Bill Summary – FastDemocracy

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 Councilmember Kenyan McDuffie                                            Chairman Phil Mendelson

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 Councilmember Charles Allen                                   Councilmember Robert C. White, Jr.

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 Councilmember Anita Bonds                                             Councilmember Brooke Pinto

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 Councilmember Christina Henderson

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                                               A BILL

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                     IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

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 To amend Title 25 of the District of Columbia Official Code to establish the Alcoholic Beverage

       and Cannabis Board and the Alcoholic Beverage and Cannabis Administration; to

       establish that the Chairperson of the ABCA Board may also have demonstrated

       knowledge in the cannabis industry; to establish the Cannabis Regulation Division; to

       establish the Cannabis Advisory Committee; to define various terms for new chapters 21

       through 30; to prohibit discrimination; to prohibit the sale of cannabis or cannabis

       products without a license; to prohibit exchanges of cannabis for purchasing another

       item; to provide the Board with the authority to issue cannabis licenses for 3 year periods;

       to create the Cannabis Equity and Opportunity Fund; to set aside a certain percentage of

       licenses for Social Equity Applicants; to establish grant and loan programs for Social

       Equity Applicants; to create requirement for the transfer of Social Equity Applicant

       licenses; to establish the Reparations for Victims of the War on Cannabis Fund; to

       establish the Community Reinvestment Fund and Board; to authorize the Board to create

       incentives for the production of medical cannabis and medical cannabis products; to

       create cultivation, manufacturer, microbusiness, internet retailer, retailer, and testing

       facility license categories; to create a research and development license category; to

       require laboratory agent registration with the ABCA; to require cannabis microbusinesses

       and retailers to obtain a delivery endorsement from the Board to deliver cannabis and

       cannabis products to District residents’ homes; to create general qualifications for

       applicants; to establish general qualifications for proposed establishments; to clarify

       when the appropriateness standards apply to cannabis license applications; to prohibit a

       microbusiness or retailer from being located within 300 feet of schools or recreation

       centers or in a residential-use district; to require the Board to give notice to the public for

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        45 days of various cannabis license applications; to establish procedures for Board

        hearings and decisions; to establish licensing fees for cannabis license applications; to

        establish requirements for filing a protest; to provide an affected ANC great weight; to

        establish general operating and product testing requirements; to require posting of

        licenses; to establish hours of operation for cannabis licensees; to require licensees use a

        Board-approved seed-to-sale tracking system; to establish maximum permitted sale

        amounts for microbusinesses and retailers; to create packaging and labeling requirements

        for cannabis products; to restrict what can be displayed on signs or logos from cannabis

        licensees; to restrict the content and methods for advertising cannabis and cannabis

        products; to prohibit licensees from giving free samples, promotional giveaways, or

        mandating tie-in purchases for cannabis or cannabis product; to prohibit the sale of

        cannabis or cannabis products to minors; to prohibit minors from entering a licensed

        premises; to require the production of valid photo identification for entrance on to the

        premises or for the sale of cannabis or cannabis products; to require security plans and

        measures for licensed cannabis establishments; to require safekeeping by ABCA of

        licenses that are temporarily suspended; to provide enforcement authority to ABCA

        investigators, the Board, and MPD; to require the Board to establish a civil penalty fine

        schedule by rulemaking; to prohibit the sale of cannabis or cannabis products at licensed

        alcohol and tobacco establishments; to prohibit the sale of alcohol or tobacco infused

        cannabis products; to prohibit tampering with packages or containers; to make it unlawful

        to provide vaping devices to persons under 21 years of age; to make it unlawful to forge a

        cannabis license; to provide a penalty for violations where no specific penalty is

        provided; to prohibit purchase, possession, use or consumption by persons under the age

        of 21; to impose an excise tax on cannabis sold or transferred from cultivators to

        distributors, manufacturers, and retailers; to establish the authority for financial

        institutions to transact business with licensees; to create a portal to ensure compliance of

        financial institutions; to exempt information related to the location of cannabis properties

        owned by a cannabis cultivator or manufacturer from FOIA disclosure; and to allow the

        transfer to another person 21 years or older cannabis weighing ‘one ounce or less, or one

        clone, regardless of weight.

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        BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this

 act may be cited as the “Comprehensive Cannabis Legalization and Regulation Act of 2023”.

        Sec. 2. The Small, Local, and Disadvantaged Business Enterprise Development and

 Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-

 218.01 et seq.) is amended as follows:

        (a) Section 2302 (D.C. Official Code § 2-218.02) is amended as follows:

               (1) A new paragraph (16B) is added to read as follows:

               “(16B) “Social equity applicant” shall have the same meaning as § 25-2101(29).”.

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        (b) A new section 2316 is added to read as follows:

        “Sec. 2316. Loans and grants to social equity applicants.

        “(a) The Department shall, in consultation with ABCA, establish grant, equity, and loan

 programs for the purposes of providing financial assistance, loans, grants, equity, and technical

 assistance to social equity applicants.

