject to the reporting requirements set forth in § 25-112(e).

(b) The moratorium shall have a prospective effect.

(c) This moratorium shall not apply to an applicant for an off-premises retailer's license, class B, for the sale of alcoholic beverages in an establishment if:

(1) The off-premises retailer's license, class B, meets the definition of a full-service grocery store, as defined [in] § 25-101(22A);

(2) The sale of alcoholic beverages constitutes no more than 15% of the total volume of gross receipts on an annual basis;

(3) The establishment is not 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 or, if located in the Southeast Federal Center, in SEFC-1; and

(4) The opinion of the ANC, if any, has been given great weight.

(d) An exception to the moratorium shall be granted for 4 new class B licenses on Connecticut Avenue, N.W., between N Street and Florida Avenue, N.W., after October 22, 1999; provided, that no licensee shall devote more than 3,000 square feet to the sale of alcoholic beverages.

(e) The moratorium shall not apply to an applicant for a 25% off-premises retailer's license, class B, for the sale of alcoholic beverages in an establishment if the:

(1) Establishment's sale of alcoholic beverages constitutes no more than 25% of the total volume of gross receipts on an annual basis;

(2) Establishment is not 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 or, if located within Southeast Federal Center, in the SEFC-1;

(3) Establishment files with the Board within 60 days after the end of each year, a statement of expenditures and receipts containing:

(A) The total amount of receipts for the sale of alcoholic beverages, indicating the:

(i) Amount received for the sale of alcoholic beverages;

(ii) Amount received for the sale of food and items other than alcoholic beverages; and

(iii) Percentage of the total amount of receipts represented by the amount;

(B) A statement indicating the method used to compute the amounts and percentages; and

(C) An affidavit, executed by the individual licensee, partner of an applicant partnership, or the appropriate officer of an applicant corporation, partnership, or limited liability company, attesting to the truth of the annual statement; and

(4) The opinion of the ANC, if any, has been given great weight.

§ 25–333. Limitation on the distance between off-premises retailer’s licenses.

(a) No new off-premises retailers license, class A, shall be issued for an establishment which is located within 400 feet from another establishment operating under an off-premises retailer's license, class A; except, that this requirement shall not apply to:

(1) A new off-premises retailer's license, class A, if another off-premises retailer's license, class A, operated at the proposed location within the past 12 months; or

(2) An off-premises retailer's license, class AI, that is located within 400 feet of an off-premises retailer's license, class A.

(b) No new off-premises retailers license, class B, shall be issued for an establishment which is located within 400 feet from another establishment operating under an off-premises retailer's license, class B; except, that this requirement shall not apply to:

(1) A new off-premises retailer's license, class B, if another off-premises retailer's license, class B, operated at the proposed location within the past 12 months; or

(2) An off-premises retailer's license, class BI, that is located within 400 feet of an off-premises retailer's license, class B.

(c) This section shall not prohibit the issuance of a license for an off-premises retailer's license, class B, for the sale of alcoholic beverages in an establishment if:

(1) The off-premises retailer's license, class B, meets the definition of a full-service grocery store, as defined in § 25-101(22A);

(2) The sale of alcoholic beverages constitutes no more than 15% of the total volume of gross receipts on an annual basis;

(3) The establishment is not 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 of Columbia or, if located in the Southeast Federal Center, in SEFC-1; and

(4) The opinion of the ANC, if any, has been given great weight.

[(c-2)](1) Notwithstanding subsection (a) of this section, the holder of an off-premises retailer license, class A or B, shall be permitted to apply for one 25% grocery store class A retailer license in Ward 7, Ward 8, Ward 5 if located in a Qualified Supermarket Tax Incentive Area, as defined in § 47-3801, or Ward 6 if located in an area bounded by a line beginning at the intersection of 1st Street, S.W., and M Street, S.W., continuing east along M Street, S.W., to South Capitol Street, S.W., then continuing south along South Capitol Street, S.W., to the Anacostia River, then continuing along the northern bank of the Anacostia River to 2nd Street, S.W., then continuing north along 2nd Street, S.W., to the intersection of 2nd Street, S.W., and Canal Street, S.W., then continuing northeast along Canal Street, S.W., to the intersection of Canal Street, S.W., and N Street, S.W., then continuing east along N Street, S.W., to the intersection of N Street, S.W., and 1st Street, S.W., then continuing north along 1st Street, S.W., to the intersection of 1st Street, S.W., and M Street, S.W..

