Bill Summary – FastDemocracy

MURIEL BOWSER

     MAYOR

July 13, 2023

Honorable Phil Mendelson

Chairman

Council of the District of Columbia

John A. Wilson Building

1350 Pennsylvania Avenue, NW, Suite 504

Washington, DC 20004

Dear Chairman Mendelson:

Enclosed for consideration and approval by the Council of the District of Columbia is a proposed

resolution entitled the "ABCA Civil Penalty Schedule Approval Resolution of 2023 ."

The resolution will approve a proposed final rulemaking of the Alcoholic Beverage and Cannabis

Board that will amend the alcoholic beverage civil penalty schedule in accordance with recent

changes to the underlying law made by the Reopen Washington DC Alcoholic Beverage

Regulation Amendment Act of 2022, effective June 30, 2022 (D.C. Law 24-127; 69 DCR 5071)

Specifically, the rules will update the schedule by (1) incorporating new infractions and penalties;

(2) repealing obsolete infractions; and (3) amending the descriptions of existing infractions.

If you have any questions regarding this legislation, please contact Donovan Anderson,

Chairperson, Alcoholic Beverage and Cannabis Board, at (202) 442-4423 .

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                                                                  #~   Chairman Phil Mendelson

                                                                      at the request of the Mayor

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 6                                A PROPOSED RESOLUTION

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10                  IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

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14   To approve a proposed final rulemaking of the Alcoholic Beverage and Cannabis Board

15          that would amend the alcoholic beverage civil penalty scheduled codified in

16          Section 800 of Title 23 of the District of Columbia Municipal Regulations.

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18          RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That

19   this resolution may be cited as the "Alcoholic Beverage Civil Penalty Schedule Approval

20   Resolution of 2023".

21          Sec. 2. Pursuant to D.C. Official Code § 25-830([), the Council approves the

22   proposed final rulemaking of the Alcoholic Beverage and Cannabis Board, transmitted by

23   the Mayor to the Council on _ _ _ _ , 2023, which amends the alcoholic beverage civil

24   penalty schedule codified in Section 800 of Title 23 of the District of Columbia

25   Municipal Regulations.

26          Sec. 3. The Council shall transmit a copy of this resolution, upon its adoption, to

27   both the Mayor and the Chairperson of the Alcoholic Beverage and Cannabis Board.

28          Sec. 4 . This resolution shall take effect immediately.

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            ALCOHOLIC BEVERAGE AND CANNABIS ADMINISTRATION

                ALCOHOLIC BEVERAGE AND CANNABIS BOARD

                           NOTICE OF FINAL RULEMAKING

  The Alcoholic Beverage and Cannabis Board (Board), pursuant to the authority set forth

  in D.C. Official Code § 25-830(±) hereby gives notice of the adoption of amendments to

  the existing ABCA Civil Penalty Schedule (Schedule) set forth in Chapter 8

  (Enforcement, Infractions, and Penalties) of Title 23 (Alcoholic Beverages) of the

  District of Columbia Municipal Regulations (DCMR).

  This final rulemaking makes conforming amendments to the Schedule in accordance with

  recent changes made by the Reopen Washington DC Alcoholic Beverage Regulation

  Amendment Act of 2021 , effective June 30, 2022 (D.C. Law 24-0127; 69 DCR 5071).

  Specifically, these final rules will update the Schedule by (l) incorporating new

  infractions and penalties; (2) repealing obsolete infractions; and (3) amending the

  descriptions of existing infractions .

  On August 10, 2022, the Board voted five (5) to zero (0) to approve the Civil Penalty

  Notice of Proposed Rulemaking. The proposed rules were published in the District of

  Columbia on February 24, 2023 for a thirty (30)-day notice and comment period. The

  Board did not receive any comments during the comment period. On March 1, 2023 , the

  Board held a public hearing to receive comments from the public concerning the

  rulemaking. No one appeared to testify at the hearing and the Board did not receive any

  comments.

  On May _ _ , 2023, the proposed rules were submitted to the Council of the District of

  Columbia (Council). See Alcoholic Beverage Civil Penalty Schedule Amendments

  Approval Resolution of 2023 (PR-_). The Council approved the proposed rules on

  _ _ _ _ _ , 2023, and the Board adopted the ABCA Civil Penalty Schedule Notice of

  Final Rulemaking by a vote of five (5) to zero (0) on _ _ _ _ _ , 2023. The final rules

  shall take effect five (5) days after publication of this notice in the District of Columbia

  Register.