        “(b) The Department shall have the power to:

                “(1) Provide Cannabis Social Equity loans, equity, and grants from appropriations

 from the Cannabis Equity and Opportunity Fund to assist Social Equity Applicants in gaining

 entry to, and successfully operating in, the District's regulated cannabis marketplace;

                “(2) Enter into agreements that set forth terms and conditions of the financial

 assistance, accept funds or grants, and engage in cooperation with private entities to carry out the

 purposes of this section;

                “(3) Fix, determine, charge, and collect any premiums, fees, charges, costs, and

 expenses, including application fees, commitment fees, program fees, financing charges, or

 publication fees in connection with its activities under this section;

                “(4) Provide staff, administration, and related support required to administer this

 section;

                “(5) Establish application, notification, contract, and other forms, procedures, or

 rules deemed necessary and appropriate; and

                “(6) Utilize vendors or contract work to carry out the purposes of this act.

        “(c) Grants made under this section shall be awarded on a competitive and annual basis.

 Grants made under this Section shall further and promote the goals of this act, including the

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 promotion of Social Equity Applicants, job training and workforce development, and technical

 assistance to Social Equity Applicants.

         “(d) Loans made under this section shall be in such principal amount and form and

 contain such terms and provisions with respect to security, insurance, reporting, delinquency

 charges, default remedies, and other matters as DSLBD shall determine appropriate to protect the

 public interest and to be consistent with the purposes of this section. The terms and provisions

 may be less than required for similar loans not covered by this section.

         “(e) Beginning January 1, 2024 and each year thereafter, DSLBD shall annually report to

 the Council on the outcomes and effectiveness of this section that shall include the following:

                 “(1) The number of persons or businesses receiving financial assistance under this

 section;

                 “(2) The amount in financial assistance awarded in the aggregate, in addition to

 the number of loans made that are outstanding and the number of grants awarded;

                 “(3) The location of the project engaged in by the person or business; and

                 “(4) If applicable, the number of new jobs and other forms of economic output

 created as a result of financial assistance.

         “(f) The Department shall include engagement with individuals with limited English

 proficiency as part of its outreach provided or targeted to attract and support Social Equity

 Applicants.”.

         Sec. 3. (a) Title 25 of the District of Columbia Official Code is amended as follows:

                 (1) A new section 25-213 is added to read as follows:

         “Sec. 25-213. Cannabis Regulation Division; Chief of Cannabis Regulation.

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         “(a) There is established a Cannabis Regulation Division (“Division”) within the

 Alcoholic Beverage and Cannabis Administration, which shall have as its head a Chief of

 Cannabis Regulation.

         “(b) The Division shall be responsible for the administration of this act and any laws and

 regulations under the Legalization of Marijuana for Medical Treatment Initiative of 1999,

 effective February 25, 2010 (D.C. Law 13-315, D.C. Official Code § 7-1671.01 et seq.).

         “(c) The Chief of Cannabis Regulation shall be appointed by, and report directly to, the

 Director of the Alcohol and Cannabis Control Administration.

         “(d) The Chief of Cannabis Regulation shall:

                “(1) Be a resident of the District within 6 months of the commencement of his or

 her term of office;

                “(2) Possess skills and expertise relevant to the regulation of cannabis.

         “(e) The Chief of Cannabis Regulation shall be a full-time position, for which annual

 compensation shall be fixed in accordance with subchapter X-A of Chapter 6 of Title 1.”.

                (2) A new section 25-214 is added to read as follows:

         “Sec. 25-214. Cannabis Advisory Committee.

         “(a) Within 90 days of the effective date of the Comprehensive Cannabis Legalization

 and Regulation Act of 2023, the Mayor shall appoint a Cannabis Advisory Committee to study

 and make recommendations to the Board on the regulation and taxation of cannabis in the

 District.

         “(b) The Committee shall consist of the following members:

                “(1) The Director of ABCA, who shall serve as the Committee Chair;

                “(2) The Attorney General of the District of Columbia or his or her designee;

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                “(3) The Chief Financial Officer or his or her designee;

                “(4) The Director of the Department of Health or his or her designee;

                “(5) A person with expertise in cannabis cultivation;

                “(7) A person with expertise in cannabis product manufacturing;

                “(8) Two returning citizens who meet the definition of social equity applicant

 pursuant to

                “(9) Two persons from Disproportionately Impacted Areas as defined in D.C.

 Code § 25-2101;

                “(10) A person with expertise in economic development;

                “(11) A person with expertise in racial and economic justice; and

                “(12) A person who is a current qualifying patient registered with ABCA for the

 District’s medical cannabis program.”.

        “(c) A member shall disclose any conflicts of interest and recuse him or herself from the

 discussion or consideration of any recommendations where a conflict of interest exists.

        “(d)(1) The Committee shall advise on the preparation of regulations and consider all

 matters submitted to it by the Board.

                “(2) Where the Board rejects recommendations from the Committee, it must

 provide the Committee a justification for the rejection.