(2) After 12 months of operation in Ward 7, Ward 8, Ward 5 if located in a Qualified Supermarket Tax Incentive Area, as defined in § 47-3801, or Ward 6 if located in an area bounded by a line beginning at the intersection of 1st Street, S.W., and M Street, S.W., continuing east along M Street, S.W., to South Capitol Street, S.W., then continuing south along South Capitol Street, S.W., to the Anacostia River, then continuing along the northern bank of the Anacostia River to 2nd Street, S.W., then continuing north along 2nd Street, S.W., to the intersection of 2nd Street, S.W., and Canal Street, S.W., then continuing northeast along Canal Street, S.W., to the intersection of Canal Street, S.W., and N Street, S.W., then continuing east along N Street, S.W., to the intersection of N Street, S.W., and 1st Street, S.W., then continuing north along 1st Street, S.W., to the intersection of 1st Street, S.W., and M Street, S.W., the holder of a 25% grocery store class A retailer license shall be permitted to apply for one additional 25% grocery store class A retailer license at a location in Wards 1 through 6.

(3) For the purposes of this subsection, the election ward boundaries in effect from January 1, 2012, through December 31, 2021, apply to each ward referenced in this subsection.

(d) This section shall not prohibit the issuance of a retailer’s license, class A or B, if the:

(1) Applicant’s establishment will not be open to the public; and

(2) Sale of alcoholic beverages will occur only through the Internet.

(e) This section shall not prohibit the issuance of a retailer's license, class B, if the applicant's establishment will:

(1) Be located inside of a hotel; and

(2) Have no direct public access to the street or the outside of the hotel's building.

(f)(1) This section shall not prohibit the issuance of a 25% grocery store class A retailer license for the sale of alcoholic beverages if:

(A) The applicant's establishment is newly constructed with a certificate of occupancy issued after January 1, 2021, and is located in Ward 7, Ward 8, Ward 5 if located in a Qualified Supermarket Tax Incentive Area, as defined in § 47-3801, or Ward 6 if located in an area bounded by a line beginning at the intersection of 1st Street, S.W., and M Street, S.W., continuing east along M Street, S.W., to South Capitol Street, S.W., then continuing south along South Capitol Street, S.W., to the Anacostia River, then continuing along the northern bank of the Anacostia River to 2nd Street, S.W., then continuing north along 2nd Street, S.W., to the intersection of 2nd Street, S.W., and Canal Street, S.W., then continuing northeast along Canal Street, S.W., to the intersection of Canal Street, S.W., and N Street, S.W., then continuing east along N Street, S.W., to the intersection of N Street, S.W., and 1st Street, S.W., then continuing north along 1st Street, S.W., to the intersection of 1st Street, S.W., and M Street, S.W., as set forth in § 1-1041.03(a);

(B) The establishment's primary business and purpose is the sale of at least 6 of the 7 following food categories:

(i) Fresh fruits and vegetables;

(ii) Fresh and uncooked meats, poultry, or seafood;

(iii) Dairy products;

(iv) Canned foods;

(v) Frozen foods;

(vi) Dry groceries and baked goods; or

(vii) Non-alcoholic beverages;

(C) A minimum of 8,000 square feet of the retail establishment's selling area is dedicated to the sale of at least 6 of the 7 food item categories listed in subparagraph (B) of this subsection and the sale of alcoholic beverages constitutes no more than 25% of the total volume of gross receipts on an annual basis;

(D) The establishment is not 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 or, if located within the Southeast Federal Center, in the SEFC-1; and

(E) The establishment files with the Board within 60 days after the end of each year a statement of expenditures and receipts ("annual statement") containing:

(i) The total amount of receipts for the sale of alcoholic beverages, indicating the:

(I) Amount received for the sale of alcoholic beverages;

(II) Amount received for the sale of food and items other than alcoholic beverages; and

(III) Percentage of the total amount of receipts represented by the amounts specified in sub-sub-subparagraphs (I) and (II) of this sub-subparagraph;

(ii) A statement indicating the method used to compute the amounts and percentages; and

(iii) An affidavit, executed by the individual licensee, partner of an applicant partnership, or the appropriate officer of an applicant corporation, partnership, or limited liability company, attesting to the truth of the annual statement.

(2) For the purposes of this subsection, the election ward boundaries in effect from January 1, 2012, through December 31, 2021, apply to the ward referenced in this subsection.

§ 25–334. Denial — Board-certified referendum. [Repealed]

Repealed.

§ 25–335. Denial — Public health and safety restrictions.

(a) Notwithstanding any other provision of this title, the Board shall deny a license if the evidence reasonably shows that:

(1) The establishment for which the license is sought is in violation of one or more of the Construction Codes for the District contained in Title 12 of the District of Columbia Municipal Regulations, or any other law or rule of the District intended to protect public safety; or

(2) The applicant has knowingly permitted, at the place for which the license is sought, the illegal sale, or negotiations for sale, or the use, of any controlled substance in violation of the CSA, or the the possession, other than for personal use, or sale, or negotiations for sale, of drug paraphernalia in violation of the CSA, or Chapter 11 of Title 48. Successive sales, or negotiations for sale, over a continuous period of time constituting a recognizable pattern of activity shall be deemed evidence of knowing permission.

(b) For the purposes of this section, 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.

§ 25–336. Retail license prohibited in residential-use district.