  Chapter 8, ENFORCEMENT, INFRACTIONS, AND PENALTIES, of Title 23

  DCMR, ALCOHOLIC BEVERAGES, is amended as follows:

  Section 800, ABRA CIVIL PENALTY SCHEDULE, is amended by removing the

  following infractions from the ABRA Civil Penalty Schedule:

Section          Description                                    Violation    Warning

25-741(b)        Serving Back-up Drinks to Customers            Secondary    Y (Repealed)

                 Retailer's Class DR or DT With Common

23 DCMR          Dining Area Fails to Sell Alcoholic

206.2            Beverages in Containers Identifiable with      Secondary    y

                 Business

                 Off-premises Retai ler Class A or Class B

23 DCMR          failed to Inform Board in Application of

206.4            Table Use                                      Secondary    Y - Mandatory

   Section 800 is amended by adding the following infractions to the ABRA Civil

   Penalty Schedule in numerical order:

Section         Description                                      Violation    Warning

                Selling alcoholic beverages for carryout or

25 -            delivery to a consumer at an unregistered

113(a)(3)(D)(i) location                                         Secondary    y

                Selling Alcoholic Beverages for Carryout or

25-             Delivery to a Consumer Outside of the

113(a)(3)(D)(v) Approved Hours                                   Primary      y

                Holding a Catered Event on a Pub lic Street

25 -113(i)(6)   Closed by the District Government                Primary      N

                Operating a Summer Garden or Sidewalk

25-113 .0l(c)   Cafe Without the Endorsement                     Primary      y

                Licensee Holding a Brew Pub Endorsement

25 -            Using a Third-Party Delivery Company or

117(a)(5)(B)    Platform to Deliver to Other Licensees           Primary      y

                Offering Tasting Outside of the Approved

25-118(e)       Hours - Manufacturers                            Secondary    y

                Offering Tasting Outside of the Approved

25 -118(£)(1)   Hours - Wholesalers                              Secondary    y

                Offering Tasting Outside of the Approved

25 -118(g)(l)   Hours - Private Collector                        Secondary    y

                Operating as a Distillery Pub Without a

25 -125(b)      Disti llery Pub Endorsement                      Primary      y

                Operating as Disti llery Pub Outside of the

25 - 125(d)(2)  Approved Hours                                   Primary      y

                Vio lating Terms of Third-Party Alcohol

                Delivery License in a Manner Not

25 - 130        Otherwise Specified in This Table                Primary      y

                Fai lure of Third-Party Alcohol Delivery

                Licensee to Timely Fi le Semi-Annual

25 -130(£)      Report                                           Secondary    Y - Mandatory

                Fai lure of Third-Party Alcohol Delivery

                Licensee to Keep or Maintain its Books and

25 - 130(g)     Records for 3 Years                             Primary       y

                Fai lure of Third-Party Alcohol Delivery

                Licensee to Maintain Books and Records on

25 -130(g)      Premises or at a Board-approved location        Primary       Y - Mandatory

25 - 130(h)     Failure of Licensee that Utilizes the Service   Primary       y

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                of a Third-Party Delivery Company to

                Register with the Board

                Violating Terms of Commercial Lifestyle

                Center License (CLC License) in a Manner

25-131          Not Otherwise Specified in This Table          Primary     y

                Failure of CLC Licensee to Control Litter,

25-13 l(e)(8)   Trash, and Debris                              Secondary   y

                Failure to Complete a Mandatory Licensee

25-402( e)(1)   Training                                       Secondary   y

                Failure to Timely Provide to the Board a

                Copy of a Management Agreement with a

                Third-Party for the Management of a

25-704(a)       Licensed Premises                              Secondary   y

                Failure to Make Immediately Accessible to

25-             an ABRA Official or MPD, Upon Request,

71 l(a)(3)(A)   a Settlement Agreement or Security Plan        Secondary   y

                Delivering Alcoholic Beverages Outside of

                Approved Hours - On-Premises Retailer's

                License or Manufacturer's Licensee with an

25-723(b-l)     On-Site Sales and Consumption Permit           Primary     y

                Operating or Permitting the Sale, Service,

                and Consumption of Alcoholic Beverages

                Outside of Approved Hours - Commercial

25-723(b-2)     Lifestyle Center Licensees                     Primary     y

                Violating Terms of Outdoor Common

                Seating Area - Commercial Lifestyle Center

25-767          Licensee                                       Primary     y

                Providing False or Misleading Statements

                with the Intention of Influencing, Impeding,

25-             or Obstructing an ABRA or Metropolitan

823(a)(5)(C)    Police Department Investigation                Primary     y

                Destroying or Concealing Evidence in

25-             Connection with an ABRA or Metropolitan

823(a)(5)(D)    Police Department Investigation                Primary     N

                Failure to Produce Documents, Records, or

                Videos Within 48 Hours of a request in an

25-             ABRA or Metropolitan Police Department

823(a)(5)(E)    Investigation                                  Primary     y

                Failure of a Covered License Holder to File

25-836(a)(l)-   and Maintain a Written and Compliant

(2)             Security Plan                                  Primary     y

                Failure of a Covered Licensee to Ensure that

                Security Cameras are Operational, Capable

                of Recording, and Actually Recording

25-836( g)(l)   While the Establishment is in Operation        Primary     y

25-836(g)(2)    Failure of a Covered Licensee to Maintain      Primary     y

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                   Video Footage of a Crime of Violence or a

