The Medical Cannabis Conditional Licensure Extension Emergency Declaration Resolution of 2025 addresses the urgent need to amend the Legalization of Marijuana for Medical Treatment Initiative of 1999 by extending the expiration dates of conditional licenses for various medical cannabis operations, including cultivation centers, retailers, and manufacturers, for an additional year. This resolution comes in response to significant market changes, including the closure of 71 unlicensed cannabis establishments, which has led to a surge in legal medical cannabis sales, reaching over $5.4 million in April 2025. The increase in licensed retailers from 7 to 64 since January 2024 highlights the growing demand for legal medical cannabis, yet the supply remains limited, necessitating the extension of conditional licenses to support the transition of applicants to permanent licenses.

The resolution emphasizes the challenges faced by businesses in the medical cannabis sector, such as raising capital and securing appropriate facilities, which hinder their ability to operate within the current licensing terms. By extending the conditional licenses, the Council aims to provide these businesses with the necessary time to establish themselves and contribute to the legal market, thereby reducing reliance on illegal sources. The proposed emergency legislation would be retroactively applicable from June 28, 2025, ensuring that all affected licenses are reactivated and can continue to operate, thus promoting stability and growth within the District's medical cannabis industry.