(a) No retailer’s license shall be issued for, or transferred to, a business operated in a residential-use district as defined in the zoning regulations and shown in the official atlases of the Zoning Commission for the District, except for a restaurant or tavern operated in a hotel or apartment house, if the entrance to the restaurant or tavern is entirely inside the hotel or apartment house and no sign or display is visible from the outside of the building.

(b) A nightclub license may be issued on the premises of a hotel that was legally located in a residential-use district and was operating a nightclub on the licensed premises on September 30, 1986.

(c) Subsection (a) of this section shall not apply if, at the time the application for a new license is submitted to the Board, a license of the same type and class is operating an establishment within 400 feet of the applicant.

(d) The provisions of this section shall not apply to:

(1) A restaurant which has received a valid certificate of occupancy as of January 1, 2000 for a restaurant operation in a residential-use district;

(2) A club which is operated under a license issued by the Board as of January 1, 2000 for operation in a residential-use district;

(3) A bed and breakfast license; or

(4) An on-premises Retailer's License, class CR, DR, CH, DH, CT, DT, CX, or DX that is located entirely on a college or university campus and will not have direct public access to the street or the outside of the college's or university's main entrance.

(e)(1) For the purposes of this subsection, the term “ANC 3/4G” means the single member district area partly in Ward 3 and partly in Ward 4, established under § 1-309.03.

(2) Notwithstanding the restriction in subsection (a) of this section, a full service grocery store in a residential-use district in ANC 3/4G with a certificate of occupancy issued prior to [March 21, 2009], may apply for a retailer Class B license.

(3) The Mayor, pursuant to [subchapter I of Chapter 5 of Title 2], may issue rules to implement the provisions of this subsection. The proposed rules shall be submitted to the Council for a 30-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution, within this 30-day review period, the proposed rules shall be deemed approved.

(f) Notwithstanding the restriction in subsection (a) of this section, a retailer's license may be applied for and approved by the Board in a residential-use district if a retailer's license previously existed at the same location within the previous 2 years.

(g) Notwithstanding the restriction set forth in subsection (a) of this section, an applicant may apply for and be issued an off-premises retailer's license, class B, for premises located in a residential zone if:

(1) The applicant has received approval from the Board of Zoning; and

(2) Alcohol sales are no more than 15% total volume of gross receipts on an annual basis.

§ 25–337. Wholesaler’s license prohibited in residential-use district.

No wholesaler’s license shall be issued for an establishment in a residential-use district as defined in the zoning regulations and shown in the official atlases of the Zoning Commission for the District.

§ 25–338. Limitation on successive applications after denial.

(a) The Board shall not consider an application for the same class of license, permit, endorsement, or substantial change by the same applicant if the Board has denied a previously filed application within 5 years.

(b) Notwithstanding subsection (a) of this section, 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, an application by such applicant may be considered.

§ 25–339. Special restrictions for the Georgetown historic district.

(a) There shall be no nightclub license holders, class C or D, within the Georgetown Historic District. No existing nightclub license shall be transferred to any location within the Georgetown Historic District.

(b) Subject to subsection (f) of this section, the number of tavern license holders, class C or D, within the Georgetown Historic District shall not exceed 12. No existing tavern license shall be transferred from outside of the Georgetown Historic District to any other location within the Georgetown Historic District, except when the number of tavern license holders in the Georgetown Historic District is less than 12.

(c) Notwithstanding the requirements of Subchapter IV of this Chapter, beginning after [June 30, 2022], there shall be a 3-year moratorium on any exceptions or changes to the limitation established in subsection (b) of this section.

(d)(1) Upon the expiration of the moratorium established pursuant to subsection (c) of this section, at the request of any group with standing pursuant to § 25-601, the Board may hold a public hearing to determine whether the limitation set forth in subsection (b) of this section should be terminated or modified.

(2) The public hearing shall be in the nature of a rulemaking hearing under § 2-505 and not in the nature of a contested case under § 2-509.

(3) At the public hearing, any interested person may appear to give oral or written testimony.

(4) After the Board issues rules to terminate or modify the limitation on tavern licenses, the Board may hold future public hearings, not more frequently than every 5 years, in response to a moratorium petition filed pursuant to Subchapter IV of this Chapter 3 to determine the limitation on tavern licenses in the Georgetown Historic District.

(e)(1) Subject to subsection (f) of this section, until the Board issues rules pursuant to subsection (d) of this subsection, the holder of a retailer license in the Georgetown Historic District shall be prohibited from applying for a conversion of its license to a tavern license, class C or D, and the Board shall only issue a new tavern license in the Georgetown Historic District to an applicant for an establishment:

(A) Of a new business or new entity with a new trade name formed after January 1, 2022; and

(B) That has a new certification of occupancy issued after January 1, 2022.

(2)(A) An applicant that is issued a new tavern license shall begin operation within 18 months after receiving the Board's approval.