                   Crime Involving a Gun for 30 days

                   Failure to Make Video Footage Available

                   Within 48 Hours of a Request from an

                   ABRA Investigator or Member of the

25-836(g)(3)       Metropolitan Police Department                 Primary     y

                   Failure of a Covered Licensee to Ensure that

                   the Establishment and Security Cameras

                   Comply with All Technological and

                   Operational Standards Established by the

25-836(g)(4)       Board                                          Primary     y

                   Failure of a Covered Licensee to File an

25-836(i)(l)       Amended Security Plan Within 10 days           Secondary   y

   Section 800 is amended by amending the following existing infractions in the ABRA

   Civil Penalty Schedule to read as follows:

Section         Description                                       Violation   Warning

                Failure to Timely File a Statement of

25-112(e)(l)    Expenditures and Receipts                         Secondary   y

25-             Offering Entertainment Without an

113.0l(b)(l)    Entertainment Endorsement                         Primary     y

25-             Imposing a Cover Charge Without an

113.0l(b)(l)    Entertainment Endorsement                         Secondary   y

25-             Offering Dancing Facilities Without an

113 .0l(b)(l)   Entertainment Endorsement                         Secondary   y

                Offering Entertainment Outside of the

                Approved Entertainment Hours - Manufacturer

25-             Licenses Holding an On-Site Sales and

113.0l(b)(2)    Consumption Permit                                Secondary   y

                Operating a Summer Garden or Sidewalk Cafe

                Outside of the Approved Hours - Manufacturer

25-             Licenses Holding an On-Site Sales and

113.0l(c)       Consumption Permit                                Primary     y

25-117          Violating Terms of Brew Pub Endorsement           Primary     y

25-71 l(a)(l)   Failure to Post Licenses                          Secondary   Y - Mandatory

                Failure to Post Sign: Warning: Drinking

                alcoholic beverages during pregnancy can cause

25-712(a)       birth defects.                                    Secondary   Y - Mandatory

25-             Refusing to Allow ABRA or MPD to Enter or

823(a)(5)(A)    Inspect Premises without Delay                    Primary     N

25-             Refusing to Allow the Examination of Books

823(a)(5)(B)    and Records                                       Primary     y

23 DCMR         Sale By a Retailer of Spirits, Wine, or Beer On   Primary     y

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206       Their Premises Without a Retailer Purchasing

          Permit

          Establishing a Bonded Warehouse as a Storage

23 DCMR   Facility for Alcoholic Beverages Without a

209       Storage Facility Permit                        Secondary   y

          Storing Alcoholic Beverages at a Storage

23 DCMR   Facility Without an Off-premises Storage

210       Permit                                         Primary     y

23 DCMR   Submission of Knowingly False or Misleading

214.17    Affidavit                                      Primary     N

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                          Government of the District of Columbia

                           Office of the Chief Financial Officer

                                               * * *

Glen Lee

Chief Financial Officer

MEMORANDUM

TO:                       The Honorable Phil Mendelson

                          Chairman, Council of the District of Columbia

FROM:                     Glen Lee             /} /)

                          Chief Financial Officer~

                                                       /J    ;ue_

DATE:                     May 3, 2023

SUBJECT:                  Fiscal Impact Statement - ABCA Civil Penalty Schedule Resolution of

                          2023

REFERENCE:                Draft Resolution as provided to the Office of Revenue Analysis on April

                          3, 2023

Conclusion

Funds are sufficient in the fiscal year 2023 budget and proposed fiscal year 2024 through fiscal year

2027 budget and financial plan to implement the bill.

Background

The Alcoholic Beverage and Cannabis Board (Board) and the Alcoholic Beverage and Cannabis

Administration (ABCA) regulate, enforce, and adjudicate laws governing alcoholic beverages and

medical marijuana, and violations of those laws.

The proposed resolution approves an ABCA rulemaking that is technical in nature by upd ating the

schedule of civil penalties to include new infractions1; clarifying existing language; and removing

obsolete references.

Financial Plan Impact

Funds are sufficient in the fiscal year 2023 budget and proposed fiscal year 2024 through fiscal year

2027 budget and financial plan to implement the bill. ABCA can implement the regulation within its

existing resources.

1

 Including infractions added by the Reopen DC Alcoholic Beverage Regulations Amendment Act of 2021,

effective June 30, 2022 (D.C. Law 24-0127; 69 DCR 5071).

              1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 (202)727-2476

                                            www.cfo.dc.gov

                  GOVERNMENT OF THE DISTRICT OF COLUMBIA

                         Office of the Attorney General

BRIAN L. SCHWALB

ATTORNEY GENERAL

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                                                          PRIVILEGED AND CONFIDENTIAL

                                                          ATTORNEY-CLIENT COMMUNICATION

Legal Counsel Division

Memorandum

TO:           Tommy Wells

              Director

              Office of Policy and Legislative Affairs

FROM:         Megan D. Browder

              Deputy Attorney General

              Legal Counsel Division

DATE:         January 19, 2023

RE:           Legal Sufficiency Certification - Draft "ABRA Civil Penalty Schedule

              Resolution of 2023"

              (AR-22-463)

This is to Certify that this Office has reviewed the above-

referenced draft legislation and found it to be legally sufficient. If you have any questions

in this regard, please do not hesitate to call me at 724-5524.

Megan D. Browder

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