        “(e) The Chair may establish subcommittees in order to expedite the work of the

 Committee.

        “(f) The Committee shall sunset after the Board adopts final rules implementing the

 provisions of the Comprehensive Cannabis Legalization and Regulation Act of 2023.”.

                (3) A new section 25-215 is added to read as follows:

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         “Sec. 25-215. Cannabis license data portal.

         “ABCA shall establish a public portal that includes information on the following:

         “(a) The number of licenses available, pending approval, and awarded in each license

 category, including Social Equity Applicants;

         “(b) The demographic characteristics of licensees;

         “(c) License numbers and other relevant information on licensed cannabis establishments

 in the District;

         “(d) Monthly production and sales activity;

         “(e) Monthly enforcement and compliance data, including the number and type(s) of

 violations and the number and type(s) of enforcement visits;

         “(f) The location of Disproportionately Impacted Areas in the District; and

         “(g) Annual data on the distribution of grant, equity or loans as described in D.C. Official

 Code § 25-2107.”.

         (b) A new Chapter 21 is added to read as follows:

         CHAPTER 21. GENERAL PROVISIONS, SOCIAL EQUITY, COMMUNITY

 REINVESTMENT, AND MEDICAL CANNABIS INCENTIVES.

         “§ 25-2101. Definitions

         For purposes of chapters 21 through 29 of this title, the following terms shall apply:

         “(1) “Adult” means a person who is 21 years of age or older.

         “(2) “Cannabidiol” or “CBD” means a non-psychoactive cannabinoid found in

 the plant Cannabis sativa L. or Cannabis indica or any other preparation thereof that is

 essentially free from plant material and has a tetrahydrocannabinol level of no more than

 0.3%.

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        “(3) “Cannabinoid” means any of the chemical compounds that are the active principles

 of cannabis.

        “(4) “Cannabis” means all parts of the plant from the genus Cannabis, whether growing

 or not, with a THC concentration greater than 0.3% on a dry weight basis, the seeds thereof; the

 resin extracted from any part of the plant; and every compound, manufacture, salt, derivative,

 mixture, or preparation on the plant, its seeds or resin. The term does not include the mature

 stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant,

 any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks

 (except the resin extracted therefrom) fiber, oil, cake, or the sterilized seed of the plant which is

 incapable of germination.

        “(5) “Cannabis concentrate” means a product derived from cannabis that is produced by

 extracting cannabinoids from the plant through the use of propylene glycol, glycerin, butter,

 middle chain triglyceride oils, olive oil or other typical cooking fats; water, ice, or dry ice; or

 butane, propane, CO2, ethanol, or isopropanol.

        “(6) “Cannabis establishment” means a cannabis cultivator, independent testing

 laboratory, cannabis product manufacturer, cannabis retailer, or any other type of licensed

 cannabis-related business.

        “(7) “Cannabis tincture” means an alcoholic extract of cannabis commonly used in the

 production of cannabis extracts.

        “(8) “Child-resistant” means special packaging that is:

                “(A) Designed or constructed to be significantly difficult for children under five

 years of age to open and not difficult for normal adults to use properly as defined by 16 C.F.R.

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 1700.15 (1995) and 16 C.F.R. 1700.20 (1995). Note that this Rule does not include any later

 amendments or editions to the Code of Federal Regulations;

                “(B) Opaque so that the packaging does not allow the product to be seen without

 opening the packaging material; and

                “(C) Resealable for any product intended for more than a single-use or containing

 multiple servings.

        “(9) “Disproportionately Impacted Area” means a census tract or comparable geographic

 area that satisfies the following criteria as determined by the Cannabis Regulation Division of the

 Alcoholic Beverage and Cannabis Administration:

                “(A) Meets at least one of the following criteria:

                        “(i) The area has a poverty rate of at least 15%; or

                        “(ii) The share of households in the area that receive public assistance

 income as defined by the Census Bureau is at least 4%; or

                        “(iii) The area has an average unemployment rate, as determined by the

 Department of Employment Services, that is more than 120% of the national unemployment

 average as determined by the United States Department of Labor, for a period of at least 2

 consecutive calendar years preceding the date of the application; and

                “(B) Has or had high rates of arrest, conviction, and incarceration related to the

 sale, possession, use, cultivation, manufacture, or transport of cannabis.

        “(10) “DFS” means the Department of Forensic Sciences.

        “(11) “DOH” means the Department of Health, also known as DC Health.

        “(12) “Edible cannabis product” means any cannabis product for which the intended use

 is oral consumption, including any type of food, drink, or pill.

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        “(13) “Electronic smoking device” shall have the same meaning as it is used in the

 Electronic Cigarette Parity Amendment Act of 2016, effective February 18, 2017 (D.C. Law 21-

 189; D.C. Official Code § 7-741.01(1)).

        “(14) “FEMS” means the Fire and Emergency Medical Services Department.

        “(15) “Finished cannabis” means usable cannabis, cannabis resin or

 cannabis concentrate.

        “(16) “H