(B) If the holder of a new tavern license does not begin operation within 18 months of the Board's approval, the tavern license shall be deemed cancelled by the Board unless the licensee receives a 60-day extension from the Board for good cause.

(C) A licensee issued a new tavern license under this paragraph shall not be entitled to more than one 60-day extension from the Board.

(f) Upon rules being issued, and published, pursuant to subsection (d) of this section, subsections (b) and (e) shall not apply.

§ 25–340. Special restrictions for Ward 4. [Repealed]

Repealed.

§ 25–340.01. Special restrictions for Ward 4.

(a) For the purposes of this section, the term:

(1) "Full-service grocery store" shall have the same meaning as provided in § 25-101(22A).

(2) "Ward 4" means the area defined as Ward 4 in § 1-1041.03 on September 30, 2004.

(b) Except as provided in subsections (c) and (d) of this section, no class A or B off-premises retailer’s license shall be issued in or transferred into Ward 4; provided, that this section shall not prohibit the transfer of a class A or B off-premises retailer’s license within Ward 4.

(c) [Repealed].

(d) The restrictions on the issuance in or transfer into Ward 4 of a class B off-premises retailer's license set forth in subsection (b) of this section shall not apply to a full-service grocery store.

(e) The Mayor, pursuant to [subchapter I of Chapter 5 of Title 2], may issue rules to implement the provisions of this section. The proposed rules shall be submitted to the Council for a 30-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution, within this 30-day review period, the proposed rules shall be deemed approved.

§ 25–341. Targeted Ward 4 Moratorium Zone. [Repealed]

Repealed.

§ 25–341.01. Targeted Ward 4 Moratorium Zone.

(a) For the purposes of this section, the term “Targeted Ward 4 Moratorium Zone” means the area bounded by the line starting at 13th Street, N.W., and Eastern Avenue, N.W.; thence in a southerly direction along 13th Street, N.W., to Fern Street, N.W.; thence in an easterly direction along Fern Street, N.W., to Georgia Avenue, N.W.; thence in a southerly direction along Georgia Avenue, N.W., to Aspen Street, N.W.; thence in a westerly direction along Aspen Street, N.W., to 13th Street, N.W.; thence in a southerly direction along 13th Street, N.W., to Piney Branch Road, N.W.; thence in a southerly direction along Piney Branch Road, N.W., to 13th Street, N.W.; thence in a southerly direction along 13th Street, N.W., to Colorado Avenue, N.W.; thence in a southwesterly direction along Colorado Avenue, N.W., to Madison Street, N.W.; thence in a westerly direction along Madison Street, N.W., to 16th Street, N.W.; thence in a southerly direction along 16th Street, N.W., to Spring Road, N.W.; thence in an easterly direction along Spring Road, N.W. to 13th Street, N.W.; thence in a northerly direction along 13th Street, N.W., to Randolph Street, N.W.; thence in an easterly direction along Randolph Street, N.W. to 10th Street, N.W.; thence in a southerly direction along 10th Street, N.W., to Spring Road, N.W.; thence in an easterly direction along Spring Road, N.W., to Rock Creek Church Road, N.W.; thence in an easterly direction along Rock Creek Church Road, N.W., to 7th Street, N.W.; thence in a northerly direction along 7th Street, N.W., to Randolph Street, N.W.; thence in an easterly direction along Randolph Street, N.W., to Rock Creek Church Road, N.W.; thence in a northeasterly direction along Rock Creek Church Road, N.W., to Varnum Street, N.W.; thence in a westerly direction along Varnum Street, N.W., to Grant Circle, N.W.; thence in a westerly direction along the southern circumference of Grant Circle, N.W., to Varnum Street, N.W.; thence in a westerly direction along Varnum Street, N.W., to 8th Street, N.W.; thence in a northerly direction along 8th Street, N.W., to Ingraham Street, N.W.; thence in an easterly direction along Ingraham Street, N.W., to 2nd Street, N.W.; thence in a southerly direction along 2nd Street, N.W., to Farragut Street, N.W.; thence in a southeasterly direction along Farragut Street, N.W., to 1st Street, N.W.; thence in a northeasterly direction along 1st Street, N.W., to Gallatin Street, N.W.; thence in an easterly direction along Gallatin Street, N.W., to North Capitol Street; thence in a northerly direction along North Capitol Street to Riggs Road, N.E.; thence in an easterly direction along Riggs Road, N.E., to South Dakota Avenue, N.E.; thence in a southeasterly direction along South Dakota Avenue, N.E., to Kennedy Street, N.E.; thence in a northeasterly direction along Kennedy Street, N.E., to Madison Street, N.E.; thence in a northwesterly direction along Madison Street, N.E., to 6th Street, N.E.; thence in a northeasterly direction along 6th Street, N.E., to Nicholson Street, N.E.; thence in a northwesterly direction along Nicholson Street, N.E., to 6th Street, N.E.; thence in a northerly direction along 6th Street, N.E., to Eastern Avenue, N.E.; thence in a northwesterly direction along Eastern Avenue, N.E., to New Hampshire Avenue, N.E.; thence in a southwesterly direction along New Hampshire Avenue, N.E. to Blair Road, N.E.; thence in a northwesterly direction along Blair Road, N.E., to North Capitol Street; thence in a northwesterly direction along Blair Road, N.W., to Aspen Street, N.W.; thence in an easterly direction along Aspen Street, N.W., to Willow Street, N.W.; thence in a northeasterly direction along Willow Street, N.W., to Eastern Avenue, N.W.; thence in a northwesterly direction along Eastern Avenue, N.W., to the point of beginning at the intersection of 13th Street, N.W., and Eastern Avenue, N.W.; provided, that the Targeted Ward 4 Moratorium Zone shall not include the area bounded by the line starting at the intersection of 8th Street, N.W., and Dahlia Street, N.W.; thence in a southerly direction along 8th Street, N.W., to Aspen Street, N.W.; thence easterly along Aspen Street, N.W., to Piney Branch Road, N.W.; thence southwesterly along Piney Branch Road, N.W., to 8th Street, N.W.; thence in a southerly direction along 8th Street, N.W., to Madison Street, N.W.; thence in an easterly direction along Madison Street, N.W., to 3rd Street, N.W.; thence in a northerly direction along 3rd Street, N.W., to Whittier Street, N.W.; thence in a westerly direction along Whittier Street, N.W., to 5th Street, N.W.; thence in a northerly direction along 5th Street, N.W., to Dahlia Street, N.W.; thence in a westerly direction along Dahlia Street, N.W., to the point of beginning at the intersection of 13th Street, N.W., and Dahlia Street, N.W.

(b) Within the Targeted Ward 4 Moratorium Zone, a licensee under an off-premises retailer’s license, class A or B, shall not:

(1) Divide a manufacturer’s package of more than one container of beer, malt liquor, or ale, to sell an individual container of the package if the capacity of the individual container is 70 ounces or less; or

(2) Sell, give, offer, expose for sale, or deliver an individual container of beer, malt liquor, or ale with a capacity of 70 ounces or less.

(c) The Mayor, pursuant to [subchapter I of Chapter 5 of Title 2], may issue rules to implement the provisions of this section. The proposed rules shall be submitted to the Council for a 30-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution, within this 30-day review period, the proposed rules shall be deemed approved.

§ 25–342. Special restrictions for off-premises retailer’s license in Ward 7.

(a) For the purposes of this section, the term “Ward 7” means the area defined as Ward VII in § 1-1041.03(a) on [August 15, 2008].

(b) A licensee under an off-premises retailer’s license in Ward 7, class A or B, shall not divide a manufacturer’s package of more than one container of beer, malt liquor, or ale, to sell an individual container of the package if the capacity of the individual container is 70 ounces or less.

(c) A licensee under an off-premises retailer’s license in Ward 7, class A or B, shall not sell, give, offer, expose for sale, or deliver an individual container of beer, malt liquor, or ale with a capacity of 70 ounces or less.

(d) The restrictions set forth in subsections (b) and (c) of this section shall not apply to an off-premises retailer license, class A or B, that operated as a full-service grocery store or received an exception from the Board pursuant to § 25-346(c) that is in Ward 7 but that was located in Ward 6 prior to [December 29, 2021], or [February 24, 2022].

§ 25–343. Special restrictions for off-premises retailer’s license in Ward 8.

(a) For the purposes of this section, the term “Ward 8” means the area defined as Ward VIII in § 1-1041.03(a) on [August 15, 2008].

(b) A licensee under an off-premises retailer’s license in Ward 8, class A or B, shall not divide a manufacturer’s package of more than one container of beer, malt liquor, or ale, to sell an individual container of the package if the capacity of the individual container is 70 ounces or less.

(b-1)(1) Notwithstanding subsection (b) of this section, the holder of a retailer license, class B, that meets the definition of a full-service grocery store as set forth in § 25-101(22A), or a 25% grocery store retailer license, class A, as set forth in § 25-333(f), in Ward 8 shall be allowed to divide a manufacturer's package of more than one container of beer, malt liquor, or ale to sell an individual container of the package that is 70 ounces or less.

(2) For the purposes of this subsection, the election ward boundaries in effect from January 1, 2012, through December 31, 2021, apply to the ward referenced in this subsection.

(c) A licensee under an off-premises retailer’s license in Ward 8, class A or B, shall not sell, give, offer, expose for sale, or deliver an individual container of beer, malt liquor, or ale with a capacity of 70 ounces or less.

(d)(1) Notwithstanding subsection (c) of this section, the holder of a retailer license, class B, that meets the definition of a full-service grocery store as defined in § 25-101(22A), or a 25% grocery store retailer license, class A, as set forth in § 25-333(f), in Ward 8 shall be allowed to sell, give, offer, expose for sale, or deliver an individual container of beer, malt liquor, or ale with a capacity of 70 ounces or less.

(2) For the purposes of this subsection, the election ward boundaries in effect from January 1, 2012, through December 31, 2021, apply to the ward referenced in this subsection.

(e) The restrictions set forth in subsections (b) and (c) of this section shall not apply to an off-premises retailer licensee, class A or B, that operated as a full-service grocery store or received an exception from the Board pursuant to § 25-346(c) that is in Ward 8 but that was located in Ward 6 prior to [December 29, 2021], or [February 24, 2022].

§ 25–344. Special restrictions for off-premises retailer’s license in Mt. Pleasant.

(a) For the purposes of this section, the term “Mt. Pleasant” means the area defined as ANC-1D, delimited by Piney Branch Parkway to the north, 16th Street to the east, Harvard Street to the south, and Adams Mill and Klingle Roads to the west, on [December 24, 2008].

(b) A licensee under an off-premises retailer’s license in Mt. Pleasant, class A or B, shall not:

(1) Divide a manufacturer’s package of more than one container of beer, malt liquor, or ale, to sell an individual container of the package if the capacity of the individual container is 70 ounces or less; or

(2) Sell, give, offer, expose for sale, or deliver an individual container of beer, malt liquor, or ale with a capacity of 70 ounces or less.

§ 25–345. Ward 2 restrictions for off-premises retailer’s license.

(a) For the purposes of this section, the term “Ward 2” means the area defined as Ward II in § 1-1041.03 on [December 24, 2008].

(b) A licensee under an off-premises retailer’s license, class A or B, located in Ward 2, shall not:

(1) Divide a manufacturer’s package of more than one container of beer, malt liquor, or ale, to sell an individual container of the package if the capacity of the individual container is 70 ounces or less; or

(2) Sell, give, offer, expose for sale, or deliver an individual container of beer, malt liquor, or ale with a capacity of 70 ounces or less, as well as spirits (liquor) sold in half-pints or smaller volumes.

(c)(1) An existing licensee may apply to the Alcoholic Beverage and Cannabis Board for an exception to the restrictions in subsection (b) of this section. The Board shall notify the Advisory Neighborhood Commission in which the licensee is located when a licensee applies for an exception and provide a copy of the application. The copy of the application shall be provided at the address of the ANC’s office of record. The Board shall make its determination on the licensee application within 60 calendar days of receipt of the application.

(2) In making a determination on the licensee application under this subsection, the Board shall consider the following factors:

(A) The input, if any, of the ANC in which the licensee is located, as evidenced by a vote of the ANC, which shall be given great weight;

(B) Whether the exception will negatively impact the enforceability and effectiveness of the ban;

(C) The absence or presence of any primary or secondary tier violations within the 12 months immediately preceding the date of application, including sales to minors, use of premises for unlawful purposes, or sale to persons without a valid identification;

(D) Evidence of licensee participation in the community, such as attendance at ANC and Police Service Area community meetings; and

(E) Clear and convincing evidence that there have been no significant adverse community impacts, such as loitering, littering, or other anti-social behavior in the vicinity of the licensee establishment.

(3) A new licensee under an off-premises retailer’s license, class A or B, may not apply for an exception under this subsection within the first 12 months of having obtained a license under this title.

(d) The restrictions in subsection (b) of this section shall not apply to a licensee located in a federal building, or to a licensee that is a full-service grocery store, as described in this title.

§ 25–346. Ward 6 restrictions for off-premises retailer’s license.

(a) For the purposes of this section, the term “Ward 6” means the area defined as Ward VI in § 1-1041.03 on [December 24, 2008].

(b) A licensee under an off-premises retailer’s license, class A or B, located in Ward 6 shall not:

(1) Divide a manufacturer’s package of more than one container of beer, malt liquor, or ale, to sell an individual container of the package if the capacity of the individual container is 70 ounces or less; or

(2) Sell, give, offer, expose for sale, or deliver an individual container of beer, malt liquor, or ale with a capacity of 70 ounces or less, as well as spirits (liquor) sold in half-pints or smaller volumes.

(c)(1) An existing licensee may apply to the Alcoholic Beverage and Cannabis Board for an exception to the restrictions in subsection (b) of this section. The Board shall notify the Advisory Neighborhood Commission in which the licensee is located when a licensee applies for an exception and provide a copy of the application. The copy of the application shall be provided at the address of the ANC’s office of record. The Board shall make its determination on the licensee application within 60 calendar days of receipt of the application.

(2) In making a determination on the licensee application under this subsection, the Board shall consider the following factors:

(A) The input, if any, of the ANC in which the licensee is located, as evidenced by a vote of the ANC, which shall be given great weight;

(B) Whether the exception will negatively impact the enforceability and effectiveness of the ban;

(C) The absence or presence of any primary or secondary tier violations within the 12 months immediately preceding the date of application, including sales to minors, use of premises for unlawful purposes, or sale to persons without a valid identification;

(D) Evidence of licensee participation in the community, such as attendance at ANC and Police Service Area community meetings; and

(E) Clear and convincing evidence that there have been no significant adverse community impacts, such as loitering, littering, or other anti-social behavior in the vicinity of the licensee establishment.

(3) A new licensee under an off-premises retailer’s license, class A or B, may not apply for an exception under this subsection within the first 12 months of having obtained a license under this title.

(d) The restrictions in subsection (b) of this section shall not apply to a licensee located in a federal building, or to a licensee that is a full-service grocery store, as described in this title.

Subchapter IV. Board-Created Moratoria.

§ 25–351. Board-created moratoria.

(a) If the Board reasonably determines that it is in the public interest to do so based on the appropriateness standard set forth in subchapter II of this chapter, the Board may, by rule:

(1) Limit the number of licenses of any class to be issued;

(2) Declare a moratorium on the issuance of licenses of any class, or the issuance of amended licenses that constitute a substantial change, in any locality, section, or portion of the District; or

(3) Declare a moratorium in any locality, section, or portion of the District to limit the sale of products by licensees under an off-premises retailer license, class A and B.

(b) Any group with standing under § 25-601 may request the Board to issue regulations establishing the limit or declaring the moratorium. A moratorium issued by the Board under subsection (a)(1) or (a)(2) of this section shall have a prospective effect and shall not apply to existing licenses.

(c) A moratorium on the issuance of an amended license that constitutes a substantial change, in accordance with § 25-762, shall only be allowed in those geographical areas for which a limit or moratorium on the number of licenses in any class is in effect and shall apply to any application filed after May 3, 2001, for an amended license that would constitute a substantial change.

(d) No licensee or agent of any licensee shall be entitled to make a request under subsection (b) of this section.

(e) A moratorium shall be effective for 5 years from the date of final rulemaking, or for a lesser period as determined by the Board.

(f) 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 2 years from the date of the Board’s action.

(g) The requirements of this section shall not apply to solicitor’s licenses, manager’s licenses, caterer’s licenses, or to temporary licenses.

§ 25–352. Procedures to request a moratorium.

(a) The moratorium request shall be made to the Board in writing, stating:

(1) The name and address of the individual, group, or business entity seeking the moratorium;

(2) The area of the District to be covered by the moratorium;

(3) The class or classes of licenses to be covered by the moratorium; and

(4) A detailed statement of the reasons that the moratorium is appropriate under at least 2 of the appropriateness standards set forth in subchapter II of this chapter.

(b) For the purposes of subsection (a)(2) of this section, the individual, group, or business entity seeking the moratorium shall identify one licensed establishment. The area to be covered by the moratorium shall be measured from the property lines of that establishment. The entire area to be covered under a moratorium shall be either a locality, section, or portion.

(c) For the purposes of subsection (a)(3) of this section, a moratorium may be sought for a single class of license or for any combination of the classes of licenses.

(d) 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 (a) of this section have been met and the following conditions are satisfied:

(1) If the requested moratorium area is a locality, there shall exist in the area at least 3 licensed establishments of the same class or 6 licensed establishments of any class or combination of classes;

(2) If the requested moratorium area is a section, there shall exist in the area at least 6 establishments of the same class or 12 establishments of any class or combination of classes; or

(3) If the requested moratorium area is a portion, there shall exist in the area at least 9 establishments of the same class or 18 establishments of any class or combination of classes.

(e) A moratorium request to limit the sale of products by licensees under an off-premises retailer’s license, class A and class B, shall not be considered by the Board unless all the requirements of subsection (a) of this section have been met and the following conditions are satisfied:

(1) If the requested moratorium area is a locality, there shall exist in the locality at least 3 class A, 3 class B, or any combination of 3 class A or class B licensed establishments;

(2) If the requested moratorium area is a section, there shall exist in the section at least 5 class A, 5 class B, or any combination of 5 class A or class B licensed establishments; or

(3) If the requested moratorium area is a portion, there shall exist in the portion at least 7 class A, 7 class B, or any combination of 7 class A or class B licensed establishments.

(f) The requirements of this section shall not apply to solicitor’s licenses, manager’s licenses, caterer’s licenses, or to temporary licenses.

§ 25–353. Notice requirements for moratorium proceedings.

If a moratorium request meets all of the requirements set forth in § 25-352, the Board shall provide notice to the public according to the same procedures as required by § 25-421.

§ 25–354. Board review of moratorium request.

(a) The Board shall hold a public hearing to review a proposed moratorium. The public hearing shall be in the nature of a rulemaking hearing under § 2-505 and not in the nature of a contested case under § 2-509.

(b) 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.

(c) 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 areas the requested moratorium area is located and any other ANC abutting the proposed moratorium area;

(3) The Assistant City Administrator for Economic Development, or his or her 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.

(d) In deciding on a moratorium request, the Board shall consider the extent to which the testimony and comments show that the requested moratorium is appropriate under at least 2 of the appropriateness standards set forth in subchapter II of this chapter.

(e) The Board may grant the moratorium request in one or more of the following ways:

(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.

(f) The Board may deny the moratorium request in its entirety.

(g) The decision of the Board shall be final and shall be issued in writing, including each member’s vote.

Subchapter V. Involuntary Transfer.

§ 25–361. Involuntary transfer.

(a) The Board may transfer a license upon the request of a bona fide purchaser of the license who made the purchase at any of the following:

(1) A marshal’s sale;

(2) A trustee’s sale under foreclosure of a chattel deed of trust;

(3) A trustee’s or receiver’s sale in bankruptcy proceedings;

(4) Any other sale conducted upon the order of a court of competent jurisdiction;

(5) A sale under Article 9 of the Uniform Commercial Code;

(6) Upon the death of an individual who is a licensee or who has a stock ownership or partnership interest of 50% or more in the licensed business; or

(7) A tax sale under Chapter 13 or 13A of Title 47.

(b) Except as provided in this section, transfers made under this section may, because of their involuntary nature, be approved by the Board without an initial inquiry, as required by §§ 25-311 through 25-314, as to the appropriateness of the establishment, and without the notice provisions contained in subchapter II of Chapter 4.

(c) Bona fide purchasers whose transfers are approved under this section shall, at the time for renewal of the license, meet all of the requirements of § 25-313 regarding the appropriateness of the establishment and shall at that time have notice of their renewal application given under subchapter II of Chapter 4.

(d) Bona fide purchasers shall, before an approval of the transfer, submit to the Board an affidavit stating that no change which could be considered a substantial change to the business under § 25-762 will occur before the expiration of the license period during which the transfer takes place.

(e) If a change which could be considered a substantial change will occur before the expiration of the license period, the transfer application shall be considered under §§ 25-404 and 25-762.

Subchapter VI. Moratorium on Establishments Which Permit Nude Dancing.

§ 25–371. Moratorium on establishments which permit nude dancing.

(a) Except as provided in subsection (b) of this section, no licensee under this title shall permit nude dancers.

(b) A licensee who regularly provided entertainment by nude dancers before December 15, 1993, may continue to do so at its establishment.

§ 25–372. Nude dancing performances.

Nude dancers in an establishment licensed under § 25-371(b) shall perform only upon a stage at least 18 inches above the immediate floor level and removed at least 3 feet from the nearest customer. The licensee under an on-premises retailer’s license for a multipurpose facility for a legitimate theater may permit nudity by performers in dramatic productions.

§ 25–373. Transfer of ownership of establishments which permit nude dancing.

A licensee under § 25-371(b) may transfer ownership in accordance with the provisions of this chapter.

§ 25–374. Transfer of location of establishments which permit nude dancing.

(a) A license under § 25-371(b) may only be transferred to a location in the Central Business District or, if the licensee is currently located in a CM or M-zoned district, transferred within the same CM or M-zoned district, as identified in the zoning regulations of the District of Columbia and shown in the official atlases of the Zoning Commission of the District of Columbia; provided, that no license shall be transferred to any premises which is located:

(1) Six hundred feet or less from another licensee operating under § 25-371(b); and

(2) Six hundred feet from a building with a certificate of occupancy for residential use or a lot or building with a permit from the Department of Buildings for residential construction at the premises.

(a-1) On or after January 1, 2013, a class CN license with a nude dancing endorsement under § 25-371(b) shall not be transferred into Ward 5, as defined by [§ 1-1041.03]; provided, that this section shall not prohibit the transfer of an existing CN license with a nude dancing endorsement within Ward 5.

(b) [Repealed].

(c) [Repealed].

(d) [Repealed].

(e) [Repealed].

(f) [Repealed].

(g) [Repealed].

(h)(1) Within 2 years of [June 30, 2022], a class CN retailer license with a nude dancing endorsement under § 25-371(b) whose lease within the Buzzard Point section of Ward 6 expired or otherwise became ineffective within 24 months prior to [June 30, 2022] shall be permitted to transfer its license to a new location; provided that, the applicant satisfies the requirements set forth in §§ 25-314, 25-317, 25-421 and 25-422.

(2) Notwithstanding any other provision of this section, an application filed pursuant to this subsection shall permit the applicant to transfer its license and endorsement to any location in the Central Business District, or zoned D-2, D-3, D-4, [D-5], D-6, D-7, D-8, or [PDR-1 - PDR-7].

(3) The transfer of a CN license with a nude dancing endorsement pursuant to paragraph (1) of this subsection shall be approved within 2 years of [June 30, 2022].

(4) For the purposes of this subsection, the election ward boundaries in effect from January 1, 2012, through December 31, 2021, apply to the ward referenced in this subsection.